The San Francisco call., 1906-08-11
Quinby and Hendry Called
to Defend Themselves
Before Judge Graham
EDWARD NORTH DECLARES
LAW OF STATE ARBITRARY

~ TEADFAST refusal to bow to the
~ authority of the Grand Jury has
resulted in the filing of charges
of contempt of court against
Henry C. Quinby. attorney for the
Eagle Insurance Company of New
the London and Lancashire. Denying
the authority Of the Grand Jury to
compel him to submit for examination
documents upon which his company
enforced settlements, Quinby exhausted
the patience of Presiding Judge Gra
ham. with the result that he was or
dered to appear on Monday to show
cause why a fine or a term of imprison-
ment should not be imposed upon him.
Hendry found trouble on his first ap-
pearance by refusing to divulge the
names of companies in which the cor
poration he represented was reinsured,
and which reinsurers, he asserted, had
placed an embargo" on his company
which compelled him to arbitrarily dis
count all payments of policies 5 per
cent, even after deductions upon ad-
justment. For his refusal he will ap-
pear at the bar of Judge Grahams s
court at the same time Quinby makes
his defense.
Quinby was not examined at length.
He was placed on the stand and asked
II he had brought with him the docu-
ments demanded by the Grand Jury.
He answered that he had not. His at
torney, William Denman, then informed
the Grand Jury that he considered the
jury had no right to inspect the docu-
ments and that he had instructed
Quinby not to produce them except
upon the order of court. The citation
for contempt was then issued against
him.
Hendry was then called to the stand.
and after long questioning the admis-
sion was exacted from him that upon
his own initiative he had increased the
arbitrary discount upon payment of
policies from per cent to per cent.
why did you do that?" asked one of
the grand Jurors.
Because the companies in which we
are reinsured have placed an embargo
upon u.s." answered the witness.
What are the names of those COM
panies ?"
That question cannot answer; it
would be divulging the private bust
ness of my company" responded Hen
dry.
Are you lawyer and taking this
stand on the ground that such infor-
nation is confidental?"
i am not a lawyer, but I deem the
information confidential"
citation for contempt quickly fol-
lowed. and on Monday Hendry will an
swer for his stubbornness.
After making a speech in the corridor
to the effect that while he did not know
MUCH about the laws of California he
was convinced that they were arbi-
trary and unreasonable, Edward c.
North of the Royal Exchange of Lon
don was called into the Juryroom. From
North the information was also drawn
that he is deducting per cent when
policies are paid, but he got around
the theory that this was in the nature
of a discount for cash by stating that
his company made adjustments and pay
ments at the same time, which caused
the per cent to operate as a deduction
for earthquake damage. He probably
will be called at the next meeting of
the Grand Jury to offer further ex-
PLANTATION.
Charles H. Ward of the German of
Freeport was summoned to be present,
but he sent a physicians certificate to
the effect that he was too i'll to leave
his rooms. He was directed to appear
next Wednesday, Ward is laid UP at
his home in Oakland with an injured
leg.