The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-05-30
BOGUS BILLS 70 THE MUTUAL,
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y on,srs NJ tho companv and then fas-sd
Nv mo Hyt~rdturea COMMITTEES vithou,
u.ea,..n
fne Grand Jury Il. In pns-csaion ~ docu-
r suinrv evidence backed NJ by oral tes-
,uony that eSpo-aa everything that was
rruo hy Tho nov notorious purchase and
.urpIy department ~ tho Mutual n H.
.a.I that the evidence will throw the Arm
.,runs revelations In tho shade and that
there - every likelihood q indictments to
follow
II is ALEC plain that Andrew {. Fields has
furnished valuable information 10 the
Grand jury. and that much that Il has
leen able to discover eamo from his az-
distance in explaining The devious methods
of the MutuaXs supply department.
A. a result Of Fields's testimony on Tues
day. which was 40 satisfactory to District
Attorney Jerome, several witnesses were eS-
amined yesterday, the Grand Jury putting
the finishing touches on some Of the Fields
evidence. The witnesses We're Robert Oily
,hant, who il a trustee Of the Mutual and
chairman Of the boards committee on
expenditures; Edgar W. Rogers Of the
Lysander W. Lawrence Company. the
stationers who were specially favored by
the Mutual; George McKibbin OF McKibbin
4 Son, who have a printing establishment
at 81 Park street: Charles A, Preller, auditor,
and {. C.. Gretsinger, assistant auditor Of
the Mutual. A clerk from the law depart
ment Of the Mutual also handed over TO the
Grand Jury a number Of books that were
needed in the investigation.
All the testimony yesterday related to
the payment Of padded bills and bills that
we're entirely bogus and the Grand Jurors
heard some things that made them open heir
eyes. 1t was brought out that McKibbin
&Son did work for the Lawrence company
binding and printing which was for the
Mutual.
In due course OF time. Mr.. McKibbin
testifed-it was his first session with the
Grand Jury-a check would come from
the Mutual. As an illustration OF how
the money finally got To Fields it was ex-
planned that, for instance, the Lawrence
concern really wed McKibbin 4 Son 81 900
for work actually done. The check from
the Mutual would be for $500. McKibbin
4 Son would take out what was coming
to them and send the BALANCE to the Law
renee company. This money is said to
have gone to Fields ostensibly for his legis-
lative work. .
The bills would be passed by Fields and
sanctioned by DR.. Walter r. Gillette, then
vice-president Of the company, 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 prac-
tice. In many cases bills for supplies and
work purporting to have been done by
McKibbin d Son were paid by the Mutual.
All these bills were on the bill heads Of
MoKibbin 4 Son, although. according to
Mr.. McKibbin's testimony yesterday, his
. firm never presented the bills, the work
vas never done by them and never ordered.
The only explanation was that some one
in the Lawrence company had printed
billheads OF McKibbin & Son, and these
we're handy when money was needed.
In this way the Mutual paid out from 81 600
to $500 at a clip without getting any re-
turn for the money, 30 far as the books of
the company show, All these bills went
through Fields to an officer Of the company
aad were then passed by the expenditures
committee.
Another system was similar. Much money
went out on bills that were handed in on the
billheads of firms that never existed. There
are said to nave been several bogus firms
who were supposed to be doing work for
the Mutual and getting paid. One Of these
firms, Charles E. Parsons q Co., suppos-
edly doing business in adv ertising novel;
ties, got paid for a lot Of things that never
went TO the Mutual. or course these bills
went through Fields's department. Simply
as a coincidence it was pointed out yester-
day that there was a clerk named Parsons
employed by the Lysander W.. Lawrence
Company.
This system Of doing business in the
Mutual has been going on for more than
twenty years, increasing in its volume
year by year.
1t is thought that millions Of dollars went
that way. 1t was pointed out yesterday
that for the first four months this year the
supply department Of the Mutual has cost
st5, 900. For the first four months last
year the expenditures for this department
alone were $3.50 900. In 1904 more than
$500, 900 was charged up to this depart
ment. On the basis of. the saving in the
first quarter this year, sIOo, 900 yearly was
wasted or else found its way into the Fields
legislative fund.
1t is understood that MIR. McKibbin had
no knowledge OF what was being done by
Fields and his associates. He is said to
have told the Grand Jury frankly of all
his transactions with the Lawrence Com
pany. He was never paid for anything he
did not deliver. In addition, he was also
greatly surprised when told about the fake
bills that were presented az coming from
him.
District Attorney Jerome has docu-
mentary evidence Of this graft. He is
said to have a number Of the original bills
that were paid, both padded and plain
bogus. A number Of these bills have been