The evening world., 1903-05-18
Settlement of His Accounts as
Receiver Of the United States
Mutual Accident Association
Is Opposed in Court.
ATTORNEY GENERALS LAX.
Expenses OF Clerical Force at Times
Exceeded Entire Receipts OF Re-
eeIvershIp, and $4,000 Deposit Is
In Dispute.

Henry winthrop Gray Ia charged with
Easting or misa pp' ying trust funds as
rsceiver of the United States Mutual
Accident Association, and previous At.
toraey- Generals OF the state are accused
OF neglect Of their duties. in an applica-
don to Justice MacLean to-day.
II was an application on the part OF
Attorney General John Cunneen In the
name OF the people. and OF attorneys
fer members of the defurot Accident
Association to vacate orders settling tho
accounts of Henry Winthrop Gray as
notify the members, two of whom claim
that nc misapplied and wasted the funds.
Ignored by Attorney-Generals.
The petitioners. James A. Hudeon and
Julian H. Abbott. In afiidavits submits
ted by Raphael j. Moses. charge that
she Attorney Generals office "patd lit
lie attention to the matter. and former
Attorney Generals did not deem II a
part OF their duty to make any par
ticular Investigation into such mat
teru."
Justice 3IacLean said In granting the
application to-day:
"Theee allegations are disappointing
confessions OF neglect OF duty by
public once. In view of the provisions
Of tho law OF 1882, passed ostensibly
and ostentatiousiy for the purpose OF
defending In just such mstters the In
terests of those who, as remarked at
that time, are not able TO reach the
conduct of corporate affairs except
with n Jimmy. Upon the serious charge
az waste and of the equally II not more
serious charge of at least mistaken ap-
plicaaion Of trust funds this application
by the Attorney General in his own be-
half and OF creditors whose Gains
have been duly proven Do granted, leav-
ing the question of the division OF trust
funds to be determined upon fits final
accounting"
Get Back 100000 Deposit.
The petition sets forth that the cor
!, poration deposited $4,000 In bonds with
) TIM s-Superintendent OF Insurance In 1894
In trust for Its members. On May Is,
1885. the association was dissolved. and
Henry Winthrop Gray was appointed
receiver TO wind up Its AFFAIRS. In the
ain LA, cas- case Of the Family Ennd s0
members had first claim over death
Il claimants.
Gray applied for the return Of .tae
insuTance' i menus but % Il we was aeclared Illegal
under existing laws. and he spent $500
OF the funds In his hands In getting a
law passed legalizing a return Of these
the law directing that they be turned
into cash for distribution among policy
john c. o'conor in in 1855. but he had
not served any notice on the members
o. other creditors Of the association to
present claims until March, 1901. three
beneft of death claimants and the gem
eral expenses of the reeeivership, al
though there are several thousand living
policy holders.
Salaries for Omce Help.
II ts demanded that Receiver Gray he
compelled to return the $4,000 to the In
eurance Department with interest.
In brief Attorney-Generai Cunneen
sets forth an affidavit OF Henry w. XII
leen, special counsel, that Receiver Gray
apent for salar .es OF Office help $2I.NSDJ
and in every period except one since
Jan. l. 1899. the expenditures for clerk
hire alone exceeded the income OF the
rece.vership during that period. A state
ment following shows receipts of about
ss7, 900
The affdavit says that Benjamin c.
Nevius, a clerk, received $50 a week. al
though engaged during the whole time
: in the jewelry business In Union Square
on his own account.
''During the laet elk months OF the
reseivership." says Mr.. Killeen, this
mans salary was four times the amount
Of the receipts"
Gray III Much of Time.
Francis L. weiiman Is counsel for Re-
ceiver Gray. who explains that he re-
taaned the expensive Mr.. Nevius be-
cause he was familiar with the whole
matter and would be needed as a VIZ
ness Mr. Gray was III at home much
OF the time, in telephonic communica-
tion only with his orfice.
Henry winthrop Gray was the "5pe-
cal Commissioner OF Jurors under the
act providing for a special or selected
hanel for the more important criminal
3 cases, and was legislated out OF office
1t the same time with Charles welde,
the office being abolished.