New-York tribune., 1906-11-18
MUTUAL CASE DROPPED.
JEROME GIVES REASONS.
Blames Insurance Department =
"La5cS Inadequate.

District Attorney Jerome declares himself un-
xbe to prosecute the big life insurance officials
other than those against whom he has already
taken action In q Mutual Life report he is
making 10 Governor Higgins he repeatedly holds
the State Insurance Department responsible for
any failure 70 begin action against the company.
Mr. Jerome finds, apparently. that SO far as the
District Attorneys Office Is concerred- every
thing that can be done has been done. The
forty-ssven page report dated November and
made public yesterday, was in reply TO the Gov
ernor's letter of June o. 1905 Mr.. Jerome says
In his letter that he deemed IL best 10 defer any
active examination OF insurance companies until
after the Armstrong investigation adding that
he will now take up the New York Life Insur-
sncs Company" and report again to Mr.. Hig-
gins
Although Mr.. Jerome states that the Truesdale
committee placed its unsurpassed report in his
hands, and that he retained both Truesdale
firms Of accountants. Opposition" interests yes
terday characterized Mr.. Jerome's brief as
weaker than the Truesdale report" alleging
vital omissions from that report to subsidiary
companies. etc
Having declared that the law does not I'm
pose duties OF a visitorial character upon dis
rict attorneys in reference TO any class Of cor
pOrations," Mr.. jerome says:
The insurance law clearly devolves these du-
Ties upon the Superintendent Of Insurance in
respect % insurance companies, and provides
The machinery whereby he may discharge his
duties When, in the discharge Of his duties Of
investigating the affairs of insurance companies,
the Superintendent Of Insurance discovers, or
mas reason 10 believe that a crime has been
committed, he should call the district at
torney OF the proper county TO investigate the
matter, but until a district attorney has dis
unct cause TO believe that a crime has been
committed It could not be tolerated in Amer
lean community that he should put the inquisi-
tor1al machinery Of the criminal law into opera
ton.
As among his own difficulties" he says:
The rule of law that no conviction can be
mad upon the testimony Of an accomplice. un-
!ess ne be oTroborated by such other evidence
as tends 10 connect the defendant with the
Soonnission Of the crime Criminal Code, Sec.
6J5), has rendered il impossible TO proceed in
number OF instances where apparently crimes
mad been committed
In illustration he says:
Large sums Of money were disbursed for So
edlIed confidential purposes; the testimony of
the agent handling this money that he used
part 10 bribe an official would not alone he sIF
LcleHt even TO indict From the nature Of such
transactions II is extremely rare that any evil
cehce exists except the testimony of the ac-
ooinplce alone.
heVerung TO the Insurance Department Mr.
Jerome said another OF the difficulties
WIN which he had TO contend was
- opHeiice OF penal statutes designed n meet
just such abuses the investigation disclosed
He concludes:
An examination Of the insurance law sboy,s IN a.
.o enort was made in framing il to prevent
such ABUSES by the enactment Of penal sfatItae
sPeclncally applicable. The law sought 10 rra
seII such abuses by comforting large no1ers
t sI.o oeVolving explicit duties upon the Sunor-
'H'ehdent Of Insurance.
oh the question Of "exorbitant saIarias" NJ,
Jerome says:
% e .i lhierence is strong that the salary ,.td
Co.. resident OF the Mutual Life Jnsurance
gao nSo 80 prior TO the recent fixing of n at
III. per annum grossly exorbitapt far
eheI wees rendered and constituted diet,aot
Of ~ 0H me part of the committee on salaries
the - Po"sF committed TO IL. But assp,njny
bser OF the committee on salaries 10 baI1e
90 b sIoss breach Of trust there is no stat,,to
cr,,,inaL5 SNaL5 "hlch makes their acts In this case
law W., mere is no provision IN the insure nee
orh,,a..c .cn torbids the payment or receipt OF a.
yeo.1nt 1stafles and makes such payment and
ststr. cIiLnnal; nor is there in any otLa-
'ois situation S pi''isioh "hlch meets
ZIG same subject he adds:
canEfa1eoE OF not such payments under tba c,r-
has, bs amounted 10 the crime of Iarcen,,
that ma carefully considered and 7 haIie,o
der al the circumstances no sound aon
mad