New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1892-01-23
THE NEU.YORK LIFE INSURANCE COM
PINT

Superintendent Pierce's report on the all ais
If the New-York Life Insurance Company ex-
noses crave mismanagement. The report is the
result OF thorough examination into the DOCKS
and records of the company which Deputy
Superintendent Shannon an officer oil eAceiiehU
reputation, has been conducting during inc idSV
three months. 1t is clear that MIR. Shannon mas
cot at the bottom of the facts, and has earhed
bv his diligence and care the profound gratitude
of the company's policy holders. Inc New
Yorl, Life is one of the three greatest insurance
companies in the world. 1t does business IN
every civilized country, and counts It's pohcy
holders by hundreds of thousands. The liicgal
and eytrayacant conduct which this report lays
bare must excite the most serious Apprehension
of policy holders everywhere, and serve 10 con-
firm the distrust with which life insurance meth
DDS are by many regarded.
Mr.. Pierce declares emphadcally that the COM
pany is thoroughly solvent, having clear sur
plus of nearly $4,000, 900, but he goes On 70
sav that in certain real estate transactions re-
Gently entered into the company has lost the
large sum of about S1,446,064; that 1t has
sustained a shrinkage in the value of earlier in
vestments nearly as heavy that during the last
three wears il has completed office buildings IN
five different cities at expense OF over
81 zoo. 600. from which it neither draws nor
has the prospect of drawing anything like an
ADEQUATE return and that these investments nave
been made under circumstances when sho"
"gross neglect and incompetency IN the mah-
acement of the company" something even
worse than neglect and incompctency Is revealed
in the conduct of the company's agency system
The facts prove that the sum OF S1,oOo'ooo
is owed without any fair security to the company
bv these irresponsible agents of cmcededly bad
character, to whom also " eXtrayagant commas
sions and unwarrantable allowances nave peeh
raidr IN the amount of several hundred thou
sands of dollars. "Nly review OF the facts
saws Superintendent Pierce, "convlnccs me that
| this whole agency business, in all It's features
| and relations to the company and the results
! therefrom, was entirely in the interest OF the
agents and against that of the company" ii is
J found that the company has engaged in unlawful
speculation, that its investments have been lie
gally and Improperly effected, and that system
of favoritism and ncpotism has crcpt into the
| company's affairs with results seriously pnJu-
dcial to the policy-holdcrs.
| How great a total of dollars and cents has been
| lCSU by lnlS SCdUuilOuS HlSiihhd~'iiiN"N ~
| Pierce does not undertake to say, but 1t must
be full third of the companys present surplus.
| These discoveries have been made, therefore IN
the very nick of time It is scarcely supposabe'
| in the face Of all the evidence Mr.. Shannon has
accumulated, that President Beers will even at
tempt to hold his place or further resist the de-
mand which so large body Of poicy-holders
has been 50 long making for radical change
in the company's official corps. Even the prompt
est acquiescence in that demand will not alay
the solictude which must be caused to the In
slned of every such corporation by these ex-
posuns There will necessarily be great anxiety
as to how far the methods Of the Ncwfork arc
initiated in the excited competition Of other com
pancs. 1t is somewhat comforting, however, &c
feel that there is public authority easily within
reach which can be depended on to scrutinizc
closely and efcctually to check tho operations
of an INSCRIPTIONS management.