Los Angeles herald., 1905-12-09
RYAN is
NEXT ONE
Action Against Him
May Be Begun
Refuses to Reply to the
Committee
Under Advice Of His Counsel, Paul
cravath, He Declines to Answer
Important Questions In
investigation
BY Associated Press.

committee which is investigating life in
surance conditions today determined to
send to District Attorney William 7.
Jerome a request that he institute pro-
ceedings against Thomas +. Ryan,
inancier and owner of the majority of
the stock of the Equitable Life Assur-
ance society. To punish Mr.. Ryan for
refusing to answer questions before the
committee.
MIR. Ryan had refused to answer
when asked what Il. II. Hartman,
president of the Union Pacific and
Southern Pacific Railroad companies,
had said to him when Mr.. Hartman
tried to induce him to share his con-
troll of the Equitable society with Mr..
Hartman.
Mr.. Ryan was asked whether Mr..
Hartman had threatened that results
disastrous to Mr.. Ryan's interests
would ensue, or If Mr.. Hartman had
told him that some action would be
taken by the state legislature, or any
officer of the government, unless Mr..
Ryan consented to share his stock with
him. Acting on the advice of his at
torney, Paul D. Cravath, Mr.. Ryan de-
clined to answer those questions. al
though Senator Armstrong, chairman
of the committee, directed him to do so.
Mr.. Ryan, however, answered one queS-
tion by saying Mr. Hartman did not
tell him at that time there would be
Legislative investigation of life insur-
ance business unless he gave UP part
of the Hyde stock.
Mr.. Ryan had already testified that
he had secured control of the Equitable
society by paying James H. Hyde
50 100000 for 502 shares of the society's
stock.
after you had bought that stock,
was there any proposition to share it
with you?" asked Charles E. Hughes,
counsel for the committee.
''Am I obliged to answer that ques-
tion?" asked Mr.. Ryan.
II think you ought to, Mr.. Ryan
said Mr.. Hughes.
Hartman Wanted to Share
"E. H. Hartman desired to share the
purchase with me, and | refused to
permit that" replied Mr.. Ryan.
Mr.. Ryan said that he thought Mr..
Hartman made his request on the day
that Mr. Ryan bought the stock, and
before the purchase was publicly an
nounced.
What did Mr.. Hartman say to you
to influence you to make the sale?"
az do not think, Mr.. Hughes, 1 ought
to be called upon to answer question
like that--to characterize or state a
conversation ] had privately with Mr..
Hartman" said Mr.. Ryan.
Paul d. Cravath interrupted by say
ing to the chairman:
81 feel bound to say to my client, Mr..
Ryan, that while he should testify most
fully to what he did and what he
planned to do, he cannot unless he
chooses to do so, voluntarily, be re-
quired to attempt to state conversations
which Mr.. Hartman or any other man
had with him.
To this Mr. Hughes replied:
"I deem the matter important in two
aspects. In the first place, that the
committee may understand the motive
which may actuate those who desire to
obtain control of the stock of the in
surance company and the proceedings
which may be taken to acquire it: and,
second, that we may know whether
there was any suggestion that life in
surance conditions in this state would
be investigated If Mr.. Ryan did not ac-
cede to Mr.. Harriman's request. think
that we should have full light upon the
transaction, and / hope that Mr.. Ryan
will feel that he can do another public
service by advising the committee
fully"
Need Not Relate Conversation
Mr.. Cravath said that Mr.. Ryan
would testify freely as to facts, but that
he was not required to state what Mr.
Hartman said to him in private con-
Versation.
'the committee directs you answer the
question"
The following colloquy ensued:
Mr.. Ryan, will answer to it so far
as to state that L refused to share the
purchase with Mr.. Hartman.
What did Mr.. Hartman say to you
in connection with this matter?"
Mr.. Cravath-My advice is that you
are not required to answer that ques-
ton.
The chairman-Do you refuse?
Mr.. Ryan, refuse to answer on the
advice of counsel.
did Mr.. Hartman say that there
would be any result Injurious to your
interests In case you refused to admit
him to share in the ownership"
Mr.. Cravath--I give you the same ad-
vice, MI. Ryan, that you are not re-
quired to answer that question.
Mr.. Ryan-Same answer.
At the order of Senator Armstrong.
the last two questions We're repeated to
Mr. Ryan, who again refused to
answer, saying he did so ION advice of
counsel"
Mr.. Hughes then asked the following
question::
did Mr.. Hartman say to you there
would be an investigation by a COM
mittee of the Legislature or that steps
would be taken to have an Investigation
by a committee of the legislature of
either house OF any insurance condition
or insurance companies If you did not
permit MIN 10 share In the ownership?"
Mr.. Cravath-The same advice.
Mr. Ryan-He did not say that.
Nov did he say that any action |
on the part OF the legislature or any
official or officer OF the government
would be taken in the event you re-
fused to accede to his request"
Mr.. Cravath-l advise you not to
answer that question.
Declines TO Answer
Mr.. RYAN, refuse TO answer on the
same grounds.
Nov, Mi. Ryan, l think you will