The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-12-05
JEROME'S INSURANCE PLANS
TO PUT NEW YORK LIFE MATTERS
BEFORE THE GRAND JURY
And Then Take Up the MetrOpolitan-Much
Depends on when the Burnham Trial
Ends-Three Justices. PIatt and Lau-
terbach Testify to Good Character.

fore the Grand Jury late this week or early
next the investigation of the New York
Life Insurance Company. IL depends on
when the trial of George Durham, Jr., Of
the Mutual Reserve Life Insurance Company
ends. Assistant District Attorney Kresel
Ii in that case and the rest of the insurance
investigation is practically at a standstiil
meanwhile.
One of the witnesses who will be called in
the investigation OF the New York Life will
be Judge Andy Hamilton, who was the leg
islative agent for the company. He was
not a witness before the Armstrong commit
tee, but made q statement while he was
abroad, which was read to the ommitt
Ii Is said In the District Attorneys office
that men like Fields and Hamilton cared
less for a Grand Jury investigation, where
the testimony was restricted by rules Of
evidence. than one by a Legislative COM
mittee, where the inquiry had a broader
scope. Mr.. jerome granted immunity to
Andrew c. FIELDS for his testimony before
the Grand Jury in the Mutual Life investi-
CATION.
After the New York Life investigation,
which, il is said will not take very long, the
next company to be taken up will be the
Metropolitan.
Following out Mr.. Jerome's report to Gov.
Higgins Of the investigation OF the Mutual
Life Insurance Company it was said that
many things, sucn as syndicate tranSac-
tions, woul1 not have TO toe gone into so
thoroughly in the investigation OF the other
companies as was done in the Mutual, be-
cause Mr.. Jerome had made up his mind
on the legal side of these questions and the
transactions were very similar IN all COM
panies. In fact, it was said that Mr.. jerome
is now ready to present the whole New lork
Life case to the Grand Jury.
Three Supreme Court justices Davis,
Blanchard and Dugro-appeared yesterday
at the trial of Burnham. who Is accused OF
the larceny OF 1900 from the Mutual Re-
serve Life Insurance Comany, and testified
to his good character. Frank II. Platt and
Edward Lauterbach also appeared as char
acter witnesses for him ana their testimony
marked the opening of the defence.
Mr.. Plat said that he has known Durham
for fifteen years and that his reputation
was as good AZ anybody's. He told Assis-
tant District Attorney Mott, who cross-ex-
amined him, that he was a son OF Senator
T. c.. Platt and that his law firm became
counsel for the Mutual Reserve in 1899.
William Rand. Jr., counsel for Durham,
had tried to get in testimony that Burnham
was advised to bring the libel actions against
j. Douglas Wells and j. Thompson Patter-
son for the company in the names OF the
officers of the company, but Justice Green
baum ruled it out. Mr.. Platt told Mr.. Mott
that his firm acted for the Mutual Reserve
in special matters relating to the companys
affairs with the State Insurance Depart
ment.
At first, Mr.. Plat explained, his firm was
consulted about the reorganization Of the
company and it was not until M~r.Hendricks
became Superintendent OF Insurance that
his firm had anything to do wlth.the lnsur-
ance Department. he said he knew Lou
Ever nave anything to do with him when
he was superintendent OF insurance.
asked Mr.. Mott.
Il may have had in connection with some
report, " said Mr.. Plat, but | think 1t wa
in connection with the proposed reorgani-
cation of the company"
Mr.. Platt said that he had talked with
two men about Mr.. Burnham's reputation.
Questioned by Mr.. Mott, he said he had
talked with Mr.. Lauterbach and Mr.. Rand.
He amended his answer later to say that
he a spoken to Mr.. Rand before court
opened. but he didn't think Mr..
reputation had been discussed.
Justice Vernon NJ. Davis said that MI.
Burnham's reputation was good and Mr..
Mott asked him:
Have YOU ever heard that this defendant
would not answ er questions In an action
because he said it might tend to incriminate
him?'
Il never heard of that" said Justice
Davis.
Justice Dugro said he knew Burnham
socially and as a lawyer. Justice Blanchard
SUI h. hal known Burnham for twenty
years. -
Mr.. Lauterbach was asked If Durham S
reputation was as good as his own and he
modestly said he was a poor judge OF his
own. II a man declined 10 answer on the
ground tina it would incrimlnate him II
wouldn't mean to him that his reputation
was not good; it would all depend on the
circumstances.
Mr. Lluterbach said he was counsel for
the company in 1880 and was consulted
eve-y Cav about it's af airs. He said the
consultations involved the insolvency OF
the COMPANY. He knew Lou Payn and
Take 10 him and Deputy Superintendent OF
Insurance Hunter about the company.
And was il due . your Efforts? a5ke1
T rerc Hft 10 49, nc COMPANY
Nr. Lautef5ach was not allowed to answer
tire question. Daring IN argument earlier
in the trial the statement was made that
Frederick A. Burnhan, president OF TIE
COMPANY, told Mr.. Wells that he had 20 pay
$40 600 cut Of his own pocket 70 Lou Payn
T. Get a favorable report for the company.
At the ovening Of the session. when the
jaror who had been i'll showed up, Mr..
Rand said that he wanted an exception
noted t. the fact that when Justice Green
baum sent the eleven jurors home on Monday
lie did not admonish them about not talking
about the case and reading the newspapers.
Justice Greenbaum promptly said that
II Mr.. Rand insisted on the exception he
would discharge the jury at once and begin
the trial over again. Mr.. Mott said that
there wasn't a full jury present and Justice
Greenbaum replied that there was some
thing in that point but that If Mr.: Rand
insisted on his exception he would dis
charge the jury. Mr.. Rand said that he
wouldn't press the exception. He even
added that he didn't think that any harm
had been done. .
In his opening TO the jury Mr.. Rand said
ba xuo.,l1 show that RIrOham's aptiD IN in
settling the suits brought against the com
pany was the most praiseworthy. He
said tina the libel suits brought by the
officers Of the company were in the interests,
that thew wanted to stop the structures
that had been pu t on the management
Of the company. Until the Wells and
Patterson suits had been settled, Mr.. Rand
said, il was evident that the company's
~solvency was in danger.