New-York tribune., 1910-01-17
TO SUE DIRECTORS
O'M4LLEY ACTS IN IN
SURANCE CASE.
Grand Jury at Syracuse to
Probe Peoples Mutual Life
affair To-day.

Albany. Jan. 16.-Important develop
ments, including an inquisition by the
grand jury of Onondaga County, are to
result from the efforts of the State In
surance Department to take over the
business and S3.OOO.OOO assets of the
Peoples Mutual Life Insurance Associa-
tion and League of Syracuse. The SUI
perintendent of Insurance. Mr.. Hotch-
kiss, has said that eight of the nine d.
rectors of the association received vari-
Gus amounts for permitting the control
of the society to pass into other hands,
and that part of the money received
from the alleged purchaser, John Tevis'
of Louisville. was disbursed by Lieuten-
ant Governor White. AS result of Mr..
Whites connection with the transaction
he has resigned rs director of the First
National Bank OF Syracuse. The money
paid to the directors was disbursed
through this bank.
Attorney General O'Malley announced
tonight that papers had been prepared
and actions would be brought against the
| eight directors OF the associa tion who
received money by reason of the trans
action of December 81, when the control
of the association is alleged to have
changed hands. The persons for whom
summons and complaint have been pre-
pared and the respective amounts of
the judgments asked in each complaint
are as follows: Charles F. Wayte, $16,-
600; E. o. Kinne, $4,000; ]. E. p. San
tee. $4,000; H. H. Mondon, $4,000; /. c.
Reed. $4,000; Slayter Laycack, $4,000;
Z. E. De Barr, $13,5O0, and W. H. Peck,
1900
These actions said Attorney General
O'Malley tonight, "are brought to re-
cover these moneys by the state for
the benefit of the company, and will be
prosecuted vigorously
1t was stated at the State Insurance
| Department to-day that the investiga-
| ton instituted by the department is be-
| ing continued a Syracuse and that in
accordance with directions given to AL
| fred Hurrell, counsel for the department.
| and Superintendent Hotchkiss. certain
| facts presented to District Attorney G.
| n. Bond. of Onondaga, would probably
| be presented to the grand jury to-mor-
| row.
|
the Insurance Department. Mr.. Tevis,
| whom the department has been anxious
| to talk with concerning his part in the
| transaction. was in New York last night,
| but had gone TO Syracuse. where at
taches of the department had been noti-
| fed to get into communication with him.
AS a result of a statement made by
Attorney General O'Malley, in the pro-
ceedings in Syracuse yesterday before
Supreme Court Justice Andrews, on the
application of the Insurance Department
to take over the control of the society.
Lieutenant Governor White will have an
orportunitv to supplement his statements
already made to the department. Mr..
O'Malley told the court that ii would be
asserted by w. r. Travers. cashier of the
Farmers Bank. of Toronto, that the
money which 1t was said he brought
from Toronto to Syracuse to purchase
control of the society, was taken back to
Toronto.
Syracuse, Jan. 16.-It is stated tonight
that the Peoples Mutual Life Insurance
case would come before the grand jury
tomorrow in John Doe proceedings.
Summons are said TO have been served
on John Tevis. of Louisville; H. G..
Hunt, of Toronto: Edgar Madden, of
New York: Rudolph Appel. of White
Flains and Edward l.. VeZina, of SYRIA
cuse The four last named were elect
ed directors of the association as the re-
suit of the transfer of the company.
Mr.. Tevis and William r. Travers. of
the Farmers Bank of Canada in which
was deposited $150,OO0 of the associa-
tons money, came to Syracuse to-day,
hut denied themselves to reporters. Mr.
Travers is said to have come here vol
unfairly TO testify before the grand Jury
1t is said that Mr.. Travers submitted
TO an examination by the Insurance De-
partment, telling all he knew of the
transactions. and that Mr.. Tevis had