The Morris County chronicle. [volume] (Morristown, N.J.) 1877-1915, 1905-07-11
EQUITABLE PROSECUTIONS
Hendricks Has Proof Insurance Chiefs
SpecuIated With Trust Funds.
CRIMINAL ACTION IS LIKELY

State Probers Unsarth Evidence That
Policy Holders Money Has Been Used
in wild wall Street DeaIs--orand Jur-
srs Begin work--May Uncover Grimm
aiity in shipBuildin9 Fiasco.
New York City.-Law breaking Of
fcials of the Equitable Life Assurance
Society are being attacked from ali
sides District Attorney Jerome has
already put the Equitable crimes into
the hands Of the Grand Jury, which
has just begun what will be a history
making session. Some high fnanciers
may soon face Jail. Gage e. Tarbell is
helping on the criminal action against
his associates.
In swearing in the July Grand Jury
in Part Il. of General Sessions, Judge
Warren w. Foster took occasion to an
nounce that this particular Grand jury
would probably be called upon to give
a lot of extra time and attention to the
very important investigation (of the
Equitable Society's affairs now on foot
in the District Attorneys Office.
Il is said that the Grand Jury will
also delve into the united States Ship
building Company scandal. This was
mixed up with the Equitable's affairs
through the Mercantile Trust Com
pany- That the shipbuilding graft may
develop criminal ends is evident be-
cause of the recent restitution of funds
sunk in it, intending 100000 to Mrs.
Ida E. Wood.
Attorney General Mayer is expected
speedily to begin the prosecution of all
men who acted as directors in the
Equitable without holding five shares
of stock. This was in violation of the
law. Mr.. Mayer had his attention
called to this by Senator Brackett.
The penalty for the offense is fine of
$1,000 Only about ten of the men who
have acted as directors in the Equita
BE recently, it is said, are innocent of
the charge.
A receivership proceeding now con-
fronts the Equitable. A big New York
law firm is preparing to go into court
to take this action to safeguard the
rights of the policy holders
Proof of speculation on margins by
officers of the Equitable Life Assur-
anee Society with the funds of the pol
icy holders is in the hands of Superin-
tendent of Insurance Hendricks, so it
was announced, and is soon to be made
the basis of criminal actions
Judge Fosters significant charge to
the Grand Jury makes clear that, the
criminal aspects Of Equitable affairs
will come under immediate scrutiny.
and the preparation of evidence by
Mr. Hendricks will expedite the jur-
ors' work.
Coupled with this announcement.
which staggered financiers and insur-
lnce men, was the further assertion
that no time would be lost in bringing
the criminal proceedings against those
who had used the money of the policy
holders to dabble in the most danger
GUS sort of Wall Street speculation 1t
Is not known that any of the money so
risked was lost, but, it is said. that
makes no difference in the legal status
of those who made such a misuse of
the Equitable's funds for their own en-
richment, superintendent Hendricks,
It is said, will insist that both Attor-
ney-General Mayer and District Attor-
ney Jerome shall proceed against
everybody involved and push the cases
against them vigorously.