The Washington herald., 1908-01-20

New York Jan. 19-The manner in
which the funds Of the Provident Savings
Life Association were handled by p. r.
and o. F. Thomas. after they secured
control of that company in December.
1906, is revealed in the report of z. E.
Rittenh0use, the Colorado commissioner
OF insurance which has just been sent
10 the society.
There is also a hint or two of the rea-
son why the Thomases finally decided to
get out Of the company and sell the con
troll to the Philadelphia syndicate
headed by John ], Coyle.
Curious sales and Loans.
Not only did the Thomases sell gilt
edged securities of the company and de-
posit tile proceeds. amounting TO nearly
SlV00l0, iu nine of the Thomas Heinze-
Morse banks. but it appears from the re-
port, they contemplated "loaning' other
securities OF the company To these banks
for the apparent purpose, the report says,
of securing for these banks circulation
and government deposits,
Apparently. this scheme fell through
because they could not get any one TO
say it was legal Then the Thomases lost
interest in the company.
iIle 'ol'I"u' "i'" Ne" l"'A 9'aIe lH-
surance departments began an lnvestiga-
t.on of the Proyidcnt Life in October
following the news that the Thomases
were trying To- sell il to the Philadel-
phians on December % AS a result of
what had been disclosed at that time.
JUN "' p-' 'l''''''S VI '''i' '.'e ~
0lase "'l''nS amy "'" business
ne Gamma '''l was vo'lpielgu III le-
''i''",'' ne i,poI' oL 9uP'' Ne'S-S' ol
0-.9 9'''v' 10 9'.l "'''.l'''''
me- ''L y, ,-l 49, ',
taf,5 ,.sr,,. =, t,, .o,,,,,fssf,,,1,. l',s
baao eanr IN rba ramnanr Win como
csustfc comments Inv Comuissfo6er Rit-
taDro,lea rsrtio,I1a,iy in rsgar5 in the
rThouse r,araoan,apf
r.,ou..,,.. ,u,-o-..o-,,,,.
--.... y.---.-..--...----
sa,s.
,.--rs ,rho,,s..s .ss,,r,.7 control Tho
7st of rsr,,sr,- 1o17 Mr. yvoodr,,e, l,..,-r-.,
resigned rbs nreefdencv and turnqd me
duties of that oe7iea' and tba ssIary lltz a18
mon. ,-o,r, ,,--,. ~, - B.. -r-r,,,,,s t,, ,.fc,
nrasfdorr vbo continued in c1aroo urtfI
tFs sale to r,e p,iIs4efr,fs srndfe,ta ON
o.,o1..r 7oo-
...-r1,, -,.,r7, sl.,u. thor e,r Tho er--
+,,.. ,.-o-,tr.. +l... -,r ,,,,.r- .r,,r, .-+t,-,
I'm bsnl,ing circles visited tF.. of7cas fra-
ouenrrv and took o live interest i'm rhe
eociety They also show that tba eveeu-
tive or finance committee which suDer-
vfsad the officers and directed the busi-
moss D.Isc- oF tha e.piary ula+ ds,ine,
This period regularly every week.
..r--,r,, rbfg nina bor-o,-s7 -1,, nom
.---z D.. s...--.... ---7 a.
,' anu ''-7
va anu" -" ~ N'--l
r rom feoiuaIy Il 10 AlaieA u. tAe
report SAYS "~l one Hlee'l"s win
q "oi 'iI was I''e' e.i" Ilo.' NltS W
september u ""LF lliee Times was
quorum present
Concern Allowed to Drift.
.aT,era was virruaII,- mo- 5irer+irr- rasa
o., tra soof.,,. and rr. fsct ,.s, 49,.
-,
-'. 'o"'''' WIZ '''' 30" WI" '''' "''J
OF managing ana were palu TOT man
iO' 7o'''-'' '- '''---1-
,-'s '''N F'7''''
a.. Co..
-. .''-
r-.-. .l.. - ~ -. r..-.-1....-
-. nv, -.
I,.-i.. -. -. 49,. ..--,-,- ~. -,
-. .-..-,.-S-.. -''..i ,'.'-
=. - - -. ..'1 u''.'-''
'''1 ga '''o '1'' 's9 pre-
interests of tba roIic,- boIdar 5ar,a,.,I,.5
+r. o--g.tost .,,-rl,.- ..,,7 -l-s,1 g.. .-.-----
ra,T f., o,-e7,-5r7e tl,ess 80 -,
stances the Thomas management moi
only neglected the society. but actually /
sold high-class bonds, paying from ~ /
per cent TO per cent interest and de- /
posted tGsse ana otnei moneys IN a |
.''',7 W. ""llN0' il iuoH5 ul MHIIH uel /
1Eicn mid I'i'' r,,S ~, - 49, 80, 80 -, anu
-.The preliminary survey Inv mis- de- /
1artment found l1f2.oo0 in cash deposit |
ad in banks. large proportion being /
placed i'm banks controlled by the Thorn /
's- ...- '..i]e interests Al -east |yV'vV OF /
'''' 7.''''' "''s nee" properly invested
Funds Largely Recovered.
AS explained by the examiner. a large
portion of these funds i'm weak or oUes-
iousb1e institutions r-ara ,,a,,o,,s5 90 o.
,Is., ,s .,,e,.,, H.. a. - - .r., -
nun oi ms "9
'' i'i,''' 'l l'e oi'i'''eDceiileHI Oh lHe Ie-
e"l Ai'dhCIiI disturbance. II IS claimed
lJ the officers of az least two banks that
L was understood these deposits were to
remain while certain loans were out
standing"
Tho ,,c,,,v.,.-,.,.,.-. ..-.--...
nor NJ ,,,l,s-l,- '',7 i,''' Ol ''i0 SAali'-
- o'I1' S"o"S lHaI these banks
~, a.. - was "i''uId"h
with the sn,o,,rrg e- s111--s. =. -,