New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1906-05-30
LIGHT ON MUTUAL LEAK
MILLION IN FAKE BILLS.
Indictments May Follo1C Revelations
of "Yellozc Dog" Methods.

The special grand jury, in its investigation of
the Mutual Life Insurance Company's affairs,
obtained evidence yesterday that many thou
SANDS OF dollars were taken annually for twenty
years from the treasury of the company by
means of fake bills pxrporting TO be for print
ing and supplies for the company furnished
through the firm of George McKibbin & Son.
bookbinders, of No. 50 Park street. Part of the
evidence was furnished by George McKibbin
head of the firm, who witness in the after
noon.
Andrew c. Fields and his predecessors in the
Mutuals supply department made use of the
Mckibbin firm through the firm of Lysander
w Lawrence Co, printers for the Mutual,
whenever money wanted for the secret
expenses of the legislative agents of the COM
pany. The McKibbin firm was sub-contractor
Tor some of the regular supplies for the Mutual.
MI McKibbn told the special grand jury that
many Of his firms bills padded to the
extent of S1,200 in some cases and $4, 800 In
olher cases. II addition. there were many fake
piils in the name of the McKibbin firm about
which the firm knew nothing, not having even
seen them.
Blank bills with the letterhead of the Nc
hlooin firm printed them were kept in tho
MutuaFs supply department or at the Office of
Lysande- w Lawrence & Co. and when Fields
needed money bill for binding or stationery
was made out in the name of the McKibbin firm
and passed by an official of the company in the
supply department and by the committee on X
penditures, of which Robert Olyphant was chair
man. a voucher would be drawn and manip-
ulated in such way that the money would get
into the hands of Fields
The evidence obtained yesterday explains how
the Mutuals books show expenditures of about
S621, 900 for printing and stationery in 1904. In
the first four months OF 1905 the amount
charged by Fields to that account was Sl90O0O
In the first four months of this year, under a
new management the amount spent by the
company for stationery and printing was only
$4,000
In addition TO the of padded and false bills
in the names Of firms regularly employed by the
Mutual il has been ascertained. the officials in
the supply department sometimes used bills in
the names of fake firms In such cases neither
the supplies paid for by the company nor the
alleged firms selling the supplies existed in fact
One OF the fake firms. whose bills are in the
possession of the District Attorney Par
sons & Co. alleged to have furnished advertis-
ing novelties 10 the Mutual. There was clerk
in the store of Lawrence & Co. named Parsons
who may be able TO tell the grand jury about the
composition Of Parsons & Co"
II was said about the Criminal Courts Build
ing yesterday afternoon that the unearthing of
such proofs of fraud probably would result in
indictments against former officials of the Mutt
ual who had guilty knowledge of the frauds
The entire amount Of money taken from the
Nutuars treasury in such fashion. It is believed,
anioun ed u more than s 5000
Robert Olyphant. former chairman of the Nut
ual's committee on expenditures. was a witness
before the special grand jury in the afternoon.
as We're Charles A. Prefer. auditor. and c. c.
| Gretsinger assistant auditor of the company.
It was supposed that they gave information as
10 the manner in which padded and false bills
were passed through various departments and
paid.
Another witness yesterday Edgar W.
Rogers. mana ger for Lawrence & Co 1t was
derstood that he was asked to throw light on
the transactions revealed by the documents in
the hands of the District Attorney and by the
testimony of Fields. McKibbin and Others
The special grand jury yesterday afternoon
took recess until next Monday. when ii is ex-
pected that DR. Walter R. Gillette. former
vice-president of the Mutual. may be called as
a witness Dr. Gillette was out of town yes
terday. Distric; Attorney Jerome said he would
go TO Lakevtlle TO stay until Monday.
An official of the Mutual said yesterday that
since the change in administration saving of
100000 a year TO the company in the expenses
Of The company's office building at No. 30 Mas
sau stree, had been provided for by ordinary
methods of economy. A saving of $1,000 year
cost OF coal III SIedIil
plant was obtained merely by changing the size
of the coal.
In addition TO the large saving in expenses. the
present administration has reduced the room
used by officials of the company ir. the building.
cutting up into business offices the enormous
and extensively furnished suites occupied by
the McCurdys and renting them TO good ten
ants In this manner an increase of 50, 100
year in the rentals of the building has been OBJ
tanned.
MR.. MCLINTOCK IN LONDON.