New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1907-05-04
MAY ARREST ANOTHER
"INTERN4TION4L" NAN.
Insurance Ballot Investigation
Brings in Man Higher Up.

under arrest on the charge Of conspiracy TO cir
cumvent a proper election in the New York Life
The District Attorney, il is said. does not be-
leve that any of these men, in their alleged
practices. acted entirely on his own initiative
but OF them at least took his cue from an
other man higher up connected with the COM
raittae.
This man who according to the rumor. pos
sesses wealth. brains and no little influence in
The community. has received intimationS within
the last few days Of the District Attorneys
search for evidence against him. and. according
10 his friends. will leave no stone unturned Il
prevent his incupaton. None the less. accord
ing 10 the same ruInor. the District Attorneys
office is quietly getting evidence against him
and should the evidence be sufficiently conclu-
siVe Of course, will not hesitate instant Il
rnete out 10 him the same treatment accorded tc
the three men lower down already under ar
rest At about the time Of the three arrests Fl
is seid, this man was in communication with the
District Attorneys office. when he declared his
entire innocence Of any completely in the al
legged practices.
II not before. At the trial of the three men
set for next week the District Attorneys office
expects that interesting evidence will emerge
bearing on this very point. Meanwhile the Dis
trict Attorney has pledged all parties concerned
in the case TO strict secrecy
The evidence In the case now in Mr. Jerome's
possession includes several documents. II ia
said. tending show that Mr.. Scrugharn in
his correspondence with certain pocyholders
stated thai in opening ballots he was operating
under Messrs. Oney, Tracy. Parker. Gray and
Gntermyer's construction Of the insurance stat
utes
PoLICYHoLDER ASKED INFORMATION.
Correspondence in one such alleged case came
into Tribune reporters hands Yesterday IN
the form OF a letter from New York Life
policyholder IN the Oranges to Mr.. Scrugham.
and Mr Scrugham's reply According 10 this
correspondence the policyholder, whose name
and address withheld for the present. wrote
to the international policyholders' committee at
No. so Brosd street, on December ), 1906, as
follows:
After careful reading OF the law governing
the election Of directors for the New York Life
Insurance Company, / am convinced that those
policyhcideTs who choose 10 vote by ballot are
required TO send their ballots IN a sealed enVe-
lope. addressed 80 the company instead of in
an unsealed envelope inclosed in another enye-
ioPe addressed to Nj Olney. as you recently
advised pol!cyholders 70 do There IS no doubt
In my mind tha1 ;he intent Of the Law is 10 pro-
vide for 2 secret sealed ballot 10 be sent direct
10 the company. Tha law specifically states that
Such envelope containing the ballot. sealed and
postpaid. NAV be mailed by the policyhoIder to
or ma BE- delivered al the home Office Of the
can find no provision in the law which CON
templates the receipt Of hailets either sealed or
unsealed, by your committee. Or by any one else
other than the company.
read in the newspapers about ten days ago
the statement Il your general manager. Mr
scrugham - the effect that - per cent Of the
ballots received by YOUR committee did not COM
ply with the requirements of the law. and that
those we're being sent back TO policyhoders for
correction. How vas Il possible for him to know
0ftlCe
had opened the sealed ballots sent 10 your COM
nittee by policyh0lders who followed your in
structors accompanying the first and second
gets Of ballots you sent US? Can II be possible
that the managers Of your campaign. who have
repeatedly charged the mana cement Of the New
York Life with evasion and violation Of the laws
with regard % procuring ballots, have deliber-
ately opened sealed ballots in direct violation Of
the Law which reads.
Any person ccncealing or Withholding or
participating in the concealment withhold
ing from The inspectors. or, not being an IN
spector. opening being privy 70 the opening
o. any such envelope. shall be guilty Of a mis-
demeanor."
In yiev Of your apparent action it IS not
strange .iet the chief insurance officer of the
state. in q letter addressed to a pocyholder
which have read states that your action
may be contested by criminal proceedings be-
toie magistrate or in court"
To make that my vote conforms to the
requirements Of law ] have mailed an0thes bal
lot in 2 sealed envelope direct To the company,
and in order that may not be disfranchised l
demand of your committee the return Of my
ballot addressed 20 the Hon. Richard Olney
some ten days ago. and for this purpose In
eose return stamped envelope.
According to the correspondence. on Deem
Der Mr. Scrugham wrote the following reply:
Replying to your esteemed favor of the 9TH
INST, you correct in quoting the New York
insurance law folloVs:
such envelope containing the ballot. sealed
ana postpaid, may be mailed by the policy
hooer 10, may be delivered AZ. the home
once Of the COMPANY
direct your attention IN the following facts
envelopes sent 70 the Hon. Richard Olney,
chalrInan are delivered the home office of
ne company I'm sealed envelopes under the
above provision. The statement made I'm the
newspapers which you quote was correct. If We
,+au iot taken the precaut1On 10 have policy
holders ballots sent 10 the Hon. Richard Olney
- mat tho same could be checked before de
AFering to the company at least - per cent Of
ne pollcyhoders who desired 10 vote the pol
lcyholfers' ticket would have been disfran-
'hsed. direct your attention 10 the fact that
@ Hltse ballots are sent 70 the Hon. Richard o.
.ieg. chairman Of this committee, and naturally.
a II i5 our mail, have a perfect right 10
open same and that the ballots correct
De'oTe they finally sealed and delivered to
ue nome Office OF the company. I also direct
your attention 10 the fact that any envelope con-
.1iiiea IN an envelope received by this commit
zee addressed direct 10 the company IS deliv-
opened
ihls entire law was carefully gone over with
our AlessTs. Olney. Tracy. Parker, Gray and Tn
@s+rhyer, - and We operating under their con
nIucton OF these statutes, and no policy yholder
80 s Iear disfranchiseInent if he has complied
~ I'm the instructions sent out with the ballots
i ma nave been mailed by this committee. Bal
-, - eegiI 70 this committee that correct
--4A'efed and filed il viii not make any diff
ttn'e u you file forty ballots, only one OF them
~iu count and the date az shown on that bal
10Y would govern the first one counted il IL WIS
Hteel' or If IL was incorrect the second one,
- ~ would be a hopeless task to attempt 10
- through the many thousand ballots that we
"S'e and PICK out the one that you sent
mat not all the men cited by Mr.. Scrugham