The sun., 1892-02-03

py them. IL mas not henented tnym personals
drawn for every purpose. under the contract.
u snsy fna And ana hero s%
your attention TO an extremely Important
sS ss y 1tsss I'll q
forgot to mention. namely. that these adj
yances In every case were charged TO e3-
vances were made. and that the. company has
never counted them asa part Of its assets or
stead p une"ftins WIN Great dificSty some.
shahG stn.s the COMPANY desired to conceal. as ne
hs ss up az
cost n any given year. and charged up as. debt
the di'Isrsnce si' en- betyeen his opinion and ours
TIE sssrssa!s amoant paii NJ oF ffh" the procure
two millions too large. and in his report had
&c set Wbs shs np as sum due p iTom the hem men
spect for the opinion oil, tho official with whose
conclusions ! differ that in matt"rs Of this
had thirty years experience In this business.
az ,, to the pronriety Of paving given sum for a
cnnversant with all the surrounding circum.
correct and in the interests Of policy, holders.
enty aaaeS oee Se anes snS S s S Sn
cannot be credited with special knowledge in
sriSlsH. AMERICAN DsraRrMrST.- T SE sHrer.
intcndent naturally treats at some length the
Of Trustees to examine tho condition Of this
company was called out chiefly ~ an incnrreI,t
legged dcfalcntion by QUO Of its managers. for
whch the S"mrany . It was stated e.; , pSns must
head to this central. anil t" YOU most
M%p"sHanM IT. # MerssSsshsr sSSsshsn ops 1t d i t S
at that time Of the Spanish Amuri
ssan, can Department, rp became a. defnnitHr
naiy rnbii @ she'd a that Mr. n Mcrsbash"r drfaat.i Il
Sssss y IT, tHf
both, ana Mr.. Sanchez. The other general man.
time. ACCENTED Mn;lcr thG terms Z: !,js con.
pa5's: di.;st s"yh.s' ths5, y AS;o ;o N. Ms5S; =
and sGhsT FH% M Which, E1nsSSs a"s aS Of
by Mr. Merzbacher to the former general
Of the Sranis tn hs"
s the Ss i"" sps iS ss"Ssn ha Ss"n
panYby accrued @ renewal com missions retained
the company in cash The larger item
Tedaced since Dec: 81. 1890; u $le8S7i 81.
i5l;,GS Tie actual net profts for the Year
1901 to this department have not vet been
Sy sey n%t 5 sH it eapsi "a o eS shxs %
leaves the balance duo the company on this
account on this date u sum but little in excess
CLOSES his reysG q the
words words: From tho foregoing facts. Wv, we MUST must
conclude that Sanchez and MMerzbacher M were
w ifh IN hna pf SfG nf fho M Thnf
conclusion is not correct. The depart has
always been em!nently successful. and its
1. L. DINkrIsp1ri,e M superintendent ex-
presses the opinion that $. L. Dlnkelspicl WIS
Ss m dES Sr e fhe
sured were among, the wealthiest and most in.
came to my knowledge. however. after a time.
that his business methods were objectionable.
and for that reason in the year 1885 his agency
Mr.. Dinkelspiel's contract comes under the
notifications were made. to enable him to
handle the peculiar class Of business which he
wrote. Advances were made for the same
1t is probable. however. that. while there is
Ge sa afe
spiel. n reasonable renewal interest will not
finally liquidate the advances made. and that
this business will ultimately cost us moro than
For any error in Judgment in employing this
man. as we'll as for any ultimate loss. do not
desire to escape from anv proper RESPONSE.
bility., r r, e.
OF Insurance discusses Mt some length the
relations which, haye existed for about sixteen
years between the New York Life Insurance
Of it, Board OF, Trustees and of its Finance
Committee and two questions are raised. First.
to af o TN r BauTd
Trustees and OF its Finance Committee. could
act for it. as brokers without having the
curities colored by the probable commission
which the firm vs. would receive % on such t transac.
had the right to purchase securities through
such firm Of brokers.
The first question may be briefly disposed OF
without discussion by u simple statement Of
tho results.
In the years, covered by Mr.; Whites con-
With ths NeW GSk is
been purchased by the companys Finance
Gommittee, and 2 considerable proportion OF
member, Messrs. Loomis i. White 4 Co., ana
on the 30th Of Juno last the Superintendent,
pany som citing more, than s3000000 above
the cost value At which they we're carried on on
best answer to all questions as to the wisdom
Of the FinaMnsse Ms,. committees action; and in SO
.videnee wi G W Of the % value to the Company Of this
connection.
The second question Is one OF which opin:
ions OF counsel differ. l nave now reviewed
with you the graver criticisms Of tho Sur.rin-
tendent's report. l shall stop here. ! realize
not referred to. and do not deem it necessary
to do 80. 1 have tried to present to you fairly
the facts concerning those Of most Importance.
and believe l have shown You that while
there have been errors in the management Of
this company there has been no betrayal Of
trust. A full criticism of. errors. with
an equally full statement OF management
deserving commentator. would haye been
only fair to you. and perfectly satisfactory TO
me. however severe those criticisms might
have been: but the Superintendent OF Insur-
ance. who was invited to examine the .,,I Gondi-
ing whatever he deemed criticisHble. omitted
to state the othcr side Of the case. and, In
as to make it probable that YOU may have mis-
understood and overrAt.d their importan,E,e i,,e
!lli,y. and repeat the message sent from
Europe last sumner. that " In business OF
our magnitude mistakes are inevitable
and we compare favornbly with others: but
IA, ~ Ifs INST. In