New-York tribune., 1906-10-24
NEW YORK LIFE SUED.
MONEY MISUSE ALLEGED.
Policyholders Ask Injunction
against Electioneering by Directors.

The international policyholders' committee has
brought suit against the New York Life for an in
junction restraining It from electoneering at the
policyholders' expense. Justice Bischo signed the
order yesterday to show cause why the injunction
should not be granted.
The committee expects to base on this suit GRIM
NAL action against the company
Samuel Untermyer, the committees counsel,
made the application for the order which Is re-
turnabe on Friday. Stephen Farrelly, general
manager of the American News Company brings
the action In behalf of himself and all other policy
holders of the company to restrain waste and
aversion OF the New York Lifes funds. and also
TO compel the directors TO account for large sums
alleged to have been spent already in pro-admin-
istration electoneerng.
In addition to Rufus w. Weeks, twenty admins
tration candidates. including President Orr tho
defendants in the suit Violation of their duty by
directors coercion polioyholders. electioneer1ng
advances to agents, misuse of policy numbers and
diversion of the policyholders' money, among
the many charges made.
The complaint. in part, says:
For considerable time the defendants have been
the policy A Of the Defendant adj m eorporation
Of seS{ cEa and 1Hs
AMONG he OF
agents hereinafter set forth CONFIDENTIAL info1
duty the defendanas 'd toward hs the policy
bo ns Os hs
eers by. agents Of the defendant Corporation; and
eosrce Policyholdsrs into voting the adminisration
to Various gSh m ba t
or by agents of the company whether such policy
Prior to October Is 1906 the Individual defendants
In violation of their duty as directors caused to be
to the Oca 0f Cs OF m
snch el and return envelopes and caused
to Is % so pacs say Sn
of the
eeompany's policyholders and to mark each ballot
tne the wos
so g an 10 placing the numbers on the ballots and In
oy the office force and salaried employees OF the
ter. after such preparation Of said ballots and
pfeIopes fp TO distribute them among the agents en-
agents to 60 among ali the. policyholders Of the
cure and nduce if possbe the exeeuon of eead
mutilated ballots by said polcyhoders in advance
ballots prescribed by statute and mailed by the de-.
fendant corporation on October II and 49,
The complaint declares that the printing OF these
ballots envelopes and other electioneering Iitera
ture' was done at the company's printing office.
The plaintiff asserts that the stamps on these re-
turn envelopes, when sent out from the home office,
were placed lengthwise. to indicate to the COM
panys offices that the envelopes contained ad-
mtnstration votes, and to distinguish them from
the official return envelopes
The complaint then alleges;
Ing and dispatch Of said marked ballots. ana re-
as turn envelopes together with the postage thereon
yolving an expenditure of many thousands Of dol
% ana SnT sns
the policyholders. 1 -
Tho company, the complaint goes on to say with
the defendants knowledge and consent has made
large advances to agency directors and agents to
compensate them their services to the directors
In trying to obtain votes for the administration
ticket.
Unless restrained by the courts, says the COM
plaint large portion of the home office staff will
distribution Of nutiiated ballots The contention
IS se ie AND H9rS IS 6edng 70 dSae At the
nnmeTs 1as o the Of b Of
charges that The furnishing Of policy numbers to
et ana Forged ballots may be voted in favor of
administration ticket and the detection Of
into whose hands the Aforesaid baiio1s are pseed
and whose names. In many instances are known to
The complaint declares that the expenditures We're
Of the defendants and were wrongful and unaWful
snd constitute waste and misappropriation Of the
EsT!ler IN the day Vios-Presdsnt Kingsley de-
eopany Raa to The
s9Sss
% 5e n Its ss or hd or
in r Ensland, France. Germany or Austria
cilites to the committee for learning. at its own
expense, the number of ballot envelopes received
by the New York Life and the Mutual. and to
check the envelopes George R. Scrugham, the in
ternational committees manager. received a mes
sage from Louisville stating that the Mutual
manager. Williams. of Louisville. was employing
Equitable agents in the Blue Grass State to cleo
and that Mr. Williams testified before Commission.
er Purvitt that he personally paid $500 for this
work last week, looking for reimbursement, al
though his salary is less than $50 week.
Protests reached here from Los Angeles last night
that mutated administration" New York Life
ballots had been received by policyholders. c.
Whitney, director of the company's Los Angeles
agency, said to be assuming responsibility for
these ballots.