The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-07-12
STIRRED By SCHlPP'S CHARGE.
MORTON TO LOOK INTO ALLEGED
FALSIFIING or REPORTS.
Banker Says He's Leading . Righteous
Life and T.. ". Hartman says Nothing
~ --Tarbeil TO he Retained-Demands
~ That Depew DcsiEn-Jerome Angry.

Super1ntendenC Oh lnSuTdnco Fiahoin AIou
bricks that the records ofth Equitable Lire
Assurance Society are false when they
record the sale OF Union Pacific preferred
stock to the society by the firm OF Kuhn,
Loeb 4 Co. led Chairman Paul Morton
Yesterday to instruct his accountants to
give him fun report on this matter.
Mr.. Sohiff's charge is regarded as ono OF
the most serious yet made. and twas sug-
gested that there might be grounds for
criminal prosecutions.
Il am investigating IN my own way
said Mr.. Morton, "and It will probably take
some time before have anything definite
to announce"
Mr.. Schiff refused 10 add anything TO what
he said on the stand before Supt Hendricks
Incidentally, though. lie issued this state
ment:
y cannot possibly take up and discuss for
publication every statement with which
my name becomes connected, When one
has charge Of large affairs one gets some
times praise and sometimes censure, and
the one must be taken with the other.
am endea voring to lead righteous life.
always following the dictates Of my con-
science, which, after all, is mans proper and
best Judge and II my acts have in any In
stance been misjudged shall trust to time
for this to become corrected"
Attention was called Yesterday to dis
crepancies between Mr. Schiff's testimony
and the testimony OF Mr. Hyde. Mr..
schiff said that he knew only Mr.. Hyde
In the sales Of Union Pacific preferred
stock; Mr. Hyde stated that no represented
the Equitable society In these transactions,
with the consent Of President Alexander,
and that the stock, amounting to approx
mately 81 SOC. 600, although carried on the
society's books, was still In the names OF
clerks in Kuhn, Loeb Il Cos. office
Mr. Hendricks asked Mr.. Hyde whether
he considered such transactions proper
ones for life insurance company to enter
into. 1t was reported yesterday that there
might be further investigation in an effort
to bring to light more of the details OF
transactions which may have had con-
siderable effect on the stock market.
f. H. Hartman when he was questioned
In regard to the Equitabe's transa actions 10
Union Pacific preferred and in regard to the
circumstance that his name had practically
been omitted not only from the Hendricks
report but from the testimony. replied
emphatically that he had nothing to say.
District Attorney Jerome was angry over
the publication of the Hendricks testi-
mony before it had reached his hands. He
issued this statement last night:
MY desire to examine the testimony
taken before Superintendent of Insurance
Hendricks in the Equitable matters is not
from a sociological standpoint or to see If
any moral obliquty has been disclosed.
,esl., al,
oient to form the basis of a criminal prose-
cution. There have been efforts made re-
Gently to obtain the minutes of the Grand
July in criminal prosecutions. and the courts
usually have denied this privilege to the
defendant. There are often Grand Jury
inquiries in which it would be disadvan-
tageous to the prosecutor to have the pro-
oeedings become public.
THE proceedings before Supt. Hendricks
were secret. If there were any reasons Of
public policy why these proceedings should
be disclosed. in my humble opinion the ques-
ton of disclosing them should be left to
the man charged with the duty Of determin-
ing that there were grounds for criminal
proceedings against anybody interested.
But If there existed such reason, over
and beyond a criminal proceeding, for
making the testimony public, / think the
person responsible for the criminal prosecu-
ton should have been consulted. Then If
public policy demanded the publication OF
the evidence all the newspapers should
have had it. / have been unable to obtain
this evidence. although have made several
efforts to get it. To-day made distinct
and positive effort to get the evidence. but
have not got it yet"
Mr.. jerome refused to say in what his
positive" effort consisted.
When Deputy State Superintendent OF
Insurance Robert Hunter was informed
that the District Attorney thought it strange
that the testimony had been made public
before it had reached his hands. he said:
Il don't give damn what Jerome thinks.
The testimony didn't leak out from this
office"
The disclosures regarding Senator
Chauncey NJ. Depew's services "a spe-
cial counsel to the Equitable and the loans
to the Depew Improvement Company
brought the statement that there is strong
feeling among the trustees that Mr.. Depew
ought to retire from the directorate. Many
poicyholders, it was said, had written to
them suggesting that he get out. Nothing
will probably he done by them in the matter
until after Mr., Depew returns from Europe,
Chairman Paul Morton announced yes
terclay that he had decided to keep Second
Vice President Gage +. Tarbell in Office
Mr.. Tarbell handed in his resignation at
the same time as hyde. Alexander and
Mcintyre, to be acted upon at the chair
mans discretion. Mr.. Morton has not.
however, returned Mr., Tarbells resigna-
ton.
" have said Mr.. Mort IN, told Mr.
Tarbell that we will try and work along
together. II he is able to do as we'll as he
thinks he can We shall be very well salts
fed. II We find that We cannot get along
together. then one of us will have to leave
Mr.. Tarbel will continue in charge Of
the domestic agency department.
Mr.. Morton also announced that he had
decided to keep Third Vice President
George T. Wilson. who is in charge of the
foreign agencies. as we'll az Henry Rogers
Winthrop, the financial manager. and
Henry Bremner the assistant treasurer.
Mr.. Morton said that he was ready now
to get to work and try to do some insurance
business. Speaking Of the resignation OF
Archibald C. Haynes, general manager
in this city and one Of the society's most
successful mana gers, he said:
L.. ;r,,,