New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1910-04-25
FRIENDS STAND BY VAIL
Duchess Fire Directors May Re-
sist Hotchkiss Demand.
tBy Telegraph to The tribune. ]

Poughkeepsie y. Y. April "a. - The
charges Of mIsmanagement made by Will
lam H. Hotchkiss. State Insurance Super
intendent, against Lewis Il. Vail, president
Of the old Duchess insurance Company,
were denied in toto yesterday in a statement
issued bv Mr. Vail. The directors assOci-
ated with Mr. Vail in the management of
th,. company and the directors OF the new
Duchess Fire Insurance Company, formed
after the San Francisco disaster, will, il
seems probable, resist the State Superin-
tendent's demand for the retirement OF Mr.
Vail from both companies. This matter
will come before the old board at a meet
ing to be held next Thursday. In CAGE the
SuDerintend IS defied he must have re-
course to the courts TO get control of the
company Allison Butts, counsel for Mr.
Vail. said last night that he would welcome
this contingency, for IL would give him the
right TO cross-examine the witnesses. which
he saws was denied him at the hearings
conducted by the Insurance Superintendent
Jesse Graham, secretary, who, 1t Is said.
made The most damaging charges against
NJ Vail. IS a brOther-in-law Of James f.
Sague Public Service Commissioner. who
Is a stakeholder and director of the new
company, but not OF the old company. in
which Mr.. Graham and Mr.. Ssgue's mother
have small interests.
Practically all of Mr.. Wallis fellow d.
rectors i'm the old company, which includes
three bank presidents, indorse his manage
ment OF It's affairs. and say they were
familiar with the acts OF which Mr.. Hotch-
kiss complains, and believe Mr. Vail did
what right.
The question regarding the % per cent
commission which was brought out by the
State Superintendents STRUCTURES OF the
missing minute book leaf was explained
Yesterday by Milton A. Fowler. vice-presi-
dent OF the old company. follows:
with reference to the question as TO
whether the executive committee Of the
Duchess Fire Insurance Company ever
passed a resolution TO pay the trustees Of
the Dutchcss Insurance Company a COM
mission of - per cent. ] am perfectly clear
in my recollection. Ia which am sustained
bv the three other members of the eXeou7
tive committee. that no such resolution
was ever presented 10y me or was ever
passed.
Il have. also stated. as have several
members Of each of the Joint committees
witch were appointed To agree upon a com
mission 10 he paid. that no agreement for
the ;ayment 81 commission was ever
reached until February. 1910. when the
agreement for the payment OF 10 per cent
was made and has been acted upon"
In a statement given out last night Mr.
Vail SAYS that his use of certain securities
Of the company In the stock market melted
a profit OF $40. jeO oil Il which was given to
The company. Il assumed ali the risks"
he said, and would have met every oblga-
lion out OF my own pocket a. the event OF
loss. n Was done with the full consent and
knowledge OF the officials Of the company"
he added that the page cut out OF the
minute book was removed solely because of
u mistake and its removal Was regarded at
the time as d matter VI no Importance.