Year: 1872

Vice PresIdent McCurdy. by Withholding the facts
from the members OF the Insurance Committee
"a two OF them were forced to admit under oath
procured the passage OF q resolution restoring all
three OF these policies, amounting to $1l, 500. with
additions OF s733 s3 upon payment OF "back pre-
miums and interest;' and q policy (No. 66) for
$4,000 payable In semi annual instalments was
issued and is now being paid to the heirs. The
gross illegaty OF this transaction and Its outrage
OF the rights OF the policy holders. need no COM
ment from me. The plea OF poverty ana eminent
services. since advanced In justification Of this
transaction, is not only ptiable excuse but 1t is
unf0unded


Some other policies were shown to have been
illegally restored or improperly purchased. but the
above is probably, the most glaring abuse ever
perpetrated upon the policy holders OF mutual
company.


1t was charged that large sums Of money were
used at Albany and elsewhere to influence legsla-
tion and falsely charged as "taxes." II was shown
from the books that over fifteen thousand dollars
was so charged to taxes. out Of which one noted
politician OF this city received $4,000, and that
$4,000 80 used was charged to ''ofice rent OF an
agent. But the officers strenu0usly and success
fully resisted all efforts to ascertain the true OBJ
jects and purposes for which these expenditures
were made pretending that it was to prevent
taxation. Some Of 1t may have been, but the re.
port OF the chairman OF a legislative committee
would seem from the following extract to have had
reason to think Otherwise


Your committee believes that at no time since
the insurance department was organized has it
sage OF just and proper laws to further the best
interests OF insurance, whose humane purposes,
when rightly carried out, commend 1t to the good
will OF ALL The fact that such large sums have
been thus used in an illegal manner discloses not
only corrupt and selfish motives but an abuse OF
the various trusts reposed, which must sooner or
later destroy all confidence and effect the over
throw of the entire insurance interest as at pres
cnt administered.


other charges were made and proven, such as
the Withholding of post m0rtem dividends from the
representatives of deceased policy holders; thus
deprving them Of thousands OF dollars to which
they are legally and equitably entitled But Ihave
probably given you enough already. and therefore
pass ON to matter of the greatest Importance to
you-one, as l believe, involving the safety
OF your interests In the company. l refer to tho
proxies held by President Winston and Vice Pres-
dent McCurdy. Every holder OF policy of 81 900
over is entitled to vote for trustees Through
the agents selected by themselves these officers
have gathered and hold enough proxies to prevent
the possibility OF electng any trustee not OF their
own selection. and to turn out any who oppose or
thwart them. This is most dangerous power to





no two men living should be so entrusted and
tempted. They have used the power before, and
will most certainly do 1t again. True II has been
done skilfully shrewdly and with professions Of
disnterested devotion to your best interests; but
do you believe that any set OF men, even those so
high In social and business life as many Of the
trustees OF the Mutual Life are known to be.
when thus at the mercy OF those whom they should
direct and control, act with that independence
and tlrmness which alone can ensure the safety OF
your interests know that they cannot and that
they do not. also know that many Of them per-
form their duty in most perfunctory manner, and
also know that some In that Board are not worthy
of your confidence. These are hard things to say,
but they are true. have been, and shall doubt
less again be, soundly abused; called blackmaer
accused of improper motives, warned not to pub
lish the evidence in my possession, and which the
officers sought to suppress by copyrghting it, but
believe that the day is now dawning that will
arouse you to the performance OF your duty and by
the light OF which you will see things in their
true colors; that you will ere long insist and en-
force that the affairs Of that company shall not be
examined by committees of trustees appointed to
whitewash; not by corrupt State superintendent.
who pockets his 81, 500 fee for not seeing not by
committee wined, dined and entertained TO q
proper degree OF faith in their entertainers; but
by those OF your own selecti0n-capable honest
and fearless-sent there to get at the truth and
the whole Of It, and make it known to you all.
When that is done dare assert that you will not
endorse the opinion of Mr.. Coe nor consider that
the commence Of the Mutual Lilen is sufficient
guarantee OF the officers fidelity. but rather that
you will agree with me that 1t has become .'em-
nent" in spite OF them.


1t is your imperative duty to revoke at once the
proxies you have given these officers and to re.
sumo the control OF the election OF trustees by
placing your proxies In the hands Of those whom
you know to be trustworthy and Independent of
all connection with the officers, their agents or
coadjutors. Then to replace those whom you find
derelict and unfaithful by trustees who are not
afraid to see things as they are, nor to call them
by their true names, who will brook no unfaithful-
ness and tolerate no wrong, and who will con-
scientiously labor to place the Mutual Life" above
reproach. Then, and not till then, will you have
performed your duty to yourselves and to those
whom you are striving to protect from want when
you shall have been called from this world


JAMES w. MCCULLOH,


NEW YORK, Dec. 0, 1872 60 Beaver street