New-York tribune., 1906-07-04
CALLS 1T WHITEW ASH.
NR. UNTERMYER'S TIEWS.
Statement on Fosoler Report dc
countapts' Figures Handed In.


In connection with its own report the Fowler
Investigating committee Of the New York Life In
surance Company has presented to the trustees the
report OF the public accountants containing criti
cal analysis OF the business of the company in all
its branches and on its method OF keeping books.
Samuel Unternyer. counsel for the international
policyhOders' committee. issued OF his char
acteristc statements. Referring 20 the Fowler re-
port he said: 1.-THE whitewash' is put on so thick
that IL falls off from it's own weight"
Discussing the real estate of the company the ac-
countants find that the net income from 1t amounts
to s546,694 II. which is equivalent TO S95 cent
the gross valuation The report then says: 'It
should be added here that the original cost Of the
properties considerably exceeded the present ap-
praisals but practically the whole OF the deprecia-
ton had been written off by the company years
ago" The average rate of interest realized on the
mean investment in loans on mortgage was found 70
be ASS per cent
The system of bookkeeping in connection with the
loans the company policies is criticised as being
detective but in other respects, the report says.
every care is taken in making such loans.
The bank balances of the company found
to exceed the amount claimed by the company by
S12O.443 s2 This due largely to the adjustment
Of the exchange on bank accounts in foreign coun-
tries Regarding premiums in the course OF collec-
ton the report says:
It is the company's practice 70 consider policy
as in force only when the first premium is paid and
consequently no credit is taken for first premiums
conservative course and should be taken into con-
the companW W with tbnss ~ Se otba conanies whose Sc
accounts are kept the basis of business written
premiums as soon as the papers are completed and
the policies sent to the agencies for delivery. The
eember 81. 1895, was approximately 100000. exclud-
ing deferred first year premiums.
Under the head of premium income the report
says:
One feature of the company's methods which
deserves special mention here has relation to the
commissions allowed premium collections. The
in force for domestic business. provides for com.
mission on the nrst premium varyng IRON 90 70 o %
amounting to about s70OO0OOO, s50OOOOoO were free
E0 IS an S Element ef Strength and aSty e pay dVi
dends. which does not show in any financial state
ment.
The average interest yield the mean total
funds of the company was found TO have increased
from 4 II per cent in 1904 to 415 per cent in 1905
The cost OF obtaining new business and the re-
newal business combined found to have de-
creased from 251s per cent OF the premiums in 1903
21G per cent in 1905
In a discussion of the salaries paid through the
Paris and Chicago offices as well as the home
Office it is shown that nine men receive salaries
ranging from $4,000 (the presidents salary down
10 $4,000 Nine men receive salaries ranging be-
tween $4,000 and $4,000.
Figures are given showing a declining tendency in
the dividends during the last FIVE years In the
case OF the deferred dividends the amount declared
each wear IS compared with the reserve value or
the policies maturing in that year In 1902 the re-
serve at maturity s7.1sO7O0. the dividend de-
clared SS Ss3S44. the percentage 1855 In 1905 the
reserve at maturity is stated as SZZSlc the olvl-
dend declared S3sss.1u, the percentage Ss2Z6- The
statistics for the ANNUAL dividends are stated as
percentage of the premiums paid in the preceding
year as follows 1901 premiums, $780, dividend
for succeeding year. $79964; percentage OF dividend
10 premium 1857 1906 premiums. Sc $50 49, dividends
for succeeding year, 1856 49, percentage OF oVloeho
to premium, Il 49,
Regarding sub-standard risks the report says:
u-o have seen sufficient of the methods adopted
m enable us to say that they based upon COM
Pete stastcs t ferent a1 risks and rating them
cording 10 actual experience and not at all III
haphazard manner
In conclusion the report has this TO say OF 'n0
system:
NAV, he fully understood and their effect may not
be unduly exaggerated we sho11 nr4in adopted by
the life Insurance companies OF me a 0aG res5ects
as are those Of we'll organized commercial eH'el-
pT5ges Use NAV saw that the general scheme Of the
panys organizatio is thoroughy so9nS ga ana ia
tiGi' t anu rasf deal that cau be done in the way OF
focusing the detail transactions and G0mRtets te
whole structure in line WITH nooern pi@'"0
Mr.. ITntermyer's statement follows:
The Fowler report fairly takes ones breath away
Its open defiance TO the polcyhoders remlnds one
of Tweeds question Just before his & doWntan ia 4
challenge of the agency force against the p0Icyss
holders It's statements are directly contraolcteo
the Armstrong committee from tne nHs u u tte te
ofScers of the company 1t is an assault on tne
honesty of the Armstrong report Inc WhlGe-
wash" is put thick that II fa1lS OH from lIS
Mr. Perkins is no longer officially connected with
the New York Life, but If anybody doubts that ne
and J. P Morgan & Co. rule the company more
comnietelv than at any time during its history ne
has onIv to read the Armstrong report and this
Fowler ''whitewash.' which seems 10 oe oaSea on
the assumption that the pohcyholders nave oeen
tived ont bv the endless delays and have lost all
interest in their property. -, 4,
When il is recalled that some or the members or
conduct they are endeavoring to whitewash the
public may prefer 10 rely on the nndings or the
Armstrong report
posed and pillOried in the investigation the New
York Life was the worst and has been most dehant
to public opinion. Not even decent pretence az
diverted. If the policyholders are as calous ana
have as short memories as Messrs Perkins. Kings-
they will deserve what they get.
Mr. Untermyer also had this comment TO make:
see that President Peabody of the Mutual Life
is reported denouncing the expert accountants
whose reports were suppressed by the Truesdale
committee as careless and incompetent. These are
the same accountants reports that the company
has been recently advertising throughout the coun
trv under the heading The Truth About the
Mutual Life. at expense of over $lO0oC0O to the
company.
It is said that President Peabody has asked Mr.
Truesdale for more information regarding certain
subjects touched by the report The interna-
ganizat ton at the Waldorf-Astoria on Monday noon
More than twenty of the members have expressed
their intention Of being present.
SAYS CHANCE FRIENDS TOOK 500 BILL