The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1906-10-27

Hon. Benjamin Z. Tracy Hon Richard
Olney, Hon George Gray, Of Delaware.
and others 0f Ike character, eertifies that
not single man upon either OF these
tickets is nominated by Wall street In
fluences, and that. exclusive OF two law
yers. the list is composed Of the leading
merchants, manufacturers. and bankers
of the country, possessed Of an expert
ence which, without question, qualities
them To invest judiciously, effectively. and
honestly the funds OF the companies. and
administer their affairs.
Exclusive of the fifteen McCurdy
trustees on the Mutual ticket, and the
eleven Mccall trustees on the New York
Life ticket. it probably viii not be claim
ed that the administration tickets furnish
more expert Hfa insurance experience OK
ability than that presented by the policy
holders tickets. As 70 the twenty-siX old
trustees, their experience, knowledge, and
ability, IL seems. were not sufficient ia
suppress, or even to detect. the Sl5.000, 90
'of misrepresentation disclosed by the
Armstrong investigation, and this. al
though that investigation. because of its
limited time did not claim TO be thorough
and is said simply 10 have scratched the
surface.
rs IL not claimed by the present admin
lstration that it hus greatly reduced eX-
pcnses by cutting off unnecessary and i'm
proper expenditures"
TaFdy Reduction of Expenditures
yes, after the Armstrong committee
had discovered and pointed them out
This very claim would seem to be an adj
mission that the twenty-six old trustees
were without the experience. OF else the
capacity 10 accomplish this result with
out the aid of the Armstrong committee
from the fact that they allowed all the
exposed abuses TO continue through So
long a series OF years. and until they
We're discovered. not by the trustees
whose duty u was TO SEQ 10 the proper
administration OF the affairs of the COM
panicS. but By a committee of the New
York legislature"
How is the money used in the cam
paign of the international committee
raised p"
BY voluntary subscriptions from the
policy holders. Not an additional dollar
has been contributed or raised in any
other manner, IN 50 far as | know, after
due personal inquiry. While the indi-
Vidual contributions have been small, per-
haps the majority Of them ranging from
20 cents 10 81, receipts have sometimes
aggregated as much as $l.0oJ TO $LJ00 in
a single days mail. showing the interest
OF the policy holders in the movement
Not dollar Of this money has been used.
ia SO tar as I have been able to learn,
except in the distribution among the
stockholders of circulars and statements.
giving simply the facts as TO the conduct
Of the administration and affairs OF the
companies"
Has it been asccrtained what became
Of the Sl5Woo10 alleged 10 have been mis-
appropriated"
How MutuaIs Money Was Wasted.
"Or that sum $4,000. in round num-
bcrs. was paid to tho McCurdys-father.
son. and son-in-law-in five years as sala-
ries and commissions, although theisworn
testimony Of the fat4cr and son before
the Armstrong committee, IL correct,
shows that they had so little TO do with
the conduct of the company that they
were unable 10 give any information of
Importance as TO any of its operations.
McCurdy. 81. S salary being about S6A
Der day, and his son and SOn-in-law re-
ceiviHg about half that sum apiece. two
Of the administrations present nominees
having been present at a secret meeting
which voted McCUrdy. Sis salary. The
iruesdale committees report shows net
loss Of $5.122 633 on real estate transac-
tions, under the control of the finance
committee, several of whose members arc
candidates for reelection OF the admins
tration ticket. Sl750Ol0 were disbursed
through the Andrew Fields lobbying or
legislative operations, for when there
has been no accounting. members Of the
legislative committee at the time being
also on the administration ticket.
The Mutual Company alone had q
bank balance OF nearly 100000 on de-
pusIT on February l. 1855. in various banks
aud trust companies. On most OF which
It's trustees were iHterested-thc deposit
on that date Indicating the enormous
bank balances carried by the company.
without adequate or corresponding prout
TO the company. il the profits lost TO its
policy holders by the practice pursued OF
having its Investment securities pur-
chased through subsidiary corporations
and syudicatcs, composed, IN part at
least. of its officers and trustees and By
then; sold 20 1t At enhanced prices for
their personal profit should ever De ac-
curdteiy asc9rtaiucd. AS they may be 10
the policy holders ticket is elected. the
S5.U0V.O9o OF loss and wastage will be
found tar within the facts
IF the miSappTUpriations and losses
nave been so large what is the explana-
ton Of the fact that the companies stiU
retain their soIycncy and financial
strength
Losses Repaid I'm Premiums.
The losses in question are not dis
pUtrd. The solveEcy OF the companies
results from tho fact that the premiums
charged the policy holders, and o., prof
Its withheld from them in dividends. have
been larse enough 20 permit tho ulisap.
propriations and still To leave the COM
panicS of Uudoubted financial strength
Had these enormous sums not been vast
ed or worse. the premiums would have
been CorreSpoudinglv smaller and the
dividends increased.
Have the administration tickets gained
much by their alleged canvassiug for
proxies before the local policy holders
were fully advised of the merits Of the
Il think not Tho proxies arc not fr-
revocablc. Any policy holder who. in
view Of his present KNOWLEDGE uf the