Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1905-10-08
State Insurance Superintendent Demands That
Campaign Contributions Be Made Good IN
Thirty Days or He Will Revoke
License of Company
VAN DIVER ARRAIGNS HEAD OF
NEW YORK LIFE FOR GROSS
~ VIOLATION OF SACRED TRUST

Y jefferson City, Mo-, Oct. State
Superintendent of Insurance Van Div
err today sent the following letter to
President John A. Mccall of the New
York Life Insurance company:
ITO Mr.. j. A. Mccall. President New
York Life Insurance Company:
The recent startling disclosures in
regard to the management of the
funds of the New York Life Insurance
company and particularly the testi-
mony of yourself and other officers Of
the company given before the inves-
tgating committee of the New York
legislature, make it my duty as super
intendent of insurance for the state Of
Missouri TO communicate to your COM
pany the views and requirements of
this department, to the end that the
policy holders i'm this state may not be
defrauded of any portion of the divi-
dends or surplus earnings that are
justly due them on the premiums that
they have paid.
THE public has been very properly
taught by yourself and other officials
of great insurance companies that the
funds of mutual company constitutes
fiduciary trust, held and administer
ed for the sole use of those named as
beneficiaries many of whom are or
will be widows and Orphans and
many thousands of people have taken
insurance in your company because of
this very fact and the assurance that
every dollar of assets belongs to the
policy holders, That any portion of
the policy holders premiums, or pro-
fits on premiums, could be diverted to
political purposes or other uses not
contemplated when the premiums
were paid in, and not consistent with
the avowed purpose of life insur-
ance organization, must be considered
by all right thinking people as a gross
violation of sacred trust, II not em-
bezzlement as defined by the statutes
This department holds, therefore.
that all moneys taken by your order
from the treasury of the New York
life Insurance company and donated
to any political campaign committee
or to any legislative agent or lobbyist
for aiding or defeating legislation
whether audited or unaudlted ON the
books OF the company, were taken
without warrant of law or morals and
without proper appreciation of your
responsibilities as trustee of the funds
committed TO your keeping. And
therefore this department must Insist
that all funds so used by you or by
your order, and particularly the sum
of S14S,7O2.5O. which amount YOU
confessed to having contributed out of
the funds of the company to the re-
publican national campaign commit
tees for the years 1895, 1900 and 1901
must be replaced In the treasury of
said New York Life Insurance com.
pamy within the next thirty days.
"NOtlce Is hereby served on the
New York Life Insurance company
that unless this requirement Is met or
assurance Is given tllat II will be met
without unnecessary delay, |. as super
intendent of insurance for the state Cf
Missouri. will proceed under the pro-
vision OF section s, l. %, revised stat
Htes of Missouri TO cancel or revoke
The license of the company TO do bus
mess In this state"
There are many other transactions
disclosed by the investigation now III
progress. particularly the payments OF
large sums of money to one j. G..
Hamilton without any accounting OF
auditing on the books of fhe company
and the occupancy of costly real estate
of the company by members of your
family at a rental so low as TO be
practically a gift of the property; and
also the protection of subsidiary
company from the loss of many thous-
ands OF dollars by the use Of policy
holders money, as we'll as immense an"
dkproportlonate expense of the COM
pany i'm Its mad rush for new business,
all OF which indicate the grossest inn
proprlety and recklessness In manage
ment. and may call for further inves-
tlgItion and official action. But from
the facts already disclosed it Is evi-
dent that the Interests Of the policy
holders of the New York Life Insur-
ance company, as well as the public
generally, demand a change In the
management Of the company This
department viii, therefore, insist that
a new president and vice president and
finance committee be pat In charge OF
the affairs of the company as soon as
its board Of directors may be able TO
effect change.
every respectfully
wv. d. VANDIYER."