The Montgomery advertiser., 1906-10-17
MUTUAL LIFE UNDER FIRE

Commissioner Prewitt Questions
 the President. Denial is Entered as to Allegations
 That Company Used Improper l Influence to Fleet "Adn,in-
 istration Ticket"
 l Frankfort, Ky, Oct. 16.-Charles A. Peabody. President of the Mutual Life | Insurance Company of New York, ap- peared here today before Insurance l Commissioner H. R. Prewitt 10 an swer charges of coercion: the use or the cOmpany's money TOT campaisn 2 purposes in the coming election or trustees of the company. and the ols- missal of Colonel Biscoe Hindman' general agont of the company for Ken lucky and Tennessee, because he lHlho- man) stood for election as trustee on Ithe policyholders ticket.
 To these charges Mir. Peabody entered au emphatic deniel. Three or 1our general agents have been dismissed by lthe Mutual Life of New York supposed lly on alleged similar grounds. but this Is the first time the company has Oeen called upon to explain It's acton to State Commissioner of Insurance. By "a recent decision of tho Ktntucky Court lor Appeals. the Commissioner or lnsur- lance has the right to revoke the char ter of any insurance company doins lbusiness in the State without giving any reason for the action, hls power lin the matter being absolute. For this reason. the hearing was the subject or lmuch interest and the Court of Appeals room in the old Capitol was crowded while the Commissioners attorney, Ell III Brown of Frankfort, was question ing Mir. Peabody.
 MT. Peabody made an excellent liIl- precision and the investigation was lcarried on in d manner devoid of any lthng bordering on the sensational Mr. Peabody's willingness in coming from New York In response to Mr. lPiewitts citation, when teh legality of the procedure was uncertain. IS Ia lvorably commented on. Commissioner IPrewitt will not announce his decision liE the matter for several days.
 Prewitt Defines Charges.
 It was 3:3O o'clock before President Peabody was sworn and had taken hls St at in the witness clair. Commits s:oner Prewitt then made the following statement:
 "That you be fully informed of the matters this department desires to investigate. I will make to you 1 brief statement. From the Associa- ted Press and other news agencies and from evidence furnished thfs de- partment, the department is informed that your company has not only vio- lated the law In reference to the ap- :prorching election of trustees. but that your company Is attempting to coerce, intimidate and otherwise in- luence agents of tho company into soliciting votes for the ticket known as the administration ticket" that you are not only permitting but com- polling salaried employees of the com pany to electioneer and solicit votes for that ticket: that you are employ ing agents. paying them salaries and expenses from the company's funds to solicit votes for that ticket; that you are having agents ind other em- plOyes of the company go from dil- ferent sections of the country to tho home office in New York for confer ences concerning the election of the administration ticket and defraying the expenses of such agents out Of the company's funds; that you are threatening employees Of the company with discharge unless they loyally support the administration ticket; that you havo discharged al -eady sev- eral of the managing agents of the company from the companys service because they are some kinsman of theirs have accepted nomination on a ticket other than the administration ticket or because they would not sup port and solicit votes for the ticket and that you have lately dismissed lColonel Biscoe Hindman. late manag- ing agent of the company in Ken lucky, because he accepted a nomi- nation for trustee on a ticket other than the administration ticket and because he refused or failed to loyal Ily support the candidates on the ad- minstration ticket.
 Peabody Enters Denial.
 To these charges MT. Peabody enter ed d denial. and when it came to ex- plainlug the dismissal of Colonel Hind man he said he could not have dis missed him for being on the trustees ticket because Colonel Hindman had told him that he had not accepted the nomination. MT. Peabody then coming | to the real cause of the discharge said that colonel Hindmans opposition to | the company was well known. Colonel Hindman had openly and avowedly at | lacked the int gritty ot the manage | ment and that his position was not consistent with a proper performance | of his duties as an insurance mnaser. 1 Ii WIS for this reason that Colonel Hind man was dismissed, Mir. Peabody then ! mw w.aotlrhaaaareshrd pau am ua bm | read prepared statement. in part as | follows. stating the position of the | company:
 The bylaws of tn" company pro- l vide that with the exception Of the | nr. sidcnt and vicc president no off '.,rs or the company shall be members of the board of trustees.
 ITO comply with this bylaw in the few instances where managers or agents of the company have announ-
 ed tho intention of acceupting nomi- cations for office H1 trustees, this com nanE has felt iup"llcd to terminate the contracts under which such managers and agents hay" u"cn in the company's | s"rN ice.
 No action has been taken by the ,nnlmitt,o which can be properly char act.rlzrd As coerr u- any "mploye into | ,niin. or soliciting votes otherwise than IS his 'wn fire" will dictates.
 "rhr .aw compoly ;h" trustees to ,,u,iuI,., a ticket described as The admin. .slrdtion ticket lt Is not to be .uppos.d that the l"&jsl,tur" intended llrier opposing this duty that all those l connected with tn" administration shnuld abstain from "ff"riS [" elect the | nr.}ii'""S.
 No Money For EIcr'i"necring, 1 "IIoweNcr. no mnnc! of th" corpora