The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-09-19
sosss EE.. r. AZ. "a ~ c.n:y. vAsn . made

Z In suggesting 10 policyholdsrS candidates
for directors OF tho New York Life and the
Mutual Life companies II Sesma proper that
the committee should make . brief general
statement Of the considerations by which
they have been governed:
I. After a prOtfacted though incomplete
inNestlgatlOn Of tho Affairs Of the two COM
panies tho New York Legislature emphati-
cally condsmned the existing administration.
practically legislAtsd the persons composing
them out OF ONCE and called upon the policy
holders to elect entirely new boards OF direct
Ors. Whlls the Hocsptod technical cOnstruo-
ton Of the statute seems TO be that the persons
30 legislatsd out Of once may be reinstAted
the strong presumption 10 that the Legislature
expected and intended that the boards chosen
In December next would not only be entirely
new boards but would be made up OF entirely
new men. It 10 obvious that In no other way
can the change and reform contemplated by
the Legislature be effected. To replace on
the new boards the persons whom the New
York Legislature has retired 10 not merely to
rshabilitate persons whose conduct In Onice
has been dlAapproved. II practically insures
the continuance Of the policies with which
these persons are IDENTIFIED. Believing that
thOss policies ought not to be perpetuated
and that the persons responsible for them have
forfeited the confidence OF policyholders and
ought not 20 be honored by reelection TO the
places Of trust whose obligations they have
failed 70 reco gnixe: believing further that
public confidence In the companies and In
the adoption Of the policies essential to that
confidence requires q complete change In the
personnel Of the two directorates. the oom-
mlttee has declined to put on the ticket IL
recommends not only any members OF the
boards legtslated out OF ONCE. but any
nominees Of those boards. Those nominees
are chosen not as opponents OF the former
ma nj gements. but as their friends-and the
trick by which members OF this committee
have been put on the administration ticket
OF the Mutual without their consent and
with kno wledge that they will not serve
II elected only emphasizes the determination
Of those now In control OF that company TO
preserve that control at all hazards. 1t 10
a practical certainty that unless the policy
holders wish to condone the mistakes and
offences OF the previous arrangements OF the
two companies and desire the policies pursued
by them to be perpetuated they must insist
upon being represented by entirely new
boards OF directors.
2. The legislative Investigation demon
strated that one chief cause Of the proven
m-ismanaEement OF the two companies was
TO be found In the too intimate and entangling
alliances between their dlrectorates on the
one hand and the promoters. bankers. brokers
and spectators who make Wall Street the
principal scene Of their activities on the other
manu-. Consequently Nnilo COLlIuchuluh W
you candidates Of unquestioned probity and
Of pronounced busines capacity and eX-
perience, the committee has endeavored to
make sure that each and every one of them
ia free from the domination Of Wall Street
influences. II cannot be necessary to urge
that the managers OF immense funds who
must deal with them strictly as trust funds
Z should be absolutely distinct from and indie
pendent Of the managers OF business enter
prises who aim and desire to use those funds
for the benefit OF such enterprises.
3. II has been asked whether II IL desirable
that the new directorates OF the two COM
panies should be made UP OF entirely new
men the ground for the inquiry being the
assumption that member Of the former boards
have some knowledge OF the business and
affairs OF the companies which ought 10 be
awaited OF. But Judged by past experience.
what value can be put upon that supposed
kno re? Either such former mambers were
conversRnt with the vicious features OF the
MANAGEMENT of the two companies or they
were not. II they we're so cOnversant and
acduiesced, the violation OF their trust must
be characterized as gross aud positive; II
they were not 30 conversant- III, being d.
~rectors. they did not aoquaint themselves
with their THE compauies1 anairs their
ignorance amounts TO a breach OF trust
hardly less blamable. Whichever horn Of the
dilemma be taken. should the former mem
bers Of the two boards be reelected when
! competent and trust worthy men can De round
TO Ill their placesp
The statement goes on 70 say that 50 far
as the life insurance business calls for
technical and expert training and skill 1t il
the duty OF the directors to employ the best
that can be had. IN committee expresses
the belief that each Of the companies IL
equipped with a working force which as a
whole 10 loyal, expert and efficient and
ought therefore to be retained III the
service. The committee says that what is
wanted in the members Of the new boards
is not expert life insurance talent but the
homely virtues Of common honesty and
due regard for the requirements Of the trust
relation, requirements which forbid the
trustee not only from stealing himself
but also from INDUCING In the negligence
which enables others to steal In con-
clusion the committee says:
With this selection Of candidates and the
fling OF nominations as required by law.
the principal duty Of this committee ends
Il has been performed at considerable in-
convenience, with all the care and delibera-
ton that circumstances have permitted.
and with no other view than that Of pro-
noting and conserving the great interests
involved. Those interests are by no means
Of a purely private nature and by no means
concern policyholders only. The life insur-
ance revelations resulting from the investiga-
lions OF the New York Legislature have not
only startled the country. but have seriously
impaired the repute and credit Of America
throughout the world. They can he re-
habilitated only II pOliOyholders rise to their
present Opportunity-only II. by now In
stallinR wholly new directors In the control
OF the two companies, they emphatically
manifest their condemnation OF the policies
and methods which have been suffered to
grow up and flourish under past administra'
ti0ns.
The third Mutual ticket, which is known
as the selected fusion ticket was hAndec
out to the newspapers by Albert 3. Hare
Of the law firm Of Bard a Calldns. rs Broad
street. When asked who he was repre-.
senting, Mr.. Bard said that the record Of
the ~policybolders who are supporting the
fusion ticket would show that.
The list OF 200 policy holders was no
very enlightening in this respect. The
names were scanned eagerly by representa-
tives Of several Of the Interested parties
but they didn't yield UP the secret OF wh(
Is really behind the movement. A good
mary Of the ~policyhOlders who signed
live over along Fifth svenue, In Brooklyn
aome live in Harlem and others In Syracuse
Buffalo and other cities. Here 10 the fusion
tickSb, with the names Of the nominee.
from the Mutual administration ticket anc
the united committees ticket indicated: