The Montgomery advertiser., 1906-06-30
FINAL REPORT MADE
FINDINGS OF MUTUAL TRUsTEEs'
 COMMITTEE.
Practically Every Department of the Company Examined and Charges [ of Mismanagement and
 Wrong Doing are Made.

New York, June z9.-The sixth and final report of the committee appoint ed by the Mutual Life Insurance Com pany last October to investigate the management of the company was made nibl.c today. Practically every de- partment of the company was exam fned. and while charges of mismanage- ment and wrong doing are made, the report contains little that has not al- ready been disclosed.
 Accompanying the final report is a supplementary statement by William H. Truesdale and John VI. Auchincloss which explains some of the findings of the experts. It is stated, for instance, that the company holds about $30.- 100000 worth of real estate mortgage loans which are in excess of 60 per cent. of the valuation of the properties which form their security. The com r-Ittee explains this. however. by the stdtement that the law permits mort gages to the amount of 66 2-S per cent. of the value of the property and that there is --.erefore nothing unlawful or unwise in these loans
 In support of the claim that the real estate holdings of the company have been estimated at conservative figures. the supplementary statement says that the company has sold more than 20 per cent of the real estate aggregat- ing $1.000.000 since the early part of the year. and that these holdings brought over S6O,OOO over their ap- praised value. The expert account ants question the propriety of the com pany's loan participation, but the com mittee says that they simply mark a change In the method of contracting such business which his grown up since the creation of the various companies in New York.
 Former President McCurdy and his son. Robert H. McCurdy. are scored by the investigators for failure to sup ply certain information. On this point tho investigators say:
 The requisition for information which the committee made upon the trustees of the company was fully answered by all the trustees excepS Messrs. Richard A. and Robert H. Me- Curdy and Eliru Root It is hardly ex- pected that answers will be received from the Messrs. McCurdy and 1t Is presumed that Mir. Roots ocupatton in other fields of nusefulness has prevented his giving the necessary attention to
 In Explaining a loss of aboit $1,jOo.- 900 reported to the accountants upon certain securities held by the q m- pany. the investigators say that this is mt al, actual loss but only tho differ ence between the cost price and quoted values of December 3l, 1905 On the
 
 holdings the committee pdds that dur ing the past five years there has been net profit Of S11.500C0c upon the se- curities sold or still held by the com pany.
 Criticism is made of the methods em- ployed ythe bond and mortgage de partmcnts of the company which 1t is claimed should have been dealt directly with borrowers instead of through oth- CT companies. Of the foreign leans ex- amined. the report says that iii cases of irregularities involving $45,177 were disclosed.
 Under the head of expenditures of questionable character and for purposes mot disclosed by the books and vouch- CTS of the company" the report says
 '"rhey aggregate fir the entire pc riod CJanuary 1. 1899, to December 31, 1JU5;. $913.S74."
 IncluCed in this are payments on or der ,of expenditures committee. usually in amounts of $25.00O aegregating over $3S0.00N and which have already been made a matter nf litigation against certain former hign officials of the company.
 The ipvC stigatins committee con cludes its report with q statement that it has had exceptionable opportunities to observe the methods of the Peabody administration during the last six months.
 It is the committees orinion that the president and his stan are making con- scientious and thorough efforts to conduct the affairs of the company on broad, correct and conservative busi- ness lines.