New-York tribune., 1907-01-18
MR. VANDERPOEL RESIGNS.
Chief Examiner Takes office IN
Eagle Company-Hunter Report.
TBy Telegraph 70 The Tribune ]

Albany, Jan. 17.-Isaac vanderpoel, chief ex-
aminer in the State Insurance Department. re-
signed to-day to take place with an insurance
company Mr. Vanderpoel will be recalled
chiefly by the fact that he was one of the wit
nesses examined by Charles e. Hughes during
the insurance investigation. His testimony
showed him to have been examiner who sell
dom examined. In the report which Governor
Hughes wrote Mr.. vanderpoel and several 9TH
er of the employees of the insurance Depart
ment were handled without gloves.
This resignation has created considerable in
terest from its coming just at this time. Ever
since Governor Hughes's inauguration there
have been frequently recurring reports that
when he got around to the Insurance Depart
ment in his investigation of the state depart
ments there would be thorough housecleanlng
1t was pointed out that several officials whom
Governor Hughes as the insurance Investigator
had been obliged to critlcise severely were still
drawing state money, and the opinion was ex-
pressed that the Governor would. in view OF
that, feel It his duty to recommend or cause
several changes. Many here see in the resigna-
ton of Mr. vanderpoel result of that condi-
ton, and predict that it is only the beginning
It was reported last night that Robert H
Hunter. first deputy Superintendent of Insur-
ance, had resigned also.
Mr. Vanderpoel. 1t announced in the
financial district yesterday, had resigned his
office in order to become the first vtce-president
of the Eagle Fire Company, of New York. This
is one of the oldest fire insurance companies or
the city, organized when such companies under
took to protect business houses both against
loss by fires and against fires themselves.
Mr. Vanderpoels resignation shows that he has
a very lively memory of the gruelng he received
InH nnNn Nhar
when the Insurance Department was being probed
by the counsel for the Armstrong committee. He
also. doubtless has very lively appreciation OF
the force and promise OF Mr.. Hughes's character
izaton of his action. lack Of IT, in the report Of
the committee. Mr.. Vanderpoel's hour with the
Armstrong committees counsel a brief but un-
comfortable one.
MI Hughes having December o. 1906 brought
out the amazing methods employed by the Mutual
Life to conceal gains in stock and security spec
ulations, as well as TO cover UP its losses called
Mr.. Vanderpoel 10 the stand. He called the at
tention OF the Insurance Departments chief ex-
aminer to the Juggling IN real estate and security
accounts In the books OF the company by mark
ing down real estate values, through the medium
Of imaginary depreciations and charging the de
preciations to the profit and loss account in order
to offset the actual gains in securities On the
hasis OF this ingenious sleIght of hand no less
sum than S5'G0.0o had been made apparently TO
disappear after the insurance agitation had begun
Ihen a report would be made TO the State Super
intendent that there had been gain from sale of
securities
MI Vanderpoel. under Mr.. Hughes's searching
questions. was forced to admit that he knsw OF
these proceedings but had neither reported them
nor insisted that they be made public. He even
admitted that he had known about thsm for years
So long az the balances reported were correct he
explained he had not troubled himself to pursue
his Investigations further
Mr. Hughes then took up the somewhat similar
cit MT inv In
Perkins had received the $4,000 paid to Andrew
Hamilton by J. P Morgan & Co. and Mr Wander
poel testified that he was familiar with the fact
that the profit in the sale the New York secur-
ity and Trust Company stock had not bean re-
ported; but he had not discovered the payment to
Andrew Hamilton. He went to Paris and checked
the books there. but had been satisfied when he
found that the balance there agreed with the local
report
On this evidence Mr.. Hughes made the following
comment:
In striking contrast with this official report is the
actual course OF the examination which preceded
committee. The examiner did not know. ana
made no effort to ascertain the salaries paid to
effort TO ascertain the amount paid the son Of the
of t9e m or the terms OF the con
commissions upon foreign business
which President Mccurdys son-in-iaw was me mem NJ
hsd pSopsry or imPTqpsry %hsshsE
ne fact that disbursement was approved by the
stamp of the committee expenditures was
deemed a sufficient Justification for the payment
Vouchers answered the purpose If they covered
the amount called for by the books regardless OF
expended therein stated or Of the excessive out
lays attributed TO particular departments Con-
cealed payments under vouchers for moneys drawn
by the chairman of the expenditure committee and
partment. under the management OF Andrew c
Fields. either escaped attention were treated as
without significance
No officer or committeeman or agent was ex-
amined under oath Despite the language OF re-
port, there had been no real effort to detect
abuses In administration. AS q test of the char
acter or the management, tho examination was
certainly farce.