Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1906-05-30
Hundreds of Thousands of Dol
lars Squandered by the In
surance Officials
FAKE BILLS WERE MADE OUT
Large Sums Paid Out for Which the
Mutual Life Received No Return
Whatever-Andrew C. Fields Gives
Important Testimony Before the
Grand Jury.


paid by the Mutual Life Insurance
Company for supplies that never were
delivered or even ordered is now IN
possession of the special grand jury
investigating insurance cases. All this
money is said to have been handed
over to Andrew c. Fields for his
confidential legislative fund" but
many legislators for years back Won
der what became of 1t.
bills--bills rugged up on the letter
heads of firms that never existed,
o. KID. by officers of the company.
and then passed by the expenditures
committee without question
1t is predicted the disclosures that
will follow the report to the grand
jury will throw into the shade the
evidence before the Armstrong COM
mittee, sensational as 1t was. There is
no doubt the grand jury is in possess
sion of documentary evidence, backed
up by oral testimony, that exposes
everything done by the now notorious
supply department of the Mutual Life,
and there is every likelihood that in
dictments will follow.
Fields Tells All.
1t also is pretty plain that Andrew
C. Fields has furnished valuable in
formation to the grand jury and that
much 1t has discovered came from his
helpful assistance in explaining tho
devious methods of the Mutuars sup
ply department.
AS result Of Fields testimony on
Tuesday, which was so satisfactory to
District Attorney Jerome. several wit
nesses were examined yesterday by the
grand jury, putting the finishing touch-
es on SOME of the rough edges of what
Fields told. The witnesses were
Robert ELEPHANT, who is trustee of the
Mutual and chairman of the committee
on expenditures: Edgar w. Rogers of
the Lysander w. Lawrence Company.
stationers. who were specially favored
by the Mutual: George McKibbin OF
.A1oKibbin & Son, who have a printing
establishment at 35 Park street;
Charles A. Preller, auditor; and Z. G.
Gretsinger. assistant auditor of the Mu-
tual A clerk from the law department
of the Mutual also handed over to the
grand jury a number of books that are
needed in the investigation.
Evidence Startles Jurors.
All the testimony Tuesday related to
the payment Of padded bills and bills
entirely bogus. and the grand jurors
heard sonse things that made them
open their eyes. 1t was brought out
out that McKibben & Son did work for
the Lawrence Company the binding
printing o. which was for the Mutual
In due course of time, McE<ibben testi-
fied-it was his first session with the
grand jur.-a check would come from
the Mutual.
AS an Illustration Of how the money
finally got to Fields it is explained that
for instance, the Lawrence company
really owed McKibbin & Son $1,000 for
work actually done. The check from
the Mutual would be for $4,000. Nc
Kibbin would take out what was COM
ing to his firm and send the balance to
the Lawrence company. This company
is said to have gone to Fields, ostensi
bly, for his legislative work. The bills
would be passed by Fields and sane
toned by DR.. Walter r. Gillette then
vice. president of the Mutual, or some
other officer. After that the vouchers
would come up before the expenditures
committee and be approved.
But this wasn't the most fragrant
practice. In many cases bills for sup
lies and work purporting to have been
done by McKibbin & Son were paid by
the Mutual. All these bills were on the
bill heads Of McKibbin & Son, altho,
according to McKibbin's testimony, his
firm never presented the bills, the work
never being done by them and never
ordered. The only explanation was
that some one in the Lawrence COM
pany had printed bill heads of McKib-
bin & Son to be handy when money
was needed.
Pays Out Big Sums.
In this way the Mutual paid from
$1,000 to $4,000 at clip without getting
any return for the money so far as the
books of the company show. ALI these
bills went thru Fields to an officer of
the company and then were passed by
the expenditures committee.
On the basis of its saving in the
first quarter of the year, it is estimat-
ed that over 100000 yearly has been
wasted, or else found it's way into
Fields legislative fund. For twenty
years this would make the astonishing
total Of something like SS.OOO,OOO.