New-York tribune., 1909-12-11
POWER TO SHELDON
RESOLUTION IN OWN
HANDWRITING.
Entry in Pheni.r Minute Boob,
Eliminated Directors
Interference.

Tucked away in the minute book OF
the meetings of the board of directors
Of the Ph-nix Insurance Company for
the year 1893 is a page I'm the hand
writing Of George p Sheldon which. un-
less death or the statute Of limitations
intervene, may be of more serious con-
sequence to the deposed president of the
company than the Indictment now pend
ing against him for grand larceny. The
page is the only one i'm the handwriting
Of the former president
The page contains a resolution. pur-
porting to have been passed by the
finance committee OF the company. Civ
ing into Mr.. Sheldon's hands complets
power OF handling the financial trans
actions of the company without first
getting the approval Of the board of di-
rectors. AS the resolution stands now
in the minute book. which has been
turned over to the District Attorney, IL
appears TO have been entered with the
full sanction of the board of directors,
but the board seems to have been en-
tirely unaw .re Of the passage of this
resolution until IL was brought TO the
attention Of the members hardly more
than a week ago by the State Depart
ment OF Insurance. The board promptly
met then and rescinded it.
PROTECTED BY BANKS.
The disclosure of the resolution ex-
plains how the president of the company
had for many years, since the insurance
officials Of the state did not interfere,
been able to manipulate the company.
Against a chance of discovery he seems
10 have been we'll protected, according to
a prominent official of the company, by
banking companies, which very kindly
lent Mr.. Sheldon stocks and other secur-
tiles" that are supposed TO have made
the annual statements of the condition
of the company appear above suspicion.
What banking companies these were is
definitely known. but no disclosures are
expected until the examination now being
conducted by the Insurance Department
is finished and the chain of evidence
tending 10 prove that the books OF the
company could be adapted to any exist
ing emergency is more complete
Following the disclosures OF misman-
agement Of the finances of the Phenix
company the retirement of several of
the officials who have been identified
with the Sheldon regime came as no sur
prise yesterday. The place of George V.
Ingraham. vice-president Of the COM
pany. has been filed by the appointment
OF Henry f. Hess, who will also be the
managing underwater of the company.
Charles T. Roster who has grown up
with the company, has been succeeded
as secretary and vice-president by David
Rumsey. an Assistant Corporation Coun-
sci. Mr.. Rumsey's appointment, it is
said. is temporary. and is due 10 his legal
experience and the desirability of having
some one TO act for the company in the
present situation.
sHELDON'S SON WITHDRAws.
Both Ingraham and Roster are sur
vivals of the administration of the late
Stephen T. Crowell, who preceded Mr..
Sheldon in the presidency of the COM
pany. Ingraham's wife is a daughter of
MIR Crowell. George P. Sheldon. jr.. the
son of the ex-president, has also with
drawn as examiner.
1t was authoritatively stated yester-
day on behalf OF the new MANAGEMENT
that the stockholders would suffer no
loss as a result of the alleged peculations
of Mr.. Sheldon. but that every precau-
tion was being taken TO recover what
ever losses the company might have in
CURED through him. Lawyers are now
af in, 6nd
estate. should it be found necessary to
bring suit.
Superintendent Hotchkiss, whose state
ment that Robert III. Hunter, when
deputy superintendent of insurance. had
borrowed more than 100000 from the
Phenix Insurance Company, was disputed
by Mr.. Hunter. gave out a statement
yesterday contradicting Mr.. Hunters
assertion that the loans were obtained
personally from Mr.. Sheldon and not
from the company.
AS a result Of the disclosures made in
the examination of the Phenix COMPANY
the insurance commissioners of sixteen
states. who have been holding a conven-
tion at the Hotel Manhattan. passed a
resolution yesterday looking to the
Fastening Of examination of insurance
companies. The resolution provided for
a sort Of clearing house by which a
commissioner of one state might apply
for the examination OF a company with
home offices in another state.
An arrangement was also made for the
employment of a resident representative
I'm New York whose duty it will be to
provide the departments OF all states
with information concerning the valua-
ton of all securities held by all classes
Of companies in all the states.