Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1906-07-10
Prominent Men al Head Of
Movement
NEW LAW MAY MEAN END
OF ExTRAvAGANT REGIME
Men Who Pay the Premiums Seek
To Elect Majority Of Directors
In Two Big Companies.

New York, July s.-The interna-
tional policyholders' committee which
seeks to overthrow the present man.
agement of the New York Life Insur-
ance company and the Mutual Life In
suranee company of New York met
here today.
After an hours session permanent
organization was effected as fol-
lows:
Chairman Richard Oney. of Mas
sachusetts.
Vice Chairman. Governor Frank
Hanly, of Indiana.
Executive committe, Alton B. Par
ker of New York, Governor ]. e..
Johnson of Minnesota, Charles Emory
Smith of Philadelphia, Harlow N.
Higginbotham of Illinois. A. M. SHOOK
OF Tennessee, Governor Henry Rob-
erts of Connecticut. Governor Samuel
w. Pennypacker OF Pennsylvania.
Finance committee, Thomas b. Wan
amaker of Pennsylvania f. d. Neld-
ringhaus of Missouri, Samuel New
house of Utah.
Counsel, Samuel Untermyer of New
York.
Secretary, Seymour Eaton.
Organizer, G. II. Scrugham.
The general committee formally ad-
ded to the list of its members the
names of Lord st. oswald and Harwood
Barnard, NJ. r., to represent the En-
glish policyholders. After the meet
ing the committee issued an address to
the policyholders explaining the incep-
tion of the movement and outlining
the plans of the committee.
Rectlng that the voting power has
gradually been transferred from the
policyholders to a few of the execu-
tive officers centered in New York, the
address says that it is necessary for
the 100000 policyholders to organ
iZe without delay, as this year under
the law recently enacted affords the
policyholders their only opportunity
to obtain complete control in one
election, as hereafter only half the dl-
rectors can be chosen in any one cleo
ton.
Following is the address:
To the policyholders of the New
York Life Insurance company and the
Mutual Life Insurance company:
''At the request of the policyholders'
and committees representing the poll
cyholders in your companies in the
United States and foreign companies.
the undersigned have consented to act
as committee to represent your in
terests under the name of the interna-
tional policyh olders' company, and
herewith submit for your considera-
tion the following statement of facts:
"These two Insurance companies are
mutual companies, that Is to say, they
are owned by their policyholders. The
enormous accumulated assets of over
$500. 900, 900 represent the premiums
which you as policyholders have paid
"The law requires that the policy
holders of a mutual company shall
elect from among themselves direc-
tors who shall be responsible to al
pOlicyholders for the intelligent and
faithful management of the company
affairs. AS the law formerly stood
1t was practically impossible for the
policyholders scattered throughout the
world to vote. In 1905, even after the
agitation began, there were but 2,52S
votes cast, mainly proxies in the tive
companies out of total of ove'
1900 900 policyholders, or less thar
one-fifth of one per cent.
"Three-It gradually became a rec
ognized custom among the officers tt
secure through agents proxies made
out to the president or some officer o.
the company upon delivery of the pol
Icy. In this way the voting power was
holders to few of the executive Off
GERS centered in New York.
"Four-Thus 1t came about that th'
control of these two companies wal
gradually taken out of the hands o
the policyhoders and came under thu
absolute domination of few executive
officers. Out of this system have
grown the extravaganza and othe
abuses, some of the particulars o
which have been brought out unde
legal process. by the Armstrong inves
tIgating committee. The self-appoint
er directors are still In control ant
will remain In control directly o
through their own nominees. unles
you as policyholders decide otherwis
by the exercise of your right of simpl
ballot voting which has been restores
by the recently enacted law
"Five-At the last session of tn
legislature of the state Of New York
the state which issued the charters q
these two companies. there was enac
ed law which gives to the policy
holders their actual voting rights Th
law strikes at the very root Of III
evil!s cancels all previously issue
proxies and provides that any prox
given in advance OF October 49, 19Ot