New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1905-12-08
JEROME SHOWS INTEREST
TO CALL GRAND JURY.
"YeIJoyo Poodle" Fund Shown IN
Insurance Investigation.
(For story of i'm

The appearance of District Attorney Jerome at
the insurance investigating committees session
yesterday gave rise TO the well authenticated
report that he has already completed his plans
for the prosecution of cases of crime revealed by
the work of this committee. 1t is understood
that Mr. Jerome will directly after the close OF
the committees public sessions-that is, at the
end Of the year-ask for special panel Of the
grand jury to deal with these cases.
Mr.. Jerome had planned to take a months
rest but has now abandoned this plan and in
stead is making his arrangements for prompt
criminal prosecution of insurance Offenders
His visit yesterday was to inqaire when ne eef0
get an advance copy Of the report of the COM
rnittee He declined to discuss his plans at this
time When Mr.. Hughes has finished his work
with the Armstrong committee it is certain Mr.
Jerome will ask him to take charge of the Grim
inal prosecutions arising out Of the investiga-
ton This is in accordance with an ante-elec-
ton pledge of the District Attorney. Mr.. Hughes
has intimated that he would not accept any such
duty, but it is still believed in some quarters
that he may reconsider this decision.
Another fact developed at the session was
that an arrangement between Mr.. Hughes and
Thomas F. Ryan's counsel Paul D. Cravath
has been effected, by which Mr.. Ryan will hold
himself ready to answer a call of the commit
take the stand this afternoon. Mr.. Cravath
was present at yesterdays session, and informed
Mr. Hughes that his client ready to appear
and anxious TO be called soon. The general
character Of the questions Mr.. Ryan will be
asked was outlined in The Tribune yesterday
his future plans for the Equitable. well as his
reasons for purchasing the stock.
The most important fact brought out at the
committees session yesterday was that an Off
ciaI of the state Insurance Department, David
H. Keefer. first assistant actuary of the depart
ment had been in the pay of the Security Mu-
tuaI Insurance Company of Binghamton while
stfu drawing his salary from the State. He re-
refved 81 600 but Charles NJ. Turner, president
of the insurance company. could not recall
whether the salary had continued longer than
one year. on this point the startling intorma-
tion was also brought out that before employing
Iaafer the Security Mutual had done business
without the help of actuary at all
How did YOU do before you had an actuary?'
inquired MI Hughes wonderngly.
I'VE ran things to the best of our knowledge
and ability" was the naive response, which pro-
voked general laugh.
The most significant contingent tund YET
discovered one amounting to $4,000 annually
was turned UP in this company, and promptly
dubbed the yellow poodle" account, amid gen
which this fund was put by telling OF the ex-
pense incident to decorating the Binghamton
building for a .@hreman's parade and a dairy
mans convention" Apparently there was no
mart of this fund diverted TO any legislative
ueas and Mr. Turner's air carried conviction
when he insisted that he never had met either
..Tudge" Hamilton or Andrew c. Fields He
created another laugh by asking Mr. Hughes in
explaining a question, if ne meant to call this
50 600 fund yellow dog account.
..rrbat definition is not recognized by me Off
ciaIly.' was the laughing answer In general, the
ArutuaI Security seemed to be free of all syndicate
onarations and the ordinary operations that
nave marked high life insurance" as shown
b,, the investigation. Another instance of APP
narent nepotism was shown in the fact that Mr.
Turner's wifes brother, S. s. Rennfe is the
general agent of the Security Mutual in Chi
cago. While maintaining that this agent had no
more liberal contract than that of any other
similar agent Mr.. Turner admitted he was still
in debt TO the company. rather unusual
agreement between the Security Mutual and the
First National Bank of Binghamton was turned
m Under the terms of this the bank paid no
interest on any balance below 100000 kept with |
il or on 100000 of any deposit This concession /
TO the bank Mr.. Turner explained, was in return /
for its handling all the check business of the !
company. an explanation Mr. Hughes clearly |
secuted Several officials of the insurance COM
many including. George w. Dunn, were shown |
- he connected with the bank. Colonel Dunn's /
connection with the Security Mutual is through
his stock in the Agency Company. which was +
fully explained in Wednesdays testimony. A
Continued eighth