Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1906-11-19
JEROME s REPORT
ON LIFE INSURANCE
No State Law Under Which or
fIcers Can be Proceeded
Against CriminaIIy
THEY CAME VERY NEAR CRIMES
McCurdy's Salary Grossly Exorbitant
While His Nepotlsm Was
Extraordinary,

New York, Nov. l7.--Dist.- Atty. Je-
rome tonight made public the first re-
port prepared by him upon the request
Of Gov. Higgins concerning the con-
duct OF the business OF life insurance
I'm this state. The report Is a docu-
ment Of some 1900 words, and Is adj
dressed TO the governor, 10 whom a
copy was mailed today. II deals with
the affairs of the Mutual life Insur-
ance company. In later report the
district attorney says that he Will con-
slider the business methods of the New
YORK Life Insurance company
Epiiomlzed. the conclusions Of the
district attorney, based on an exhaus-
i've study Of the facts and the legal
points involved, are that there Is no
state law under which insurance Off
Gals can be proceeded against Grim
inally for acts now or formerly in COM
mon practise, some of which were made
public during the recent legislative in
curry except In the cases Of two Off
GERS OF the Mutual Life, against whom
specific charges OF forgery ana larceny
have been filed
Mr.. Jerome points out that while il
Is IN the power of the insurance com.
missioner OF New York 10 obtain q law
covering the alleged evils Of insurance,
the cases under Discussion do not come
within the provision of any statute now
existent.
The district attorney sets forth that
his investigation disclosed two classes
of transactions. The first matters part
~ developed by the Armstrong commit
tees TO the extent Of gravely suggesting
tho commission of crimes; the second,
actions which, I'm the light Of the CONF
mlttee's Investigations, were common
~ thought TO involve the commission Of
crimes and had many elements enter
ing into certain well-known criminal
offenses.
Mr.. Jerome says that nc conceived it
TO be his duty TO determine whether
the suspicious falling under the first
head, when well founded. could be
proven by the legal evidence, and as
regards the second class, to examine
the law bearing on the facts discovered
and to seek out any supplementary
evidence which might bring the trans.
actions disclosed within the criminal
law. Al this point Mr., jerome says:
The law does not Impose any gem
eral duties OF vlsltorial character
upon district attorneys In reference to
any class of corporations. The insur-
anCe law clearly devolves these duties
upon the superintendent OF insurance
In respect To insurance companies"
Tho report gives the result Of Mr..
Joromo's probing into the affairs of the
Mutual Life and his conclusions under
several heads Under the head "ex-
orbitant salaries" Mr.. Jerore saws that
THE Inference Is strong that the Salary
paid the president Of the Mutual Life
Insurance company prior TO the recent
fixing Of 1t at $4,000 per annum, was
grossly exorbitant for the services rem
dered and constituted "A direct abuse
on the part OF the committee on sal
aries, OF the power committed TO IL.
But assuming the condnct of the COM
mlttee on salaries TO have been q gross
breach Of trust, there is no statute OF
the state which makes their acts in
this case criminal
Under the head "Nepotism," the re-
port says;
In the investigation before the joint
ii appeared that certain re-
latlyes Of the president OF the company
Were favored To such degree that IL
has been suggested that a crime was
involved As In the case OF salaries,
80 IN this case"
Concerning the transactions Of the
Mutual Life with Raymond e. Com
pany. its general agents In New York.
Mr. Jerome concludes, after careful
scrutiny, that the crimes OF larceny and
were not committed
Under the head "Nepotism,' as under
he former head. "Exorbitant Salaries"
The critlclzes the superintendent OF In
iurance, charging him with neglect OF
iuty.
The companys legal expenses come
leXt IN the report, and are dealt with
IT considerable length. The transactions
n which Walter II. Gillette, first vice |
president OF the company: the Morris. |
own Trust company OF New Jersey; |
he Mutual LIES committee on expen-
iiture; l.. \. Lawrence and Andrew c, |
Fields. We're involved, are gone into IN |
ietail.
Dist, Atty Jerome explains that |
Fields has not been indicted because It
vas necessary To accept him as states |
violence and promise him immunity In |
rider TO obtain legal evidence against
Gillette who is now under Indictment. |
Further OF. Mr.. Jerome explains |
What led to his obtaining tho indict.
nent OF Vice President Robert A. Gran
ilss for forgery, for causing false
ntry 10 be made In an account to the
superintendent OF Insurance. Respect
ng campaign contributions. the rela-
ions OF the Mutual Life Insurance com.
ANY to subsidiary companies, and syn
licate transactions, the district attor-
icy shows, rs under the other heads
tied, that while sinister motives may
e assumed In certain OF the promises,
n. 4.
10 prove criminal acts within
he statutes