The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-06-06
SUMMONS BADCOCK.
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ID. tafi sv srsstsn ~ ne urana IfgV
w. tafeHe ieieeeaeh@t ~ Representative
esi.,as on Nonday trtt W. Itahcceh dhi
~, a., no tslrafan nnfi yesteNiey W.
Ice es sruii ltEe ~ have hifu tefsss ~
t,,pi ftfr to.msrruw, hef " ~ . unes'lrn
sts,hst W. HslEpek gill 10 Rhie ~ aperae
n. ,b,t isv From Washington Last nieht
s.rs s,ri that NJ iatrnch wa very
hg.v yih he legislative worh AMI that
shIl. br vculd answrf ne summons AMI
srrrtr ~ = stiffness he might hot 10 sbie
N CO. b~rr until SATURDAY
WINS ,herr wa nothing In Ne Jerome's
telegram telling Congressman Hahcoch
.hs, ha Ia wanted for. and NJ. Jerome
declined n say last niaht. N Ia pretty veil
bpevn that tho urand jury warts 10 hear
~ Rabcock's version ~ u contribution
oft y M made by the Mutual Life Insurance
company ~ the Republican congressional
campaign committee In ipot Congressman
Rah,'ck was then chairman n the rom
ni'iee
Tho Grand Jury has already heard some
testimony about this political contribution
from Robert A. Granniss, who was vice.
president ~ the Mutual, and Walter y.
1hummel. who Ia employed In the law d.
par'nsn, ~ the Mutual and who looked
after some Of its legislative business.
When the Grand Jury resumed its session
Yesterday after q five days breathing
SPELL MIR. Granniss was again called. The
only other witness examined was C.. G..
G%retsingcr, assistant auditor for tfp Mt
tual. Then the Grand Jury adjourned until
Thursday. The reason for the adjourn
ment was that certain testimony was needed
before the Grand Jury could go on with It's
work. In conjunction with this came the
news that Mr.. Jerome had summoned
Congressman Babcock, who was expected
on Thursday.
Both Mr.. Granniss and hummel have boon
questioned at length about the % 500 o
tnbution. Thummel testified that he per-
sonally paid the money in cash to Congress
ma Babcock. He said that representatives
Of the committee came to him and said they
wanted d contribution. Thummel intro
duced ~ IN to Mr.. Granniss. He was pres
ent wh.le the delegation talked to Mr.. Gran
niS.
They said that there was good ground
for believing that there would be a Demo-
cratic House that year and that there would
probably be tariff and other legislation
that would hurt the interests Of the policy
holders. After the conversation Thummel
said he got the money from the cashier on
the authorization of Mr.. Granniss, and paid
1t to Congressman Baboock.
II Is said that there lie no record on the
books of the Mutual 10 show what the money
went for or that such an expenditure was
ever made. The auditors Of the com
pany nave all been questioned on this sub
ject. Granniss has been examined as closely
as any witness questioned.
While Thummel was on the stand before
the Armstrong committee he first said that
Mr.. Grannlss had charge Of the legislative
disbursements by the Mutual, and that he
frequently saw him in connection with
that work. Later he corrected that testi-
mony, saying he was mistaken, Mr.. Granniss
/, also said to have talkei to Richard
A. McCurdy before the $2.5oo was paid to
the Congress committee.
II wa, pointed out yesterday mat this pay
ment was not similar to the s4s 900 paid
by George W. Perkins to Cornelius n. Bliss
as chairman Of the Republican national
committee and later repaid to Mr.. Perkins.
This Transaction The Appellate Division
has held was no. larceny. The payment
to Mr.. Perkins by the New York Life was
auth orize1 by the finance committee OF
the company. while in the Babcock contribu-
ton it is sail that there was never any
authorization by the Mutual, but the money
cam, out of a yellow dog" fund over which
Mr.. Granniss had control.
tn, Grand Jury apparently has pretty
well cleaned up its investigation OF the
Mutual, and it is predicted that indict-
ments will be drawn before the week is
ovec, and that the indictments would be
against men who were high up in the affairs
Of the Mutual or outsiders who wee identi-
fed with these men and the management
OF the Mutual. The Grand jury has gone
very thoroughly into the relation OF l.. W.
Lawrence with the Mutual's supply de-
partment and also into the question Of
padded bills and bills that were just bogus.
Growing out Of these disclosures will come
indictments, II was said. against men who
knew or should have kno WI what was
going on.
The Mutual has brought suit against
Walter R.. Gillette, the oompany's former
vice president, for an accounting OF the
yellow dog funds which he disbursed,
The company also will begin an action.
probably to-day, against Granniss for a
similar accounting.
The whole scheme of the Mutual's COM
plioated yellow dog fund system is gradu-
ally being laid bare, and it Ia practically
certain now that the responsibility will be
fixed definitely on former high ofioers OF
the company.
The Sun old yesterday Of ths yellow
dog fund in the form OF a trust account in
DR.. Gillette's nam and how the doctor
had paid about 10000 into tbs treasury
Of the company, representing the balance.
1t turns out now that Robert A. Granniss
also was interested in a similar trustee
account. The Mutual officers haven't been
able to learn definitely yet whether the
Granniss account was kept separate from
the Gillette account.
There was absolutely no record of these
accounts kept in the Mutual Life books.
80 far as ths new snt klo VS.,