The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1906-02-03
WARRANT IS OUT
FOR HIRAM TYREE
His Enemies in Continental Life In
surance Company Force a
Prosecution.
CHARGE HIM WITH FRAUD
SAY HE MADE A FALSE REPORT
OF BUSINESS DONE IN 1904.

Hiram Tyree, president Of the Cont
mental Life Insurance & Investment
company, who is expected to arrive
here today from San Franchises, will
probably be arrested on his arrival IN
less he Immediately surrenders him
self TO the local officers. a warrant
charging him with making a false re-
turn to the secretary of state on the
financial condition Of his company
over year ago, has been sworn out be-
fore Judge c. 3. Diehl, and il is ready
for service.
Mr. Tyree wired a friend yesterday
that he would be in Salt Lake today. It
is not believed that he knows that
warrant has been issued for his arrest;
but he does know that a big row is on
in his companies, and, presumably, it is
to face this row and to defend himself
from charges of mismanagement that
he is returning to this city.
Mr.. Tyree left several weeks ago to
open an Office of the company in San
Francisco, as well as to look after the
business of the Western Securities
company and the Western Agency COM
pany, two concerns of which the history
is interviewer with the present internal
dissensiOn in the Continental Life In
surance & Investment company
What the Charges Are.
The complaint against Mr.. Tyree,
which was drawn several days ago by
Assistant County Attorney Job P.
Lyon, charges that Mr.. Tyree falsified
the annual report of the Continental
Life Insurance & Investment company
in three particulars. First, it alleges,
he reported that the books Of the COM
pany had not been kept open for entries
after 1904 for any purpose affecting the
1904 report, whereas, it is alleged, they
were kept open for some time after
that and that the entries made did az
feet the report
Second, the complaint charges, Mr.
Tyree reported that the company had
on hand in its safe or in safe deposit
vaults $40, S52.65 in cash Instead, it is
claimed, the sum on hand was much
less than that. Outside the record, the
opponents of Tyree assert, that as
matter of fact he had only $4,000 or
$4,000 on hand at the time.
Third, it is alleged, the report stated
that the expenditures for the year had
been only $1191S8, whereas, it is al
legged, they were greater than that. OPP
ponents Of Mr.. Tyree's management say
that the expenses were about $4,000
greater than the sum mentioned. and, if
they were so great they would wipe out
the S2192 surplus shown by the report,
and leave deficit.
officer Sent to the Coast.
Day before yesterday County Attor-
ney Farley P. Christensen sent Deputy
Sheriff ]. Farley White to the coast to
SHADOW Mr.. Tyree. It is understood
that Mr.. White carried with him the
warrant for Mr. Tyree's arrest, but
that ne was instructed not to serve it
unless Mr.. Tyree made a movement in
dicating an intention to flee. If he
started toward Salt Lake he was to be
unmolested.
The strong probability that Mr.. Tyree
will arrive here this morning renders
improbable his arrest by Deputy Sheriff
White; but Mr. Christensen said last
evening that unless he surrendered him.
self he will be arrested on his arrival.
It is probable that Secretary Of State
{. S. Tingey will begin today to make
a thorough examination Of the books
ard Of the business transactions of the
company.
Result of fractional Fight.
There has been trouble in the COM
many for several months Recently DR..
H \. Mayo, one Of the directors of the
company and its medical director, re
signed as a result Of row with Mr..
Tvree. and he has been the moving
spirit in the fight on Mr.. Tyree.
Last year. after the alleged criminal
acts mentioned in the complaint were
committed. two corporations were
formed. One was the Western SeCuri-
ties company, the directors and stock
holders Of which were composed large
" Of the men prominent in the affairs
of the insurance company. This COM
pany's principal place Of business is
in San Francisco and its charter Is
under the laws Of Arizona It was
formed with capital stock of 81, 0O0,-
OOO and an authorized capital Of So
COO O0O-
The other company, also incorpora-
Al to
called the Western Agency company.
OF this corporation, it is claimed, Mr..
Tyree owns majority Of the stock.
AIIege Poor Contracts.
Contracts were entered into between
the life insurance company and the
securities company on one hand and
the agency company on the other,
which, it is claimed by DR.. Mayo. were
highly; advantageous to Mr.. Tyree,
but detrimental TO the best interests of
the securities company and the insur-
ance company
One contract provided that the agen-
cy company should write all policies
for the insurance company. In return
it was TO receive all Of the first pre-
MUM paid, minus a 1919 per cent re-
duction, which was TO go into a re-
serve fund, and was to receive % per
cent of all subsequent premiums paid
IN. Inc OLnef cOnIfaS provided that
the agency company was 10 sell the
capital stock of the securities COM
pany and retain the entire receipts
from such sales. In return the agency
company was to pay the securities
company 10 per cent of its receipts
from insurance premiums collected
for the life insurance company
By virtue of these contracts, the OBJ
position charges, Mr.. Tyree was milk
ing" the life insurance company and
Continued on Page 2.