New-York tribune., 1906-10-27
JEROME CALLS AGENT.
INVESTIGATING MUTUAL.
District attorney Thinks He Can
Indnt TsCo Officials.

Following The Tribunes announcement yes
terday that District Attorney Jerome had begun
an investigation of coercion charges against the
Mutual Life, Frederick o. Paige of Detroit a
former manager of the company, has been asked
to hold himself in readiness TO come to this city
and make deposition in Mr.. Jerome's Office. .
The agency committee dismissed Mr. Paige for
refusal to support the administration ticket.
Mr. Jerome 1t is said, is thoroughly in earnest
about pushing the investigation, and believes he
has clear case against at least two high Of
fcials of the company under Sections 16S and
653 of the Penal Code.
1t will be recalled that September 20 Presi-
dent Peabody and ice-President McClintock
signed a teegraphic ukase sent to all managers
and agents, reading, in part:
All persons connected with this company are
called upon to sustain the administration ticket
wholly and unreservedly
President Peabody. in his testimony before
Commissioner Prewitt, which is in Mr..
Jeromes hands, freely acknowledged sending
this message.
Mr.. Jerome it is said, believes that the COM
pany's alleged coercion of agents has a far
wider significance than any attempt to intimi-
date the agents only. 1t is asserted that he be-
lieves the Peabody -McClintock ukase not only
sought to intimidate the company's field force,
most Of whom are policyholders but involved an
company's policyholders. because the policy
holders have a right to unbiased advice from
the managers and agents, and such advice is
one Of the assets of the company and the policy
holder.
The Tribune's announcement caused great in
terest In insurance and financial circles, specu-
lation being rife to the outcome Of the nvesti-
cation. Thomas Reid Fell. of this city. another
Of the alleged "coerced" managers. is expected
back in town from st. Louis to-day. and will
probably be asked to appear before Assistant
District Attorney Smyth early next week. AL
ready Mr.. Jerome has af1davits from Mr. Fell.
Herbert N. Fell his brother; Mr. Paige and E.
o. Sutton. Colonel Biscoe Hindman. of Ken
lucky. has not yet made an affidavit.
copy of an affidavit by Mr.. Paige, now in
Mr. Jeromes possession. came into the re-
porters hands yesterday. In it Mr.. Paige
speaks freely of threats against and in
timfdaton" Of agents. declaring that "Presi-
dent Peabody and the committee on insurance
and agencies prostituting their positions Of
trust and are using the great agency plant Of
the company. including salaried managers and
other employees, for the llegitmate purpose of
endeavoring to elect the administration ticket"
Mr. Sutton, in his affidavit, declares that at
an interview with Mr.. Peabody at the home
Office September % 'Mr. Peabody
managers Of the company to work for the ad-
ministration ticket entirely and positively"
Mr. Sutton protests also against such dicta-
ton and coercion"
In connection with the broader" view of the
objects OF the investigation, the closing para
graph in T. r. Fells affidavit is considered es-
pecially significant.
Says Mr.. Fell
Managing agents and soliciting agents,
. according to universal custom In the
business of life insurance in mutual companies,
maintain relations Of peculiar confidence with
the policyholders of the company within their
respective districts and constitute those persons
from whom the great mass of policyholders
must obtain information and expert advice con-
corning their common interests as policyholders
the only persons from whom the policyholders
can obtain direct information as to the COM
pany's policy and business; most competent
to inform policyhoders. and by universal custom
are those upon whose Judgment, integrity and
frankness the policyholders are accustomed and
entitled to rely for information in the premises.
Said managing agents and soliciting agents. by
universal custom in mutual life insurance COM
panies and necessarily so from the circun1-
policyholders, and service in this fiduciary re-
lation is most valuable part of their services
as such managing agents and soliciting agents,
and is paid for from the funds and property to
which the policyhoders have themselves con-
tributed and in which they are benefcially in
terested.
at least member of the company's agency
committee will be asked to testify before the
grand jury.
Russell W. Fish, secretary of the Mutual Life
Policyholders' Association, made public letter
from Alfred c. Dodman, of No. 10 Fifth ave-
nue., to Charles E. Hughes asking If Mr.. Hughes
would promise, If elected Governor, to make
an investigation OF the "electioneering' methods
of the Mutual Life companies Of this state.