The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1905-12-12

who was asked by the committee To
take steps 10 punish Mr.. Ryan for re-
tusing 10 answer the ques. ions about
Mr.. Hartman, reported TO the commit
tee today that he has informed Mr.
Ryan's counsel that Mr.. Ryan ought
10 answer. Mr.. Jerome also wrote 10
the committee that he believes Mr..
Ryan viii answer if brought before the
committee again.
Refused to Tell Ar.
Mr.. Ryan, who bought so shares OF
the stock OF the Equitable Life Assur-
ance society last summer and placed
them in trust to be voted by three
trustees, of whom Grover Cleveland Is
one, was on the witness stand before
the insurance Investigating committee
last Friday. He testified that on the
day he got possession OF the Equitable
stock e II. Hartman, president of
the Union Pacific ana Southern Pacific
railroads and a director of the Equit-
able society. asked him for a share OF
the stock. What Mr.. Hartman said 70
him to induce him to part with that
CtOCk. MIR. Ryan refused to tell the
committee.
May Be Called Today.
Mr.. Hughes declined to say when
Mr. Ryan will be recalled. but il is
presumed he will take the witness
stand tomorrow or the following day.
subsequently Guthrie Cravath and
Henderson, counsel for Mr.. Ryan. gave
out a statement that they have advised
Mr.. Ryan that he should answer the
questions and that he Is prepared 10
do SO whenever recalled by the investi-
eating committee. To that statement
was attached u letter from District At
torney Jerome to Paul D. Cravath, add
vising him that Mr.. Ryan ought to
answer the questions and adding 'al-
though ! fully appreciate the motives
which led him to refuse TO answer un-
til the question Of law involved could
be made clear
ProVident Savings Society.
The committee was engaged for q
part of the time today in inquiring into
the affairs of the Provident Savings
Life Assurance society fOf New York.
Charles r. Hughes, counsel for the
committee had brought out by Ques-
tiOning Edward " Scott the president
of that company that when Frank +.
Hadley of New Bedford, Mass. secured
control of the company i'm 1896 he Dor
voUed Sl62 000 from the company on his
collateral BOtes to pay up for the stock
Of the insurance company. Mr. Scott
testified that Mr.. Hadley never repaid
those loans and that the insurance
company realized only $4,000 on the
sale OF the collateral Companies in
which Mr.. HaGley was interested failed
ana he committed suicide.
Company Was Out $4,000.
"lt cost the insurance company just
Sl22, 900 for Mr. Hadley 10 get control
of it, said Mr.. Hughes.
Besides the $162. coo Mr.. Hadley had
borrowed S200. 000 10 pay for the assur-
unce cOmpany's stock. and had put up
that stock as collateral Mr. Scott tes-
tied that he bought that stock at auc-
tiOn after Mr. Hadley's death and Dor
rowed the money to do II from the
New York Securities & Trust company.
John A Mccall, president Of the New
York Life Insurance company. Mr..
Scott said. "stOOd back OF him" i'll the
negotiation for the loan.
Other witnesses have testified that the
New York Lie Insurance company
controlled the Security & Trust COM
pany. After he got control OF the COM
puuy Mr.. Scott said John A. Horne,
brother-m-laW of John A. Mccall. was
made comptroller of the PTOvident
Savings Life Insurance company at
$4,000 year.
-Four Sons and a Nephew.
Mr.. Scott testified also that his four
sons and q nephew are employed by
the company of which he is president.
Air. Hughes pointed out that al
though The ProvideHt Life wrote $3.50,
600. 900 al insurance in the last I'VE
wears, Il lost a total OF $4,000 900 of
insurance, 81 net loss of $4,000 He
asked if this did not indicate high
percentage of lapses. The witness said
he did not know.
Mr.. Hughes asked tho witness to eX-
plain Increases i'm the company eN-
renses over the increase in its receipts
from premiums The witness said the
figures in the seDort Of the state de-
partment OF Insurance are Incorrect
Payments to Hamilton.
Mr.. Hughes read from ID statement
OF the legal expenses OF the Provident
Life company q list of five payments
made 10 Andrew Hamilton. the legis-
latiVe agent of the New York Life In
surance company. who is now i'm Paris.
and WHO has been asked To come To
New York and testify. The payments
covered "a period iIon 1883 10 lSol.. one
was $500 and another s. 500. tae
amounts OF the others not being stat
ed. The witness said thar Hamilton
had visited the insurance departments
of Illinois and kansas and possibly
some other states 80 secure permission
for the ProvideuJ Savings Life Insur-
ancc company 10 issue q policy on the
first year on which no reserve would
be required. The company got the
permission. Hamilton, witness said,
also acted as counsel for the company
IN test case in which the company
resisted the contention of the state in
surance department of New York that
the law imposing q tax on premiums
was retroactive. Tire company Won
this case.
AppEAI nIcMICcEn