Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1905-09-07
Insurance Inquiry Shows But
Few Policyholders Vote in
Company Elections
MUTUAL PLAN MOSTLY MYTH
Only About 200 Out Of se5o,ooo Record
Their Votes for Offices Of the Com
panies-some Testimony as to Sal
aries Paid to Heads of the Big In
surance Concerns.


the policy holders will participate in
the government of the so-called mu-
tual companies Is the first question
selected for investigation by the Arm
strong legislative committee.
Officers of five mutual companies
doing business In this state-the New
York Life. Mutual. Mutual Reserve.
Mutual Benefit of New Jersey, and the
Metropolitan, which Is a mixed COM
pany-were called to the stand at the
opening hearing Of the committee in
the alderman's room in the city hall.
Among the witnesses examined were
r.. A. Granniss. first vice president of
the Mutual Life: W. G. Oakman. for
merly president OF the Guarantee
Trust Company, who served for sever
al years as inspector Of election at the
Mutuars annual meetings.; John G..
Mccall. secretary Of the New York
Life and son of the president of that
institutions: and Haley Fiske. vice
president of the Metropolitan.
The evidence adduced established the
fact long known in insurance circles
that the mutual plan so far as the pol
Icy holders interest In the an
nual elections Of companies is con-
cerned, Is pretty much myth. 1t was
Ishown that an average of only about
200 of the Mutual's 100000 policy hold
ers record their votes for the election
of the company's trustees: that in the
last ten years the largest vote at any
meeting of the New York Life was
1928, and that Of this number only
thirty-six policy holders voted in per-
son; that only $4,000 OF the Metropolis
tan's 100000 policy holders are recor
ded as having voted at the last annu-
al meeting, Of whom three only APP
peared In person.
Other Records Low.
The records of other companies are
proportionally low. The election of the
men governing the boards Of the COM
panies is, 1t is shown. controlled In
each case by the officers Of the COM
panies. to whom the policy holders
proxies are made out. In nearly all
the cases in which the policy holders
are recorded as having voted in person
the ballots are handed in by the off,
GERS or employees Of the companies.
Probably the most sensational de-
velopment in the hearing occurred be-
fore the formal taking of testimony.
when President John A. Mccall OF the
New York Life announced to the COM
mittee that his company did not in
tend to be represented by counsel at
the hearings Said Mr.. Mccall. adj
dressing Chairman Armstrong
The president of the New York Life
appeared here to say that the New
York Life will not be represented by
counsel. If 1t is so desired, the COM
pany will be represented. but so far as
we are concerned we do not feel the
need of counsel at the investigation"
Coming right after Chairman Arm
strong's announcement that lawyers
for witnesses, while they would get
every courtesy. would have no rights
at the investigation. President Nc
Calls statement caused a big stir.
Witnesses Missing.
Before the inquiry began 1t became
known that the Subpoena servers were
unable to locate two Of the most de-
sired witnesses in the Equitable scam
dal, Thomas D. Jordan and William
Mcintyre. The process servers also
have been looking for James H. Hyde.
but he is In Newport and has given no
intimation that he will accept service.
He is. 1t is said. being urged strong
" by some persons concerned in the
Equitable scandal to remain out Of the
state until the investigation is con-
cluded.
Jordan and Mcintyre are wanted
chiefly in connection with that $685.
900 blind loan account. from which
blackmail and lobbying fees were paid
1t is learned now that Mcintyre prob
ably knows more about the transact
tions by that account than anybody
else.
During the progress in the investf-
cation into the conditions of life in
surance companies by the joint legis-
lative committee. which held it's first
session here yesterday 1t developed
that the enormous salaries paid the
high officials is one of the particular
points which the committee aims to
bring before the public.
1t was admitted by witnesses that
the salary Of the presidents of the big
companies was 100000 Will the com
pensation for the vice presidents and
minor officials ranged from $4,000
down.