The Montgomery advertiser., 1907-05-01
BOTH CHARGE FRAUD
SENSATIONAL RESULTS IN INsU-
 RANCE ELECTION CASES.
The Poficyholders' Representatives Are Accused of CroOkedness As We'll as the Minions of the
 Companies.


 suits have quickly followed the in- auiry by the district attorneys office into the recent election of directors of the New York Life Insurance Compa- ny,
 George B. Scrugham. manager of the International Policyholders Com mittee, who inspired the present in- vestfgation, making grave charges against those who conducted the cleo ton. was himself arrested at Albany tonight and put aboard q train for New York.
 ScruSham is charged with conspir aoy and he was the third man identi- fled with the international policyhold- ers committee to be taken into cus- tody since noon today. The others are Charles Stirrup and Charles F. Caring ton. These two were not members of the committee but were employed as watchers from the committee at the election. Stirrup was a watcher at the directors election of the Mutual Life Insurance. while Carring gton acted in a similar capacity at the NewSYork Life election.
 They are specifically charged with having "unlawfully conspired togeth- CT for the perversion and obstruction of the due administration of the laws of the State of New York with rela- tfon to the election of the directors of the New York Life Insurance Com pany." Stirrup 1t Is alleged. was em- ployed In the once of the policyhoid- CTS committee previous to December IS, and the offense with which he is charged was committed prior to that date.
 Earlier today Jacob Frank, a New York Life Insurance Company agent was arrested charged with forgery in the third degree. Frank had been to explain the signatures of several policyholders to alleged forged ballots cast at the recent election of directors of the New York Life Insu- rance Company.
 The Policyholders' Committee. head ed by Scrugham, as manager. and Sam uel Untermyer, as counsel, and with a of many distinguished per- sons in this country and Europe. fought the administration tickets" in the re- cent elections of directors of the New York Life and Mutual Life Insurance Company.
 scrugham was arrested while in AL bany in connection with Insurance leg islation looking to the reform of insu- rance companies elections He was expected here tonight and was awaited by representatives of the District Att office who met the train reach- ing the Grand Central depot at 10:10 o'clock. When he did not arrive, 1t is stated, his arrest was ordered in AL bany.
 samuel -Untermyer. counsel for the Policyholders Committee gave out the following statement tonight:
 My attention was only called to this complaint late tonight. During a considerable part of the campaign. was in Europe. know nothing about the subject of the complaint except what have just heard, but it looks on its face very much like a cry of stop thief on the part of the companies. They know that the forgeries on the part of the agents ran into thousands and they would like to obscure the is- sue.
 T have no doubt MT Scrugham will be able fully to meet this last move on the part of the companies to cover their tracks"
 Since the elections in both the New York and Mutual Companies on Decem- Der IS, the District Attorneys office has been looking into the counter charges of crooked work by the ad- ministration paFty and the policyhold- CTS committee. Representatives of both sides have been heard and many ballots have been examined. Nothing definite was done. however, until after the official count was concluded, show ing the administration tickets to be the victors by large maJorities in both companies.
 Burlington, stirrup and Scrugham were in the District Attorneys ofice yesterday and were examined separate ly.
 Today four women clerks employed by the poIicyholders' committee In pre- narinR ballots were examined in the District Attorneys office. Soon after that the complaint against the three policyholders employees was drawn up. Stirrup' and Darlington could not se- cure bal! ana were-locked up 4n the Tombs.
 The three prisoners will be given a hearing tomorrow morning.
 In the complaint Mir. Howe declares that the alleged conspirators had in their possession on December IS. 1908, A large number of ballots for the pol icyholders committees ticket. which were not at that time, according to the complaint. in proper form to be counted. The complaint further as- serts that the prisoners "did conspire together to tamper with the said de- fective ballots. and so altered and changed them without the consent of the policyholders, who had signed them. as to make them appear to be In due form of law and proper to be counted at said election."
 Many ballots. it is further complained, were not enclosed in envelopes which had been signed by the policyholders as required by law. that the inspectors of election might be deceived and count for the policyholders committee ticket large number of ballots which were not valid and entitled to be counted.
 NARan1afnf add that fhA nFianM-