The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-09-02
INSURANCE OFFICIALS CALLED.
ARMSTRONG COMMITTEE SENDS
OUT MANY SUBPENAS.

General subjects VIII He Taken Up, but
Personal Transactions VIII BE Looked
Into-Recovery OF Depew Loan Makes
Amount Morton Has Saved 81 800 900
1t was learned yesterday that subppnas
to appear before the Armstrong insurance
committee have been served on nearly
all the officers Of tho Equitable. the New
York Life, the Mutual, the Metropolitan
and the Mutual Reserve.
This is merely a beginning. There are
forty insurance companies doing business
in this State, and according to the statement
OF one Of the investigating committee yes
terday, all OF them will probably be called
before the committee before the inquiry
is ended. Thus far no attempts have been
made to evade the process servers.
The committee in pursuing the inquiry
does not intend to take up the examination
OF each company separately. Witnesses
will be called from the companies indiscrimi-
nately from time to time to testify regarding
certain general subjects, but the idea that
the committee is going to deal with general
conditions, to the utter exclusion Of all in
quiry into personal transactions is, it was
dalton.
The ses5 900 blind loan account, supposed
to have been used for paying lobbying fees
campaign contributions and other improper
expenditures, will be looked into thoroughly,
and the men to whom payments were made
will be summoned to the stand. Senator
Armstrong, chairman Of the COMMITTEES,
has told persons close to him that If neces-
sary Cornelius N. Bliss and B. B. Odell,
Jr., will be subpenaed before the COM
mittee to tell what they know about this
loan account.
Senator Armstrong and the other out
of-town committeeman left for their homes
last night. They will not return until next
Tuesday. The first hearing will be held
on Wednesday and the inquiry will be con-
tinued then, five days each week, until prob
ably the first of January. The committees
counsel has it's plans all ready for the OPEN
ing OF the investigation, but will not dis
close them,
Several members of the committee gave
II as their opinion yesterday that the pay
ment of the Depew loan by no means re-
moved that transaction from the field Of
inquiry, and tho statement was made that
this matter would be taken up by the COM
mittee along with the Sena tors $4,000 q
year retainer and the question Of his insur-
ance policies, which are said to aggregate
$500 600 and are all carried In companies
other than the Equitable.
None OF the persons concerned in the
reorganization OF the Depew Improvement
Company and in the wiping out OF the
EQUITABLE obligation would say anvthin &
yesterday as to who the persons were who
put up the t293 600 in cash. Senator Depew
was quoted as having said at Briar Cliff
Lodge on the Hudson, whore he is stopping
now, that the reorganization committee
had raised the money.
The Senator added that the Equitable
was perfectly satisfied with the settle
ment and that, moreover, he considered
himself safe in saying that the society's
management was convinced that from
the beginning he had done everything
Mr.. Depew said ne had been working twelve
hours a day on the settlement matter since
his return from Europe, that the pdblic
may have wondered why he had nothing
to say to them, but that now that they
have read his statement they would UNDER
stand.
The recovery of the 100000 from the
Depew Improvement Company brings
the amount which Pre- sident Paul Morton
has saved for the policyholders since he
assumed COntrOl OF une society up 10 WoIS
than 81, 500, 900. His cut in salaries and
general retrenchment in the management
OF the society, including the decrease and
disallowance of pensions. the discontinue
ance OF Senator Depew's retainer OF $50 COO
and Of David B. Hiss IS, 600 and the saving
in the matter of agents balances alone will
amount to 500 900 or more year.
1t has been said authoritatively that Mr..
Morton at the end OF his first years in.
cnmbency will have decreased the annual
expenses of the Equitable by 81 500 900.
In addition to the above 500 900, the new
management has saved for the policy.
holders $685. 900, the amount OF the blind
loan made by James W. Alexander and
Thomas D. Jordan. Mr.. Morton when
called on by the Department of Insurance
to take up this loan repudiated the obi
CATION, and it was paid by parties whose
names have not been disclosed. There is
also sos 900 refunded to the society by
James w. Alexander on account OF svndi-
cate transactions, also - 500 by H. G.
Deming and 5000 by A. w. Krech on the
same account.
James H. HYDE made restitution to the
extent of 1880 for the Cambon dinner
and sos 900 deposited by ldr. Hyde with the
cashier of the Equitable and representing
syndicate profits is now the subject OF
litigation.