New-York tribune., 1907-12-07
JEROME'S OFFICE ACTS
CALLS proficient MEN.
Philadelphians and ThOmases Tell
of Transactions.
SECRETARY ELMER DOVER,
OF Ohio.

The directors of the Provident Savings Life
Assurance Society held meeting yesterday
at No 3i6 Broadway which lasted nearly five
hours. and during that time discussed every
phase of the situation facing them
The Philadelphia syndicate which attempted
TO purchase the society from Z. r. and q. r.
Thomas well represented. almost all OF It's
eight directors being present. The Thomases
were there, as was Timothy L. Woodruff. VINO
has acted in the interest of the policyhoders
Isador J. Kresei Assistant District Attorney.
sprang Il surprise when he subpoenaed num-
her of the Phfadelphians and the two Thomases
to appear before him yesterday afternoon The
day previous E E Rittenhouse. Commissioner
Of Insurance OF Colorado, who has been inves-
tieatine the Provident society with Superin-
tendent Kelsey. placed in Mr. KresePs hands
some data requesting him TO lay them before
the grand jury If after inquiry he found there
was ground for so doing. Mr.. Kresers sub
pnenas followed quickly
The Assistant District Attorney examined the
witnesses as to the bargain between the syndi-
cate and the Thomases, and II Is understood
also examined them as some of the affairs
Of the company.
The men subpenaed were John j. Coyle E.
p and O. F. Thomas. Charles NJ Braun. John
w Phillips. Henry Brooks, j. j. Moore. John
B Wurtz and George B. Elliott
From the testimony taken the Assistant Dis
trict Attorney understood that Mr. Coyle, who
was elected chairman of the finance committee
of the society. had deposited s50.O00 of its money
in the Hamilton Trust Company, OF Phladel-
phia. of which Mr. Brooks is director and had
offset this deposit by note of like amount
When Mr. COyIes attention called TO this
later he said Absurd! / did deposit that
amount in that bank. and did so because did
banks. and you know what the banking situation
here was that time. 1 knew this Hamilton
Trust Company was q safe institution. Of
course 1 did not offset 1t by note for $4,000
The mistake probably arises through the fact
that of my notes for that amount is held
by the Hamilton Bank of New York"
The District Attorneys office learned yester-
day that the Thomases had bought the Brock
Vile. Westport & Northwestern Railway. of
Canada some two years ago. This road is cap
italized at S.HOoO and has bond issue of
S4JoO0O In March Charles F. Helm,
vice-president of the Hudson Trust Company. it
was said sold the society S2O.OJO worth OF
bonds of the road at a.. and in April he sold 1t
$4,000 more of these bonds the same price
1t was said the District Attorneys office be-
lieved the bonds could have been bought at 40
O. F. Thomas said this matter needed no ex-
pIanation When we bought the road. he
said I'VE paid 1U2 better for every bond
purchased and we still have all the bonds we
bought | do not know whose bonds were sold
TO the company. but they were not ours. AS for
buying them at 10 IT could not have been done.
in my opinion"
Mr.. Coyle said that he had been advised by a
broker that 15 was not excessive price to
nav for the bonds and Mr.. Woodruff said he
thought the investment was good one for the
society.
Al the meeting of the board of directors yes
,ordav different sub committees were appointed
70 attend 10 various matters that nov before
the society One committee was appointed TO
raport on securities that it deemed the society
would do we'll TO purchase. The Provident So
cietv mas more than 81 0O0.000 in cash for invest
ment purposes The question of the valuation
of the society's realty also came up for discus
sion The society will ask for hearing on this
question and revaluatson
Mr. Woodruff said that he hoped when the
investigation was finally over that the Insurance
.tn,t MT would be satisfied with the condi-
ness ut Is unfortunate, too," said he, that
this investigation should come just at this time.
1t makes a settlement of the differences between
the Thomases and the syndicate much more diff
fcult itt compIicates the whole situation mate
rally and the tendency of the whole business
is to hurt the society.