The Birmingham age-herald., 1906-07-03
COMMITTEE REPORTS
 ON NEW YORK LIE Assets of S438,788,015.19
 Are Worth That Sum AFFAIRS WELL MANAGED General Administration of the Com pany Is Well Organized and Its
 Management is sound-6ad
 Investments Explained.

New York, July 2-The special commit l tee of the board of trustees of the New York Life Insurance company. appointed
 December 1S, 1905, to consider the evil l dence submitted to the legislative com 1 mittee and the report of five state com
 missioners of insurance, who were then
 examining the company's affairs, made it's 1 final report today to the board of trus- l tees. The report, which is compre-
 hensive one, deals with the financial con-
 dition of the company, the work of the
 finance committee, the general method of
 conducting the business, departmental
 work, expenses, foreign business deferred
 dividend policies and various miscellan-
 eous matters under separate heads. It
 is signed by Thomas P. Follower, Nor
 man B. Ream, Hiram R. Steele, A G.
 Paine and Clarence T. MaclSay. 1 A special report is appended dealing
 with the New Orleans Railway company | securities matter, the Mexican Central Railroad company bond transaction and the $SO0,O0O interest in the navigation sym dicate.
 After recting that the special commit
 tee held sixty meetings and availed it. self of every source of information con | cerning the affairs of the company, the report says:
 'Tt therefore feels that 1t has left noth- ing undone to enable it to determine how the business of the company in all its departments has been conducted, and to speak authoritatively on that subject" The report then submits the balance sheets of the expert accountants, which, in part, says:
 Assets Are All Good. "We have verified all the assets of the company, and after providing sufficient
 reserves for possible losses, find that on December 31 1905, the total assets amount
 ed to s4Ss, ,7Ss, ,0i5. .1s, and are fully worth that sum.
 I've have tested the clerical accuracy of the insurance reserve as certified by the actuary of the company, which amounts to s379, l065. and exceeds that required by the insurance department of | the state of New York by the sum of | S7211,79o, and having made provision | of S5 5S9 7T5 for all liabilities, we find that | there was on December 31, 1905, balance | of s54,047,176 available for dividends on | participating policies dncluding deferred dividend policies at the end of their sev- eral accumulation periods, and for con- tingencies). This balance exceeds that | claimed by the company in its annual report for 1905. '"rhe general administration of the | company is well organized, It's manage ment sound; its business methods and system of collecting premiums are effec- | tive and economical; and its books and | records are well and accurately kept" | The report reviews the work of the | finance committee of the New York Life
 Insurance company, now composed of
 John Claflin, Edmund D. Randolph, Wood bury Langdon, George A. Morrison. All | exander E. Orr and D. P. Kingsley. | This committee. the report says. meets | twice a week. and a subcommittee every l day, and upon them 1t adds, lis imposed the task of supervising and directing the
 investment of from sSooeoo,ooo to s4oo-
 000, 900.
 1 Traffic In Securities.
 From the statement prepared by the l treasury department it appears that in
 five years, 1901 to 1905, both inclusive, the 1 purchases of securities amounted to $291,- 1 052 704. the sales to s101, .319, besides re- demption if maturing securities. We find also," continues the report, | that the profits realized from sales and syndicates were sS,642,695
 "Of the total losses of s577.6S0, five items
 amount to s527, ,425, viz.:
 New Orleans Railroad company, bonds and syndicate interest, s320.1 194; naviga-
 ton syndicate $S0.O00: United States Steel
 company bonds, ss2.soS; Austin city bonds,
 $27 tcs, and Fort Worth bonds, s17.S00.
 "ks far back as 1892" says the report, l "the policy of erecting office buildings | was discontinued and the real estate hold
 ings of the company out of its total as- 1 sets of over S400 000, 900 amount to less than
 s14, 000,O00 of which amount sl2.000.0o0 is | represented in the home office building in | this city, and domestic and foreign office | buildings. Its investments since 1899 have | been principally confined to bonds of the various kinds mentioned of which there
 was on hand on December 31, 1905. a total | of S323.S44 150.
 '.No member of the finance committee | has directly or indirectly pecuniarily par | ticipated in or profited by the transactions | of the committed"
 | The committee reports that in 1905 the company wrote $296,64o.S54 new insurance, and that Its total income from all sources | during that year was $103. .432. .590 The total payments to policyholders in 1905 amount | ed to $40, ,262 O39. and the total number | of outstanding policies was 1,0o1269. New Business Limited. | Under the head of expenses the report 1 says the total expenses in conducting the business for 19O5 after deducting the amount paid for insurances. taxes and in- vestment expenses were 1895 per cent of the premium income of the year. The provisions of the new legislation. says the report, limiting the amount of new | business the company may do in any year to s15O O000, ,000 compells an immediate re- organization of the working force of the company. The subject of continuing Its foreign
 business is in the committees conclusion
 strongly in favor of maintaining that busi-
 ness as a general policy.
 The supplemental report of the commit tee says on the subject of the New Or leans Railway company's securities mat ter:
 There Is no liability on the part of members of the finance committee or any other trustee officer of the finance committee or any other trustee for the loss resulting from the purchasing and sale of bonds and syndicate interest in question"
 On the Mexican Central Railroad com
 pany bond transaction the committee re- ports:
 There is no liability to the company on the part of MT. Perkins or any other of- fcer or trustee to account for this sum-" Similar decision is made on the $500. 900 t, xf,A kl