Los Angeles herald., 1905-07-17
REPLIES TO CRITICS ON THE
EQUITABLE MATTER
CLAIMS ACCUSATIONS FALSE
Declares the Assertion That HIs Re-
port Was Altered In interests
Of Certain individuals Is
Untrue
Rv Associated Press.

AAD<AANA M - July ~ 4 ht dAisWVi
Of Superintendent Francis Hendricks
OF the state insurance department to
the published criticisms of his official
acts in connection with the testimony
taken by him in the investigation Of
the Equitable Life Assurance society
and his preliminary report thereon is
made in an extended statement issued
from the insurance department tonight.
Incidentally the superintendent pub
fishes letter addressed by him to his
deputy, Robert H. Hunter at New York,
instructing him to deliver his copy of
the Equitable testimony to District
Attorney Jerome.
The statement is in part as follows:
1.-THE statement made in certain news
papers that my report and the testi-
mony taken was edited and altered in
the interests and at the suggestion of
certain individuals is unqualifedly
false. No person except those employed
by me in the conduct of the investi-
cation read or had access to the report
prior to the time it was delivered to
the printer, except Governor Higgins
and his counsel, Cuthbert w. Pound.
NO suggestion was made by either of
them to any modification of the re-
rort and no change was made in the
report as prepared by me. The report
as printed is in the exact form in
which it was finally drafted by me and
my counsel.
Interview with Governor
"At the interview with the governor
and his counsel I was asked by the
governor whether had been successful
In securing the facts relating to all
matters under investigation 1 stated
to him that 1 had not. that the in
vestigation was still necessarily incom-
plete, that among other matters which
had not been fully covered was one
which l deemed of utmost Importance,
but concerning which 1 had been un-
able to procure the facts by reason of
not having learned of it until the pre-
liminary investigation was about COM
pleted. then stated to him / had
been informed that the Equitable So
ciety was carrying a loan in the Mer-
camille Trust company of $665,000 of
which no record appeared on its books
as a liability The governor stated
to me that he believed that further
effort should be made to investigate
thoroughly that subject. In accordance
with the suggestion then directed my
counsel to make further investigation
and explanation relative to that item,
and by reason of such action my report
was delayed until the conclusion of
his effort.
"Our efforts in that particular were
unsuccessful. At that time we were
unable to secure that facts relating
to the matter and consequently my
report remained unchanged.
with reference to the criticism that
my report does not fully cover all of
the facts brought out in the testi-
mony, never intended that it should
specifically refer to everything that
was developed by the testimony No
person except those employed by me
in conducting the investigation saw
the transcript of testimony or asked to
see it or made any suggestions with
reference to it, directly or indirectly.
Only three copies of the testimony were
transcribed and they were delivered to
me personally by the stenographer who
Transcribed them. and each copy was
separately wrapped up, marked and
placed in the private compartment of
the department vault in Albany"
Sent Reports to Attorneys
Mr.. Hendricks goes on to say that on
July he sent a copy of his report to
Attorney General Julius M. Mayer at
Albany and one to Robert H. Hunter,
his deputy in New York city, tram
scripts of his letters to these officials
appearing in his statement The other
copy he declared since completion has
remained at all times in the depart
ment vault
In his letter to Mr.. Hunter, superin-
tendent Hendricks says:
Should the district attorney desire
access to this evidence, you are at
liberty to deliver it to him or allow
him TO examine it."
superintendent hendricks says he re-
grets that any controversy has arisen
between the district attorney Of New
York county and his deputy in charge
of the New York Office relative to the
delivery of the copy Of his report and
he has written to Mr.. Hunter a letter
dated July 15, requesting him to de-
liver to the district attorney a copy
Of the evidence.
With the reference to the inquiry as
to why Mr.. Hartman was not exam
ined, Mr.. Hendricks says:
He was not a member Of either
executive committee or finance COM
mittee, by which committees the busi-
ness OF the society was transacted.
There was nothing I'm the records of
the society or In the transactions dis
closed by any of the schedules fur
nished in which Mr.. Harriman's name
appears as either selling TO or purchas-
ing securities from the society except
II