New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-10-12
Chicago Woman Alleges
Company Plans to In
vest S1O,000,000.
FEARS DISRUPTION
BY RACE HATRED
Suit Charges Secret Pledge Of
SuppOrt-Amount Too High,
Asserts Peabody.

Chicago, Oct. ll.-Alleging that the
Mutual Life Insurance Company of
New York was planning to invest slO,-
100000 Of its trust funds in the Anglo
French loan Of $500 600 900, Olga II. S.
Walsh. Of Chicago, holder Of 50. 300
policy in the Mutual, fled suit for an
injunction in the Federal Court here
to-day.
The insurance company. Charles a.
Peabody, its president; the directors,
members Of the Anglo French Credit
Loan Commission, J. P. Morgan, III
dividyally, and J. P. Morgan & Co.,
were named as defendants. Frank 5.
Monnett. ex-Attorney General OF Ohio.
who prosecuted the antitrust suits n
that state against the Standard Oil
Company, is attorney for the plaintiff.
The petition. which was filed by
Mrs. Walsh in person, sets forth that
among the thousands of policyholders
in the Mutual Life Insurance Company
are many persons Of various nationali-
ties, and that the investment Of the
trust funds Of these 2olicyholders in
the Anglo-French loan would tend 70
produce antagonisms among them
which might lead to disrupting the
company and thereby depreciate the
value of her interest in the company.
Wants Belligerents Shut Out.
In the language Of the bill, the court
is Informed. that "thc solvency of the
company and the conservation of the
reserve fund depend on the good will
of the policyholders. and no part of the
assets Of the company should be
loaned or invested in the securities o.
any Of the warning nations or used for
the purpose of abetting existing wars"
The bill asks that the officers of the
company be restrained from directly or
indirectly investing its trust funds IN
the loan, or from investing rs trust
funds or suffering any Of its assets 10
be used for the purpose of aiding the
manufacture Of munitions of war. aero
planes, submarines or any naval outft
or appliances to be used by the English
or French nations for belligerent pur-
poses.
1t further asks that j. p. Morgan
and j. p. Morgan & Co. be restrained
from soliciting or conniving with tie
officers and directors Of the Mutual Life
Insurance Company for the purpose of
procuring any OF its funds 20 Ne in
vested in the $500, 100000 Anglo fench
loan.
The court is asked for similar raj
ing against the members OF the Anglo
French loan commission Baron Read
ing. Sir Edward Hopkinson Holden. Sir
Henry Darlington Smith. Basil b.
Blackett, Octave Homberg and Ernest
Mallet.
The bill charges that Charles A. Pea
body, president of the company, and
George F. Baker, one of its directors.
met secretly many times lat one Of the
selected rendezvous of j. p. Morgan
and the Anglo-French commission"
pledginc the support Of the company
10 the loan.
Says Money viii Go for War.
The purpose of the loan, il is
charged, is the purchase from American
citizens of munitions of war for the
British and French governments to be
used against the German, the Austro-
Hungarian and the Turkish govern
ments. The duty of the officers of the
company is to protect its assets rather
than 10 destroy them by taxing sldes III
the war, the bill continues.
The suit charges further that the
violation of their duty by the officers
will wholly destroy the good will of all
the warning countries whose subjects
are policyholders, and maintain and
foster a racial or national hatred
toward the managing officers OF the
company"
The bill alleges that % per cent of
the policyholders of the company are
Germans or GermanAmericans. In the
list OF interrogatories Messrs. Pea
body and Baker are asked as to the pur-
pose of their alleged meeting with j. 7.
Morgan and other financiers: whether
il was to arrange to float the Anglo
French loan, and, if so, what steps were
taken. The members Of the Ang lo-
French commission are asked TO give
their authority for negotiating the loan,
and also TO disclose whether Peabody
and Baker or other agents of the com
pany have pledged themselves to par