The San Francisco call., 1906-08-14
HENDRY MUST GIVE
|NF0RMAT ION.
Insurance Man Ordered
to Answer Grand Jury
or Pay the Penalty
VAN NESS LOSES

4
propounded by the Grand Jury or go
to jail for contempt of court.
Such is the judgment of Presiding
Judge Graham. before whom Hendry
appeared yesterday on a citation direct
ing him TO show cause why he should
not divulge the names of companies in
which the London and Lancashire was
reinsured and whose embargo on the
Lendon and Lancashire had made IL
necessary for the latter earporati On
to make a horizontal cut on all policies
upon payment.
The Judgment against Hendry was
reached notwithstanding the stand
taken by his attorney, T. C. Van Ness,
that the investigation by the Grand
Jury was nothing but a farce; that 1t
was posing as an assistant collection
agency In order to appease the de-
mands of the press and that it had no
idea of proceeding in good faith hut
was simply using its machinery to club
the Insurance companies into unjust
settlements. Van Ness further put him.
self on record as asserting that in his
opinion the insurance companies were
justified in diseounting their policies,
and said such action was in line with
good business policy, and in no way
could be considered criminal.
CoMMENDs DISCOUNT.
Van Ness asserted that he knew and
that everybody else knew that there
was great earthquake damage here,
and that in view of that fact a discount
was justifiable. He did not limit his
commentator of discount to those
policies the companies could prove COW
cred property that had suffered earth
quake damage, but weed the belief
that as earthquake damage had oe-
Cured a general discount on all policies
was thoroughly in keeping wi:li hon
est business methods. The views of
Van Ness however, did not save Hen
dry and he must answer all questions
put or take the consequences.
Owing to the failure of an effort to
get service on H. c. Quinby, of the
Eagle Fire Insurance Company of New
York, also cited for contempt for re-
fusing to produce documents demanded
by the Grand Jury, his case was put
over until Wednesday morning at 10
o'clock. 1t is quite probable, how
ever, that he will accept the ruling in
Hendrys case as well fitting his own
and consent to obey the order with
out further proceedings against him.
When the case against Hendry was
called yesterday afternoon by Judge
Graham Van Ness attacked the suffi-
| cheney of the affidavit prepared by the
District Attorney on which the court
signed the order compelling Hendry to
appear and show cause why he should
not answer the questions put to him
by the Grand Jury, or be punished for
contempt.
AFFIDAVIT is SERVED.
The affidavit was prepared and served
last Saturday. 1t was the statement of
Foreman Brennan of the Grand Jury
that certain questions were asked of
Hendry and that he refused to give the
1T. tee
with which his company transacted
business, and which had declared an
embargo on the London and Lam
cashire.
Van Ness declared that the afidavit
was wholly insufficient. in that 1t did
not appear from the paper that there
was any charge of investigation before
| the Grand Jury.
1T is true" he said, that the fore
man has certified that the Investigation
was for the purpose of looking into
| charge of criminal conspiracy, but
| there is no such statement in the aff1-
| davit itself
The Grand Jury is seeking to make
| public the affairs of the company as an
assistant collection agency. There Is
nothing to show the relevancy of these
questions in regard to criminal con-
| spiracy. 1t is true we all know from
| the newspapers, which seem to be the
mouthpiece of the Grand Jury. there
! is such a charge, but there is nothin &
before your Honor officially.
LOSSES VERY HEAVY.
THE losses of the London and Lam
cashire in San Francisco reach the
great figure of S9,500,000 and in view of
! the fact that the companies in which it
was reinsured declare that the confa-
! grafton was an act of God. following
/ as 1t did in the footsteps of an earth
| quake, they have refused to pay Not
withstanding this fact the London and
Lancashire has already paid more than
| $4,000 900 on policies here, though true
| they were slightly discounted. / hold
! the company has the right In view of
the circumstances of which we are all
familiar, TO discount its policies and do
not believe any just man can disagree
with me. As Ii has the right to dis
count its policies 1t certainly cannot
| be held guilty of criminal conspiracy,
and in the face of this fact l hold that
! in refusing to answer the questions
put by the Grand Jury Hendry was en-
/ tirely within his rights.
Assistant District Attorney Harrison
responded briefly to Van Ness argu-
ment. taking the position that 1t was
| not necessary that a specific charge be
under investigation by the Grand Jury
to give it jurisdiction, the very fact
/ that il is a body given over to prelim-
/ mary investigation to ascertain If any
offense has been committed supporting
this theory, and that consequently 1t
had the power to enforce the answer
ing of questions so long as such an
swers did not tend to incriminate the
witness under examination.
Judge Graham took this view of the
case and ordered that at the next meet
ing of the Grand Jury Hendry answer
the questions propounded or submit
to the Judgment of the court as the
circumstances may warrant.
CABLEGRAM NOT CLEAR.