The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-05-13
JEROME IS AFTER BIG CANE.
99ess 10 REACa SEN HI6HFR
~ ~ THE aCTUAL
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ffdm ~ rfefafAtlees mae haVe hesn
NaIts faf lhla weaha Investigation ~ ne
40 gaaes eaasss w ne stsrial utahd tufy
10 y sgilsHt that Dis'fiot attorney irfunts
telIeyea thae Nv II IN tha fiaht ttaet ~
Isaen ahmlt M eauanriinH hsfWesn AHdfsW
Z piehia, ~ ksaa n nc pufrhase and siips
~ department. n thr Ait1si tie insif.
eaee Comfsny, aad faWfcnee q Co, We
nfafi8nsfs Wha wsfa ~estsrially fsvoFri
~ the MutuaL
A hantef n important sisnesses vti be
SEamined lhis weck ~ jefofns wants ~
hHd out N tho executives oeieefs ~ I'm
VISUAL hnsw n 10 paddiaa ~ biIs = " "
D done with their cnbarnt IN ofdsr mat
Lawrence a Go. miehtts raid fof the tnoney
adssnced h fields
NJ, Jstotne vent ~ tAkeviils Yesterday
and took With him many pagers and records
II ths Insurance lnves'igation. Assistant
District Attorneys Krepi and vandiver,
Who are assisting Mr. JefOms In n invcsti-
Naeion. we're busy Yesterday In The Grim
nal Courts building With tha booha ~ tho
Mutual. A number ~ rscoris have 10 bo
ioohed 40 In order 10 assist the Grand Jury
IN determining just how bills paid 10 Law
renoe A 90. were radded.
II vas aid yesterday that the inquiry
20 che Grand Jury 10 particularly directed
against the higher officers In the Insurance
companies. Every effort will 10 made TO
Rst evidence that will connect these officers,
especially those oi the Mutual. with tho
padding % bills. II y the opinion Of those
who have been making the investigation
that men I'm the supply department Of tho
Mutuai must have had some authorization
from the officers Of the company before the
bills from Lawrence A Co. were sanctioned.
A number Of the employees Of the supply
! DEPARTMENT will be summoned before tho
Grand Jury TO testify about the bills that
we're paid to Lawrence a Co. Fields will
be asked 10 explain these bills. IL IL under-
stood that Lysander W. Lawrence a
promised Mr.. Jerome that he viii be q
witness when he IL wanted. Lawrence
IN now In Hot Springs, Va. With the
testimony Of Fields and Lawrence, IL they
will tell all they know about tho padding
Of bills, IL is expected that evidence Will
be produced which will leave no doubt as
10 what officers in the Mutual knew about
the arrangement by which Fields got yearly
about $780, 900 from the Mutual through
padded bills from Lawrence, when. no
record was kept Of IL in the books OF the
company.
There Is no intention, 1t is said, to make
u uncomfortable for the smaller fry or the
men who simply obeyed orders from higher
officials so long as they show no disro si-
ton TO evade questions. II 10 possible that
pressure may be brought to bear, even
to the extent Of indictments, in order that
others may be reached. There are many,
indications that some one in the Mutual
has already told much about the affairs OF
the COMPANY. 1t Is also pretty certain that
Edgar ". Rogers Of Lawrence & Co. has
told Just how Fields operated through the
purchase and supply department OF the
Mutual. LA
Jury and in the possession Of District At
torT6v Jerome II doesn't seem possible
that Fields n Lawrence can escare trouble.
Il was pointed out YESTERDAY that there
was nothing on the books Of the Mutual
to show how Fields got about 800, COO for
legislative and other expenses every year
and that there must have been complicity
between Lawrence a Co. and Fields and
others In the supply department 20 that
these PAYMENTS could have been made to
Fields. There seems to be no question alao
that some . higher. up. In the Mutual
must have been acquainted with the real
state OF affairs.
Dr.. Walter r. Gillette; x-vice-rresident
Of the Mutual, will be called as a witness by
the Grand Jury tomorrow. SO will Julius
supply department Of the Mutual. It is
also expected that Robert A. Grannis, a
vioe-president Of the Mutual, will be called
as a witness this week.
Frederick L. Allen Of the Mutual Life
Insurance Company's law department gave
out this statement yesterday:
referring to the statements appearing
IN the papers this morning to the effect
that ] advised Mr., Heye Julius j. Heye, a
clerk In the Mutual's supply Department.
to leave the city during the Armstrong
~ ca . - @NA shat
he should do 80, / wish to state most em-
phatically that / gave no such instructions
TO him or to any one else, and so far as |
know no such instructions were given by
any member Of the law department. II
any person used tho name OF the law de-
partm6nt or my name in this connection
II was done entirely without authority.
Mr.. Heye's statements were made while
be was testifying before the T%ruesdale
investigating committee. An accusation
suoh 90 he has made Is regarded among
lawyers as a pretty serious matter. and
there was q lot Of red hot criticism Of the
Life trustees and others.
Although this accusation made before
the committees was against the man who
a at that time practically at the head
portunity was Afforded him to deny the
statementa There fs good reason TO believe
that Mr.. Allen never knew until be saw
10 In the newspapers that such a statement
had been made by Heye. The Truesdale
committee, 30. far as could DO learned yes
terday, had accepted the statement for
what 1t was worth, had made no attempt
to INVESTIGATES II and had not referred TO it
In any OF its reports TO the board Of trus-
tees.
The accusation was all the more serious
In view Of the attitude which the Mutual
Life had taken In the Armstrong invests
cation. Counsel Tor the company in a
speeeh before, the committee had prao-
ideally pledged the oompany's word that
y would DO everything possible TO cause
the attendance before the committee OF
any Witnesses that were desired.
But the Heye matter wasn't the only
thing that came up Tor criticism yesterday
Ia insurance circles concerning the Trues-
dale Committee. II was pointed out that
the Truesdale COMMITTEES, with two sets
Of accountants at work I'd the Mutual Life
aince last October or November, has APP
parently not been able TO bring out the
facts IN regardto supply department graft,
while District Attorney Jerome In less than
a week has laid bare the whole system
has learned In detail how the supply bills
we're padded 90 that they yielded more
than 500, 900. a year. for use by. Fields In
outside matters. '
The District Attorney got at the facts by
simply taking an order for supplies and
tracing the .dellveries up in the branch
Offices, which disclosed the fact that the
deliveries had been out In many instances .
b Truesdale COMMITTEES Is said TO be at