The citizen. (Honesdale, Pa.) 1908-1914, 1910-01-12
INSURANCE DEAL.
New York S Lieutenant Gov
ernOr Makes Admissions.
HANDLED A FUND OF $I5O,OOO.
Received $4,000 For His Services
as bag Holder" of Money to
Buy Up Fraternal Organ
ization.

ization.
! Albany, n. Y. Jan. 11.-By his ad-
mission under oath to the state super
intendent of insurance, Lieutenant
Governor Horace White handled
! fund of $150,OO0 in Canadian money.
charged to have been used to purchase
control Of the Peoples Mutual Life
Insurance association and league.
fraternal organization. The lieuten-
ant governor received $4,000 for his
services as bag holder and to salts
fy ''otd obligations"
The amazing part the lieutenant
governor played in this deal, branded
by the. state insurance department as
Il fragrant violation of the law. was
disclosed when papers containing the
admissions of White and associates
We're filed with the clerk of Onondaga
county.
Superintendent of Insurance Hotch-
kiss has begun an action before Coun-
" Judge Andrews of Syracuse to
block the scheme and get possession
of the assets of the company. This
action is being prosecuted by Attorney
General Edward K. O'Malley in per-
son.
The attorney general will begin suits
against the lieutenant governor, the
directors of the company and other
participants to protect the interests of
the insured.
The testimony shows that the ad-
missions 10y the lieutenant governor
and others were made reluctantly. 1t
was not until they were confronted
with section of the insurance law
and threatened with contempt pro-
esedings that the story of the deal was
finally told to the officials of the in
surance department.
The deal which Lieutenant Govern
or White supervised was an attempt
on the pare OF John Tevis of LeXing-
ton, Ky, to buy control of the insur-
ance company and its $3,O0O,O00 of as
sets for S1j0.000. The company is
not stock organization, and in order
to get control five of the nine direct
ors resigned to let friends of Tevis
take their places.
Associated with Tevis was a man
named Travers of the Farmers Bank
of Canada. Three of the directors and
Secretary-T William ii. Peck,
President |. c. Reed and Vice Presi-
dent II. +. De Barr claimed that the
money they received was for certain
contracts valued at about $4,000, un-
der which they were entitled to re-
ceive in addition to their salaries GER
tain percentages on business done.
White in his testimony said he dis
tributed the money among the officers
and directors of the company as fol-
lows President Tram G. Reed, $4,000;
Secretary and Treasurer Willard II.
Peck, $31, 800; DR.. e. o. Kline, $780,
600, of which he paid $4,000 to ]. L. =.
Santee;' L. L. Debarr, $13,500; Charles
f. Wayte, $4,000; Slayter Laycox,
$1,000
White said that on Dec. 20 William
r. Travers, general manager of the
Farmers bank of Toronto, came here
with $1500OO in a satchel. Travers
said that this money was to be put to
Whites credit in IA Syracuse bank by
Mr. Tevis.
"Mr. Tevis stated" said White. that
he expected TO purchase certain con-
tracts of the Peoples Mutual and that
he wanted the First National bank or
me to be disbursing officer.
Peck. Tevis and sat down togeth-
er In the office of the bank, and Mr..
Tevis said in substance:
LAS you know, | would like to place
to your credit $150,000 and that / have
arranged with Mr.. Peck to purchase
certain contracts belonging to him and
his associates, and we want to put the
contracts in your hands, also have you
exchange, paying them certain moneys
and giving us the contracts
"Who gave you instructions as to
disbursing the money!"
Peck told me how to disburse $780,
600 Of it."
"And did you draw checks there?"
II drew checks there to the amount
OF 100000"
'ro whom did you disburse the 9th
er $4,000 that was in your account as
trustee?" White was asked.
IL gave w. IL. Peck check OF $1O,-
600; gave myself a check amounting
to $4,000; / gave check TO the First
National bank OF Syracuse for $1,000;
| gave a check to Tevis for $4,000
and there remains In the fund 5000"
For what was the $4,000 paid out
OF the $4,000 to PeckT
my impression is from conversa-
tons l heard that this sum was paid
to Peck 10 secure his services for the
future in some enterprise OF capacity"