The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1892-01-23
THE NEW YORK LIFE.
Report of Deputy Commissioner Shannon on
the MANAGEMENT

Report Of Deputy Commissioner Shannon on
the Management.
NEW YORK, Jan. 22.-The report of the
Insurance Department of the State of Now
York Of its examination into the condition
and affairs of the New York Life lnsur-
ance Company was made public to-day by
superintendent Pierce, who presents a sum-
mary of the results of the investigation
made by Deputy Shannon, with his own
comments thereon. Following are the prin-
ciDal parts of Pierce's statement:
The most satisfactory result appearing
in the report Is the conclusion reached that
this great and useful institution of our
State Is, beyond all question, solvent, and
Is the actual owner and pOSSesSOr of sur
plus OF available assets and property eX-
ceedng present liability by the sum Of
S14,708.675. Divided: General account.
S6,CSS 1856; tomtine accumulation, 1910, 539
Those interested play be assured that this
conclusion is accurate and trustworthy"
Examination of the company grew out Of
charges Of reckless management and cor
rupt practices made against the officers and
Trustees, particularly against the President,
William III. Beers, upon the responsibility Of
the then cashier Theodore Banta. Charges
were originally made four years ago, and
an investigation at that time by a commit
tee Of Trustees favored the management
A New York newspaper unearthed the
charges, which were first published in this
city last summer After their publication
Bauta renewed the old charges and added
new ones.
Speaking Of some investments, the re-
port says the actual cost of hOlbrook Hall
TO the company was S1,009, $50, while the
actual value thereof, as estimated by
the appraiser of the department, did
not exceed S480000. The superintendent
under the head Of agency management,
reviews fully the facts relating to the
accounts Of the Spanish American De-
partment and other agencies in question,
showing those three agencies indebted to
the company upward of S1,500,00 He
says " After a careful reading and exam
inatiOn Of this portion of the report, l am
forced to the conclusion that the facts pre-
sented clearly indicate that a state OF az
fairs exists in the cOmpany's agency man
agement calling for seyerest criticism"
Superintendent Pierce says the facts leave
no doubt In his mind that several hundred
thousand dollars should be added to these
figures on account of large allowances i'm
properly made; that this whole agency busl-
ness was entirely in favor of the interests
and profits of agents and against those Of
the company, and the management is guilty
OF gross neglect in permitting such cOntinu-
Gus deViatiOns from ordinary business rules
to the great loss of the cOmuany.
The detailed report of Deputy Shannon
shows that on July 30th last the total assets
of the company were S120, 40, $50; total liza
blities, S106, 002, Oh; gross surplus, S14, 7O6,
60 Among other things Banta charged
that the company paid many thousands Of
dollars in the shape of blackmail to prevent
exposure Of the charges of misconduct
in management. Shannon saws the truth
of this charge Is admitted by the officers.
Several thousand dollars was paid to one
writer for the purpose Of suppressimg the
publication of articles he had prepared at
tacking the management of the company.