The Montgomery advertiser., 1905-10-08
TROUBLE FOR
 HIS COMP ANY Insurance Superintedcnt
 Writes X -all. REsTITUTIG DEMANDED Resignat ns of Officers Must
 Come, Too. vandiver's strong Letter to New ysr4 Life's President--"Frensied Fl.
 nance' Lawson Outlines
 His Plan.

Jefferson City. Mo, Oct. 7.--State Su- perintendent of Insurance w. D. Nan- diver today sent communication to l John A. Mccall of the New York lAfe Insurance Company demanding that | the S14S,702 campaign fund contrfbu- | ton be replaced in the treasury of the I company under penalty of revocation | of the company's license to transact business in Missouri for failure to comply with the demand.
 In the communication Superinten- dent vandiver also informed President Mccall that the Missouri Department | of Insurance will insist on new Pres ident. Vice-President and Financial Committee for the New York Life In- surance Company just as soon as the directors can possibly effect the reor- ganization.
 The letter in full follows:
 "J. A. Mccall. President of the New I York Life Insurance Company: The recent startling disclosures in regard | to the management of the funds of the | New York Life Insurance and particu- 1 larly, the testimony of yourself and other officers of the company. given before tho investigation committee of the New York Legislature, make 1t my duty, as Superintendent of Insurance l for the State of Missouri, to commu- nicate to your company the views and 1 requirements of this Department, to the end that the policy-holders in this State may not be defrauded of any DOT ton of the dividends or surplus earn l ings 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 ipsurance companies, that the funds of a mutual company constitute a fiduciary trust, held and administered for the use of those named as benefi- ciaries, many of whom are, or will be, widows and orphans: and many thou sands of people have taken insurance in your company because on this very fact and the assurance that every dol lar of assets belongs to the policy holders would be properly handled. That any portion of the poiicy-holders' premiums or profits on premiums could be diverted tV political purposes or other uses not contemplated when the premiums were paid in, and not con- sistent with the avowed purpose of a | life insurance organization, must be considered by all right-thinking peo- pie as a gross violation of a sacred trust, If not embezzlement as defined by the statutes.
 Must Replace Money.
 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, were taken without war rant of law or morals and without proper appreciation of your responsi- bilities as trustee Of the funds commit ted 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 s14S.702, which amount you confessed to having con- tributed out of the funds of the com pany to the Republican National Cam paign Committee. for the years 1896, 1900 and 1904, must be replaced in the treasury of the said New York Life h. surance Company within the next thirty days.
 Notice is hereby served upon the New York Life Insurance Company ] through you as it's president, that un- less this requirement. is met or assur- ance is given that 1t will be met with out unnecessary delay. l. as superinten- dent of insurance for the State of Mis- souri, will proceed. under the provisions of Section S022, revised statutes of Mis- souri. to cancel or revoke the license of l the company to do business in this l State. 1
 There are many other transactions
 
 progress. 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 at a rental so low as to be prac- l tically gift of the property; and. also, | the protection of subsidiary company | from the loss of many thousands of | dollars by the use of policyholders' | money. as well as the immense and dis | proportionate expense of the company | in it's mad rush for new business. all | of which indicate the grossest impro- | priety and recklessness in manage | ment and may call for further investi- | gatIon and official action.
 But from the facts already disclos- ed. it Is evident that the interest of | the policyholders of the Ne wYork Life | Insurance Company as well as the | public generally. demand a change in | the management of the company. This | department will therefore, insist that | q new president and president and | finance committee be put in charge of | the affairs of the company as soon as | its board of directors may be able to | effect the change
 Very respectfully,