The Goodland republic. [volume] (Goodland, Kan.) 1891-1907, 1905-10-13
CRIMINALS BEFORE THE LAW
CONFESSIONS OF NEW YORK IN
SURANCE OFFICIALS.
Corruption OF Legislatures, GIisuses
Of Money and Maintenance Of
Doodle Fund

Doodle Fund
NEW YORK, Oct s.-As the inves--
tigatiOn into the methods employed by
officers OF several life insurance COM
panies progresses, the more startling
are the exposures Of illegalities in
their handling Of policy holders
funds
An epitome- OF actual crimes indict-
able ana punishable by fine and i'm
prisOnnent, as well as the moral Of
lenses which the law does not reach,
committed in the-name Of life insur-
ance. and revealed by the confessions
under oath OF the high officials Of
these companies before the legisla-
tive insurance committee, is here
presented.
The men who have made these con-
LESSONS and admissions by which the
most colossal financial scandals in
American business history are uncov-
cred, are: John A. Mccall, president
Of the New York Life Insurance COM
pany; George ". Perkins, partner Of
J. PierpOnt Morgan and vice president
OF the New York Life; Robert H Nc
Curdy, son Of Richard Il. McCurdy,
president Of the Mutual Life; Jacob
H. Schif, a director Of The Equitable;
John c Mccall, secretary Of the New
York Life and son Of ITS president;
Frederick Cromwell, treasurer Of the
Mutual and a number OF others equal
" prominent
Some Corrupt Transactions.
Among the transactions which have
no legal or moral countenance are:
Diversion OF profits, which should
have gone to policy holders, corrupt
ION Of legislatures to prevent enact
ment Of unfavOrable legislation, the
maintenance Of a corruption fund,
contributions to republican campaign
funds, participation ia syndicate deals
by which profits which should have
accrued 10 the companies were divert
ed, and fragrant instances Of nepotism
by which millions have gone into the
pockets OF men at the heads Of the
dig concerns
Here are the facts which these high
fnanciers and noted administrators
Of vast organizations have confessed
Under oath:
Money Used for Lobbying.
John A. Mccall, president OF the
New York Life Insurance company
FirsJ-That the public statements
OF the New York Life are false. II is
a crime for a life insurance company
TO issue false statements.
SecCnd-That Judge Andrew Ham
-IJon vas retained as the companies
representative at Albany, and that
money was expended to prevent the
passage Of undesirCd legislation. It
IS a crime 10 corrupt a legislature.
Third-That the books Of accounts
OF the New York Life we're cooked"
The Justification Of the account Of a
life insurance company is a crime
FOUrth-That the money OF the pO-
| Icy holders WIS taken TO pay the cost
Of obtaining new policies. Larceny is
a crime
Fffth-That contributions aggregat-
/ ing S15OsOOO were paid to the repubH-
can national campaign funds for the
last three presidential elections, with
out authorization Of policy holders,
the majority Of whom are democrats.
This is a misapprOpriatiOn Of trust
funds.
Sixth-That since 1900 the New
York Life has paid TO Hamilton &476,-
s27.O2, for Legislative purposes" and
considerable sums TO others, bring
ing the grand total up to 5O7,127.O2.
Bills for HamiltOn's services during
| the present year are expected to total
1855, 900. This is bribery.
The Disclosures Of Perkins.
George ". Perkins. J. Pierpont
morgan partner ana vice president
/ Of the New York Life:
FIrst-That the New TOrl Life, like
the Equitable, has a yellow dog"
fund for the Ia met Of political con-
/ tributiOns and other secret expendi-
lures, the purpose Of which are not
entered upon the books Of the COM
pany. This IS bribery.
SecOnd-That the money contrfbut-
ing this fund comes from the So
! called "noniedger assets''-that is,
securities not carried upon the regu-
| Iar books Of the company, but upon
sheets. and not mentioned in the an
/ Lual reports. This is a violation Of
| the insurance law.
Third-That President Mccall has
/ the prerogative OF ordering the pay
| ment OF sums as high as 100000
I without the authorization Of the I'm
/ ance committee or any other body Of
men in the company. This is a vio-
iation OF the insurance law.
Fourth-That Perkins, acting for
/ the New York Life. sold to Perkins.
1 acting for J. PierpCUt Morgan & Co..
| $4,000 OF internal mercantile ma
'Iine bonds on December 81, 1903. and
/ IN January 2. the next business day.
/ ne sold them back, thereby changing
4 the face Of the report OF theNew York
{ lie This Is a violation Of the tnsur-
I dnce law.
Fffth-That checks tor the repubII-
I an campaign committee in 1894 were
/ made payable to J. Z. Morgan q Co
I Oy the New York Life and not to Cor
| neiius y. Bliss. treasurer Of the cam
/ paign committee. This was an Illegal
! transaction.
Manager MCCurdy's Faults
Robert z. McCurdy. superintendent
Of foreign department. OF the Mutual
Life;
Ffrst-That he received as commits
sions on every policy Of insurance
| written for the company In Europe.
/ Asia, AustraIia and Africa. an az
4 greEate OF 31.zss.3s0- This was d.
version OF profits.
| Second-That since 1855 he has
( drawn out OF the treasury OF the com
/ 1auy In salaries and commissions q
total OF S1.ss4.118- This was Excess
sive. according to his own admissions
! Third-Thst Louis A Thebaud. son
4 in-laW OF President Richard A Nc
/ Curdy, received as Commissions on
I New York and Staten Island insur-
ance since 1888. up to 1904. a total
/ OF 392s.S2S and his commissions this