The sun., 1905-09-07
INSURANCE QUIZ UNDER WAY.
LEARNED. AS A STARTER. THAT
MUTUAL VOTING IS A SHAN.
The New York Life Goes Ahead without
Counsel and Lawyers for Other Com
panies Promise TO Help-Subprna
Servers Seek Mcintyre and Jordan.

To what extent policyholders participate
In the government OF the so-oalled mutual
companies il the first question selected
for investigation by the Armstrong insur-
ance committee.
Officers of Ave of the mutual companies
doing business in this State the New York
Life, the Mutual, the Mutual Reserve, the
Mutual Benefit of New Jersey and the
Metropolitan, which is mixed company.
we're called to the stand at the opening hear
ing OF the committee yesterday morning
in the Aldermen's room in the City Hall.
Among the witnesses examined were Il. A.
Granniss, first vice e-presdent of the Mutual
Life; w. G. Oakman, formerly president
of the Guaranty Trust Company, who has
served for several years as an inspector
of election at the Mutual's annual meet
ings; John G. Mccall. secretary of the New
York Life and a son of the president OF that
institution, and Haley Fiske, vice-president
of the Metropolitan
The evidence adduced established the
fact long known in insurance circles th2t
the mutual plan. so far as the policyhoder''
interest in the annual elections of the COM
panies are concerned, is pretty much of
myth. 1t was shown that on the average
only about 200 Of the Mutual's $50, 900 policy
holders record their votes for the elections
of the companys trustees; that in the last
ten years the largest vote at any meeting
of the New York Life was 1928, and tn 1t
this number only thrty-six policyhoclors
voted in person; that only 5000 OF tAe
Metropolitan's 100000 policyholders wro
recorded as having voted at the last annu'
meeting, of whom three only appeared in
person. The records of the other COM
panies were proportionately low. The elec-
ton of men to the governing boards of tho
companies is, it was shown, controlled in
each case by the officers Of the companies.
to whom the poicyholders' proxies are
made out. In nearly all cases in which
policyholders are recorded as having voted
in person the ballots were handed in by
officers or employees of the companies.
NO NEW YORK LIFE COUNSEL.
Probably the most sensational develop
ment of the hearing occurred before the
formal taking of testimony, when Presi-
dent John A. Mccall OF the New York Life
announced to the committee that his COM
pany did not intend to be represented by
counsel at the hearings. Said Mr.. Mccall,
addressing Chairman Armstrong:
THE president Of the New York Life
appears here to say that the New York
Life is not to be. represented by counsel.
II it is 30 desired the New York will be
represented, but SO far as we are con-
cerned we do not feel the need of counsel
in the investigation"
Coming right after Chairman Armstrong;
announcement that lawyers for the wit.
nesses, while they would get every cour-
tesy, would have no rights in the investiga-
ton, President McCall's statement caused
big stir. Ex-Gov. Black had a few minutes
before announced that he would appear
with Wilbur l.. Ball for the Equitable, not
for the purpose of imposing any defense or
consuming the time Of the committee, but
merely to aid counsel for the committee
in every way possible in explaining any
thing that might be desired. James NJ.
Peck also had announced that he and +. l..
Allen would represent the Mutual Life
at the inquiry, and there were host OF
other lawyers in the room, including Paul
d. Cravath who represents Thomas F.
Ryan; William c. Gulliver, James H. Hyde's
lawyer; Frank H. Platt and Frank R. Law
renee, representing the Mutual Reserve
Company, and Richard " Lindabury and
Christian n. Bovee, counsel for the Metro
poitan Life.
Chairman Armstrong replied to President
Mccall that the committee had no desire
in the matter. The announcement, how
ever, created favorable impression for
President McCall's company.
james Nj. Beck, Frank II. Platt and other
lawyers said they wished it to be under
stood that they would do everything pos
sible to facilitate the work of the COM
mittee.
CAN'T FIND M'INTYRE AND JORDAN.
Before the inquiry began the news
leaked out that the committees subpoena
servers had been unable to locate two Of
the most desired witnesses in the Equitable
scandal. Thomas d. Jordan and William
H. Mcintyre. The process servers have
also been looking for James H. Hyde, but he
Ia in Newport and has given no intimation
that he will accept service. He is, it was
said yesterday, being urged strongly by
some persons concerned in the Equitable
scandal to remain out of the State until the
investigation ia concluded.
Mr.. Jordan and Mr. Mcintyre are wanted
chiefly in connection with that $6s5,00O
blind loan account from which blackmail
and lobbying fees were paid. 1t is learned
now that Mr.. Mcintyre probably knows
more about the transactions represented
by that account than any other Equitable
director. He practically had the handling
of the account Whether he represented
Mr.. Hyde who ndorsed the note covering
the obligation, as an officer of the Equitable
hasn't been disclosed, but Mr.. Mcintyre
was one of the men who put up the money
to pay the loan.
Mr.. Mcintyre left the city several days
ago and is said to be in the White Noun
tains, but the committee hasn't been able
to locate him. Not only the committee.
but the present management of the Equi-
table al well, would like to see Mr.. Jordan.
Mr.. Jordan lives in Fnglewood. n. D., but
it is said that he is away from home. The
searchers haven't been able to ascertain
where he has gone. The management
OF the Equitable wants to see Mr.. Jordan
to have him furnish some information
in its investigation. With James W.
Alexander so i'll that he won't be able to
testify, and with the two other principals
in tho loan transaction out Of the State.
the committee chance Of finding out any
Al..- In. ~, ,l1