New-York tribune., 1906-10-19
FEAR INSURANCE FRAUD
BALLOTS SIDETRACKED.
Opposition Wants Inspector to Re
ceiUe MutuaPs Mail.

S. c. Macarthur. Insurance Superintendent Kel-
seys ballot" representative at the Mutual Life
Offices at No 80 Nassau street. said yesterday, the
first day of voting. that the company's officials
only handed him the ballot letters after the Off
cials had sorted the company's mail. and that he
was thus unable to say whether or not the company
Withholding any ballots. This announcement
caused great Indignation against the company
from representatives of the opposition Russell
W. Fish, secretary of the Mutual Life poicyhold-
ers' association. Immediately sending this telegram
to Mr.. Kelsey:
ceive from the postoffce and sort all Mutual Life
can adequately protect the policyholders and guar
6ntee them a fair count.
George r. Scrugham. the international commit
tees manager ntimated that he would seek the
assistance of the State Insurance Department and
the Attorney Generals office in attempt to OBJ
tain the OF officers of the New York Life
tor alleged violations of the insurance law, in the
way OF marked ballots. misuse Of company $
stationery. etc.
Apropos of this Mr.. Scrugham. charging Grim
inal violation the law by two agents. sent the
following TO Mr. Kelsey:
New York Life Insurance Company of Section "a
Section 3 Of the New York Insurance law. ANY
corporation or person violating any provision or OF
constitutes felony. shall in addition to any pen,
v s a fE sqen qedet ha
Immediately institute criminal proceedings against
to the criminal penalties of the law acting as
agents of the New York Life INSURANCE COMPANY,
We will be pleased TO furnish you with the names
of a number of these agents both In this state t,
and elsewhere. together with evidence of their
criminal violation of the law
Mr. scrugham had sent previously the following
to Mr.. Kelsey
Telegrapho complaints being made to us
from Illinois. Ohio South Carolina, Georgia. Ten
and other states that the agents OF the NSw
York Life Insurance Company are mailing cut tne
Of the international committee ticket scratched of.
With this statement go other campaign documents
Veope This is in direct Violation of Section 81 Of
the New York Insurance law and we cal cal on SoS 1
lection of policyholders generally.
Mr. Scrughan said also that the envelopes mailed
to polcyholders by the Colgate committee showed
that the committee had had the use of the Mutual
Iife's stencng machines denied 20 the interna-
tionaI committee. Polcyholders who had received
these ballots Illegally marked" in the interest OF
the New York Life administration candidates freely
made charges of fraud and violation of the state
law These marked ballots. sent out by the COM
pany's agents, bore also the recipients policy num-
bers This is alleged to be in itself a violation OF
the law While agents were at pains to state tnat
they were working entirely at their own expense,
policyholders characterized these assertions as
absurd
Louis Marshall. of No. so Broad street who was
one OF those who received spoiled ballot. wrote
a letter 10 President Orr. regarding letter. with
enclosures which he had received from NJ d.
Heron of the company's upper Park Row branch
Mr. Marshall says that Mr.. Heron, in his letter
urges that Mr.. Marshall vote for the 'administra-
ton ticket adding that the election of the inter-
national ticket will place the company In the
hands of men without practical knowledge OF the
business" Mr.. Herron's letter closes. says Mr..
Marshall with this statement:
l am sending you this letter and the enclosures
of my own accord and without any expense 10 the
company directly or indirectly.
Mr. Herron's letter contains also. says Mr..
Marshall an official statement of candidates and
a stamped return envelope marked ballot for di-
reCtors.'
Mr. Marshall says that in the same mail he re-
ceived the companys ballot and continues:
The form of ballot which Mr. Heron. who de-
scribes himself as the agent of the New York
Life Insurance Company has sent TO me. is
7a5 Because the names of the nominees OF the
seeS %hGa s4sPP sPPeon o on in is nk
(b) because there has 6een wrltten INTO ~ - Ine
Of the policy which hold in the New York
Assuming that the same sort Of circulars have
York Life Insurance Company: the expense OF this
method of circularizng Will aggregate not less than
Mr. Marshall. as a policyholder Of ten years, then
says:
The documents which 1 have received bear in
trirsic that the present administration of
the New York Life Insurance Company has sent
Them out and that the pocyholders. OF whom: I
am one. are footing the bills. and that against my
will nv contributions 10 the corporate treasury
are again being used for yellow dog" purposes.
1 had supposed that the number of my policy
was q matter Of confidence between the company
and myself Although the Armstrong law required
1hC hlins Of lists of PolICyhoderS In the Office
-He SUPERINTENDENT OF Insurance, il Gid
auire the policy numbers to be given the public.
and the lists filed by your comp any with the Su-
rerintendent of Insurance did not contain any
policy numbers.
Of my poljcy2 How is he enabled to convey In this
statement this intelligence, which was secret be
yOu afd me?
Mr. Marshall charges Mr. orr and his associates
with abuse of their powers and the pOlicyhOlders'
funds ntimatng that he will action for resti-
tuition.
ce-President Kingsley of the New York Life re-
terated his statements that the agents were
doing this at their own expense. without the ex-
pense of a single dollar to the company
In a statement 10 the reporters last night Mr.
Heron made a similar declaration saying that the
agents commission, and that Of them
had dubbed together to canvass with their own
money for the administration a matter Cf bust