New-York tribune., 1906-06-07
WILL INDICT ONLY ONE.
IN E1-MUTUAL OFFICI4L.
Action TO Be Based ON Funds Di-
UerSiOn and False Entries.

Indictments against only one person are to
be found by the special grand jury which has
been investigating the affairs of the Mutual Life
Insurance Company. according to information
obtained yesterday at the Criminal Courts Build
ing. That person formerly was a high official
of the Mutual He ts 10 be indicted for forgery.
and there will be several indictments of that
character which he will have to face
The indictments will be based on the diversion
of funds of the Mutual Life Insurance Company
and of false entries in the books which We're
made to cover up illegal use of the money of
the policyholders. 1t is not contended that the
money was used for the personal enrichment Of
the official who ordered its transfer and author
lied the false entries in the books. 1t is under
stood. in fact. that the money spent in pro-
tecting the company against hostile legislation
or against damaging action by insurance de-
partments Of several states.
An interesting fact in connection with the in
dictments to be found against the former Nut
ual official is that a person who authorizes a
false entry in the books of insurance COM
pany is just guilty of forgery as the clerk or
bookkeeper who writes the entry, if both know
the entry to be false, and more guilty If his mo-
tive in ordering the false entry is bad. There IS
evidence that the false entries in the books Of
the Mutual Life were made to deceive the policy
holders about the use of the yellow dog" funds
1t is understood that no indictments will be
found against Andrew C. Fields, who handled
the funds or against Lysander w. Lawrence or
George McKibbin, whose accounts were pad
ded" or faxed" TO keep the use of the funds
secret and that none will be found against their
assistants All these persons will be used as
witnesses for the state the trial of the former
official of the Mutual Life who IS to be indicted
No Indictment can be found against Robert
Olyphant the former chairman Of the MutuaPs
committee on expenditures because he protected
himself before he accepted the craftsmanship.
When he was asked to take the Office he told
President McCurdy that he would not accept the
responsibility of passing bills and vouchers
which he did not have time to examine person
ally, and he was not willing TO devote more
than few hours each week 10 such work. More
time he said, would be needed to ascertain IL the
payments were proper. President McCurdy
therefore issued a written order that before any
bills or vouchers were submitted 10 Mr.. Olyphant
their correctness should be certified by an execu-
tive official of the company, DIR. Walter r. Gill
lette when possible, or Robert A. Granniss in DIR.
Gillette's absence.
SPECIAL GRAND JURY BLOCKED.
# IS not probable that any indictment can be
found In the case of the contribution Of S2,5OO
made by the Mutual through Congressman Bah
cock TO the Republican Congressional Campaign
Committee in 1904. The special grand jury is
blocked in this case, because it cannot be ascer-
tanned from what particular fund of the Mutual
the money was taken in what account a false
entry was made to conceal the transaction. All
that is known is that the money was drawn from
the cashier by order OF Mr.. Grannlss and turned
over 20 Walter F. Thummell. a legislative agent
Of the Mutual who handed it to Mr.. Babcock
CONGRESSMAN Babcock yesterday sent a note
TO District Attorney Jerome. saying he was per-
fectIy willing to testify regarding the transac-
tion but he had important duties in Washing
ton which might delay trip 70 this city He
indicated that he would make the trip TO this
city next week il he could not get away from
Washington this week Mr.. Jerome limited yes
terday that he did not regard Congressman Bab-
cocks testimony as OF great Importance.
The special grand jury will finish its work
next week II has obtained evidence OF false
statements made by officials OF the Mutual 70
the State Insurance Department but cannot
base indictments on such evidence. because IT
cannot be shown that the officials who certified
to the false statements in the annual reports OF
ths company had guilty knowledge that ths
Continued second paxa