Omaha daily bee., 1905-12-23
MUTUALS BOOKS FALSIFIED
Prof.i on Stock Transactions Used to Con-
cesl Losses in Real Estate.
vANDERPoEL KNEW OF MANIPULATION
Deputy Insurance Inspector Says He
Approved Report of Company
Knowing II TO He
False.

NEW YORK. Dec. 22.-Additonal testi-
mony as TO the management of the Mutual
Life Insurance company was adduced today
by witnesses before the legislative COM
mittee, tending to show that the company
used profits from the sale of securities to
conceal the reduction of book values of
real estate. or losses, as Charles f. Hughes,
counsel to the committee, called them.
Francis Hendricks, superintendent of the
state insurance department, when on the
witness stand yesterday said he had never
heard of such thing and that 1t had never
been called to his attention. Today after
auditors of the Mutual Life had testified
to this fact, Isaac Vanderpoel, chief eN-
aminer of the department, declared that
he had not discovered the matter in his
examination of the company last year,
when in his report he gave the company
what was practically certificate OF good
character" He said these manipulations
Of the figures were not apparent in the
books.
These transfers OF profits to the debit
side of the profit and loss account were
made by the auditors OF instruction of
President McCurdy and Vice President
Grannis and the written instructions were
produced They named the figures that ad
there was really profit of nearly H,5c0,e0o,
when these transfers were made no profit
whatevor\ was shown.
Certities False Report.
Mr.. Vanderpoel said he had examined the
report Of 1904. which showed no profits from
the sales of securities Although he knew
this was untrue he said he did not report
1t because he did not think it necessary.
The same situation existed in the New
York Life, according to Mr.. Vanderpoel,
although the practice was not general. and
when asked what he did in the matter he
said nothing"
Mr.. Vanderpoel said he had examined the
Hanover bank account of the New York
Life in 1894 and did not find the 10000 that
WAS paid to Andrew Hamilton.
Mr. Vanderpoel never knew of the year
end loans of the Metropolitan Life to ver-
milye & Co., and never knew how the COM
pany handled its collateral loans. He said
he never in an examination Of company
went back of its ledgers.
The allotment of blocks OF stock OF the
Lawyers Title Insurance company and the
Lawyers Mortgage Insurance company was
taken up with e. w. Coggeshall. a former
president Of the Lawyers Title Insurance
company.
second Deputy Exnmined.
Henry d. Appleton, second deputy in the
insurance department, was on the stand n
large part of the afternoon. He testified as
to his duties and detailed legislation that
had been advised by the department to
control assessment companies.
Mr.. Appleton said that no more attention
IS paid to the statement of a New York
company than is paid to the statement of
a company incorporated in any other state
He said no actual inspection is made of
report unless an examination is made.
The committee adjourned over Christmas
and will resume it's investigation next
Wednesday. Sessions then will be held up
to and including Saturday which will he
the last day of the committees investiga-
tion.
Missouri Case Is Postponed.
ST LOUIS. Dec. 2.-Hcaring of arsu-
ments in connection with the temporary in
junction secured by the New York Life In
surance company to prevent the state su-
Dertntendent of insurance from, epforcfr, ,r