The Birmingham age-herald., 1906-07-10
Committee Tells Them They
 Must Resume Control
NOW IS THE TIME ID ACT
 aA
Long Address Recites the FaithIess. ness of the Present Directors to Their Trust and Says New
 Set Must Be Elected.

l New York. July s-The international policyholders committee organized to over throw the present management of the New York Life Insurance company, and the Mutual Life Insurance company of New York, effected a permanent organiza- ton at a meeting here today by the election of the following officers:
 Chairman Richard olney Massachus- etts.
 Chairman, Governor J. Frank Han- ly of Indiana.
 Executive committee, Alton B. Parker. of New York; Governor J. D. Johnson, of Minnesota: Charles Emory Smith, of Pennsylvania; Harlow N. Higginbotham. of Illinois; A. M. Shook, of Tennessee: Governor Henry Roberts, of Connecticut; Governor Sam Pennypacker, of Pennsyl- vania; Thomas wanamaker, of Pennsyl- yania; F. c. Neldringhaus, of Missouri; Samuel Newhouse, of Utah: Samuel Un- termyer, of New York (of counseD Sey- mour Eaton (secretary); c. c. scrugham (organizer).
 The general committee formally adopt ed to the list of its members the names of Lord St. Oswald and Harwood Ban nard M. P, to represent the English poicyholders. After the meeting the conn mittee issued an address to policyholders explaining the inception of the commit- tee, and outlining it's plan of action,
 Address to Policy Holders.
 Reciting that the voting power has gradually been transferred from the poli- cyholders to few of the executive offi- cers in New York the address says that 1t Is necessary for the 100000 policyhold- CTS to organize without delay, as this year under the law recently enacted, af- lords the policyholders their only oppor- tunity to obtain complete control in one election while he eafter only half the directors can < he. chosen in any one election. The text of the address is as follows:
 ''To the pollcyhoders of the New York Insurance company and the Mutual Life Insurance company
 "At the request of policyholders and committees representing poicyholders in your companies in the United States and foreign countries the undersigned have consented to act as a committee to repre- sent your interests under the name of me International Policyholders Com mittee' and herewith submit for your con sderatlon the following statement of facts:
 Statement of Facts.
 "One-These two insurance companies are mutual companies, that Is to say, they are owned by their own policyhold- CTS. The enormous accumulated assets of over $9OO,000,0OO represent the premiums which you as policyholders have paid.
 "Two-The law requires that the policy holders of a mutual company shall elect from among themselves directors who shall be responsible to all policyholders for all intelligent and faithful manage ment of the companies affairs. As the law formerly stood 1t was practically im- possible for the pollcyholders scattered throughout the world to vote. In 1905, even after the agitation begun, there were 252S votes cast, mainly proxies in the two companies out of total of over L. 100000 policy or less than one fifth of one per cent.
 "Three-It gradually became a recogniz- ed custom among the officers to secure through agents proxies made out to the president or some other officer of the company upon the delivery of the policy. In this way the voting power was gradu- ally transferred from the policyholders to few of the executive officers centered Tn New York
 Control Taken Away.
 'Four-Thus 1t came about that the con- trol of these two companies was gradually taken out of the hands of the policyhold- CTS and came under the absolute domina- ton of few executive officers. Out of this system have grown the extrava- gances and other abuses, some of the particulars of which were brought out t under legal pressure by the Armstrong Investigation committee The self-appoint- ed directors are still in control, and will remain in control directly or through their own nominees. unless you as policyholders decide otherwise by the exercise of your right of simple ballot voting which has been restored by recently enacted laws.
 "5 At the last session of the legisla- ture of the state of New York the state which issued the charters of these two companies there was enacted law which gives the policyholders their actual vot- ing rights. The law strikes at the very root of the evil. It cancels all previously issued proxies, and provides that any proxy given in advance of October IS, 1906, shall be void. It fixes the date for the election of officers. It gives to the poli- cyholders the privilege of nominating their own candidates and the right to vote by ballot as in ordinary elections and to record that vote by madl We em- phasIze the fact that now Is the only opportunity for obtaining control of your properties at an election as hereafter. under the law, only one-half the directors can be chosen in any one year.
 Policy Holders Must Organize.
 "6 To receive the benefit of such a law, It Is necessary that the 100000 or more policyholders should organize Into such working force as to secure harmony of action in the selection of candidates for directors. Associations of policyholders have been formed in various parts of the United States, and In foreign coun- tries each Independent of the others. These associations have united in an ap- peal to your committee to act with the entire body of polieyholders in the selec- ton of candidates for directors. thlrty-six of the Mutual life and twenty-four of the New York Life.
 "The foregoing and the grave abuses of trust that gave rise to such regula- ton have made necessary the organiza- ton of your committee. Neither the com naittee nor its general counsel will ac- cept any compensation for their services. Our nominees will be representative of | - --~~--~-----D-------~-----~ -~-~--~--~