New-York tribune., 1906-06-06
W. r. GILLETTE SUED.
NEXT ON LIST.
Mutual Lao Department Hot on
Trail of "Yellozc Dog"

scheme OF management in the days of the Nc
curoy administration. the law department OF
The Mutual Life Insurance Company yesterday
began suit against DR.. Walter R Gillette the
former vice-president. who last week returned
the remnant of such fund TO the treasury of
he company Papers are in preparation for the
beginning OF a similar suit against Robert A
Sranniss. also former vice-presidezt who re-
ured at the same time DR. Gillette did Mr.
Sranniss was before the insurance grand Jury
yesterday.
The suits are for an accounting for the large
funds that passed through their hands and resti-
tuition OF such funds as they cannot show were
properly spent II is not impossibility that
similar suits may be brought against certain
trustees who are thought TO have had a knowl-
edge Of and possibly hand in the MANAGEMENT
Of these funds
The present officials Of the company have only
started to run back the trail Of these funds. and
90 not know themselves where it may ultimately
lead Just how many such funds were in exist
enoe is another point yet TO be determined
This much has been discovered according TO
trustworthy information For many years there
was yellow dog fund of the Mutual de-
posted with the Morristown Trust Company.
III gradually dwindled down until. at the time
the insurance investigation was at it's height
aho a clew leading to the Morristown Trust
company was struck by the Armstrong commit
tee the balance was suddenly withdrawn and
the account closed This money is said to have
oeeh deposited as trust fund" but whether
IN the JOINT names OF Or. Gillette and some other
official or trustee is known II is believed that
II was in the name of only one man. and was
not as the Equitable yellow dog funds. banked
in such a way to require the signatures Of
two men TO draw on it.
Mr. CSranniss az .,ts ho :.
night, said that no trust funds of the Mutual
had ever been deposited in his name. So far as
he knew. he said. the fund in the Morristown
Trust Company was in the name Of Dr. Gillette
as trustee. alone. He said he had not heard that
the Mutual was about TO bring suit against him
No matter how the money could have been. or
was "llnoraWn' the balance, which amounted TO
nearly $4,000 after it had been taken from
the Morristown Trust Company was placed bv
DR.. Gillette in private bank in this city. where
he keeps his personal account. It was a personal
check which was sent the Mutual when the
money was restored TO the company
THE QUARTERLY VOUCHERS. 100000
Il seems that many clews TO the establishment
Of certain funds through vouchers which were
put through by the vice-presidents were given to
District Attorney Jerome by Robert Olyphant
chairman of the old expenditures committee
II is now said that the quarterly vouchers for
$1,000. which, il is known, put through
for six years. yielding total of 100000 were
made out for the purpose of swelling this ''yel-
low dog fund. Although il is only surmse.
one of those investigating these funds said last
night that possibly some Of the proceeds of the
fake stationery and printing bills went 10 the
yellow dog" There seems TO be no doubt that
vast sums of money were disposed of in this
inkling on the books Of the Mutual to show for
what any of the money was spent, how large
these funds were at any one particular time
what balances, if any, remained when the ac-
counts where the fund or funds were held were
closed. II was supposed at time that these
quarterly drafts on the treasury of $4,000
which the vouchers alleged were for legal ex-
penses." were turned right over 10 the law de-
paTtment- But it seems that the yellow dog"
was made 10 serve and nobody expected that he
would keep any books.
President Peabody said yesterday that he did
not know Of any further restoration of money
to the Mutual II seems that Dr. Gillette made
his offer to return the cash IN his possession
through Solomon Hanford, lis counsel. who
called upon President Peabody Mr.. Hanford
is Of the firm of Choate. Hanford * Larocque.
the senior member of which. William G. Choate,
counsel of the Mutual Mr.. Hanford accepted
service yesterday in the summons of the suit
against DR.. Gillette The summons in the Gran
Miss suit has not been served. The complaints
will probably not be drawn until the account
ants Of the Truesdale committee have finished
their search through the records and books Of
the company. The members of the expenditures
committee, as well the vice-presidents who
signed and passed the vouchers, viii probably be
held accountable for the vast sums that went
into the yellow dog" funds The complaints in
the suits against the members of the committee
Will probably be reshaped in order TO get as
many tracers as possible after the yellow dog
funds The complaints had been in the process
of construction for several weeks.
Persistent rumors that the present grand jury
will hand up three or four indictments this week
or next are heard in the Criminal Courts Build
ing. Names are mentioned in connection with
these indictments. and it is said that the evil
denoe is enough in some cases 10 bring in more
than one indictment against a single man.
ASKS CONGRESSMAN TO TESTIFY.
Ar,e- Mr.. Granniss had been on the stand for
an hour Yesterday District Attorney Jerome
sent a message TO Congressman Babcock at
Washington requesting him to come 10 this city
and testify Information is desired from him re-
earding The s. 800 contribution made by the
Mutual 70 the Republican Congress Campaign
Committee Of which Congressman Ba5oock was
fbe head This contribution was made in l'Oi
The District Attorney asked Mr.. Granniss. who
signed the voucher for the money. as TO the
details Of the transaction. Granniss after draw
ing the money turned IL over 10 waiter r.
Thulnnaell the legislative agent OF the Mutual.
Congressman Babcock who received the money
g. Hr ssH0NT