Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-12-17
.CHARGH OF ;TR|CKERY
Insurance Politics Warmer as
Election Approaches.
POLICYHOLDERS' CLAIMS
Allegation That New York Life is
Modelling Agents.
PLAN TO WIN THE CONTEST
Rubber Stamp Used in Interest Of
Administration Ticket to Mark Bal
lots, One of the Assertions.

NEW YORK, December 17.-Trcks en-
ployed in district politics, 1t is charged, are
being resorted to by the agents of the New
York Life and the Mutual Life Insurance
companies to elect the administration ticket,
both companies utilizing their agents and
clerks and canvassers in their efforts to re-
elect the officers now in control. A state
ment was issued Saturday by George r..
Scrugham, manager of the international
policyholders' committee, in which 1t IS
charged that the New York Life has es-
tablished headquarters in the Manhattan
Hotel and has modified It's agents from all
sections of the country for the purpose Of
carrying the election on Tuesday.
The companies have denied persistently
the charges that they were spending the
money of the policyholders to influence
the election, and the establishment OF head
quarters in the Manhattan was pointed to
by the policyholders' committee as con-
elusive evidence.
The statement is signed by Scrugham,
and he amplifed it with the charge that
the establishment of the headquarters by
the New York Life d:sproved the declara-
ton of the officials of the company that
they were not using the money of the pol
icyholders in furthering the election. He
also gave out the statement made by Jo-
seph T. Griffin, 786 President street, Brook
Ign. a policyholder of the New York Life,
that his friend, Robert ]. Frost, 276 Ster-
ling place, Brooklyn, had discovered
trick being worked by clerks in the home
Office of the company.
Marked With Wrong Stamp.
Frost 1t was said, cast ballot for the
international policyholders' committee
ticket. He noticed that the clerk to whom
he delivered his ballot used a rubber stamp
on it and demanded that the ballot be
handed back to him. He found 1t was
stamped: II hereby vote the administra-
ton ticket" He protested, and the clerk
said he had used the wrong stamp and
gave Frost a new ballot. This one was
stamped by the clerk: Il hereby vote the
international policyholders committee
ticket" Griffin went to the New York
LIES home Office yesteday and voted. With
Frosts warning in mind, he insisted on the
clerk stamping the ballot within his sight.
He examined it before he permitted 1t to be
filed, and then went to the headquarters
of the policyholders' committee and told
the story.
Officials Of the company were asked to
explain the action of the clerk In regard
to the Frost ballot, They vigorously de-
were being resorted to, and after an In
quiry 1t was announced that the Frost in
cident was due to the innocent mistake of
the clerk in picking up the wrong stamp.
rubber stamps in use for marking the bal
lots as they are handed in. One stamp Is
for the administration ticket, and the other
Is for the policyholders ticket. The clerk
had unwittingly picked up the administra-
ton stamp in Frosts case. In how many
other cases clerks had made the same "un-
whiting" mistake the manager Of the
say. The same officials denied the charge
made by Scrugham that the company had
called in its horde of agents and clerks
political machine in the Manhattan Hotel.
They disclaimed any knowledge on the part
of the company as to the headquarters,
and said that If they existed they had been
| established by the agents and clerks them
| selves.
Committee Makes Statement.
The statement issued by the policyhold-
ers committee is as follows:
1.-THE action Of the New York Life in es-
tablishing headquarters in the Manhattan
Hotel and transporting to New York a
horde of agents, canvassers and others Is
much to be deplored They certainly do not
realize the feeling that exists among the
policyholders created by their actions in
| this campaign. This committee has from
the beginning advised policyholders to make
no attempt to vote in person, but to mail
| their ballots direct, and thus Celay and con-
fusion would have been avoided. 1t is
hoped that all local policyholders will cast
their ballots Immediately by mall and
make no attempt to vote in person on Tues
day next. Their ballots are perfectly safe,
and every precaution is being taken by the
superintendent of insurance to protect the
| interest of all policyholders.'
The hours for opening and closing the
polls Tuesday have not been decided on by
! Superintendent of Insurance Kelsey, but
they probably will be finally fixed at from
| 8 am. to pm. How the vote will be
| counted tailed and tabulated In that time
| - impossible to tell, and the manager of
| the policyhOlders committee said yester-
| day he had figured it out that with 100 men
| working eight hours a day the vote could
| not be counted in less than 80 days. The
| committee has thousads of votes packed in
the vaults of the Standard Trust Company,
rs Broad street. which it has not deliv-
| cred to the superintendent of insurance.
| These ballots will be delivered at the sew
eral polling places-that Is, at the home
offices of the companies on Tuesday, and
several days will be required to haul them
| from the vaults.
New Law January 1.
| Many of the most important of the life
insurance reforms enacted by the legisla-
! ture following the report of the Armstrong
| investigating committee become operative
| on the first day Of the new year.
| December 81 will be a sad day for the
| life insurance agent, whose lot has not
| been rosy one for the last year and half.
| That date will mark the end of the high
| commission era. Since the exposure of the
| iniquities of the life insurance business
| it has been difficult matter for the solicit
| tor of ordinary ability, even with the ex-
| travagant commissions of the old days. to
| make a fair living, and the crack or star
| men who were in the habit of clearly $25,
| 600 and $35 600 year have seen their in
| comes shrink to $4,000 and $4,000.
| On the first day of the year the law linn
| ting the amount of money company
| may spend to acquire new business becomes
| operative. This is the section which hits
| the agent the hardest. The total expense
| must not exceed the loading of the first
| years premiums, plus the mortality gains
| of the first five years.
| This will have a different result in diff
| ferent companies. Averaged, 1t will amount
to a shrinkage of between One-fifth and one
fourth of the agents commissions. In other
| words where an agent was getting 80 pei
cent, or say a commission of $50, for
bringing in a policy he will get under the
| new law $50 or $65
| His interest in the subsequent or renewal
| premiums is also curtailed. In some Of the
smaller companies the agents have been
getting a commission on the premiums
| throughout the life of a policy. On en-
dowment policies he is limited to per
cent of the renewal premoums for nine
years. On all other policies he is limited
to ~ per cent for nine years. This hits
the managing agents harder than the So
| linttorS field