Click image to open full size in new tab
Article Text
NEWPORT HOSPITAL HASLOSSES Failure of Grant Brothers of New York Sad Blow to the Institution. Cope Whitehouse appeared before the Newport police commission last night to substantiate the letter printed below. which he wrote after the announcement of failure of Grant Brothers of New York a firm which had trust funds belonging to the Newport Hospital, and to the parish and parochial school of St. Joseph's Roman Catholic church. Mr. Whitehouse says Grant Brothers held the following Newport accounts: The Newport Hospital funds, left by John Alfred Hazard for its maintenance. and the large estate left by George Babcock Hazard for St. Joseph's Roman Catholic church, the executor of the estate being the Rev. Fr. Coyle of Taunton. Mr. Whitehouse, who is a nephew of Bishop Whitehouse, was told by the police commission that his letter would be taken under advisement. He told the commissioners that it was their duty to wire the receiver of Grant Brothers, E. C. Stedman, for particulars regarding the placing of loans by officials of the Newport Hospital. Whitehouse's letter was as follows: At the request of, several prominent I eitizens and taxpayers of Newport have examined the affairs of the Littlefield Hospital trust: I find that the conditions on which the city of Newport transferred the securities and duties of this trust to the corporation of the Newport Hospital have been violated. The city may be required by the annuitants and others to make good a defalcation, embezzlement, misappropriation or shortage, apparently amounting to over $50,000. 1-There is no marine ward in the grounds of the Newport Hospital exclusivery reserved with 12 beds, for the use of sick sailors. 2-No part of the net income of the trust was expended in 1898-9 for the use of sick sailors. 3-The corporation is confessedly insolvent, and the building erected at the expense of the trust known as the Littlefield ward, but used for the general purposes of the corporation for female patients, is liable to seizure and sale, 4-The following securities appear in the report of 1897 as held for the benefit of the annuitants and the other purposes of the trust: Deposits in savings bank of Newport, $10,000; 10 shares First National Bank of Newport, $10,000; 64 shares Aquidneck National Bank, $3200:66 shares American Exchange National Bank of New York, $6600; 70 shares National Exchange Bank, $3500; 12 shares National Bank of Rhode Island, $1200; total, $25,500. In the report of 1898 there is no list of securities given, but there is a balance on June 30, 1897, of $25,500. It is obvious that the market value of these securities was in excess of their par value. If they have been sold, the trust fund should have shown a balance in excess of $30,000, and, with accumulated interest and dividends, amounting to over $50,000. As a matter affecting public morals. as well as the city treasury, and in behalf of the seafaring citizens of Newport, with the sailors frequenting this port, Capt. Littlefield being a sea captain, I respectfully invite you to obtain from J. Truman Burdick. treasurer,a transcript from the books of the Newport Hospital, showing all dealings with this trust, and that these be submitted to the examination of an expert independent accountant. In view of the insolvency of the corporation, it should be required to convey to the city of Newport the land on which the Littlefield ward is built. and to turn over to the city treasurer the balance of $25,500, or any securities which may remain, together with the amount due for the accumulated rents. dividends and interest which may have been misappropriated.
