The morning news. [volume] (Savannah, Ga.) 1887-1900, 1892-02-05
BEERS MAKES REPLY
TO suPr. PIERCFs SENSATIONAL
REPORT.

It's Attacks MOI JuStln5u Oy any
thing in the Management of the New
York Life-A Clear ano able EXPOSE
ton Of the Facts in thu Case-Losses
on Investments in Real Estate APP
parens Rather Than Resl-AgencY
Management.
NEW YORK, Feb. 2.-To the Policy.hold-
ars Of the New York Life Insurance Com
nanv: On June 10. 1891, the following COM
Irunication was Transmitted to the insur-
ence department of the state of New York:
NEW York, June Is. 1s91.-Hon. ]. F.
Pierce, Superintendent Insurance Depart
,nant Albany n. Y.-Dear Sir: The
charges that have been made against this
company and its management in the public
nrass. growing out Of matters connected
with its Spanish American department.
having been cabled to our presi-
dant in London, we are in receipt
of a cablegram from him in response, sug-
costing that the insurance department be
invited, in the public interests, to make an
examination OF the company for the salts
faction Of any policy holders who might be
disturbed by these charges and criticisms;
and in accordance with his suggestion the
finance committee OF the company, at its
regular meeting, held this date, adopted the
following preamble and resolution:
"At a meeting of the finance committee
of the New York Life Insurance Company,
held this date, the following proceedings
were had:
'WHEREAs, Certain charges and criticisms
have been made against this company in the
public press. growing out Of certain matters
connected with the Spanish American depart
ment and
WHEREAS, The finance committee of the
board OF trustees is satisfied from the state
ments of the officers that there will be no loss
10 this company by reason of the matters re-
ferred to- yet it is DESTROYS that the public should
be equally satisfied; therefore
"ResJlUed, That to that end the superntend-
eat of insurance Of this state be invited to make
a thorough examination of this company In
accordance with the foregoing, the company
will be pleased to have this examination at your
earliest convenience. Yours truly.
Signed "A. II. WEIGH,
Second Vice President"
In accordance with the above, on June
o. 1891, the insurance department was
placed in charge of the books, records, etc.,
of this company. and remained in charge
until Jan. 1. 1892. There are many reasons
why it seems not only proper but necessary
to review with you the insurance depart
ments findings. First, no corresponding
test has ever been applied to the life insur-
ance business and the results ought to be
presented oyou not only without prejudice
but from the company's point Of view, aud
u me it seems to be clear that the only way
10 achieve this is by personal statement.
do not mean by this to reflect in any
way on your sources of information
hitherto. | say that no corresponding
test has ever been applied TO the business of
life insurance. By this mean no investi-
CATION by state insurance department has
ever been made Of a company whose assets
and general business reached corresponding
proportions. Since any test has been APP
piled to the conduct OF this business, results
have been achieved " hich, few years ago,
seemed impossible. The horizon has ex-
banded, and duties and responsibilities have
fallen upon me and the executive officers Of
this company and of nearly all other life
companies. which, if not new i kind, are
50 much greater in degree as to constitute
almost new world of experience in
our business. The investigation Just
closed has therefore been remarkable for
this as well as for other reasons, and be-
yond question in addition to its proportions,
has been the most searching and nerciless
inquiry ever made OF the executive officers
OF u life insurance company
Tho central fact in any such investiga.
ton is and must be the integrity of the
assets of the company. The figures of the
1891, and the insurance departments gen.
eral statement is as follows:
assets: $50 81
llaDuIleS ......-.. LOG 0O2, Ola II
Gross surplus on policy holders
account .-........-......... 14,7OS,675 SO
The superintendent of insurance well
said, in commenting on the above: "Those
lnteres ed may be assured that this con-
clusion is correct and trustworthy" These
WOT1S will hoor rpaAipcr
They mean something different from a
oausual statement of financial responsibility
n the business world. They could be used
only after our assets he'd been subjected to
test which might seem from nany points
otVlew unnecessarily severe but which from
the nature of our business, and the sacred
character of its trust, is unuueetionably
WISE The superintendent, therefore,
means that all doubtful items were elimi-
mated, that our opinions were necessarily
ignored, that disinterested opinion
was the standard, aud that
We were obliged to plead before bar
where mitigating circumstances were
ruled out of evidence. After such test,
may be allowed to offer my congratulations
70 our membership on the result. and 70
STATE That the other executive officers of the
company, as we'll as myself share with you
III the satisfaction of SO great an achieve
Ment desire personally TO emphasize my
congratulations on this particular and most
Important view of the report. 1t would
nave been unnatural, think, If the ideas
myself and associates of the
aggregate value Of the assets of this
company, as expressed in our last annual
statement, had differed to a considerable
uegree from the ideas of the gentlemen
VINO liked che values expressed in the
insurance department statement Diff
Ierences could arise only in certain classes
vi Investments, and large portion Of the
esseVS OF such an institution as this is of
sucn character that there could be no
suEiety OF opinion as to its value on
any any given date; but it is equally true
.laI considerable portion of the
assetS or TINS, as Of every similar COM
pany is OF such a nature that its value al
guy given time must necessarily be ex
pressed In different totals by equally capa-
VIC ana responsible men. The variation
mTulu express no actual fluctuation in
W yH.ue, but simply difference in opinion
n mulcn opinion might be for your purpose
r"GsG nearly correct is again a matter oil
Sp.loh; aud while concede the wisdom IL
oaG guy. Investigations of a conservative view,
s, Iu under the peculiar circum-
Stances surrounding the request for
MS examination the wisdom and
NeSSity Of an ultra conserva-
~ 'o view l cannot avoid the conclusion
NJ 10Y ,.t IN these particular items the opinion
n, VIC men who have planned and directed
nue. erection of this great COM
a. while they may be accepted
sTs vue ptterances Of special pleaders,