The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-07-12
STIRRED BY SCHIFF'S CHARGE,
.MORTON TO LOOK INTO ALLEGED
FALSIFYING OF REPORTS.
Banker Says He's Leading n Right Ons
Life and T.. ii. Hartman Says Nothing
-Tarbcll TO He RetaIned--Denian hs
That Dcpew Resign ONE Angry.

odCOD ocnul StdNIneHl DeloTe Dtdlo
Superintendent of Insurance Francis Hem
| bricks that the records Of the Equitable Life
Assurance Society are Use when they
record the sale of Union Pacific preferred
stock to the society by the firm of Kuhn,
| Loeb & Co. led Chairman Paul Morton
yesterday to instruct his accountants to
give him full report on this matter.
| Mr. SchiA''s charge is regarded as one OF
the most serious yet made, and 1t was 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 l have anything definite
to announce"
Mr. Schff refused to add anything to what
he said on the stand before Supt. Hendricks.
Incidentally, though, he issued this states
ment:
II cannot possibly take up a nd 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 censur. and
the one must be taken with the other. I
am endea voring to lead a righteous life.
always following the dictates of my con-
science, which, after all is man s proper nd
best judge. and If 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.. Schif'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 he represented
the Equitable society in these transactions.
with the consent Of President Alexander,
and that the stock. amounting to approx
mately 81, 800 900, although carried on the
societys books, was still in the names OF
clerks in Kuhn, Loeb Il Co.'S. 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.
+. II. Hartman. when he was questioned
in regard to the Equitabes transactions in
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
eInphatically 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 Equitabl matters is not
from sociological standpoint or to see II
any moral obliquity has been disclosed,
but to ascertain IL the evidence taken Is sufl-
Gent 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-
ceedings become public.
"The proceedings before Supt. Hendricks
were secret. If there were any reasons Of
public policy why these proceedings should
he disclosed in my humble opinion the ques-
ton of disclosing them should be left to
the man charged with the duty Of determn-
ing that there were grounds for criminal
proceedings against anybody interested.
But if there existed such reason. over
and beyond criminal proceeding, for
making the testimony public, l think. the
person responsible for the criminal prosecu-
ton should have been consulted Then II
public policy demanded the publication Of
the evidence all the newspapers should
have had it. J 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
I have not got it yet
Mr. Zero me 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 a damn hat Jerome thinks.
Tho testimony didn't leak out from this
office"
The disclosures regarding Senator
Chauncey NJ. Depew's services as spe-
cia 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
policyholders, 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
terday that ne had decided to keep Second
Vice-President Gage Z. Tarboll 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.. Tarbell's resigna-
ton.
Il have" said Mr.. Morton told Mr..
Tarbell that we will try and work along
together. If he Is able to do ms we'll as he
thinks he can we shall be 'ery well salts
fed. If we find that We cannot get along
together, then one Of us will have to leave
Mr.. TarDell will continue in charge Of
the domestic agency department.
Mr.. Morton also announced that he had
decided to keep Third YicePresident
George T. Wilson, who is in charge of the
foreign agencies. as well as 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