New-York tribune., 1910-01-11
TR.USTEESHIP SOLD
INSURANCE OFFICERS
CRITICISED.
p,,,rt on Peoples Mutual
t;fs Association and League
Filed at Syracuse.

ra, 1n-The supplementary
eIs5 bv officers of the State IN
,.e Departnent in the hearing re-
-.-5,,e the alleged illegal uansler oi
sne pennies Mutual Life Association
,5 League 70 the Federal Lie COM
-, ~ Canada was filed at Syracuse
,5sv The report contains the evi-
dence OF Lieutenant Governor r'or1ee
vr,i+a who testified that the transfer
-ss made for s145, 600. of which ne re-
-siZ,ad $4,000 for money owed to MIN
Tot,,, Tevis. of Louisville, who nego-
tisted the transfer.
c,,,erintendent Hotchklss saio 70
night OF the transaction:
sl-,e Lieutenant Governor tesuned
.-,-b csndor. and I am certain he teio
re the truth as to his full connection
-, tbe matter I believe that such
,e.+;on was due 10 the trust Mr..
-a--is and the old directors had in him
statement tonight Mr. Hotchkiss
concludes as follows;
Tbs testimony. which is quite volur1ai-
,ous and contains much that throws SIDE
-s.-e ~, the whole transaction, indicates
-
o--,,-e -beir property, and without con-
,.;s- ire members were willing TO dis
= u n their individual profit. In
.ri,icn OF the department, men who
,,1s Tins sell their trusteeship cannot
Le trusted TO continue in such trustee
shin. likewise. men who would puy such
--,s+eeslip might sell il Hence the
s.aa--r7ent's action in seeking TO take
-bie company and its large assets out OF
their hands.
HoTCHKISS'S STATEMENT
Mr. Horchkiss's statement follows in
Part.
Pursuant 70 an order Of Judge An
drews ar the Syracuse special term held
On Saturday last, additional affldaVits
and testimony evidencing the investiga-
ton which has been made since the pc
tfrion Tor possession and liquidation was
fIed on December 29 we're to-day served
upon the attorneys for this 1raterna4
beneficiary society and fled in the Onon-
daga County Clerks Office. These papers
include examinations conducted under
Section so OF the Insurance laW--at SYRIA
cuse Of President Tram c. Reed. vice.
President E z. De Barr, Secretary and
Treasurer willard H. Peck and Medical
Director Z .. Kline; at the New YORK
ofTice OF the department OF Attorney
n
ters Of the department in Albany OF
Lieutenant Governor Horace White
Each OF these witnesses on their first
examination declined 10 answer certain
Of the questions put them but on eX-
auainations conducted on Thursday and
Friday last replied, though in some cases
with much reluctance, 10 the inquiries OF
the department.
In brief The evidence shows that eight
of the nine directors OF this society,
vl-5ch is Z fraternal beneficiary society
having no capital stock. have received
thus far the following amounts from one
Iohn Tevis, OF Louisville, who seems TO
have been IN effect the purchaser Of this
society, with assets Of about $4,000, 900
and having Il, ,00G members, viz: Willard
H Peck (h-st payment), S21,50o; Tram
Q Reed $4,000; E. Z. De Barr. S13, 500:
Dr. z. Q. Kline s25,600; E. B. Santee
(ttfs sum having been sent him in cur
renev by Dr. Kline out Of $50 900 paid
The latter, $1,000; Charles Z. Waite,
10000; 4. 4 Mondon. $4,000; Slayter
Lavcock IS Gao.
Fifty thousand dollars OF the s15oo00
placed in Lieutenant Governor Whites
hands by Mr. Tevis was disbursed by
The latter IN the following amounts:
Willard Z. Peck $4,000; First National
Bank Of Syracuse, $4,000; John Tevis,
$4,000; Horace White, $4,000; still on
deposit in the First National Bank of
Syracuse, $1,000
NOT LIABILITY AGAINST COMPANY.
Nessrs. Peck, Reed and De Barr claim
thar the money paid them was consider
zIion for their assignments TO Mr.. Tevis
II certain contracts bearing date in 1904
Il about the tine this society began
business. whereby they were 10 receive
Z addition 10 their salaries certain per-
centages on business done. Messrs. Peck
and Reed. however, admit that Obliga-
mons 70 them on these contracts were
never carried as 4 liability against the
company, and '1erefore face the alter
native Of admitting that this money was
8aId ro them. as claimed by the depart
reEL n consideration OF their joining
IN scheme Tor the surrender Of the
-on-rol of this company 10 Mr. Tevis
and his associates. or else responding 70
rh- charge of fling false statements in
fha Insurance Department for the last
several ,--ar- The evidence indicates
--a- none Of the other directors had con-
tracts tc sell and suggests that the
u1nev paid them vas by way Of distri-
rlrron for their share in the transfer Of
rfi society 70 Mr Tevis.
A. rc the disbursement Of the $5A,000,
rouiG epp=a~ that the $4,000 paid Mr.
p IL w-s ~ Wav Of securing his services
n .-rnectior Ritn 2 new or reorganiZed
a71Tenv- that the pa yrnent 70 the FIRST
erf.0Ef1G 11Nk fI syracuse was N CDu-
-fGe~ation Of lis accepting on deposit
-ran1 one Travers. of the Farmers Bank
- canada. on behalf OF Mr. Tevis. Cana
1isu currency n the extent of $50 600,
nd also for its good offices and the risks
IltCh II might run in practically cash
rz $3.50. GOO # This societys securities,
hat the same might be used IN making
3 deposit of Sl5000G Of the society's
1Une-s in the Farmers Bank Of Canada.
that The u Vu1enT of $4,000 70 AIr Tevis
r4e return 70 him Of his own money;
and that + ~ "a vment Of 800. 600 IL Lieu
tenant Governor White was for rnonevs
r7ving him over 4 period of several years,
and represented bv disbursements. cash
oVsnced, profits and services in several
.rsnsacrlons IN which he had been inter
zsts1 with or represented Mr. TevIs and
mat The 5000 still in the bank Is
--aInled bv Mr.. Tevis, bur al the request
% the department le being held subject
n tne determination. after examina ton,
> ~ whether ne is entitled 70 the same
= 7Fill therefore be seen that the state
oenr u the department late in Decem-
1eT that The controlling officers OF this
-ra-ernal beneficiary society had parted
7lth such control 70 other persons for
2 substantial money consideration run
I-cg u such officers. has been substan-
rlatsd
Many letters received ar the depart-
nent each day indicate that the certifi-
ate holders OF this society approve the
actlon of the department in seeking TO
prevent the transfer Of this society 10
persons not known 70 the membership.