New-York tribune., 1906-07-08
DENIAL BY SCRUGHAM.
Says Buh of PolicyhoIders' Com
mittec Has Policies an Companies.

Regarding the discovery on the part OF the
officers of the New York Life and the Mutual
Life insurance companies that less than half of
the members of the international policyhoders'
committee have policies in force in either of the
companies they have undertaken to reform, G.
r. Scrugham, the organization manager of the
committee. gave out a long statement yester-
day.
1t is said that the New York Life has found
that six members OF the committee have pol
icies in that company aggregatng s1S5,OOO. One
Of the policies is for S75.0O0 Seven members OF
the committee are polcyholders in the Mutual.
Three Of them not on the New York Life list.
This makes nine members Of the committee that
have policies in one company or the other. ac-
cording 10 their own statistics
Mr.. Scrugham's statement. in part, follows:
It seems that the Perkins Morgan and Stand
ard Oil managements of the two companies have
combined their forces i'm last effort to retain
campaign against the poiicyholders on the thin
preteXt that some of the eminent gentlemen
constituting the international p0ltCyhOders'
The facts are:
Ffrst-That the bulk of the committee hap
Pen to be policyholders although they were not
selected primarily for that reason. but because
their great national and international Teputa-
tions are guarantee that they will faithfully
execute the important trust that they have
undertaken to rescue these vast properties from
the eminent Wall Street philanthropists
SeconG-Ihat those who are not themselves
policyhoders directly represent great bodies of
policyholders at whose special request they
acting. For instance, six Governors OF states
VINO are members of the committee some of
whom are policyholders, were not invited upon
the committee because Of that fact but because
they felt that as the chief executives of their re-
spect1Ve states II was their duty to the citizens
Of those states to endeavor by organization to
protect them from the further enforced conver-
sion OF their property and its further diversion
schemes
Third-As to other members: Mr. Yanamaker,
Tor instance, represents i'll his immediate family
more insurance in the two companies than all Of
the sixty officers and directors of both companies
combined. The four members Of the New Eng
lShd pollcyholders committee, which is one Of
tue oooleS at whose request Richard Olney is
acting. themselves own over S100000O of insur-
ance besides the millions they represent. Con-
greSSInan Nicholas LOngworth, who happens to
be a. polcyholder. was not selected for that
reason but because he was designated by the
Ohio PolicyholderS' Association which has over
sixty thousand enrolled members and pays about
Sl2G0O000 year in premiums large part
Of this is in these two companies Colonel Shook,
Of TenneSsea. is a member not only because he
is large policyholder in both companies but
primarily at the request of the Tennessee asso-
citation. of which Insurance Commissioner Folk
is the head. and which is said to have member
ship of eighteen thousand policyhOldeTS besides
being recommended by the Georgia association.
Heinrich Wiegand. although pollcyhOlder. rep
resents the German committee one member OF
which carries more insurance than any three
members of either board.
The committee represents to-day approximate
~ 100000 pOlicyhoders in the two companies,
although canvass has yet been possible ow-
ing to the fact that the managements, by using
the lists for their own purposes. such as the
present puerile attack the committee, have re-
fused us access to them.
On the other hand it may be profitable to in
quire what real interests in the companies do
these directors represent, who resOrting to
such means to retain control of other peoples
property against their Will
1t appears from the Armstrong report that the
Mutual Life directors were elected last year by
less than 200 votes and the New York Life di-
rectors by 1928 votes out of a total Of 100000
votes, so that they received less than One-flfth
Of one per cent of the votes of the policyhOlders
The policyholders did not even know that there
was such a thing as an election during all the
years that these arrangements were managing
their property, corrupting legislatures, control
ling political parties and making themselves
Napoleons of finance, all in the interest Of the
dear policyhOlders.
It is expected that the administration ticket"
Of the Mutual Life will be made public this
week President Peabody said the other day
that no nominating committee had been appoint
ed by the board. This is taken to mean that
the ticket has all been cut and dried by certain
elements in the board There is a general feel
ing that there will be no radical change. Her
man C. Won Post and or two others may
retire on account OF age, but most of the ticket
will he made up of the same men who ran the
affairs of the company during the McCurdy
regime.