The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-06-30

CiObcu iuNOlNiHk tHe dDDIopI lhtioh VI Vii
IN the principal Of a loan, and interest on
various loans collected between May, 1904
and June, 1905, aggregating S83S rs, a total
defalcation Of S7l2.S7. The shortage was
traced to a clerk in the department. who
confessed. Many clerical mistakes also
were discovered.
The committee makes several recon-
mendations for the reorganization OF that
department mt. In the foreign policy loan
department III cases Of irregularities in
volving N5 ,177 in the aggregate were I'M
covered. The irregularities, 1t Is said
security Of the loans. The accountants
say there is more opportunity. for .pecula-
ton and the concealment Of the thefts in
the policy loan departments than in any
other.
Under the head Of expenditures Of a ques-
tionable character made between January 1,
1899, and December 81, 1905, the accountants
submitted a statement a~ggregating ss1S,-
s7s.4s. This statement does not include
any Of the moneys which went to Andrew
c: Fields through the manipulation OF The
clined yesterday to make public the ac-
countants' report, including that state
ment.
some figures are given in the Truesdale
committee report. There were payments
Fields, sl2,474 to Andrew Hamilton and
$l3, 1888 to the New York Life Insurance
Company, the o latter paym ents being the
Mutual's share Of certain legislative pay
ments. Julius Heye, an employee In the
o~omrany's supply department, got $lS,S34.
President McCurdy's s. ,2f0 for cab hire is
put in the Questionable class. III commit
tee expresses the opinion that many OF these
payments formed part Of the fund handled
by Fields, for which he must account to the
company.
The offices leased to trustees in the Mu-
tttnl n,tlli-r th4 o@rnpntttaa AnIa hTntinhf
the average rental. One trustee who rents
an Office in the building for 81 1000 a year
has received semi-annually for the last five
years 5 800 for legal services and advice
rendered the officials Of the company,
al. rI ansn wrs spE ns1' mt no b snys s fns fePUdI e.,
tails Of services performed have been rem
dered.e =
This trustees name isn't given, but he is
supposed to tie Charles E. Miller. who
recently resigned.
Another trustee, whose firm pays an
annual rental of sis, 900 a year, has In re-
cent years received his share OF $4,000,
paid semi-annually to his firm for legal
services. The committee says this also was
apparently an annual retainer, as no bills
showing details of services have been fur
nished. This trustee isn't named.
The committees report shows that nine
teen trustees held stock in varying amounts
in the Guaranty Trust Company; that seven
teen trustees held stock in the United States
Mortgage and Trust Company; nineteen
were stockholders in the National Bank OF
Commerce; eight in the Fifth Avenue Trust
Company, the Morristown Trust Company
and the Morton Trust Company. All but
four Of the trustees held stock in one or
more Of the Mutual's subsidiary companies,
Seven of the trustees had relatives, either
near or remote, in the company employ,
Nine trustees were in terested in syndi-
Gates in which the Mutual Life was inter-
ested, and two more were interested through
firms Of which they we're members.
Six trustees had knowledge Of the Presi-
dents salary having been raised to. S5o,ooo
tributions. The committee discountepances
the idea Of the trustees holding stock IN
subsidiary companies. The committee con-
cludes its report with an expression OF the
greatest confidence in the present manage
ment.
The committee handed out a statement as
a supplement to the report. 1t says that
the facts contained in the report are those
reported to the committee by the account
ants. The committee does not wish to be
understood as implying any fault on the
part Of the board by reason OF the Facts
reported.
In reference to the mortgage loans on
property in excess of go per cent. OF the
valuations, the accountants, the
says, arbitrarily selected that percentage
as the point at which they would divide the
loans. The law permits mortgages to the
amount of 88H per cent. Of the value OF the
property, and 1t doesn't follow there Is
anything unlawful or unwise in the loans
In regard to the 50, 600 900 loaned on
property held to be worth less than that
amount, the committee says the appraisers
didn't undertake to appraise anything but
the land, and il came to between 100000
and $500 600 Of the amount OF the loans
These loans are on church properties. The
appraisers had no basis from which to Judge
the value OF the buildings
IF 1t is demonstrated, says the state
ment, that the ~policyholders desire a
chance Of policy in this regard Coaning on
church property there is no reason to
suppose that on the calling of these loans
there will be any loss whatever in money
to the company
The accountants estimates on the real
estate are very conservative. That &C
counts, according to the statement, Tor the
possible shrinkage there.
The reauisition for information which
the committee made upon the trustees was
fully answered, 1t was announced, by all
the trustees except Richard A. McCurdy,
Robert H. McCurdy and Elihu Root.
at wal hardly expected, ' says the state,
ment, that answers would be received
from the Messrs. McCurdy, and it is pre-
sumed that Mr.. Roots occupation In other
fields of usefulness has prevented his giving
the necessary attention to the matterI
Mr.. Root resigned from the Mutual board
acme time AGO. and neithe OF the McCurdys