New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1905-12-15


afosr actrary OF the Provfdsnt Life, wes taken
which showed that the records CT the COMPANY
contained figures entirely different from shoss
ssnt to shess departments; that In 1Sss ans
1899 the figures for mortality showed grea'
satn whereas there was actually ioss nc"
this happened Mr.. NOR could rot explain MOI
could he supply motive. he declared snae .
was -3ust stupid oiunder.7
The mistake seemed to have been uade Ds
ne former actuary. NJ. L Mortimer. Wilish
r Gilbert Mr. scott's attorney, subsequently
said that this actuary was one Of the pioseefs
named by hfr. Scott in his statement CnArsea
aea,nst the Provident Savings Life management
have been made by discharged bookkeeper'
samuel Tate. who hae been quoted In the press
as declaring he had left the company rather
than obey orders to falsify accounts. Diner
ences amounting to approximately S4oV'VVo IA
two successive years. Mr.. Moir declared nau
been found in this mortality statement Bus
he added TO the puzzle BY declaring that there
must have been reciprocal mistakes IN olner
items. for the actual surplus was as the state
Tnents showed
4 rather significant point, made earlier in MI
SCOTS testimony, related to the purchase by
him OF tbs control OF the Provfdent Savings Lare
stock. Mr.. Scott had previously testined tnat
the price paid was 100000 and that SlSO.OOO OF
this was borrowed from the Security Trust
Company. In turning over advances to agents.
Mr. Hughes found one OF $4,000 made TO Bos-
wen q Buckley, agents Of the PTovident Saw
inEs Life In Cincinnati. This loan. 1t was
shown WAS made to enable the firm to partici-
xate IA the purchase Of stock: that 1t Is Co maks
up $4,000 CT the $4,000 difference between the
cost Of the stock and the other loan. applying
the remaining $1,000 to their agency business
No collateral was furnished for this loan Pres
entity Mr. Scott took over the whole thing and
TINS obtained the entire stock by putting up
only $1,000. while his company put up the rest
The $4,000 has not been repaid to the company.
NJ. Scott further affirmed that ne collected the
Per cent dividends. and then the company got
per cent interest. net loss for the company
of per cent.
Another mysterious transaction was the pay
rent. under the former regime. Of $1,000 a week
70 z. A. Durham for no apparent return. This
was during the presidency of Mr.. Hadiey. who
subsequently committed osuicide. Mr. Scott ad-
znitted that later he made settlement with
Mr. Durham IN a suit brought against him per
sonally. Apparently, AIR. Scott had taken over
the stock in a transaction In which Durham
acted as q sort Of middeman-
II was at this time that Mr. Scott MAIDS
statements which he obliged to qualify
later when the dramatic Introduction of the
Alexander correspondence took place.
left the Equitabieg' Mr.. Hughes asked.
Not q dolla-; not one cent" declared Nr.
Scott emphaticaIly.
was there not debit balance of s1ooooo7~
he insisted.
mo. sir. there was not insisted Mr.. Scott
who was less decided later.
Wasn't there a claim against your"
no. but I reserve the right to make state
nsnt' replied Mr.. Scott It was then that Mr..
Hughes sent to the Equitable Society for the
correspondence later introduced
LITTER OF YELLOW PUPPIES.
Tiny yellow dog" funds and campaign con-
ributions were shown In the Provfdent Savings
Life One of $500 to the Republican National
Committee in 1900, one to the Republican State
COMMITTEES Of $50. another of 500. and two pay
mepts of $2.o00 each TO J. Otis wardwell, Of
Boston. ex-president Of the Republican State
Committee OF Massachusetts, for political pur-
poses. There was also interesting retainer
paid TO Walter c. Wright, an employe of the
Tennessee State Insurance Department for
special services"
One other interesting revelation was that MI
Scott had bought two properties on which the
ProVident Savings Life held mortgages-one at
No. los Riverside Drive. where the mortgage
was $4,000 in 1898 and the other at AIIenhurst.
n j. with $4,000 mortgage. purchased In
1900.
President Scott also testified to the employ
nnent of William h. Buckley, resident Of Al
oaay and former placeholder in the State In
surance Department who has been already
shown 10 receive $500 annually from the New
York Life Mr.. Buckley was Identified as a
close friend OF ex-Superintendent Lou Pawn
% - receavec *5g0 but no regular retainer,
as IN other cases. His business was TO watch
legislation and supply information Mr. scott
alo not Know whether Buckley had a brother in
the department He was Ia the dena rtrnent him
sen eight years ago, when Payn was there
IN me morning hours Haley Fiske OF the
Metropontan Life testified IN great detail re-
kS@ohe ule industrial business Of this COMPANY
6e denied that lapses were profitable INSISTING
tnat me average lapse represented a payment
OF oniy Y cents, and that this item cost fbe
company s65o,000 annually He defended fndfIae
Iiai insurance. declaring that It was right OF
me poor man. He said:
The poor viii have insurance. They bav. The
9 IN. o. contract as much as the rich. To save
1ntn from irresponsible cooperative schemes
standard companies with legal reserves are
necessary: We are reducing the ratio OF lapses
S-nl ne l Inc. Sln eome when they are more
frequent than III the regular business
Mr. FIske defended infant insurance ans IL
clared that 1t DID not incite crime showing
1gufes 70 prove low infant death rate and
oecisred il was ene-haf that OF Great Britain
Aar F1ske was extremely decided in HIS declare
ton 10 the committee that no LEGISLATION in this
regard was necessary.
We viii work out the problem, IL left alone"
he insisted Nor did he think additional iepsI
power was needed by the companies he sim
Piled the figures for the deficiency in the in
1888 this amounted to s1.17s.oo0, EraduaIIy de-
clined to $374.0eo in 1908. and made a Statement
Insurance ne noted the enactment and reneaI ~
laws prohibiting this form Of insurance i'm Eng
lsna, Canada and various States He declared
that no case of foul play had ever been discov-
eEed by agents of mis- company desr1ite charges
OF this in the press.
Revertng 20 the purchase of the Lake Shore
William A bray.