The Farmville herald. [volume] (Farmville, Va.) 1890-1934, 1905-10-13
HITS NEW YORK LIFE
Missouri Sends President Mo
Call It's Ultimatum.
REPAY CAMPAIGN FUNDS OR GET OUT
bullion state Insists That Insurance
Company Dismiss officials Guilty
Of WronRdOing-Thre to
Cancel License.

company DISMISS OHcihif tuAit9
of WronKdoing-Threa to
Cancel License.
NEW YORK. oct 1O-W. ID. Van
diver, Missouri's state superintendent
Of insurance, has sent communication
to John A. Mccall Of the New York
Life Insurance company demanding
that the Sl4s.7O2 campaign fund con
trlbutlon be replaced in the treasury
Of the company under penalty Of reyo-
cation Of the company's license TO
transact business In Missouri for fail
ure to comply with the demand.
In the communication superintendent
yandiyer also informs President Nc.
Call that the Missouri department Of
Insurance will insist on new presi-
dent, vice president and financial COM
mittee for the New York Life Insur-
Rnco company Just as soon as directors
can possibly effect the reorganization
The letter says in part:
THE recent startling disclosures in
regard 10 the management Of the funds
Of the New York Life Insurance COM
pany and particularly the testimony Of
yourself and other officers Of the com
pany given before the investigating
committee OF the New York legislature
make II my duty as superintendent Of
Insurance for the state Of Missouri to
communicate TO your company the
views and requirements Of this depart
ment, to the end that the policy hold
ers in this state may not be defrauded
Of any portion Of the dividends or sur
plus 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 a mutual company constitute
a fiduciary trust, held and administer
cd for the use of those named as
beneaciarics, many Of whom are or
will be widows and orphans, and many
thousands Of people have taken insur-
ance in your company because Of this
very fact and the assurance that ev-
cry dollar Of assets belongs to the
policy holders.
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 unaudited on the
books Of the company, was taken with
out warrant Of law or morals and with
out proper appreciation Of your duty
to the policy holders
Notice is hereby served upon the
New York Life Insurance company,
through you, az It's president that un-
less this requirement is met or assur-
anee IS given that II will be met with
out unnecessary delay l, as superln-
tendent Of insurance for the state Of
Missouri, will proceed under the pro
visions Of section s,022, revised stat
utes Of Missouri to cancel or revoke
the license Of the company to do busi-
ness in this state"
That John r. Hegeman president Of
the Metropolitan Life Insurance COM
pany. borrowed $4,000 from the New
York Life Insurance company at ~
per cent interest. a rate below the mar
ket rate, was brought out In the In
vestlgation some time ago.
President John A. Mccall Of the
New York Life Insurance company,
has now testified that he IN turn bor-
rowed $4,000 from the Metropolitan
at the same rate. This was in Janu-
ary, 1903. The loan was renewed I'm
January. 1904, and ran until March,
1905, when the rate Of interest was ad-
vanced TO per cent, at which rate It
is still running
That the astounding total Of 5000
600 has been paid as commissions by
the Mutual Life Insurance company 70
two members Of the family Of Richard
A. McCurdy, president OF the company,
and the promise Of District Attorney
Jerome that the insurance scandals
certainly will be submitted TO an ex
grand jury were some Of
the late sensational developments in
the insurance situation
The practical exile Of James Hazen
Hyde from New York city and state, TO
continue indefinitely If necessary, or
until the former ruler Of the Equitable
his present defiant attitude
md agrees to appear and testify be-
fore the insurance investigating COM
mlttee, such is the punishment plan
ned by the members Of the legisla-
ture's inquisitorial body as just re-
Duke for rccalcitrancy.