Omaha daily bee., 1905-10-08
MISSOURI SERVES NOTICE
New York Life's License Will Be Cancelled
ifPoliticAl Contributions Are Net Repaid.
PRESIDENT @cALL ASKED TO RESIGN
superintendent of Insurance De-
mRnds Change in Management
as Soon as il Can He
Effected,

JEFFERSON CITY, Mo-. Oct. state
Insurance Superintendent w. D. Vandiver
today sent a communication to President
John A. Mccall of the New York Life In
surance company demanding that the $l4S.-
1O2.6O campaign fund contribution be re-
placed in the treasury of the company,
under penalty of cancellation of the COM
pany's license to transact business in
Missouri for failure to comply with the
demand.
In the communication Superintendent
Vandiver also informs President Mccall
that the Missouri department OF insur-
ance will insist on new president vice
president and financial committee for the
New York Life Insurance company Just
as soon as the directors can possibly effect
the reorganization.
Texts of the Letter,
The letter In full follows.
To Mr.. J. A. Mccall, President New York
Life Insurance Company-The recent start
ling disclosures In regard to the manage
ment of the New York Life Insurance
Company. and particularly the testimony
OF yourself and other officers of The COM
pany giyen before the investigating com
mittee of the New York legislature, make
it my duty as superintendent of insurance
for the state of Missouri to communicate
70 your company the views and require
ments OF this department TO the end that
| the policy holders in 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 in
! surance companies that the funds of a
mutual company constitute a fiduciary
trust, held and administered for the sole
of whom are or will be widows and
| orphans; and many thousands OF people
have taken insurance in your company be-
he haf
every dollar of assets belongs TO the pol
! icy holders That any portion OF the policy
| holders premiums, or profits on premiums
could be diverted to political purposes or
! other uses not contemplated when the pre-
| miums were paid In, and not consistent
with the avowed purpose of life insurance
| organization must be considered by ali
| right-thinking people as gross violation
or sacred trust, II not embezzlement as
This department holds, therefore, that
| al moneys taken by your order from the
! treasury of the New York Life Insurance
! Company and donated to any political cam
| paign committee or to any legislative agent
| or lobbyist for aiding or defeating legisla-
tion, whether audited or unaudlted on the
| books OF the company, were taken without
| warrant Of law or morals and proper APP
probation of your responsibilities as trus-
tees OF the funds committed TO your keep
| ing. and therefore this department must
| insist that all funds so used by you and
your order. and particularly the sum of
| sl4S, 1880 which amount you confessed 10
| ha'fng contributed out of the funds to the
! republican national campaign Committees
for the years 1885 1900 and 1904 must be
York Life Insurance Company within the
| next thirty days,
York Life Insurance company. through
| you as its president that unless this re-
| auirement Is met, or assurance Is given
| that IL VIII be met without unnecessary
| delay. l as superintendent OF Insurance for
| the state OF Missouri will proceed under
the provisions Of section s022 revised
at NJ IN nF 10
! the license OF the company TO do business
n this state.
closed by the investigation now In progress,
particularly the payments of large sums TO
| one Judge Hamilton, without any account
pany and the occupancy of costly real
| estate Of the company by members of your
t nTm s,ft e af The propertS and also the
protection OF subsidiary company from
| the loss Of many thousands Of dollars by
as the immense and disproportlonate ex-
/ pense OF the company in its mad rush for
new business, all OF which indicate the
management and may call for further in
| vestlgation and ofieal action. But from
| the facts already disclosed II Is evident
! the New York Life Insurance company. as
well as the public generally, demand
| change in the MANAGEMENT OF the company.
| This department will therefore, insist that
a new president and vice president and
van Of he company as soon as it's board
| OF directors may be able 10 effect the
| change Very respectfully -
W d. VANDIYER
Mccall Has Nothing 10 Say.
NEW YORK, oct. IA dispatch con-
( tanning the substance OF superintendent Of
Insurance Vandiver's message TO President
| John A. Mccall Of the New York Life
| Insurance company, was shown to Mr..
| he WI asked ~ he
would make public any reply TO IL, lie
replied: II have nothing 20 say"
seal Tru.t Has New Rival.