New-York tribune., 1906-06-30
THETRUESDALE REPORT
TRIBUTE TO PEABODY.
Committee Regrets Cost of account
ants-Mutual Realty Improbable.

| William n Truesdale and John w Auchincloss
! the only remaining members of the 'housecleanins
/ committee appointed by the trustees of the Mutual
Life Insurance Company last October to investigate
the company's affairs made their final report yes
terday, basng all recommendations for reforms on
statements made to them by hired accountants.
| They express regret that the services OF the &C
| countants have cost large sum. without stating
| the amount but say the expense has been un-
| avoidable
| At the end of all the recommendations and criti-
cisms of the committee the following tribute
| to President Peabody and his assistants in the
present administration of the company:
The president and his staff are making most
conscientious and thorough effort TO conduct the
business and affairs of the company broad. cor
laying the foundations deep and firm for safe and
viii surely show decreased cost Of insurance and
Increased dividends over course of years
The report shows that the value of the Mutual
Lfe's real estate holdings December 81. 1905.
500, iss s2 adding:
The original cost of the real estate including i'm
company 10 have been ss "a g. The cost values
of same have, from time to time been arbitrarily
reduced or increased such adjustments resulting
In net reduction of the cost by the sum OF
An Of the properties included in the total above
&e ve bR e. Ts he de-
Quoted from the depreciation of s65i5. 1es 4 pre-
viousy written off, shows net loss of s723 633 33
1t is shown that the company's real estate in
per cent the invested capital and the committee
says
1t will thus be at a glance that the returns
TO the company the large amount It has in
date and careful attention should be given to the
OF d Seg bn scS m on as can be done
advantage. and only such of II retained as may be
The purchase of most of the real estate holdings
Of the company the improvements Of same or tn, the
made were. so far as appears, without the ap,
Of trustees In the " administrator Of this branch
of the companys operations great extravagance Is
entire absence of ordinary business methods and
care. In the letting of contracts covering large
expenditures competition seems to have been
invited or desired.
AS an example. the committee speaks Of altera-
tions costing $4,000 made In the building at No 80
Nassau street for the Guaranty Trust Company
and charged TO the Mutual Life Company. II also
cites contract Of R. c. Fisher & Co. for marble
from 1900 1896. amounting to s1.S62,56l. for
banking rooms on the Cedar street side of the
building and recommends a thorough examination
of that and other contracts, amounting in all TO
S.41210S. with view to suits for recovering TO the
company excessive payments.
Almost one-fourth OF the conpanys gross assets
the report says, Is invested in loans secured by
mortgages real estate, and s4153,514 has been
lent on MORTGAGES which are in of 90 per
cent of the value of the real estate. while there
131 loans. securing more than Sooo0o. which
100 per cent of the appraised value OF the
property. In a separate statement the committee
says of the latter loans;
These are what are known in the company
church loans. 1t has been the policy OF the COM
pany for many years to loan upon the church
property of the various denominations. and the
company has never lost any money by so doing.
For instance the company has about eighty loans
It has many other loans upon Hebrew synagogues.
Baptist. Methodist and other houses of worship
appraisers Simply took the ground that they had
no basis from which to Judge of the value of the
only the land. If it is demonstrated that the
polieyh9ders desire change of policy In this re,
calling in of these loans there will be any loss
whatever in money to the company
The company's practice of lending money to
polcyholders their policies is discussed in the
report. and the following recommendation is added:
Your committee see no good reason why the
policies as heretofore except In foreign countries
would respectfully call the attention OF the officers
of the company to thu recommendations of the
will throw further checks around the operations of
the policy loan department and conduce to greater
care and accuracy In the administration thereof.
Expenditures of a questionable character and
for purposes not disclosed by the books and vouch
ers of the company" the committee says.
shown in Schedule j. After the report given
out yesterday Mr.. Truesdale was asked by re-
porters if he would permit inspection OF the
schedule
The schedules are volurjnous and We probably
shall not publish them" his reply.
AS to the general character OF the expenditures.
however, the report says they amount s9lSs75
from January l. 1889. December 81. 1905. The re-
port adds:
Included In this sum are the payments made on
amounts of SIS 90. amounting altogether to ssss
0l9 40, to which reference made in the com
mitree's fifth report, with recommendation that
proper legal action be taker require account
ing TO the COMPANY showing to whom the pay
Also included In same payments made direct to
part of the handled by said P Feds wheh se
your committee have therefore recommended that
pad iGd Anew asmoh m
Of of IL. the New York Life Company and the sum of
two payments being the Mutual Company's pro
which much evidence was given before the iegis-
@ iative inyesugating committee Also included in
employe of the supply department and for the
most %a part charged to restaurant re- expenses
ments through Heye as well as many others COW
funds handled by A. C. Fields for which he should
account to the company.
$3.50 for cab hire Tor s the to seeGFe tRs
o the sf g9P legal action should be
WITHOUT doubt there are included in the state
mate and proper, but in the opinion of Your com
mittee the proper officials of the company should
payments covered by said statement. for the pur-
pose or aScertalning whether any Of them are OF
character that may make 1t possible recover for
the company the amounts paid, and If what legal
steps are possible and should be taken to effect
such recovery.
The statement referred to in the foregoing does
not the paid for so-called legal and
other similar expenses through A. c. Fields in CON
nection with the manipulation of the stationery
and printing accountc of the company.
The committee says that the requsition which II
made trustees of the company for information
answered fully by all the trustees except Rich
ard A. and Robert H. McCurdy and Elihu Root.
as N IUhn he committee