The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-04-01
MUTUAL TRUSTEES WERE LAX
rRUESDALE COMMITTEE HITS AT
THE OLD MANAGEMENT.

mittee-Granniss and Gillette Forced
Out-Would Cut Down the Number Of
TruStees-Y1Oe.Presldent FOndN's Man
aKement OF Real Estate Criticized.
A report OF the Mutual Life's self-inves-
tgating committee, suade public yesterday,
practically recommends that action be
AIKEN against the members Of the eXpend-
titures committee Of the board Of trustees
to obtain an accounting and recover moneys
,haid out by the company on receipts sig ned
py the chairman Of the committee.
No names are mentioned In the report,
but Robert ELEPHANT to stiied before the
Armstrong committee that he has been
cnai.man of the expenditures committee
for SO veral years. The other members last
year we're James C.. Holden, president Of
the National Safe Deposit Company and
the senior member Of the Mutual Life's
board, and Charles E.. Miller.
According to Mr., ELEPHANTS testimony
thIs money obtained by him as chairman
81 200 quarterly-was turned over to the
ksGI department for a contingent fund
from which extraordinary expenses OF the
company were paid. 1t has been the gen.
eral belief that the Mutual's campaign CON-
tributions came out Of this fund. The total
amount Of the payments has been aukhori-
t%atively estimated at $500, 900. On this
point the report says:
The committee as a result Of its work
ls impressed with the lax business methods
prevalent as respects the disbursements
Of the funds Of the company In various direc-
tons without proper check or vouchers.
II ts amazed at tho character of some OF these
transactions and the apparent Indifference
regarding these shown by those officials
Of the company who were also trustees. and
also by other of the trustees who were 10 a
position TO know Of them and who with knowl-
edge thereof approved or countenanced
them
While your committee does not believe
the chairman or any member Of said COM
nittea personally benefited by these trans
actions. nevertheless they have placed them
selves in position to be responsible for the
same. or at least the chairman certainly
has done so. and your committee therefore
recommends that this matter be referred
to the president with power to take such
action. under advice OF counsel. to secure an
accounting and restitution OF the moneys so
d~Ishursed as is found possible.
The committee urges further "an i'm
mediate reorganization Of the committee,
both as to personnel INT methods"
vICE-PREsIpENTs FORCED OUT.
The report discloses the fact that the
recent designations Of Robert A. Granniss
and DR.. Walter r. Gillette as vice-presidents
we're not altogether voluntary. 1t says:
The vice-presidents Of the company, who
were also trustees. had personal knowledge
of and form ally approved numerous largo
disbursements, among them those immedl-
ately referred TO above the committee on
expenditures payments) and others Of like
questionable character They had long been
connected with the company; they were very
LII urfN1 o. N~ A~H ~NArnNI@-a
and by reason thereof had from time to time
been advanced to the high and responsible
positions occupied, and were paid large
salaries in return for their experience and
services. They certainly have fallen far
short of doing their duty In knowingly per-
Knitting such transactions without earnest
and repeated protest to the ofhoials and
board of trustees. In the opinion Of your
committee. these officials and several others
holding responsible positions in the COM
pany's service cannot longer serve the COM
pany's interests In the several positions they
have held and should retire therefrom.
This recommendation means that there
will be others in the old Mutual manage
ment who will go before long. Third vice.
management of the company's Office build
ings and no bouquets are thrown at lsaao F.
Lloyd. the second vice-president. The re:
firing yice-presidents, Mr.. Granniss and
III. SllltIUc, VIII plOpdDtJ bc a u0
PENDANTS in a suit by the company to re-
cover the payments for which they were
responsible.
WILL SUE ANDREW YIELDS.
The report also recommends that an
action be brought against Andrew G. Fields,
the Mutualis former legislative agent and
superintendent of supplies, for an account
ing. Of him the committee says:
In a previous report the committee called
attention TO the large disbursements for
legal expenses. so called, through Andrew G..
Fields, for which no proper accounting has
ever been had. The committee expects
shortly to be fully informed. through the
accountants employed, what these disburse-
mcnts have aggregated during the last Ave
wears or more.
The accounts of the company showing dis
blrsements of this character appear TO be
involved with those Of the supply and print
inc and stationery departments, which we're
In charge of Mr.. Fields. Many important
hooks. papers and accounts of these depart
ments covering transactions prior to Sep
tenber, 1905. are missing. and although every
effort possible has been exerted by the COM
mittee to locate and secure them or ascertain
what disposition has been made OF them. 1t
has not been able to get any trace OF them.
The committee is OF the opinion that as soon
as The figures and data called for by 1t are
available legal steps should be taken by the
''IlIAUN 10 seCuT z proper dCCOuuIluB anu
restitution of such of the funds of the com
pany as have been misspent through this
channel. The committee that
This matter be also referred to the president
with power TO take such legal action thereon
as counsel may advise.
NEW CASE AGAINST M'CURDY2
There is the possibility of further legal
action against eX-PresiGent Richard A.
McCurdy as the result Of a disclosure which
the committee makes in regard to the enor-
nous extravaganza in fitting out the ex-
ecntive offices in the home building at
Nassau and Liberty streets. Says the re-
port.
treat extravaganza has been shown in a
variety Of ways in connection with the con-
s%trIctiop, repairs and furnishing Of the gem
eral offices Of the company.
The books show that in the years 1908
aud 1904 SOC, 900 was expended in Paris
IN the purchase of furn iture for the presi-
dents suite of offices. This particular
purchase seems to have been made through
the rompany's Paris general agency. The
bills covering same were paid through this
agency and credited 10 1t without being pre-
scntcd to and approved by the committees on
expenditures and audit.
Il seems to the committee some recourse
should be had on behalf of the company to