The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1892-01-23
s.NEw YORK LIFE" MIsMANAGED.
Charges Made by the Newspapers Suss
tanned on Investigation.

NEW YORK, Jan. 22.-The report of the
insurance department of the state of New
York of it's examination into the condi-
ton and affairs of the New York Life
Insurance Company was made public to-
day by Superintendent Pierce, who pre-
sents a summary of the results of the
investigation made by Deputy Shannon,
with his own comments thereon. Follow
ing are the principal 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 a surplus OF available assets and
property exceeding the present liabilities by the
sum of s14,70s,675; divided general account,
s6,03S, 1856; Tontine accumulation, $s,670,5S9.
Those interested may be assured that this con-
clusion is accurate and trustworthy.
The examination of the company grew
out of charges of reckless management
and corrupt practices made against the
officers and trustees, particularly against
President William H. Beers, upon the
responsibility of the then cashier, Theo-
dore Banta. The charges were originally
made four years ago, and an investigation
at the time by a committee of trustees
newspapers unearthed the charges which
were first published i'll this city last sum-
mer. After their publication Banta re-
newed his own charges, and added new
ones.
Speaking of some investments, the re-
port says the actual cost of Holbrook hall
to the company was $1,000. s66. while the
actual value thereof, as estimated by the
appraiser of the department, did not ex-
coed $4,000. The superintendent says:
Careful consideration of the facts leads me to
state that no reasonable excuse or explanation
has been offered to rebuff: the charges of gross
neglect and incompeteney in the management of
this property, from which has res uted this great
loss OF over 100000 in this single investment
There appears TO have been loss of $685. in
the Plaza hotel investment The home Office
building shows a large shrinkage in value The
real investment in Paris, France, which cost the
company 81, 102, GOA, and which the French gov.
eminent values at only $40, 400 and which the
company's old selected appraisers value at onlv
$7S720, furnishes another instance of great
shrinkage in value and apparently OF great ex-
travagance in the price paid.
Under the head of agency management
Shannon reviews fully the facts relating
to the accounts of the Spanish-American
department and other agencies in cues
ton, showing that those three agencies
are indebted to the company in upward of
S1.500,000. He says:
After careful reading and examination OF
this portion of the report, I am forced to the
conclusion that the facts presented clearly indi.
cate that a state of affairs exists in the COM
pany's agency management calling for the
seyerest criticism and condemnation. and
which, If continued, must prove ruinous to the
company
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 allow
ances improperly made; that this whole
agency business was entirely in favor of
the officers interests and profits and
against those of the company, and the
management was guilty of gross neglect
IN permitting such continuous deyiations
from ordinary business rules, to the great
loss of the company. The detailed report
of Deputy Shannon shows that on july
30 last the total assets of the COMPANY
were $l20, 1850; liabilities, Sl06 O02. OILS.
gross surplus, Si4, 703. $40.
Among other things, Banta charges that
the company paid many thousands of dol
lars in the shape of blackmail TO prevent
exposure Of charges of misconduct in the
management. Shannon says the truth of
this charge is admitted by the officers
Several thousand dollars were paid to one
writer tor the purpose of suppressing the
publication Of articles he bad prepared
attacking the management of the com.
pany.