New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-01-10
AFFAIRS OF THE LIFE UNION.
rs MANAGEMENT SEVERELY CRITICISED by
TIE DEPUTY SUPERINTENDENT OF


INSURANCE.
Albany Jan 9.-Mlchael shannon, deputy super
nendent Of the State Insurance Department has COM
p,cted his examination of the affairs OF tue Life Union
and the National Benefit Society, Of New-fork CITY,
the State Mutual Benefit Association, OF syracuse
which are companies engaged in the life insurance
business on the corporation or assessment plan. Mr.
shannon says in part:
The Union Life Company began business In Aug
ust 1855 and grew, and fairly prosperous and In
good condition up to March o5. 1892, when Louis r.
Levy obtained control OF II and was elected first VICE
president Since that date the condition OF the COM
pany has grown rapidly worse Ven Mr.. Levy look
charge OF the affairs OF the society Its cash assets
we've in excess OF It's liabilities. On October g. 1892
at the beginning Of this examination, Its assets
amounted to S6jOso, while its unpaid death losses
amounted to 81, $50 | have reason to believe that
m present date its assets are less than on October
B. 1902, while It's unpaid losses have risen to upward
OF $4,000. This unsatisfactory condition OF affairs
appears to be due the methods pursued by Mr.
Levy who IL president OF the other two companies,
and apparently in fun control In July last Mr.
Levy drew three checks the reserve fund Of the
Life Union aggregating $4,000 which he said were
to be used in the purchase of the membership OF the
New-York State Mutual Benefit Association, OF syria
cuse and that the money had boon paid by his per-
sona checks 10 the persons entitled TO II. An ex-
animation OF the books Of the Syracuse association
passed into its possession. and none OF It's members
has vet been transferred to the Life Union.
Mr. Levy appears TO have used the funds OF the
several companies which he controls II they were
hi own pers onal property The kiting OF checks be-
tween the several companies controlled by him seems
10 he feature OF his management. Disbursements,
accrerating 5000 are entered the Life Union
cash book under date OF May II. 1892, for the settle
ment Of death claims. Mr.. wInans, the cashier says
that none Of these payments made at that time,
although he was directed By Mr. Levy b have them
included In the next printed statement OF the mortuary
fund and health claims paid. minority OF the
board OF directors. consisting OF men who were mem
bcrs OF the Life Union board previous to Mr. Levy
Obtaining CONTROL have been opposed to the methods
pursued by Mr. Levy. They live In Elmira and
Watertown, " Y. New Britain Conn.,. and Ph!ladel-
mia and they say that notices Of meetings OF the
hoard OF directors were mailed to them on the day
previous TO such meetings that they were only
received by them the day Of the meeting, and
they were. therefore unable to attend
The examination of the National Benefit Society
was begun on August IL, 1902. on which date its
cash assets amouuted to SG.e32 10. while Its unpaid
death claims amounted to $50. $50. II would seem
that whenever Mr. Levy needed money he would make
objections - the payment OF death claim, and then.
A. counsel for the company, take charge OF its ad-
ustmcnt For his services In such his charges
varied from 800 to $3.50 averaging about $40 for
each cnse From January /, 1901, 10 July 80. 1892.
twenty eight such claims have been attended to by
Mr. Levy for his services, in which the society paid
him Si.715.
The New-York state Mutual Benefit Association Is
also I'm an unsatisfactory condition financially. On
June IL. 1892 its unpaid death losses amounted to
~ $50 while lis cash assets amounted 10 only
70 2O5 The report contains other evidences Of Mr..
lows Acknowledgement. up,rint"nden OF Insurance
lanes F. Fierce Immediately turned the report over
70 Attorney General RoSendale, with request that
| no taLp
citation If the facts disclosed In the report required
| such action.