New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1907-04-26


of it. but let them make the false statements all
the same.
Q.-You knew that their last annual statement
reported profit sale or maturity OF ledger
Q;-You knew that. was not true. because they
had made sales and ledger assets profit a very
large amount? A-Thsy had but clearing il IN
Q.-But the whole object OF your report was 70
get true and correct statement OF the items called
Q.-AHa you didn't get il? The present method is
conceaiment Of securities prodt? "A real estate
marking down IN value
Not only. then did Mr.. vanderpoel and his
examiners content themselves with finding a
mere superficial balance. without inquirng
whether the expenses had been legitimate and
free from extravaganza. but they quietly con-
nived at false annual statements making a
more favorable showing than the facts justified
They never found anything wrong with the
methods or the management of the companies
and they never sought 20 find anything wrong
II remains 10 be seen how they acted when
charges OF gross acknowledgement were brought
against company. In 1890 serious accusations
were made against the president OF the Mutual
Reserve. for some acts related to these charges
the president OF the company is now under in
dctment and the vice-president has been CON
vcted. Mr.. Hunter. the first deputy tells tb,s
story. He and Mr.. vanderpoeI conducted an ex
animation Of Mr.. Durham The questions and
answers filled two or three typewriter pages!
Cpd you suggest to Mr.. vanderpoel that thar
portant subject? At only covere 5o T sgGn an i'm
things we wanted his affirmation denial o. 'Ao
1t was disclosed that the COMPANY na,d
director named Brockway $500 a week for Dar
forming nominal services and Brockwsv rai1
most Of IL back 20 Bingham personally va
derpoel left that interesting matter out OF his
report to the Insurance Department.
:, o.You knew II he left out an important matter
attention of the superintendent Now here IVES =
ting from man 10 whom a salary was T nsjSS set
So equiyaent OF that salary and you did
why he did not report IT, @'N nut tel
not get that word to the r you SSSd
my my impression Is that all OF these things were
talked over casually with the superintendent!
Mr.. vanderpoel. on the witness stand. told q,
inadequate and superficial examinations. His
official reports read very differently from bI
testimony. OF his examination into the MutuaI
Life he writes; IF the scope OF the exaniDa-
ton were confined solely TO ascertaip,n,, ~.
fact that the corporation was solvent under en-
law OF was Of this very examination that H.
subsequently, swore sOlvency was the eDtira
scOpe) the time occupied . would Ia raIo
lively limited compared to that required % d.
ternine likewise whether the company baa
Oeeh managed IN the best interests OF the mol
icyhoiders On this report OF Mr. vanderposI
the Armstrong Committee comments thus:
In striking contrast with this official raro-. 4, -,
actual course OF the examination vShicb - 5ne
H. as disclosed by the testimony taken by yoIr
cOn4Ifittee The examiner did NOT EDO1. S os
made no EFFORT 20 ascertain, the saiarias ~
lndivtdua! officers. He did not know ana vSsoj ~
EFFORT TO ascertain the amount paid the SON ~ tS
RIes!uent OF the company. or the terms OF the con-
s,ISt Wiich ne had been receiving excessive
tion paid to e the q % ehe ex9rbitant compensa
WLlch FfeslCent McCurdy's son-in-laW WAS n NAM,
pes' NO attempt WAS made TO ascertain yVh.frs