The San Francisco call., 1906-07-11
MUTUAL SUES ITS
OLD OFFICERS.
Seeks to Recover Nearly
One Million Dollars
From Robert Grannis
Letter to Policy-HolderS
by President Peabody
Starts Quick Storm

NEW YORK. July l0.-Complaints
were served today in the suits brought
BY the Mutual Life Company against
Robert s Grannis, former vice presi-
dent and trustee. and Walter R. Gil
lette, former treasurer and trustee OF
the company It is alleged against
Grannis that he failed TO scrutiniZe
vouchers that were submitted TO him
and negligently and carelessly ap-
proved many vouchers which repre-
,sented money paid for services not au-
thorized.
In another action against Grannis 1t
IS charged that he participated in the
making OF payments out of the assets
OF the company aggregating ss2, 500 to
oefray the expenses Of campaign con-
tributions TO political parties
Altogether FIVE cases OF action
against Grannis are set forth and the
total amount for which judgment is
asked against him is se17,500 with in
terest.
It is alleged that the former vice
president participated in an arrange
ment by which money was taken out Of
the assets OF the company to establish
q so-calIed confidential fund" which
was expended for objects not within
the corporate purpose Of the company
and beyond its lawful powers
The complaint against Gillette al
leges that he received from time TO
time sums for which no entries ap-
peared in the books.
In e letter 10 the policy-holders of
the company President Peabody OF the
Mutual declares that not one Of the
executive officers OF the Mutual Life
Insurance Company is responsible for
the condition Of affairs which prevailed
IN that organization prior TO the year
1905 remains in the service OF the com
pany: that all practices and methods OF
doubtful propriety have been prohib-
tied; that the responsibility Of officers
has been definitely fixed: that measures
70 insure emciency IN the service and
economy in administration have been
adopted, and that many other reforms
have been effected.
PeabOdy's letter, which will be
mailed to every holder Of a policy in
the Mutual, also declares that other re-
forms are in progress and in contem-
platiOn and that he believes the re-
suits Of the future viii be entirely sat
isfactory to the policy holders. He
calls attention to a reduction in the
salaries OF officers and employees and
IN the expenses OF the home office
building effecting q saving Of s5I5. 900
a year The economies effected in the
cost Of agency management, medical
examinations revision work, adVertis-
ing, printing and stationery. he says,
aggregate $4,000 a year, making a
total saving OF more than $4,000 for
each working day.
After reading the statement pub
lished by President Peabody. samuel
Untermyer, general counsel for the in
ternatiOnal policy holders committee
OF the Mutual and the New York Life
companies, addressed a long letter OF
protest to Peabody.
MY attention is called" he says,
TO document just issued by you in
aid Of the campaign for your own cleo
ton and that OF your associates 10
whom you owe your Office. It is in the
guise OF a letter addressed To the
policy holders under date of the I'd
instant, which you have printed and
have just given out for publication
and which I understand you are abort
20 mail 70 the policy holders whose
names appear on the lists you have
prepared at the expense of the com
pany. We take issue with you on
every material fact contained in the
document"
Untermyer further declares that a
copy Of this protest is being forwarded
10 the superintendent Of insurance, &c
companied by the request that he for
bid this latest form of diversion Of
the assets"