The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-03-07
JEROME ACTS ON INSURANCE.
SENDS GRAND JURYTO COURT FOR
ADVICE on CAMPAIGN GIFTS.
His Plan IL TO Divide the Possible Grimes
Into Groups and Tackle Them One at a
Time Judge O'Sulliyan says He'll An
swer Jury's Question In 2 or 3 Days.

District Attorney Jerome presented
to the Grand Jury yesterday certain evil
dence concerning the payment of political
contributions by the life insurance COM
panies. Immediately the Grand Jury
handed a presentment TO Judge Thomas T..
O'Sullivan in General Sessions asking for
advice as to whether certain acts OF in
stlrance companies officers constituted a
violation of The law. Judge O'SuIltvan
announced that he would instruct the Grand
Jury on the subject in a couple of days
While Mr., jerome refused to make any
statement, 1t was learned pretty ACCURATELY
what his programme will he He has de-
cided to divide the various phases OF sup
posed criminal wrongdoing by insurance
officers into different groups. He does
not believe that it would be wise to put
before a Grand Jury all the evidence IN
his possession. In that shape he believes
that it would be no complex and comph-
Gated that no good result could he Obtained
After the subject of political contribu-
tons has been disposed of another phase
of the insur IA noe situation will be submitted
to the Grand Jury. 1t is understood that
nc definite plan Of procedure has been
mapped out, but the Grand jury will have
a chance to look into the participation OF
insurance company officers in stock syndi-
cate deals, Justification of books. false re-
ports by companies to the state Insurance
Department, bribery, perjury, the Andy
Hamilton fund and the House of Mirth'
at Albany.
Whenever the Grand Jury is in doubt
as to it's powers the Judge who is sitting in
Part !. of General Sessions, to whom the
Grand Jury reports, will be asked for in
structions. This will give the public some
knowledge of what is being done. II the
| Court should hold that in some particular
instance no crime had been committed then
the evidence pertaining to that particular
question will be withdrawn from the Grand
Jury by the District Attorney.
In that way Mr.. Jerome hopes to simplify
the Grand Jury's investigation. In addi-
ton it will be possible to determine whether
larceny, conspiracy, perjury or other crimes
have been committed II is the intention
Of Mr.. Jerome to submit all the evidence
he has btained either through the investi-
cation Of the Armstrong committee or the
misunderstanding committees of the COM
panies.
Mr.. Jerome's evidence is now in such
shape that it can be submitted to an or
binary Grand Jury. If it is necessary,
however, for further investigation n special
Grand Jury may be drawn by the Supreme
Court Criminal Branch or an extraordinary
Grand Jury convened by the Governor. 1t
is understood that the investigation will
take several months and it is quite possible
that a special Grand Jury will be drawn.
Mr.. jerome had been in consultation with
the Grand Jury and laid before it certain
facts. As a result a presentment was
drawn which was read to Judge O'Sullivan
yesterday morning by Foreman Edward
Van Va~lkenburgh. Mr.. jerome and his
chief OF staff, Mr.. Mott, were in court. The
preliminary part of the presentment said:
We are informed by the District Attorney
that there is reasonable ground to believe
that evidences Ia now available which will
prove beyond q reasonable doubt that at a
time within the statute of limitations in
criminal actions the executive officers or
trustees or directors or some Of them of large
corporations chartered under the laws OF
the State of New York and doing business
in the county of New York, from time TO time
contributed large sums Of money. the pro-
perry of corporations in which they were
executive officers, trustees or directors, TO
certain individuals. TO be by them expended
in advancing the interests of political parties
at elections.
The Grand Jury is informed by the District
Attorney that the Grand Jury may in any
case ask the advice of any Judge of the court
or of the District Attorney. e and we are ad-
vised by the District Attorney that the uues-
tions of law involved in these transactions
are of such a character that it would be wise
for US under this provision of the law to resort
to your Honor for advice in the premises.
1t was noticed that all through the pre-
sentiment no mention was made of life in
surance companies. corporations" being
used in every instance.
The pTesentment said the District At
Attorney had suggested that the Grand Jury
should not take up the investigation until
it had been advised whether or not the |
facts constituted a crime. w therefore re-
spectfully beg to submit to the Court a
statement of facts which we are informed
by the District Attorney it is reasonable to
believe can be proven beyond a reasonable
doubt" said the presentment.
The first statement of facts assumed
that it could be shown by lawful evidence
that officers of corporations had given
property belonging to the corporations to
the representatives of a political III rty;
hat the contribution was made prior to a
national election and that the intent with
which the property was given was that
the political party should succeed at the
polls and advocate certain economic doc |
trines in Federal legislation, such officers
then and there believing that it was i'm
portant that such economic doctrines should
be advocated by the Congress and the
President of the United States, if the prop
erty Of the corporation they represented
was to maintain the value which it then and
there had, and said officers then and there
believing that if the economic doctrines
maintained by the opposing national politi-
cal party should be advocated in Federal
legislation and by the President of the
United States. the property Of the corpora
ton which they represented would be
greatly deprecated in value"
The second point raised was If contribu-
tom were made to each of the national
parties with the intent to so ingratiate
the corporation in the favor Of each of the
parties that in the future there would
either be no Federal legislation affecting
the interests of the corporation, or if here
was legislation it should be friendly, or that
at least IL should not be hostile"
A similar question was raised by the
Grand Jury on State lie g~islation cit her ia vor-
able to or hostile to a corporation, and the
Grand Jury asked if he officers of the cor
porations so involved committed larceny.
If larceny had not been committed, what,
if any, crime had leen committed, was
asked. The Grand Jurors also wanted to
l-nNu III 10 fhn NH61nN, Gould H,,,. 49,