The daily morning journal and courier., 1905-12-23
.TRICKERY PRACTICED
 BY THE MUTUAL LIFE
CONCEALarENT OF REDUCTION oFBooK VALUES OF REAL
 ESTATE.

~NSAe@ S1S4A AAG SaAG 0A SCI1IAGI1
 Used for This PurpOse-Chief Ex-
 aminer of the New York Insurance
 Department Ignorant of the Decep-
 tton When Last Year He Gave the
 Company a Clean Bm of Heaith--
 Committee AdjOurns Over Chzistunas.
 New York, Dec. 22.-Additional tes- timony as to the management of the Mutual Life Insurance company was adduced to-day before the legislative committee on insurance investigation, 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 D. Hughes, counsel for the committee, called them.
 Francis Hendricks, superintendent of the state insurance department, when on the stand yesterday said he never heard of such a thing, and that 1t had never been called to his attention. To- day, after auditors of the Mutual LAfs had testified to this fact, Isaac Van- derpoel, chief examiner of the depart ment, declared on the stand that he had not discovered the mater in his examination of the company last year, whenin his report he gave the company what was practically a ce9tiacate of good character" Hs said these man. ipulations of the figures were not ap- parent in the books.
 These transfers Of profits to the, debiN side of the profit and loss account vars, n hNy hn of President McCurdy and Vsoe Presi- dent Grannis. and the written instruc- tions were produced. They named the figures that adjusted the accounts. and last year Whilethere was really nrofit of almost a million and half dollars, when these transfers were made no profit whatever was shown. { Mir. Vanderpoei said he had examined the report of 1904. which showed no profits from the sale of securities. AL though he knew this was untrue he did not so report it, because he did not think 1t was necessary. The same sit- nation existed in the New York Lafe. according to Mir. vanderpoel, although the practice was not general, and when asked what he did iii the matter he ! he had examined the Hanover bank ac~ count of the New York Life in 1904. and did not find the $10O,0O0 that was paid to Andrew Hamilton.
 Mir. Vanderpoel never knew of the year end loans of the Metropolitan Life to Vermilye & Co and never knew how the company handled its collateral loans He said he never in an exam nation of a company went back of it's ledgers.
 The allotment of blocks of stock of the Lawyers Title Insurance company and the Lawyers Mortgage Insurance company was taken up with D. w, Coggeshall, a former president of the Lawyers Title company.
 Henry D. Appleton, second deputy in the insurance department, was on the stand a 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. MT. Appleton said that no more attention was paid to the state- rnent of a New York company than was paid to o1tlle statement of colflpa- ny incorporated in any other state He said no actuarial inspection was made made.
 The committee adjourned over Christmas, and will resume its inyests- gation next Wednesday. Sessions then will be held up to and including Sat- urday, which will be the last day of the committees investigation.