The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-06-07
FIELDS EXPOSES LEGISLATORS
cgD,i-s,t i,om Fe'' r.ss

coypofation Ia sHity shsreas me esfs,n
Nho rhyaicslly mas~s ma entSy NAV 10
inNeeent
Tho dsand turv 10 aid ~ 10 satlsh"d
that ih~rs vas very H'tle aetuai s'esiiha
on 'he par, N the Officers N me eotnpany-
IN other wofda. the money that vas N.
vettsd from the treasury NJ me company
DID not reach The pocRets " the officers ~
tho comtany. bu, went ~ nyrs, hoIdup ~.
manda from al over tho country
II IL said that the demands ~ public
officials ~ many States wpre net only heavy,
but frequent F1r instance. q ls'ter has
bern founi from the Governor N y state
In the West. lie had rrcriVed an offer from
tho Mutual 10 eSsrt whatever influence he
could w behalf ~ the compay In His letter
accepting the retainer he took the precau-
ton 20 mako this statement "W courSs
II Ia expressly understood tina, thia Ia not
10 include anything In the nature Of lobby
ing For what other purpose tho Gov
ernor would le valuable has not been dis
covered.
The methods ~ some Of the State super
intendents OF insurance we're novel. For
years II has been the practice Of these super
iutendeDts to visit the city In the simmer
months when the seaside resorts were in
bloom They would also make a call on
tho Mutual. ostensibly for the purpose Of
making an examination Of the financial
standing OF the company. One super
intendent went TO the officers Of the Mutual
n made this query:
Have you got all the securities you say
you have?"
of course said one Of the officials.
The superintendent was taken to the
vaults, in which there were securities valued
at sl92 900, 900. The superintendent looked
IL over and asked TO see one package. The
package contained railroad bonds. The
superintendent took out a foot rule and
measured the length. breadth and thick
ness Of the package. Then he took the
dimensions Of the vault. After 8 little
arithmetic and looking wise, he said;
oh, | guess you've got all the securities
7 you say you have
Many persons in insurance circles, in
Guiding some Of the officers Of the big com
panies, believe that all information regard
ing the demand by public officials ought
to be brought out regardless of whether
or not it is possible to convict the men
accused They point out that 1t Is prao-
tically the only phase OF the insurance
situation which the Armstrong committee
did not investigate thoroughly. That was
because the committee could not get hold
OF either Fields Of the Mutual or Hamilton,
who had charge Of the New York LIES
legislative disbursements. Now that the
entire yellow dog system operated by the
big companies has been exposed the only
thing lacking, 1t is argued, is q list Of the
men who got the money.
No definite knowledge has ever been
obtained as to the amount which Fields
paid out. II has been estimated that at
least 500 900 a year went into his hands
through the operation Of the padded and
bogus bill systems. The New York Life
paid Hamilton all told more than $500 900
for the conduct Of his legislative bureau,
and there were other suspicious payments
to him which brought the total up to about
81 800, 900. Neither the Armstrong COM
mittee nor the special investigating COM
mittees of the big companies have been
able to discover in detail where one cent
of this money went.
The Grand Jury is convinced that many
false statements we're made to the State
Superintendent Of Insurance, but it il
doubtful if it will be possible to indict
the men responsible for them. 1t was ex-
planned that the officers who knew that the
statements we're false did not certify to
them, but induced others to certify to the
correctness Of the reports. Whoeve did
the certifying did not know that the reports
were false. 30 they could not be charged
with perjury. The persons who induced
the signing Of the reports could not be in
dicted for subornation of perjury. as per-
jury had not been committed, it being
necessary for the persons who signed the
report to know that it was false.
Congressman Joseph W. Babcock OF
Wisconsin,. who was telegraphed for by
Mr.. Jerome, sent word from w ashington
yesterday that he might not be able to leave
his legislative work and appear before the
special Grand Jury this week. He said,
however. that he would get here as soon
as possible.
1t is said that Mr.. Jerome does not at
taoh particular Importance to Repr enta
tive Babcock's testimony at this time. 1t
has been established that Robert A. Gran
Mss paid the 81, 500 to the Republican Con-
gressional committee in 1904. as THE U
has told, but it is not clear who gave the
money to Congressman babcock, the chair
man of the committee. Warren F. Thum-
mel, who Is in the law depart ment of the
Mutual, testified before the Armstrong COM
mittee that he gave the money to Congress-
nan Baboock, but that is now disputed.
The Grand Jury has been puzzled in its
inquiry about this particular transaction,
because it has been unable to discover from
what particular fund OF the Mu tual the
money was paid out OF and In what account
a false entry was made in the books to
cover it. Unless the false entry can be dis
covered, it was said, 1t will be impossible
for the Grand Jury to return an indictment,
as the Appellate Division, in the Perkins
decision, has decided that the mere pay
n,ent Of the money was not larceny.
80 In a number Of cases, 1t Is said, the Grand
Jury has been baf1ed by being unable to
get a bit Of evidence that would connect a
chain of circums tsnces pointing to a crime.
There are many outwa I'd instances Of
forgery, but in several cases & ONE entry,
or lack of an entry, has been missing, which, |
IL disco vered, would be all that would be
necessary TO return an indictment. So far
as the Grand Jury has been able to dis
co yer there was not hing croo ked among the
bookkeepers Of the Mutual.
Robert A. Granniss, the Mutual's former
vice-president, has retained Lord, Day d
Lord to defend the suit which the Mutual
Life is to bring against him for ar account
ing of the yellow dog funds con ided TO his
trust. The Mutual served the summons
In the action on Mr.. G~ranniss's counsel
yesterday, and 1t Ia expected that they will
appear in tho suit to-day.