Evening journal. [volume] (Wilmington, Del.) 1888-1932, 1892-02-04


conservative view, and under the peculiar
circumstances surrounding our request
for this examination, the wisdom and me-
cessity of an ultra conservative view,
cannot avoid the conclusion that in these
particular items the opinions Of the men
who have planned and directed the erec-
ton of this great company, while they
may be accepted as the utterances Of
special pleaders, are worthy at least Of con-
sideration by you. | accept the aggre-
gate financial findings Of the Insurance
Department as constituting an indorse-
ment Of the management Of this company
at once satisfactory to you and creditable
to me and my associates.
II is possible that In spite of the pc
ouliar character OF this Investigation. you
would not have expected any word from
me had the matter rested there but tho
SUPERINTENDENT OF Insurance has seen fit,
after announcing not only the solvency.
but the great prosperity Of the company,
as evidenced in its gross surplus Of
nearly fifteen million dollars, to take up
and discuss certain items, and N doug
SO has criticised the management of the
company In these details very severely.
This constitutes an added and by itself,
II bUuEltlAN Ntheou why = ~ WIN
you over the ground traverssd by the
insurance department, In order that your
attention may be called TO many related
facts which do not appear 10 the report.
The departments criticisms cover several
phases Of management, especially in
vestments IN real estate ana agency
work. The criticisms OF real estate mat
ters call attention TO losses which may
be divided into losses actual, which ! ad-
init, and losses theoretical, which arise
from differences OF opinion. admit GER
tain losses, which | will point ont spe-
officially with the attendant circum-
stances. and raise the question Of dit
ference Of opinion as to the remainder
Before entering on the discussion Of
any Of these matters, II is due TO all par
ties to say that investments are made
only with the approval OF the finance
committee, consisting Of Eve members,
and Of which | am a member Elk otiiclo.
Plaza Hotel.
The report alleges loss on this prop
erty Of two hundred and eighty-three
Thousand, nine hundred and ninety-four
dollars. The Superintendent OF Insur-
ance uses this language in connection
In pr perty Of this character and Of
such great value the opinions Of real
estate experts Of equal ability and integ.
rity often differ, and other able and con-
scientlous appraisers might value this
property at higher figures, and
even beyond It's cost The gentleman
who by direction OF the Superintendent
OF Insurance, valued this property au two
million FIVE huodred thousand dollars Is
man emlnently qualified to give an
opinion on such question. But 1t ie
also fact that another gentleman Of
equal ability and character within few
weeks testified before the Supreme Court
OF the State OF New York that in his
Judgment the property at the present
time is worth three million dollars
From your point OF view, then is it not
fair to conclude that the alleged loss may
after ell exist only as a matter OF opinion
But the case will bear one more com
ment. This property Is as finely located
as any on Manhattan Island for Hote
purposes aud perhaps as finely as any
hotel property IA the United States /
Is ia the line of increasing values, and II
my judgement will ultimately yield ih'
company large return on the origina
Investment
Home once Building
The report alleges loss on this prop
erty Of 1884, 295. Its book value L
81, 914, 1916 and It enters the superintend
ent's neport at 81, $50 600 To iliustrat'
again how opinions vary as to the valu,
Of real estate let rs make parallel be
tween this and property Of a similsi
character in New York and draw con
clusion. Take the value placed upon oui
home Office building for the purpose 0
taxation, and place IL beside tie sam,
value Of the Equitable Life Assurance
Society's home office building The officla
| valuation for purposes of taxation of gu
home office building Is one million ant
fifty thousand dollars; Of the Equitabl
| home Office building, three million eigh
| hundred thousand dollars A statemen
OF the figures at which each property wa
entered in the assets of it's respeetiv
company December 81, 1890, Is as fol
/ lows. The home Office building OF tn
! New York Life, 81 9l4 600; home Off
/ OF the Equitable, $l5 lao, OOO The De
\ partmenU's estimate 81 the value Of on
\ property is approximately 80 per cent.
while the assessors figures for the pur
poses OF taxation are little more thai
( 80 per cent. OF its book value. AS tn
I gentleman who appraised our home oitie
/ building has never made al appraisal 0
/ the value Of the Equtable's home ottic
building, we can hardly draw conclusion
from that basis, but, figuring from tn
value placed upon 1t by the assessor, 10
total value would be approximately sevei
million, six hundred thousand dollars. i
the book value OF our home Office we're &C
cepted a. par.
/ cite these figures as strongly bring
ing out the truth OF my suggestion cor
corning opinions as TO real estate values
Everyone Is familiar with the eminen
success o. the Equitable Life Assursnc
Society, and no one would be so absurd
unjust to that company as 70 allege los
on this one parcel OF real estate OF seve
million Eve hundred thousand dollars o.
indeed. any loss at all from tie policy
holders view. Therefore, Is it nc
worthy OF your consideration that in thl
case, as In the matter Of the Plaza Hote
the loss alleged Is, after all, perhaps
matter of opnionl In fact, | could cit
you good authority on real estate value
ia New York who will place on our hon
Office building to-day valuation In exce'
OF its cost. There are many reasons WIN
this estimate would be conservative
the FIRST place the real estate was Du
chased In 1869 and is exceptionally we
located.
ANY one who knows anything about Il
history Of real estate values in New YoI
for twenty years will agree that the
has been, during that period, heavy a
vaaee in this and al property similar