New-York tribune., 1910-10-05
.HOTCHK|SS TAKES A HAND.
American Temperance Life Told
TO Open Concerns Books.
ISSUES ONE HURRY ORDER
President Delano Inclined to
Fight Demand of Committee
of Policyholders.

superintendent Hotchkiss of the State
Insurance Department took hand yes
+erdav on the policvhoIders' side in the
agbt 70 elect new set of officers of the
American Temperance Life Insurance As
sociation at the annual meeting on Novem-
her Is At the request Of four members of
the policyholders' committee, Mr.. Hotch
kiss called up Frank Delano. president of
the association. on the telephone and gave
him half an hour to agree to let the policy
holders examine the books of the associa-
tion and make a list of the members to
apply to for proxies for the annual meet
ing.
Mr.. Deiano made quite a little talk over
the telephone, but Mr.. Hotchlsiss said that
il was matter Of right for the policy
holders to put a ticket out against the
present officials. and demanded an answer
withins an hour. Then he looked at his
watch and reduced the time TO half an
hour as it was then after o'clock
Puts Issue Up to Hotchkiss.
Mr. Hotchkiss went back 70 Albany last
night leaving the affair in the hands of
his chief clerk and the members of the
committee went home thinking that they
would go TO the offices of the association
at No 253 Broadway this morning and
get a full list of members of the associa-
ton to ask for proxies. But Mr.. Delano
tool, the half hour allowed him to think
II, matter over, and then turned it over
to Edmund L. Mooney, of Blandy, Snip
man & Mooney. the attorney for the as
ISOLATION TO think about.
Mr. MONEYS thoughts wound up with
long telephone conversation with Mr.. De
lano last night and a letter to Mr. Hotch-
kiss Mr.. Deano said, after his talk with
Mr. Mooney:
L have turned the affair over to our at
torneys and Mr. Hotchkiss will get his an
swer from them in the morning. I don't
care to say anything I prefer that the
next move should come from Mr.. Hotch-
kiss"
The troubles of the association began
with an examination of its affairs by the
Insurance Department in September, 1903,
and a supplemental examination in MAY.
1910 The examiners for the department
found that the officers of the association
Frank Delano. president; George E God
ward, secretary and treasurer; Stacey VIII
son. manager and adjuster; y. A. Donie.
medical director. and George ". Godward.
a director-were also officers and directors
of the National Security Company, con-
Germ that collected the assessments and
premiums Of the Life Insurance Associa-
tion for commission of % per cent
Delano. George Z. Godward, Stacey VII
son and George ". Godward all drew sala-
ries from both concerns total of S17.920
from the insurance association and S21,OS
from the security company. But il was
evident the report said that both sets of
salaries were paid from money collected
from nnemb bers of the insurance association.
and the department forced the association
to abroEate the contract.
The examiners found in the examination
in September. 1909. that $3.50 13 of cash
assets was represented in fact by mem
oranda of unsecured loans to officers Of
the association. The loans were taken UP
at once and Delano explained 70 the ex-
aniners that the largest part of the money
had been advanced to him for payments on
a house he was building and that ne in
tended 10 execute a mortgage and take VI
the loans as soon as the house was fin
ished.
Policyholders Want New Officers.
The conditions disclosed by the examina
ton led the policyholders 10 form a com
nittee to try TO elect a new set Of officers
| They have secured many proxies, but they
are still in the minority, as they cannot
| get access to the books to make full list
| of members of the association. Louis An
min Anes is chairman Of the committee anC
! John D Knapp the secretary. Knapp was
| formerly superintendent OF agencies for the
| association.
| Stacey Wilson manager Of the associa
! ton, made a statement Yesterday in whlcF
he said that every loan made by the com
| pany was secured by first mortgage on rea
| property at a valuation approved by the
| Insurance Department, and that they were
| transferred to other investors. who were
glad TO get them the moment they were
criticised under the new law, as the rec
ords show. and that every cent expended
! by the company for expenses or otherwise
/ has been expended lawfully and properly.
Wilson was formerly secretary of the
Empire Life Insurance Society, successor
TO the Home Benefit Company which Wen
/ into the hands of a receiver in 1895 witt
| assets of s. 900 and liabilities of 81. 600
| according 70 the report of the receiver.