New-York tribune., 1906-11-04

Company. both of New York City, have been
summoned to appear here before State Insurance
Commissioner Folk on next Thursday. Several
district managers and agents of both companies
throughout this section have also been sum-
moned. The summons is TO continue an inves
tigation commenced by Commissioner Folk this
week
The international committees manager made pub
lie yesterday an opinion sent by assistant in
the Attorney Generals Office to Superintendent.
Kelsey prohibiting, apparently, both electioneering
and other advances to agents. The opinion refers
to Section 81 Of the Armstrong law. regarding '1m
itation of expenses" and is follows:
If therefore, It could be shown that the general
agents made the loans or advances on behalf of
the insurance COMPANY or under any agreement
with ;t, IL is within the prohibition OF the statute
The opinion is regarded as an important one pro-
vided il represents Attorney General Mayors de-
csion on the case.
The big insurance companies with the exception
of the Equitable. seemingly have interpreted the
section as not becoming effective before January l.
1907 On behalf of the committee, Samuel Inter
myer, its general counsel. has protested Super
intendent Kelsey against alleged wholesale cleo
tioneering advances TO agents by the Mutual and
New York Life II is considered probable that
within the next few weeks the various state insur-
ance commissioners and superintendents will make
investigation first hand of these alleged ille
gal advances.
George r. Scrugham, the international commit
tees manager. made public extracts from letter
from New York Life policyholder in Washing
ton, Iowa. declaring that the companys agent had
threatened 10 fix him for voting the international
ticket when it should 10 distribution OF div-
dends; from a similar letter from Macarthur.
Ohio pocyholder in the New York Life; from a
letter of Little Rock. Ark. policyholder. declar-
ing that a New York Life agent on the policy
holders refusal TO vote the administration ticket
had told him that he Ghe agent would vote my
policy anyway . as he had full authority
to cast my vote" and from a letter from Mutual
Life polcyholder IN San Antonio. Texas, saying
that the Mutual Life agent told the writer he must
vote or lose his policy. offering an 'administra-
ton ballot for his signature. and refusing TO sub
nit any other ticket TO the policyholder despite
his protests.
President Peabody has written a letter dated
November !. to j. Clarence Davies, of 1+sth street
and Third avenue. to the companys bona ana
mortgage investments.
The letter reads, in part:
I have your letter of october 50. inclosng a copy
Of the resolutions OF the Bronx Real Estate BTokers
ana asking what the policy OF the aomln @ , S[as
on bond mortgage. There are times when the con-
Eroner and adyantageous 10 make investments in
such bonds as we are permitted TO invest in by law
Vestments in mortgages are clearly In the pest
interests of the polcyholders AS a RUE we Ne are i
favor one class Of securities over another i out
TeguiarV everv week and receiving all applications
made for loans real estate Which come Wtlhlh
the limitations fixed by law -
do not recall a single instance since January l.
1906, when any loan was declined whlch came villa
IN those requ' ements. -.
We have increased the mortgage loans OF TINS
company within that period by an amount whlch
must approach aO,Oo0,O00. do not at the moment
recall the exact figure
Mr. Dexter told a Tribune reporter last night
that he had not yet received Commissioner Folk s
summons" Mr. Perkins had not received 1t up
10 a late hour. Mr.. Dexter said however. that the
company had been told of summons to its
Tennessee field force 10 appear before MIR. Folk
on Thursday. Up 10 midday the company had not
received Commissioner Prewitt's request that IT
reinstate it's FIVE alleged "coerced' managers on
pain of revocation of charter.