New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1905-09-07
MUTUAL SYSTEM PROBED.
PROXIES THE SUBJECT.
Relatives and Salaries Discussed at
Insurance Inquiry.

In its pointed inquiries OF witnesses to
whether their fellow officers included relatives.
the legislative insurance investigating commit
tee at its opening session yesterday opened
Up brand new line Of inquiry The main point
which the Opening session sought 10 determine
briefly 10 what extent the so-eoiied mutual
companies were really mutual concerns 10 what
extent the polioyho:eers have the right to vote.
and how they exercise any privileges they mey
have in this direction.
The highly interesting answers went to show
that only an infnitesinal fraction OF per
cent OF the policyholders vote at elections; that
elections are not contested once in a decade:
that lists of poIicyholders are ordinarily entirely
inaccessible to the general public. and that no
tices of elections are frequently left to the dis
cretion of branch Office agents
The virtual topic" indeed. yesterday was
proxies" the witnesses being Haley Fiske.
vice-president OF the Metropolitan Life; John
c. Mccall. secretary of the New-York Life. and
the son of the president OF that company; Rob-
ert A Granniss. vice-president of the Mutual
Life; Walter G. Oakman. inspector of elections
for the Mutual Life and ex-president of the
Guarantee Trust Company; George NJ Cum
ming, president of the United States Mortgage
Trust Company. who acted as elections inspec-
tor for the Mutual Life on the last occasion:
Edward Rhodes, mathematician to the Mutual
Benefit Life Insurance Company of New-Jersey:
Frederick H. Ecker, controller of the Metropolis
tan Life. and Charles W Camp secretary of the
Mutual Reserve
Among the witnesses expected to go on the
stand to-day are George W Perkins Darwin p
Kingsley vice-president of the New-York Life,
and other officers OF this company. as well as
officers of the Equitable and those companies
under investigation yesterday
SALARIES TOUCHED ON.
While Charles E. Hughes who conducted ths
oral examination, held mainly TO the highway
of proxies" and Officers control in his first
days journey. he wandered occasionally into
the bypath of officers salaries thereby eIiciting
further interesting and. to many unexpected
evidence. showing salary increases by such
leaps and bounds as, in the opinion of some
present almost paraeled the Equitable dis
closures. That the goal sought was the actual
cost Of life insurance and the reduction of pre-
mlums. as indicated recently in interview at
tributed to Thomas F. Ryan, seemed unmis-
taxable
The testimony yesterday included Mr. Gran
nisss deposition that while between 100000 and
1000 of the MutuaIs policyhoders had tho
right to vote in the election for trustees on
June 6. 1904. only 15S policyholders votes were
cast. ana there was no vote Uy proxy, ana lndL
on June 5, 1906. at the election duly held in the
companys Offices the total number Of votes cast
was 19s again no proxies being presented.
These two elections added Mr.. Granniss. were
typical of former years. Mr.. Mccall testified
that only six ballots were cast personally at
this years New York Life election.
That the investigation. as foretold already In
The Tribune is to be conducted by Mr.. Hughes.
and in the order of topics" not Companies"
was made patent yesterday
That Mr. Hughes with his colleague. James
McKeen and their assistant. Matthew c. Flenl-
ing have arrayed against them much of the
ablest legal talent IN America became likewise
soon apparent.
FORMIDABLE COUNSEL PRESENT.
AS the visitor scanned the faces OF the impos-
ing ranks of counsel the jesting prediction th'-t
counsel would find themselves confronted by the
.'New-York bar" seemed scarcely an exaggera-
ton.
The long list of counsel in court included eT-
Governor Frank s. Black. Wilbur L. Ball AID
William c. CULVER who appeared for the Equi-
table; Paul D. Cravath for Mr.. Ryan; ex-Assis,-
ant United States Attorney General James u
Beck for the Mutual Life: Frank H. Platt, OK
counsel to the Equitable pocyholders' Crinmins
committee. and Frank r. Lawrence, both for the
Mutual Reserve, and Richard V. Lindabury AMI
G y BOvee of the firm of Rich. WOCdford b.
wee &, Butcher for the Metropolitan Life
There was no ostensibe attempt by counsel.
however to advise the evasion of any questions.
invite contempt and seek to take advantage or
the habeas corpus act, as intimated by certain
counsel on the eve of the investigation On the
contrary. John A Mccall. the president OF the
New-York Life appeared in person for his conf
panv and announced that the New-York IAfs
had nothing to conceal. and Nice-Presdent Per-
kins announced his company had no counsei
present and had no need of. any Frank Black.
as we'll as several other counsel. announced
that his company would assist the COMMITTEES In
every, nossfbIe way As for the witnesses them
selves from MI Fiske and Mr.. Mccall. jr..
downward they made no secret of their desire
10 assist the work OF the committee. Witnesses
promised almost eagerly a speedy fulhlment OF
reouests for the salaries Of all leading officers
IN the last twenty-five years and detailed lists Of
securities were forthcoming with murmur-
The committee with possibly one or two exceP-
ttons received assistance in every conceivable
way. Mr. Fiske adapted himself to the condition
Of waiting for four hours In the courtroom but
late in the afternoon he sent for Of his clerks
and signed two more pressing business letters
at the desk where he sat
Mr.. HYDE did not appear in court; neither DID
District Attorney Jerome.
INVESTIGATION BEGINS.
The investigation opened in the Aidernanic
Chamber of the City Hall az II a. and was
adjourned before ; = m. All the committeeman
were present The New-York Life made brave
showing It sent all its officers who had been