The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-07-19
MUST TAKE up $sS5,ooO LOAN.
JEROME'S CHANGE TO RUN DOWN
ITS REAL PURPOSES.
State Onlcer Orders Equitable to Make
Up-District Attorney, II Was suE-
gested, Might Ask About . Payment
Of $40 .O{lO fOr an Amhass adOrRhiu

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clear field for one OF the most effective
Investigations Of the Equitable Life As
suranoe Society's affairs. The fact thai
Supt. Hendricks has asserted In an offloia
statement that he the chief insurance
officer OF the State, finds 1t impossible Il
get at the bottom facts concerning the
1855 900 fund carried on the books OF tn,
Mercantile Trust Company, an auxiliary
financial institution Of the Equitable, gives
Mr.. jerome, as the chief law officer OF The
county Of New York, the opportunity which
his friends say he should not hesitate a
moment to grasp.
This SosS 900 fund carried with 1t, accord.
Ing to the very best information, many
features the knowledge Of which has hither-
to been confined to limited circle Of fnan-
ciers and politicians.
For instance, it was asked yesterday by
Mr.. Jeromes friends: Did the SIS, 900
which settled the United States Shipbuild-
ing matter with one politician come out
OF this $685. ,0O02 Did the $50 900 which was
TO pay for an Enthusiastically to the French
Republic come out of this fund.- To whom
was the SIS 600 handed in settlement of the
politicians United States Shipbuilding
suitr What officer of the Mercantile
Trust Company handed out that S75 900?
What officer Of the Mercantile Trust Com
pany handed out that $50, 900 for the Am
bassadorship to the French Republic?
There are numerous instances Of this
kind Of indiscriminate financiering, it
was declared yesterday by those who
ought to know, which Mr.. Jerome can
fathom. Mr.. Jerome, for instance, as
Diatr of to,
has limitless power. He can subpoena
all Of the officers of the Mercantile Trust
Company before the Grand Jury of the
county. He can compel these officers to
testify az to what was the purpose Of that
1886 900 fund and by whom it was dis
tributed and to whom.
Another feature Of the situation was
pointed out by District Attorney Jerome's
friends. All along it has been known
that James H. Hyde had associates in his
underwriting syndicate and it has been
pointed out that Jacob H. Schiff admitted
that he had dealings with Mr.. Hyde. Mr..
Jerome as District Attorney of the county
also has full power to investigate an UNDER
writing syndicate when In his estimation
1t hides crime.
For instance, would it not be we'll for
Mr.. jerome to ascertain who were MIR.
Hyde's associates other than Mr.. Schif, in
the 350,00O.0OO Union Pacific preferred blind
pool? Folks in Wall Street understand
perfectly we'll that at the time the syndicate
was formed it was for the purpose of con-
trolling the Union Pacific road and to keep
it out Of the hands of others.
Without desiring to discuss the rivalries of
an NJ Erie
iterated yesterday, has full power to ascer-
tain who we're Mr.. Hydes and Mr.. Schff's
associates in that blind pool, whether or
not the money of the pocyholders Of the
Equitable Life Assurance Society was used
to bolster,up that blind pool and whether
1t is not crime to have that money Of the
widows used for Wall Street blind pool.
The inquisitorial powers of the District
Attorney are complete for all these pur-
poses. Their exercise would lead, more
over, to immediate and important results
in the punishment Of guilty persons if
crime has been committed An investi-
CATION by the Legislature, it was added,
through committee of its appointment,
could have nc such result. and well in
formed persons are generally suspicious
as to what it would do if appointed. If,
for instance, the $685. 600 turns out to be
largely political corruption fund, AS many
shrewdly suspect. the powers of both po-
litical parties would be exerted to the full
to prevent disclosures and to blind the
public. The committee, If chosen would
be of their selection. and in effect they
would be Investigating themselves az to
matters in which they know their own
completely with both the power and the
opportunity so to steer the investigation as
to facilitate their own escape.
District Attorney jerome, on the other
hand, his friends point d out, has no
strings attached to him. His election to
Office involved no PARTY or personal obli-
cations. His incumbency Of the Office
was the result of popular uprising, and
he has only within a few days declared
that he would bend his knee to neither of
the political bosses to retain his office.
Nothing has occurred in his career, It was
insisted. that gives color to the idea that this
statement lacked any element Of absolute
sincerity. His probe, therefore, can go
to the bottom. His arm would not be
palsied by any attack from the politicians.
Concerning the alleged mystery as to
how Supt, Hendricks's report escaped from
the Attorney Generals Office at Albany
these pertinent questions were asked yes
terday:
The Attorney Generals copy of the re-
port having been entrusted by Supt. Hen
bricks to Henry D. Appleton, Second
Deputy Superintendent of insurance at AL
bany, did not Mr.. Appleton hand the copy
to James G. Graham. First Deputy Attorney
General?
Was not Mr.. Graham Gov. Odell's private
secretary for four years?
Who besides Gov. Odell nominated Julius
Mayer for Attomey-General?
Was there not an understanding between
Odell. Mayer and Graham concerning the
publication of the report?
Would Graham on his own responsibility
have dared to hand out for publication
his chiefs copy of the Hendricks report'
Why was it decided to hand out this par
ticular copy of the report and at that par
ticular time?
Az A matter Of fact there is no mystery
concerning the hidden purposes for print
ing Attorney General Mayors copy Of the
report. They are all known.
Notice has been served on counsel for