New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1892-01-23
CENSURING THE OFFICERS.
SUPERINI ENDENI PlERCE'S RLPOKI.

SOLVENT BUr HAS BEEN BADLY MANAGED.
The results of the investigation of the New
York Life Insurance Companys affairs which the
State Insurance Department has been making Tor
soms months were made public yesterday in the
form, of report by Superintendent Pierce ana
one by his deputy. Mr.. Shannon, to whom was
assigned the special charge and execution oil me
work Mr. ShannOn's report is an elaborate docu-
ment over eighty pages long, but all the important
findings in il are stated by the Superintendent,
whose report is given herewith in full
Whatever apprehension may have existed III
the minds Of the company's policy-hoiders regard
ing the financial condition of the institution Will
be dispeed at once by the official assurance which
Mr. Pierce hastens ~ make, that tue INSTITUTION
is solvent beyond all question. Its sur
plus Of available assets exceeding lis
present liability is declared 10 be S6,o3s.l36 80
accrued upon it's general account, and So,o1o'-
500 80 upon it's tOntine accumulation Those
interested the Superintendent solemnly declares,
"may be assured that this conclusion is accurate
and trustworthy
il does not follow from this, however, that
the company has been properly managed. On the
contrary the findings of the Department are
severely against the executive officers Ihcir ex-
plantations are, in the opinion OF the ouperh-
tendent insufficient to relieve them OF the charges
OF excessive expenditure and bad judgment Tie
management of the agency department Ii vlgor-
ously condemned as being "ruinous TO the com
pany" and entirely in favor OF the interests ana
profits Of the agents The various bad invest
ments made by the company are discussed at
length, as a rule with results uniavoraole TO
the managers The purchase and sale of securl-
Ties on commission by l.. j.. White u 20 whle
Mr. White vas d trustee IN the company are CEN
flsfs. linz al
management and the losses which have been EN-
tailed in consequence, the Superintendent COLI
cludes that everything can be Strengthened out
all right, and that renewed life and usefulness
will follow TO the company.
REPORT OF THE SUPERINTENDENT.
His report is follows:
Insurance Department of the State OF New lork,,
au, to statute A aa y re- Of the &C
Board Of Trustees the nndeisgnsd snpehtepSe9t St
the Insurance Department Of tie staia Oh anS .air
Of the New York Life Insurance Company 70 De n""e
His report In ~ gard said examination submitted
10 and flied in this Department on the otm iis. , h
received full and careful consideration on my part d.
have also the exhibits and schedules thereunto ht
tacied and ii appears 10 me to be appOpr'avS t
should de expression OF my views ana opilohs
Ths examination was made nnder nv sc general and
points thereof became known u and were considered
ey during The progress of the eAaninanon md
sn.cIol charge and execution Of the work in all its
and detail and upon examination ana ooS1n t5e
same Tie report itself bears evidence OF the IN
diligence, integrity and industry exered and main,
tained by Dir. Shannon and his assistants IN qIs ape
and thorough examination (" the Ne" 10TH Lie III
Tie most Satisfactory result appearing in this report
is the conclusion reached that this great ana nsel emu
relations extend and are being advanced IN nearly
state Of our Union and and rb No pscy % s
therein may named legion. Is beyond all question
solvent, and is the actual owner ana pscesSins
present Iiablty By the sum Of IS 1876 So accrued
upon It's general account and ss0.o'1e % upon u,
earnestly desired by this Department Those
MAY be assured that this conclusion Is accurate anu
Managing trustees and Officers may come ana 20.
ana esp and decrease ST in some degree the p
Gsseis that belong 10 the policy holders yet me
large s' companies Of our State continues exist
safe and beneficial system for those WHO inyes therein
vestors no great evils misnanagement can continue
y0p, .d SmfSE By sh' Of s ny
snten The % sso ST
tet ali its business acts and transactions through It's
trustees and officers that afect the value OF IT.
Known. not only to The policy holders but also to this
department and the general public:
ao 81 he trustees and executive officers Of life in
rancs sSna s b. T With 70 their Trp ps
sion and CONTROL and in such case Vie Pohcyholdcrs
NAV rest assured that their interests Will be amply
The methods pursued BY Mr. shannon IN marshal al.
ling its assets and liabilities are son conn l0i
formed only by thorough and constant attention to dc,
tails and a. when Ss,s tSss SSs that az
work receives from intelligent and disihterested cru
The spprslsads Of the retl estate and MORTGAGES
owned BY the company were made In every case by
competent authorities selected by myself after much
cara and consideration and full confidence may be re-
posed In their fairness and accuracy
HoLBROoK HALL.
The sct,a cost Of IIolbrook Hall TO the company
was 81 GO0 SC6 81, while the actual value thereof as
estimated by the appraiser Of the Department did not
exceed S4o0,oo0.
The account OF the matter presented to the com
nit,ee OF trustees leaves strong impression upon
rr mind that the interests OF the company were
neglected ard t.iaed with in its earlier history, ana
when the testimony Of Mr.. Barton and Mr. "htemore
f. considered and the subsequent action OF the execn-
tive officers exhibiting the further history of tins prop
e@ty. the criticism of Mr. shannon seems nild ana yen,
prate and a careful consideration u the itcte f5tA
ne 10 state, conclusion theretom tist no ras1n
able excuse explanation has been offered 70 IvDut he
clargc Of gross neglect and ncompetehcy IN }ne MAJ, IA
arat loss OF over iatmllon of dollars to the com
pany IN this single Investment
PLAZA HOTEL.
There appears 10 have been lcss OF *2s3'"o4 IN
this Investment II We assume that the appaisement OF
MIR. Coleman correct
In property Of this character aud Of such great
value tire opinions Of real estate experts of equal
ability and integrity often differ, and other able and
conscientious appraisers might value this property at
HIGHER figures. and even beyond It's cost.
The actions Of the executive officers in regard to this
urcperty although not entirely free from censure in
I.xau 10 careful management and goOd Judgment DO
mol manifest the grossly erroneous Judgment and neg
lcc to the that appears In the OF the HO
hr,st Hall
The Question Of doubt In regard b the title Of an
Integral portion Of this PROPERTY raised By tbs report
OF Judge spencer the same. is not one for which
nv any rnte of business ethics. the executive officers
ere responsible The best professional talent In The
examination of real estate titles employed by
them on this occasion. and by their views and re
norts they were properly Influenced and governed.
The Home Office Binding also shows large
h.Inkoga A., v.iu. az nuDrl sed by Mr.. Coleman and