The Birmingham age-herald., 1906-10-17
Kentucky Insurance ConmiS-
 siOnef Asks Some Questions
WORKS FOR THE COMPANY
Law Requires Administration to Put Out Ticket and Common Sense lmpeIs Officers to Support
 Their Own Ticket.

Frankfort. Ky. October 16-N1r Chas. A. Peabody, president of the Mutual Life Insurance company of New York. l appeared here today before Insurance onmissioner II. R. Prewitt to answer charges of coercion: the use of the com nany's money for campaign purposes of the coming election of trustee of the company, and the dismissal of Colonel Biscoe Hndman. general agent of the company for Kentucky and Tennessee be- | cause he (EIindman) stood for election as trustee on the polcyholders' ticket.
 To these charges MT. Peabody entered all emphatic denial. Three or four gener- al agents have been dismissed by the Mutual Life of New York supposedly on alleged similar grounds but this is the first time the company has been called upon to explain its action to state com missioner of insurance
 Can Revoke Charter at Will. 1 By a recent decision of the Kentucky l court of appeals the commissioner of l insurance has the right to revoke the l charter of any insurance company doing 1 business in the state without giving any reason for the action, his power in the matter being absolute. For this reason the hearing was the subject of much in- terest and the court of appeals room in the old capitol was crowded while the commissioners attorney Eli II. Brown of Frankfort was questioning MT. Peabody. | NJ. Peabody made an excellent impress sion and the investigation was carried on in a manner devoid of anything border ing on the sensational. MT. Peabodys willingness in coming from New York iE response to MT Prewltt's citation, when the legality of the procedure was un- certain. Is favorably commented upon.
 Commissioner Prewitt will not announce his decision in the matter for severa, eays.
 IL was half past three before President Peabody was sworn and had taken his seat in the witness chair. Commissioner Prewtt then made the following state ment
 Prewitt Makes Statement.
 That you may be fully informed of the matters thls department desires 70 investigate, I will make to you brief | statement. From the Associated Press and other news agencies and from evi- dence furnished this department, the de- par.ment Is informed that your company has not only violated the law in refer ence to the approaching election of trus- tees but that your company Is attempt- | ing to coerce intimidate and otherwise | Influence agents of the company into soliciting votes for the ticket known as the administration ticket; that you are not only permitting but compelling sala- ried employees of the company to cleo tioneer and solicit votes for that ticket: | ,aI ar I them salaries and expenses from the companys funds to solicit votes for that ticket; that you are having agents and | ether employees of the company go from different sections of the country to the hone office in New York for conferences concerning the election of the administra- ton ticket and defraying the expenses of such agents out of the company's funds; that you are threatening employees | of the company with discharge unless they loyalty support the administration hat you have discharged already several | of Inc managing agents of the company fror1 the company's service, because they l or some kinsmen of theirs have accept | ed a nomination on a ticket other than 1 tta administration ticket or because they would not support and solicit votes for | that ticket, and that you have lately dsn. ssed Colonel Biscoe Hindman, late managing agent of the company in Ken | lucky because he accepted a nomina- | ton for trustee on q ticket other than thA administration ticket, and because ho | refused or failed to Loyalty support the candidates on the administration ticket"
 Peabody Enters Denial.
 To these charges Mir Peabody entered n denial, and when it came to explain Ing the dismissal of Colonel Elindman. | he said he could not have dismissed him for being on the trustees ticket because | ~ al had not accepted the nomination. Mir. | Peabody then coming to the real cause of the discharge. said that Colonel Hind mans opposition to the company was well | known. Colonel Hindman had openly and | ayowedly attacked the integrity of tho management and that his position was not consistent with proper performance | of his duties as an insurance manager. It was for this reason that Colonel Hind man was dismissed. Mir. Peabody then read a prepared statement, in part as follows, stating the position of the com pany:
 Reads Proposed Statement.
 "The bylaws of the company provide that with the exception of the president and vice president, no officers of the company shall be members of the board of trustees
 "To comply with this bylaw in the few instances where managers or agents ! of the company have announced the m tention of accepting nominations for of flee as trustees, this committee has felt impeled to terminate the contracts un- der which such managers and agents have been in the company's service.
 No action nas been taken by the com m.ttee which can be properly character ized as coercng any employe into voting or soliciting votes otherwise than as his own free will dictates
 "The law compels the trustees to nom mate a ticket described the admins- tration ticket It Is not to be supposed that the legislature after imposing this duty that all those connected with the administration should abstain from efforts to elect the nominees.
 However, no money of the corpora ton can be properly used in electioneer- ing and this committee has not and VIII not authorize any such use.
 | Tt is the duty of all employees of the company to explain to the policyholdero