New-York tribune., 1906-06-05
on YELLOW DOG TRAIL
IN MUTUAL THIS TINE.
Gillette Said to. Hare Returned
About $4,000 of Fund.

Probes that have been used on the old man
seement of the Mutual Life Insurance Company
nv the insurance grand jury have struck home.
The result has been that nearly $4,000 of the
Mutuals money. which was being held by
former official. has been returned 10 the Golfers
of the company. This is said have been the
remnants Of a trust fund. What sort of trust
fund is not explained. but the inquisitors be-
Beve they have at last struck the trail of 'yel-
low dog" funds I'm the Mutual and expect by
following the scent 10 run down other such
funds and secure the restitution OF other money
that rightfully belongs to the company.
Dr. Walter r. Gillette. who retired from the
yice-presdency Of the company after being
somewhat severely criticised in the last report
of t1e Truesdale self investigating committee
several months ago, is the former official who
voluntarily is said. sent the present man.
seement OF the Mutual his personal check for
something less than $4,000 the latter part Of last
week He explained it was what was left of money
placed in his keeping some time ago. If he made
any explanations Of what this fund was or why
he had kept the balance so long after his retire
ment. the officials Of the company would not
disclose them yesterday
The first intimation of this fund came from
Or Gillette himself when he was on the stand
before the insurance grand jury for the second
tine about ten days ago. If reports are correct
the former vice. president OF the company put
aside the reserve that had marked his first ap-
pearance and talked freely of all his acts an
executive officer OF the company One thing
led 10 another, and finally he admitted that he
had in his possession what was left of a fund
fhet had been intrusted TO him for confidential
rurposes The news of Dr. Gillette's statement
90 the grand jury reached the present officials
Of the company and was followed in a few days
by his check.
President Peabody yesterday admitted that a
certain sum of money had been returned by a
former official, but he would go no further in
giving particulars
As understand it," he said ''this what
was eft of some money held by former official.
moi in his own name, but as a trustee of the
oonnany II would not be right to call it resti-
tuition hut rather restoration 1t was sort OF
q trust fund. ] suppose some Of the neWspa-
pers would call il a yellow dog fund"
This means, then that We getting track
Of yellow dog funds in the Mutual, does it?
President Peabody was asked. I'VE had heard
of them in the Equitable, but not in the Nut
ual"
That is because never had any,, replied
President Peabody with a smile
II Is understood that DR.. Gillettes disclosures
before the grand jury gave District Attorney
Jerome a new lead. which he has since been fol-
lowing with much success. The District Attor-
new spent the best part OF the afternoon in the
Mutual Building yesterday with Assistant Dis
rrict Attorney Kresell. With the assistance of
Frederick L Allen. of the law department Of
the company. and Afr Gallagher. private sresre-
tary 10 President Peabody. they examined many
of yhe old records and vouchers Some of them
were carried back 10 the Criminal Courts Build
ing
The District Attorney is devOting his atten-
ton only to grave offences. and it is said this
grand Jury. which will be dismissed on June 15.
will be able to do more than scratch the
surface" Of the abuses under the old manage
ment Of the Mutual.
The plans Of Justice Scott 10 sail for Europe
will make It necessary 10 dismiss the grand jury
a. that time. The District Attorney viii at once
start on his vacation Of six weeks. His assist
ants viii not drop the investigation entirely in
his absence and il is assumed that other spe-
cial grand juries will be called on his return.