The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-08-31
INQUIRY INCLUDES HENDRICKS
THE ARMSTRONG COMMITTEE TO
PROBE INSURANCE DEPARTMENT.

Tho superintendent Invited" tho Inves-
ugation After Ho Was Told II was
Coming-Eauitabie Cuts on Mrs.
Hyde's and Mrs. Alexander's Pensions.
The announcement was made yesterday
that the Armstrong insurance committee
will include In its investigation an eIamina-
ton into the methods and operations Of
the New York State Department Of Insur-
ance, OF which Francis Hendricks IL tho
head. This announcement came from
Senator Armstrong after several members
Of the committee and the committee's
three lawyers, Charles e. Hughes, James
MoKeen and Matthew @. Fleming. bad
been In conference for moro than an hour
with Mr.. Hendricks.
The official statement issued by tho COM
mittee says that Supt. Hendricks invited
the committee, II deemed advisable, to
include an examination Of his department
in the inquiry but 1t was learned later
that the Superintendent did not extend
the invitation to the committee until mem
hers OF the comm ittee had told him that
they were thinking Of embracing his depart
ment in the inquiry.
Just what the nature Of the committees
investigation into the Insurance Department
will be ism t very clear even to the committee
men as yet, but 1t will, they declare, be
thorough. Nothing, they say, that looks
as though 1t needed investigating will be
overlooked by the committee either inside
the department or among the insurance
conditions outside
1t was suggested at the time when the
committee was appointed that 1t might
investigate Mr.. Hendriol1s's department
There has been considerable criticism OF the
State Superintendent, not only in his own
State but by outside insurance commits
sioners, In the first place. because he toler-
ated the deplorable conditions In the Equita-
BILE for 80 many years without taking any
decisive step, and secondly, because his
preliminary report ignored almost COM
pletely the relations Of E. H. Hartman to
the Equitable and omitted some Of the most
important and most DANA ging facts brought
out in his investigation.
At the committees conference with Supt.
Hendricks State Superintendent Of Bank
ing Frederick D. Kilburn was present.
The committee had asked him to meet
them and tell them what his department
knows about that 1855 900 blind loan account
carried on the books of the Mercantile
Trust Company In the names Of James w.
Alexander and Thomas D. Jordan as tr,ls-
tees. The State bank examiners have gone
through the Mercantile's books and have
complete record Of the ansactions repre-
sented by the account.
As to the purposes for which the money
had been used Mr.. Kilburn was unable to
give any definite information He prom
S,oL hot ho o, oh ho Inv ttr~o
tors with all papers desired. Supt. Hem
dricl1s made a similar offer as regards the
documents In the possession Of his depart
mont
with the committee the admission was
w. Alexander all through the Equitable
scandal that the loan account really did
represent contributions to both political
parties. payments in settlement OF strike
suits and other expenditures which could
books. This had been surmised pretty
generally before, but no definite state
ment has been made by any one in posi-
ton to know the inside facts. This man
refused to give any Of the details OF the
transactions.
Representatives OF the Armstrong COM
mittee began serving subpDnas on the
men they want for witnesses. Sergeant-at-
Arms Hotaling, with corps Of assistants,
left the Office OF Charles +. Hughes early
yesterday Each man had handful Of
the subpBnas.
After the regular monthly meeting Of
the Equitable board of directors yester-
day President Paul Morton announced
that the pension Of S25 600 a year which
Mrs. Henry b. Hyde, widow of the founder
Of the Euuitable, had been drawing since
her husbands death in 1899 and the agree
ment entered into by the old management
OF the Equitable to pay to Mrs. James W.
Alexander in the event OF her husbands
death $4,000 q year had been disallowed
by the board. These gratuities were re-
ierred several weeks ago to special counsel
to the Equitable for decision as to whether
they could be cancelled legally. 1t was
upon the finding OF the lawyers that the
board took action.
President Morton made this further an
.The question Of agents balances which
have been carried by the Equitable Trust
Company Of New York and the Commercial
Trust Company Of Philadelphia, aggreRa-
ting about 10 900 900, was considered and the
matter was referred to the President with
power hereafter to carry the loans as a
society matter, thereby insuring to the
eociety an additional income appro xima-
ing $4,000 per annum.'
Mr.. Morton also announced that the
society's report OF business done In the
United States and Canada for the seven
months OF 1905, ended Aug. 1, showed
$50, 7Ol, 7i5, as against SOS, $40. A65 last year
for the same period. decrease OF less than