Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1905-12-23
vanderpoe| Admits |rregu-
Iarities in His Report.
Examined Both Mutual and New
York Life 1904 Reports.
Found No Report Of Sale Of Securities---Did
Not See Necessity 10 So Report.

Now York, Dec. 22.-Additional tcsti-
nlony as to the management of the Mu-
tual Life Insurance Co. was adduccd
today before the legislative committee
on insurance investigations 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 L. Hughes,
counsel to the committee, called them
Frances Hendricks, superintendent of
the state insurance department when
on the stand yesterday said he had
never heard of such q thing and that
it had never been called to his attcn-
ton. Today, after auditors of the
Mutual Life had testified to this fact
Isaac Nanderpocl, chief examiner of the
department, declared on the stand that
he had not discovered the matter in his
animation of the company last year
when in his report he gave the COM
pany what was practically a certificate
of good character" He said these
manipulatiOnS Of the figures We're not
apparent in the books.
These transfers of profits to the debit
side Of the profit ana loss account were
ilS'lt ny tIlt dutliloIS upon IliSlIutliOIl
Of President McCurdy and Vice Presi-
dent Graniis and the written instruc-
tons were produced. They named the
figures that adjusted the account and
last year While there was really Il pro-
fit of almost million and a half dol
larF, when these transfers were made
no profit whatever was shown.
Mr. Nandcrpocl said he had examined
the report Of 1904 which showed no pro-
fits from tie sale Of securities. AL
though he knew this was untrue, he
did not 50 report it because he did not
think it was necessary.
The same situation existed in the
New York Life. according to Mr..
Nanderpoel. although the practice was
not general, and when asked what he
did in the matter he said Nothing.
Mr.. Nandcrpocl said he had examined
the Handovcr Bank account of the
New York Life in 1901 and did not find
the 100000 that vas paid to Andrew
Hamilton. Mr.. Nanderpocl never knew
of the tCn-ycar loans of the Mctropoli-
tan Life to Vcrmilye e Co. and never
knew how the company handled its
collateral loans. He said he never in an
examination bl At tbIlll'iilN WENT DICK vi
its lcdgers. The allotment Of blocks Of
stock Of the Lawyers Title Insurance
60. ana the lawyers Mortgage In
sIlancc Companies. was taken up with
T.. w. togGcshall Il former president OF
the Lawyers Title Insurance Go.
Henry u. Appleton. second deputy in
the insurance department was on the
stand a part of the AFTERNOON. He test
flied as to his duties and detailed lcgis-
lation that had been advised by the de-
partmcnt to control assessment COM
ranjcs. Mr.. Appleton said that no moro
attention was paid to the statement Of
. New York company than was paid to
to tho statement of a company inCor-
atcd in any other state. He said no
actuarial inspection was made Of a re-
port unless an examination vas made.
The committee adjourned over
Christmas and will resume its invcsti-
CATION next Wednesday. Sessions then
will be held up to and including Satur-
day which will he the last day of the
committees Investigation.