The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-04-09
CALLS PEABODY FIGUREHEAD.
sUHTERMYER PITCHES INTO THE
MUTUADS PRESIDENT.
In Letter to EngIiShman He Says the Pres
ent Management OF the Company Has
No intention OF Pushing MoCurdy
suits-Ted Up With STANDARD Oil.

Suits-T1ed Up with O1l.
Samuel Untermyer, counsel to the inter
national p~olioyholders' committee, made
rublio last night a letter which he has
written to Thomas n. d. Berridge, n Of
the committees representatives in London,
relative to Mutual Life Insurance Company
Affairs. In the letter Mr.. Untermyer says
that Charles A. Peabody is universally
recognized as Sthe hgurehead' Of the
Standard Oh group OF ~financiers. He
declares that the management OF the Mutual
Life does not intend to push the suits which
it has brought against ex-President Richard
A. MoCudyj and that the actions were
instituted for the purpose Of anticipating
and getting control of litigation which they
knew was inevitable as a result of the
recent disclosures.
TIE Sun published yesterday a letter
written by Mr.. Peabody to the Mutual's
general manager in London in which he
denied emphAtically that Standard Oil or
any other financial group had any control
over him.
Here is Mr.. U~ntermyer's letter:
Referring to our previous correspond
enoe the following Is my understanding
Of the facts with respect to Mr.. Charles A..
Peabody, the recently designated president
OF the Mutual Life Insurance Company,
which you are at liberty to repeat to the
gentlemen with whom you are in negotia-
ton on this subject
MIR. Peabody was until he assumed the
Office a few months ago a member of the
law firm Of Baker & Peabody, practising
lawyers In this city. He has never been
an active practitioner, out has always
borne a reputation for unquestioned in
tegrity. His partner, Fisher A. Baker,
is well known as a lawyer and is highly es-
tened as a man. He is an uncle Of George
+. Baker, who is the president and the
principal owner of the First National Bank,
which is generally recognized in the finan-
clal world as a Morgan-Standard Oil bank
BY reason of the very close relations that
have for many years existed between that
hank, j. P. Morgan & Co. and the Standard
oil group. George F. Baker is and has
been for many years the chairman Of the
finance committee and Henry H. Rogers
the chairman of the agency committee OF
the Mutual Life. Mr.. Rogers is to-day
the dominant factor in Standard Oil, and
deservedly so, for he is a man of great
ability and force Of character whose word
may be relied upon.
Mr.. Peabody's firm are the counsel for
Mr.. Baker and the First National Bank
and their relations as such with the finan-
cial affairs of this group are very close.
Mr.. Peabody is also a director Of the Union
Pacific, Illinois Central and other corpora
lions in which Mr.. Hartman is interested
with MIR. Baker, Mr.. Rogers and the Stand
ard Oil group and is generally regarded as
their representative in at least some OF
these boards. He Is recognized as a spokes-
man for these interests.
"Mr. Peabody is Unfamiliar with the in
suranoe business. Prior to his election as
president he had not come in contact with
the business in n form, not even az coun-
sci for an insurance company. He is uni
versally recognized as the ~fgurehead Of
this financial group, which seem to have
been able to control a great property in
which they have no interest and notwith-
standing the reign Of corruption hat -four
ished under their regime.
MIR. Peabody's selection was due en-
tirely to the domination OF the B~aker-Rogers
influence in the board, and it may be.safely
said that he is their nominee and that they
are supporting him.
The suits begun under his administra-
ton against Mr.. McCurdy and members
Of the latter's family you will note that
none has been begun against others) are
not intended to be prosecuted, and for
obvious reasons. If il be judicially estab-
lished in these suits, as has already been
admitted, that Mr.. McCurdy paid and
authorized millions Of dollars for political
contributions to influence legislation cover
ing a period of years the liability of Mr..
Baker as chairman of the finance committee
is at the same time fixed. Mr.. McCurdy, if
pressed, may be unwilling longer to bear
the burden of responsibility and will per-
haps disclose the knowledge of his asso-
GATES Of these transactions
But whether they were active parties
to these corrupt payments or permitted
them through neglect OF their duties they
are equally liable. The same may be said
Of the enormous sums paid to the McCurdys,
son and son-in-law, through the agency
contracts. II is inconceivable that the
agency committee, which was especially
charged with this duty, did not know Of
these contracts. 1t is difficult to say whether
their liability ia greater II they approved
them than if they were ignorant Of them.
In either case their liability will be estab-
lished IL the company succeeds in the suits
these gentlemen have directed to be in
stituted.
The policyholder may we'll be pardoned
for questioning the motives Of suits brought
and controlled under such auspices. We
are satisfied that the suits were instituted
80 as to anticipate and eoure control Of
litigation which they knew was inevitable
IN the light of the disclosures, either by
the poicyholders or by the Attorney
General, and to keep the suits out Of hos
tile hands. They are hardly likely to
vigorously prosecute suits which will
eventually establish their w liability.
i am satisfied that further investiga-
ton, which the brief time allowed the Arm
strong committee did not permit, will dis
close further grounds Of liability on the
part of the present management. But
these investigations must be made under
a new, clean administration, in no way
allied with the management through whose
wrongs and neglect the policyholders
ha We already suffered 30 heavily.
The objections to Mr.. Peabody are
not personal. They are based upon his
aHln0too, A. 49, A. .-I..l l. -----