The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-06-12
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HtInrl IHiH ".HN IH Gillette W h"HFr
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Inc iIuf It.I lHpr .iuNU Wih ~ tll"tte
Hri ilru nr farrl flat ItN lr ht"l ~ We"
iurfr tnr tl ff .'ra' ftlu Uftnuta
iatHIfa iu thr lHtl latI department
if ifuI.I rrI O.lr'ir mot tul bod Jil'" y
UNtf ilvy IH'n Iu.tri Nuf1rl lhtH
.Hu h Wti siu vac tuv ulrlIa military
HrrrHtarv uuI thp married ~. Wllriie .
laughter gave tail fuf htln HH awe NJ.
t%ouit.iy ~" huiisr ~ a. NeH' tIIl 'htfI
aifur' vilfIo,l - lIifrn Hud ffor AMI o''gt
t,olfgH n tfnnuis- gave la SECURITY inf hls
h'H'lr' ihr uftfFfib ~ l9iiurl lTh bf'hd
why, shoh ho uii vns Flf'h y2U""
tuiilpf tttuuisa. Gillette NOT ihcOf Vlitu.
-"l Nu'II iuhdc any statement
Ihot' VHfa autne -utptis" ant speculation
Nhuu y Irramp known ilnt ~" indictments
u,"' numbered from uu" 10 aIN AMI nitn
'p''u ."#"u irI eight h"iug w,--lng Ihct"
N"fu 10 lui ~ guo-~''s that tuu' hrr FORMER
u0l,itl ul flo Nluiud Nhu :. not ~ tins
country bod l~"n indicted u 'H- l%"ifn"l,
huVe.ui 'N.f II w. ~" iuieuitnn 10 draw
two utu.i IuI,tuuui. against Nrtnhi4],
mt Il Iuiu"I out iuti ih" 'ltfgr- dove
tailed into "a -Ipcinr ,riur charged m 0ns
~ the other indictments
Ia" v lur--.a lafurr tho Grand Jury
a. di.rlIa,i 10y the indictments wer"
Fields thrrlr4E pdr-On-. WhI waaa book
kecl 81 Tor Iy-irdrr " Lawrence Edgar
" Roger. who was on" II the principal
figure m III" Lawrence company, I. {,
Gret~Iugcr and &. A Prellrr. auditors IN
the Mututl. Isaac + Lloyd, Charles ;.
Gl"B-ou, Alfred Mack.y, Samuel : HAL.
George Mckibhiu II X Nrrdenburgh.
Grlnnl-- and Gillette also ~"r" examined
III, first indictment for forgery against
Ir Gillette consist OF IN" charge that on
May I, 1913 hr caused ~ entry TO be made
IN the book of accounts called The blutt-r
tins itl-" rnIrV "t"Orge n
SONS. sisv " This entry was under the
printing md stationery account, and the
indictment. say tht Gillette caused the
entry to be- made with intent to defraud.
knowing that nothing had been ordered
OF delivered and that d fraudulent Till had
been PIT in To the CO:np ~. Tn second
indictment accused Dr. q .,ette OF knowing
of an entry for t2u 81 made ON the same day
a. the $500 ,MckibIln entry. This was
under the head of printing and stationery
and charged to cash. Az ii matter OF
fact, only $l2, 7Ol was paid on that day, and
Gillette knew it the indictment says.
The third indictment against Gillette
refers to an entry made IN the cash book
on May ii, 1904, as follows. Cash, credit
advertising, 50 1857" This Indicated thai
81, 3s7 had been paid out on that day when,
the indictment says, Gillette knew that
only 81 .s87 had been paid.
The fourth indictment had 10 do with
the payment, or non-payinent, Of 50 400 to
Charles +. Parsons. This money, the
entry indicated had been paid by the Mutual
to Parsons for stationery which was never
ordered or delivered, and that Gillette
to be made against the peace of the people
of the State of New York and their business
dignity, 3D." as the indictment puts it.
The fifth indictment concerns an entry
made in the blotter on May II, 1904, az fol-
lows Advertising, George Mckibbin and
refer to Fields and meant that the money
went to him. Nothing was ever ordered
of MoKibbin or delivered by him.
The indictment for perjury is interest
ing. 1t first sets forth the scope Of the
inquiry and goes on to say that Gillette
was called as a witness on May IL. Two
years previous the entries on which the
forgery charges are based we're made.
DR.. Gillette was asked about an account
with the Dobbs Ferry Bank and which stood
in the name of Gillette as trustee. Gillette
said that The account was a personal one
and denied that the money came from
the Mutual and that the account was in
his name az a trustee for the Mutual, all of
which was true the indictment says.
When Robert Olyphant was before the
NITaDu July ne dlu lndl SOIlt OF lflt SlUU,UOU
he paid out every year az chairman of the
expenditure committee in quarterly pay
ments went to DR.. Gillette. Soon after
that it was announced that DR.. Gillette
had voluntarily paid back to the Mutual
some so, 900 out of a yellow dog" fund.
although he had been out of the company
for over two months. 1t was sur1nised
yesterday that the money paid back by
DR.. Gillette might have been the Dobbs
Ferry account, which undoubtedly was
used for some Of the legislative work Of
Fields.
or the Indictments against Granniss the
perjury indictment is based on the report
to the insurance department showing the
condition of the company December 81,
1904. The report stated that the company
had derived from the sale and maturity
of what the company called ledger assets
the sum of 81 ,O44, 05S. 20. The report was
made and written under the direction of
| Grannis, and it was to be verified by two
other officers of the company.
Granniss is accused of wilfully having
made a false statement Of the revenues Of
the company. Although not specifically
at lated in the indict ment, testimony was
produced to show that the 81 ,044 ,000 had
been marked of the real estate, actually
showing on the books no profit at all. The
net result of the system of adjust ments
was that the book value of the company's
real estate had been kept down through
the Use of its profits on securities. The
adjust ments would cover up extra VACANT
expenditures on the company's buildings
and would make the buildings appear to
be earning a fair income.
Evidence has been produced to show
| that his was done at he instance of Richard
A. McCurdy, the former president of the
! company, and under the direction Of
Granniss. One document bearing out this
testimony has been producedin Granniss's
handwriting.
The mere filing OF a false report Ia a mis-
demeanor under the law, and the same
facts are yet forth in the misdemeanor in
dict ment.
The indictments were drawn up by
Assistant District Attorney Perkins. The
, predict ion was made by lawyers who got
a look at the indict ments hat OF her officials
of the Mutual would have TO be indict ed
before the investigation was over.
1t is known that no attempt will be made
by the District Attorney to fasten crimes
on officials Of insurance companies who
were engaged In Joint stock transaction or
syndicate operations.