New-York tribune., 1906-04-01
OFFICIALS UNDER LASH
MUTU4L'S FAULTS BARE.
"H0asecleaners" Recommend Drastic
Changes IN Company's System.

Inc HItn report OF the 1fueSddle nouSeCieah-
ing committee of the Mutual Life Insurance
Company. which was made public yesterday aft
ernoon. severely censures certain vice-presdents
and other officials of the company who passed
vouchers without protesting TO the board of
trustees. Two of these officials, Robert A. Gran
Mss and DR.. Walter r. Gillette, resigned last
week and their designations were accepted at
the meeting of the board at which the fifth ra-
port was presented. The vice-presidents gave as
their for resigning "the demand for the
removal of old officials Of life insurance COM
panes." and, in spite OF the fact that the house
cleaning report criticises their official acts most
severely, the board adopted blanket resolution
of regret" The identity of the other officials
at whom the report strikes could not be learned
yesterday. 1t is not believed however, that
Emory McClintock the remaining president
and actuary of the company, is meant, as ne has
for number of weeks had active management
of the company in his hands. Frederic Crom-
we'll, the treasurer of the company, has resigned
and is now on his way to Paris. That there
will be designations from lesser offices as a
result of the publication Of the report was pre-
dicted yesterday.
Although this is the fifth report which the
Truesdale committee has made to the board of
trustees, but one other has ever been made
public The reason for not publishing the inter-
vening three was that they dealt with company
secrets The report contains absolutely no ref
erence to the breach in the "housecleanng' COM
mittee since the last report, caused by the res
ignation in disgust, Of Stuyyesant Fish, who was
generally considered the leading reformer. The
report is signed by William H. Truesdale. chair
man, and John w. Auchincloss the only remain
ing member.
The report was presented at the regular board
meeting last Wednesday, but was not given out
Than Of ifo moth
dered it printed, and yesterday copies were sent
to each member Much of the report deals with
matters brought out by the Armstrong COM
mittee, but it contains drastic recommendations
which were not expected.
There is a demand that the trustees and Of
hcers responsible refund the contributions which
the company made to campaign funds. Andy
Fields the former legislative agent Of the COM
pany is criticised severely and the hope is ex-
pressed that the trustees will take steps to
recover vast sums spent in corruDting legisla-
ton. There is q demand the Paris agency
of the company for the return of 100000 spent
in furnishing a suite at the Paris office for the
use Of the president. This suite was to be used
by President McCurdy, now in Paris who will
probably under the circumstances, keep away
from the Mutual Life Building.
SCHEME FOR REORGANIZATION.
tee the company should drop its foreign busi-
ness except in six countries. A similar step al
ready has been taken by the Equitable Life. 1t
is announced that a scheme for the entire reor-
ganization of the company is now being pre-
pared. with the assistance of President Peabody.
A startling recommendation is the reduction of
the number of trustees from thirty-six to twen-
ty-four. II this should be adopted the board
would have little trouble fulfilling the require
ments. as there have been nearly enough resig-
nations from the board TO bring It down to
twenty-four. The "houssoleaners'' advocate the
abolition of the office of the third vicepresident,
on the ground that he has had little or nothing
to do for many years.
The troubles Of the Mutual Life attributed
to the ambition Of the management to make 1t
the greatest instead Of the safest Of companies,
They advise that the three big companies get to-
gethor and abolish competition which will prove
ruinous if continued. Grave doubts" is the
committee conclusion about syndicate partici-
patton, but they recommend that such partioi-
patton cease, in spite of the profits the COM
pany may derive. The high cost OF new busi-
ness is severely condemned.
There are many references to the Armstrong
committee throughout the report The commit
tee sees fit TO indorse the limitation Of new
business and favors in no uncertain terms the
discrimination of deferred dividend policies
They say that It is radically wrong that so few
policyholders use the voting privilege. They
appealed to the Insurance commissioners of
twenty-seven States for information TO the
hest means of bringing out a larger vote and
taking the proxy power out of the hands OF the
president Of the company. The answers
| confusing They desire that a special commit
tee be appointed TO go into this phase of the
| matter.
The committee promises a further report on
the exact condition Of the company's affairs.
This will be mado as soon they have dgested
the reports of the eighty accountants who have
been at work on the companys books. There is
q hint of severe criticism of certain classes of
transactions.
Recalling the fact that the committee
| appointed October % 1905, but saying nothing
about the loss of one of the three members by
resignation, the report first deals with the his
| tory Of the organization Of the company It
then takes up the representation of the policy
| holders by proxy, saying in part:
There are now about 100000 policyhoders of this
| company most of whom entitled to vote at the
annual election of trustees. but only small num-
Der of them have ever seen fit to avail themselves
| of this privilege. At the annual election in June.
v eS or % smpoyes Of the cG,npanV I'm 1904 0ny
! l58 policyhoders voted, these also al
most wholly trustees and employees. Previous
elections present similar record
| mends that the number of trustees in the Mutual
| Life board should be reduced from thrtY-SX TO
twenty -four, divided into three classes Of eight
each, the terms OF office OF all members of one Of
be elected for three years instead OF four at
oficio an additional member of the board other
officer or empoye TO be eligible to election as
| trustee.
In regard to the working and executive
ganization of the company the committee says
1t is clearly of the opinion that the existing or
! & rem npOf Of