New-York tribune., 1906-05-12
HOW FIELDS GOT MONEY
SUPPLIES SENT SHORT.
Laurence S Co. Did Trick. II Is
Said -MutuaI Books Correct.

was diverted by a clever arrangement with ths
stationery firm OF Lysander ". Lawrence & Co
which did not involve falsihcation Of the books
Of the insurance company.
This subterranean method was IN operation. e
is said for eighteen years. During the ten years
that Andrew c. Fields was connected with tho
company most Of the money was used By him,
II is said. for his work IN Albany.
Julius J. Heye. former bOOzkeeper Of tbs
company. who disappeared when the Armstrong
committee in session. told the grand jury
yesterday how he was induced 70 50 away BY a
message from the law department. He also told.
IT is said how he signed receipts for monsv
which he turned over 20 Fields. Walter r.
Gillette. former vice-president Of the company
was the only other witness before the insurance.
tribunal yesterday.
SCHEME OF LAWRENCE FIRM.
This is the scheme by which the Lawrence
arm was used IN covering uD the irregular usa
Of the Mutuals funds: The supply Department.
would issue reQuisitiOn for. say. one hundred
thousand envelopes An order for that number
would be given to the Lawrence company. which
in due time would render a bill FOR that amount
But the company would deliver only 5000 en-
velopes to the Mutual Fields would stamp
the bill for 100000 envelopes and recommend atx
payment In turn IL would go to vIoe-Pzesldent
Gillette. who would initial it and forward 1s %
the expenditure COMMITTEES OF which ROhert
/ Olyphant was chairman This committee ths
other members Of which were James c. Holden
and Mr.. Miller. seeing that the bill vzs stamped
by Fields and initiaIIed by Vlce-Prssfdent ca
| lette. would approve II. The bill then went 20
the cashier. who would make out a check for ths
full amount to the Lawrence Company
The difference between the cost Of Ons hun
/ dred thousand envelopes. for which the chsos
was drawn. and the cost Of the eishty-hve thou
sand envelopes. which were actually delivered
was placed at the disposal OF Fields It fs said
that he had the privilege OF drawing money from
the Lawrence company az any tina II there
was none coming him by reason OE previous
orders. a memorandum would Be put into tha
| cash box which would be destroyed when tina
amount had been wiped out through later or
| ders. No account Of the transactions was kept
in the private books Of the stationery company
or Of Fields.
| The books OF the company were by this schsms
/ kept In perfect accord with the orders and the
| money paid out on them The only place where
| this scheme could have been detected was in the
books OF the supply department. showing the re-
ceipts Of supplies. in the receipt books Of ths
stationery firm. showing what they had received
credit for delivering. But at that time the Mut-
uaI had no large storeroOm and could not
| ceive large quantities Of supplies at one time.
/ Parts Of orders were delivered from time To
| time, and it has not developed whether receipts
/ we're given for each delivery or not At any
rate. the books Of the supply department show
| ing what goods were received missing The
| files which contained the original orders are
/ also missing The vouchers remain in most in
stances but are perfectly regular on their face
BILLS CAREFULLY JUGGLED.
What is yet to be learned is how many Of the
executive officers and trustees we're aware OF the
working OF this system fe~has not been learned
that all OF the persons through whose hands the
bills passed were aware that they represented
goods that were not delivered. The bills were
always carefully prepared In case there vera
say fifteen items a bill the money that went
TO Fields was not represented by any single
item. but part OF each order was not delivered
| and each item of the bill was in excess Of what
il should have been.
From the evidence adduced so far. It would
/ appear that about 50 per cent OF each bill rem
/ dered by Lawrence & Co. represented supplies
/ actually delivered The company kept the S.
Der cent Of the money received 20 which they
| were entitled and the Is per cent went intO ths
| ''yelIov dog fund There is believed 90 be no
record OF what became Of this fund or any part
/ Of it, When Andrew c. Fields goes on thu
/ stand it is hoped that his memory may be eQuaf
| to the task OF solving this mystery. in q gsn-
| eral way II not in detail.
II could not be learned Just what Heye. tha
a copy Of his testimony before the Mutual Lies
/ investigating committee. OF which William IT,
TruesdaIe is chairman. was obtained yesterday
and contains some interesting disclosures. He
had charge Of the books Of the supply depart
ment. showing the orders and the distribution tG
the different departments and agencies. Heys
was induced by the committee TO return from
the West. where he had gone at the time Of the
Armstrong investigation.
Heye told the committee that when he went
the books from January I. 1904. were IN the Of-
fee. From that date a new system Of books
had been kept. What had become OF the Old
books he could not tell The missing books IN
cluded day books and ledgers-
HEYE HAS HEART PALPIrATION.
When Heye was questioned BY Mr. Trues-
dale as to why he left town he said he han
palpitation OF the heart and AFRAID he would
have nervous prOstration II he should be called
before the Armstrong committee
There was also reason" he said because
there we're some few things which / was di-
rected to do which I did not like TO tell al
though il wasn't any Of my wronEdoing."
Asked who suggested that he take a leave OF
absence. he said he went away for three or
four days. and was then told he had better stay
away longer Some one told him over the tele-
phone that Mr.. Allen. who is the head OF the
law department. thought he had better stay
away. Mr.. Truesdale asked:
There was something in connection with the
transaction OF the ONCE that seemed 70 make Il
advisable that you should not continue there
where YOU could be reached Is that the caseT.
To which Heye replied: Well. there were some
vouchers or some receipts / signed-I may as
well tell you. / suppose you have seen them
Some years ago. II remember right there was