St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1892-02-03
8EERS' INDICATION.
The President OF the New York
Life Writes an Able
Paper.
Taking the Recent Investiga-
ton as a Text, It Refutes
All Charges.
Proofs That the Present Man
agement IS Conscientious
and Successful.
Western Investments Defend
ed and Their Profit and
Stability Shown.

Tothe Policy Holders of the New York
Life Insurance Company: On the 10th
day OF June 1891. the following COM
munication was transmitted to the in
suraGce department OF the state of New
York:
New York, June 16, 1s9l-Hon j. F.
Pierce, superintendent of Insurance Depart
ment. Albany. y. N.-Dear Sir: The charges
that have been made against the company
and its management in the public press,
growing our Of matters connected with its
Spanish-Amcrican department, having been
cabl6d 10 our president il London. we are
in receipt of 4 cablegram from him i'll re
Spouse, suggesting that tho insurance de-
partment be invited in the public interests 10
make an examination of the company for
the satisfaction OF any policy holders who
might be disturbed by these charges and
criticisms. and in accordance with his sug-
gestion, the finance committee of the com
pany at lis regular meeting, held this date,
adopted the following preamble and resolu
lion:
Ata meeting of the finance committee of
the New York Life Insurance company held
tEis date, thefolloWing proceedings were had
Whereas Certain charges ana criticisms
against this company in the public press
glowing out of certain matters connected
win the Spalish-American department. ana.
Whereas, The finance committee of the
board of trustees is satisfied from the state
ments of the officers thar there viii be no
oss 10 this company by reason of the matters
referred to- yet it is DESTROYS that the public
should be equally satisfied; therefore,
Resolved, To that end the superintendent
Of insurance of this state be invited to make
. thorough examination of this company
IL accordance with the foregoing the com
Is: viii be pleased to have this examination
st your earliest convenience. Yours truly,
[eigned] A. H. WEIGH
Second Vice President.
In accordance with the above, on the
22d day of June, 1891, the insurance de-
partment was placed in charge OF the
books. records, etc, Of this company,
snd renamed in charge until the 4th
Gay Of January, 1892. There are many
reasons why it seems not only proper.
but necessary, to review With you the
insurance departments findings:
FirSt-NO corresponding test has ever
been applied to the life insurance bust
scented to you, not only without preju-
dice, but from the company'S point of
view; and to me it seems to be clear
that the only way to achieve this is by
personal statement. l do not mean by
this to reflect in any way on your
sources Of information hitherto. l say
that no corresponding test has ever
been applied to the business of life in
surance; by this L mean no investiga-
Zion by state insurance department
has ever been made of a company
whose assets and general business
reached corresponding proportions.
Since any test has been applied
TO the conduct of this business
results have been achieved which,
2 few years ago, seemed impossible.
The horizon has expanded, and duties
and responsibilities have falleD upon
me and the executive officers of this
company, and of nearly all other life
insurance companies, which, if not new
in kind, are SO much greater in degree
as to constitute almost a new world OF
experience in our business. The in
vestigatiOn Just closed has, therefore,
been remarkable for this as well AS for
other reasons, and beyond question,
In addition to its proportions, has been
the most searching and merciless in
CURRY ever made in the executive office
of life insurance company. The cen-
trail fact in such an investigation is. and
must be, the integrity of the assets of
the company. The figures of the in
quirY were brought down to June so.
1891, and the insurance departments
general statement is as follows:
Assets, 1920. 10, 69O64.
Liabilities, SlO6, ,014.S1.
Gross surplus on policy holders ac-
count, S14.70S, G75.S3.
The superintendent of insurance we'll
said in commenting on the above:
"Those interested may be assured
that this conclusion is correct and trust
worthy"
These words will bear reading a sec
Ond time. They mean something dit
ferent from casual statement of finan-
cial responsibility of the business
world. They could. be used only after
our assets had been subjected to a test
which might seem from many points of
view unnecessarily severe, but which.
from the nature of business and the sa.
cred character of its trust, is unques-
tionably wise. The superintendent
therefore means that all doubtful items
were eliminated; that our opinions were
necessarily Ignored; that disinterested
opinion was the standard; and 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 to our mem
berShip on the result. and 10 state that
the other executive officers OF. the com.
pany. as we'll as myself, share with Won
In the satisfaction of so great an achieve
ment. l desire personally to emphasize
my congratulations on this particular
and most important view of the renort
1t would have been unnatural, | think.
If the idea of myself and associates of
the aggregate value of the assets of this
company. as expressed in our last an
nual statement, had differed to a con-
siderable degree from the idea of the
gentleman who fixed the values ey-
pressed in the insurance departments
statement: differences could arise only
In certain classes of investments. A
large portion of the assets of such an
institution is of such a character that
there would be no variety of opinion as
10 its value Oh any given date.
But it is equally true that a consider