Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1904-06-14
AGAINST Three Mass. In
surance Co.'S. Officials.
One for Perjury and Two for
Subordination Of Perjury.
Another Indictment Against Company
for False statsment-State CommIs-
.;oner Has His Eye on All the Pro-
essdinss.

Boston, June Ian lndlctmeHt mas
been returned by the grand jury OF
suffolk county against Edward Lyman.
II M. Billings and Charles Tebbitts.
charging the first named with perjury
and the other two with subordination OF
perjury in connection with the annual
statements Of the Boston Mutual Lire
Insurance Co. to the insurance COM
missioners. The men were of the conf
pany until the latter part OF May. Ly-
man was secretary, Billings actuary'
and Tebbitts general manager. inc III
dictments are based upon alleged Iaise
statements of the condition of the COM
pany for the years 1902 and l9o5.
Another indictment was reported
against the Boston Mutual Lie lhsur-
snce Co. as a corporation for placing
alleged false statements or It's condl-
ton for the years 1923 with the lnsur-
ance commissioners, the statement as
alleged, being signed by John w.
: Wheeler as president, and Edwin Ly-
man as secretary.
The indictment against the company
charges that as a corporation 1t filed
81 false statement in that 1t did not eX-
bibit the financial condition of said
company to the close Of business, edo.
81. 1902, and that it did not contain n
true statement Of the commissions on
Reinsurance on first year premiums re-
'ceived by the said company.
The Boston Mutual Life Insurance
Co. carries a large number or policy
holders in western Massachusetts whom
the insurance commissioner was de-
sirous Of protecting. A climax In the
affairs Of the company was reached at
the last meeting Of the directors, when
Messrs. Lyman, Billings and Tebbitts
announced their designations. Major
Frederick f. Pearce of Greenfield, cash.
Ter Of the First National Bank of that
place, was chosen to audit the affairs or
, the company.
to- About the same time an examiner
from the office Of the insurance COM
missioner found alleged Irregularities.
He found that where the annual state
lnent of the company showed disburse-
ments of $119, 1896. his computation gave
SIT SOC as the proper sum. The examin-
er also discovered that although the
statement gave the total income OF the
company as 1925 ,S23 the the official
tabulation by the states representa-
tive gave the amount as 1898. The
n state also figured the surplus of the
company to be about $4,000 less than
given out by the company.
New men will be added to the COM
pany's board Of directors and it is I'M
derstood that new capital will be con-
tributed by the officers.
Az soon as Examiner Brown had
made his report to Commissioner Cut
m lat summarized the officers
of the company into consultation. Ac-
Cording to the commissioner Secretary
Lyman admitted that I'm 1892 there had
been a loan from President Wheeler
of about $4,000 and that the company
also was indebted to its president for
other accommodation loans made in
the hope of carrying on the company
and continuing it's business. The COM
missioner decided at once that such a
system could not go on. An immediate
effect Of this consultation was the
resignation of the three officers.
II. .. Edgerton, the newly elected
secretary Of the company. issued a
statement, this afternoon. in which he
said the policy holders and agents OF
the company and the general public
should understand that the present
management declined to accept any Ie-
sponsibilitics for any acts of former ad-
ministrations, and that the company
is to he managed solely for what is
considered the best interests of the
policy holders. He added:
THE financial condition of the com.
pany is In no way effected by what
has occurred and is, today, very salts
factory"
Just prior to the adjournment of the
superior criminal court. this evening
Judge Bond imposed fines of $500 each
on the company. Lyman. Tebbitts & Bill
lings. for making a false annual state
ment by which the actual liabilities were
decreased while the true assets were in
creased by alleged fictitious imitation
Each defendant pleaded nolo cOntendere