The Birmingham age-herald., 1905-10-08
Demands That Money Be
 Restored to Treasury
WILL REVOKE TIE LICENSE
Missouri Insurance Commissioner De- mands That New Officers Also Be Elected at Once By
 New York Life.


 Superintendent of Insurance W. D. Van diver today sent a communication to John A. Mccall of the New York Life In- surance company demanding that the SIS. TOP campaign fund contributed be re- placed in the treasury of the company under penalty of revocation of the com- pany's license to transact business in Missouri for failure to comply with the demand.
 In the communication Superintendent Vandiver also informed President Mccall that the Missouri department of insurance will insist on a new president, vice presi- dent and financial committee for the New York Life Insurance company just as soon as the directors can possibly effect the reorganization.
 The letter in full follows:
 "To MT. J. A Mccall President New
 York Life Insurance Company.
 "The recent startling disclosures in re- gard to the management of the funds Of the New York Life Insurance company, and particularly the testimony of your self and other officers of the company given before the investigation committee of the New York legislature, make 1t my duty as superintendent of insurance for the state of Missouri to communicate to 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.
 Constitute Fiduciary Trust. "The public has been very properly taught by yourself and other officials or great insurance comparics that the funds of the mutual company constitute | fducary trust, held and administered for l the use of those named as beneheiaries. | many of whom are, or will be, widows | and orphans; any many thousands of peo- l pie have taken insurance in your com pany because of this very fact and the assurance that every dollar ot assets be- longs to the policy holders. That any portion of the policy holders premiums of profits on premiums could be diverted to political purposes or other uses not contemplated when the premiums were paid in, and not consistent with the ayowed purpose of a life insurance organ ization, must be considered by all right thinking people as gross violation of d sacred trust, if not embezZlement as de- fined by the statutes.
 This department holds, therefore, that all moneys taken by your order from the treasury of the New York Life ln- surance company and donated to any po- ltical committee. campaign fund, or leg islative agent. or lobbyist for aiding or in defeating legislation, whether audited or unaudited 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 $14S,702, which amount you confess to having con- tributed out of the fund of the company to the republican national campaign com mittees for the years 1896, 1900 and 1904. must be replaced in the treasury of said New York Life Insurance company within the next thirty days.
 Will Revoke the License.
 Notice is hereby served upon the New York Life Insurance company through you as It's president. that unless this re- quirement Is met or assurance is given that 1t will be met without unnecessary delay, l, as superintendent of insurance for the state of Missouri. will proceed un- der the provisions of section S022, Revised Statutes of Missouri, to cancel or revoke the license of the company to do business in this state.
 
 closed by the investigation now in pro gress, particularly the payments of large sums of money to one Judge Hamilton, without any accounting or auditing on the books of the company, and the occupancy of costly real estate of the company by members of your family and at rental , so low to be practically d gift of the property and also the protection of "a subsidiary company from the loss of many thousands of dollars by the use of policyholders' money. as well as the immense and disproportionate expense of the company in its mad rush for new business; all of which indicate the gross est improprety and the recklessness in managery mt, and may call for further in- vestigation and official report
 But from the facts already disclosed 1t is evident the intent of the policy. holders of the New York Life Insurance company as well as the public generally. Is to demand a change In the management of the company. This department will. therefore. Insist that new president and vice president and finance committee he put In charge of the affairs of the com pany as soon as its board of directors may be able to effect the change. Very respecttuily' w. ID. VANDIvER."