New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1909-12-08
PHENIX co. INQUIRY
Grand JURY HEARS
WITNESSES.
One Indictment on Charges,
Mal1ng .Ertrodition Posi-
be, Expected.


yesterday 81 his home. The Naples.
Creenwich. Conn. with q scant chance
os recovery. the grand Jury Of this
county was investigating his manage
rnenr os the company
According 20 the State superintendent
os Insurance, the Phenix was managed
BY Mr.. Sheldon much as he saw ~ with
out any interference from his fellow
officials, 20 say nothing OF the non
activity o. state officials whose duty II
was 70 examine into SIS affairs.
A long conference which District At
torney Jerome held on Monday with
william r. Hotchkiss, the State Super
fntendent of Insurance, following the
istter's statement OF the remarkable dis
closures made in the investigation Of
the company's affairs which was started
IN October, resulted in Mr.. Jerome start
ing 10 work Immediately 20 probe for
evidences OF criminality in the manage
merit o. the company
Assistant District Attorney Mott was
plaeed IN charge of the case. and during
The eay four men who are supposed 10
have rather intimate knowledge Of the
of the company while the executive
committee and former insurance officials
remained quiescent were examined by
hin before tie grand jury.
INDICI MENT PROBABLE.
su1icient information is said 10 have
been oivulged 70 make II probable that
e. least one Indictment. II not more. for
~N4
company VIII be returned The charges
that may be formulated are OF such
character, u is believed. as 10 make ex-
tradition proceedings possible, II con-
sidsrsd advisable.
The pointed statement OF Mr.. Hotch-
kiss served as q main topic OF gossip in
financial circles yesterday. Especially
vas this true IN the insurance field.
where Atr. sheldon had long been pop
ular because ot his especially genial and
obliging personality.
The revelations came 20 many as
distinct shock. Some q the men, how
ever. who have had reason 70 be cog
rizanr Of The standing OF the Phenix
Company have for some time felt uncer-
tsinry about the condition OF affairs ex-
isrtng in the company. Not that there
has been the slightest doubt as TO IL.
Foivency or 80 20 the character Of its
business. but rnen ~tn the know" have
had from time 20 time, with the appear
sncs O, the regular statements OF the
company. a rather peculiar feeling.
As one man expressed IL yesterday,
re KIND OF business being done by the
-Le
sns nothing affecting the integrity OF
~ Sheldon or any OF his associates had
even been suspected But from time 20
time ss the reports appeared, doubts
arose which 70 those familiar with con
dtions in the Insurance field. appeared
s. inoongruiries. for lack OF z better
tern. These incongruities could not be
explained at the time. but they left q
feeling OF curiosity. 70 say the least
STOCKHOLDERS REAssURED
Esassu surance was given 70 the stock
holders of the company and 10 the in
Eurance world in general by the elec-
ton OF Henry Evans. president OF the
Continental Fire Insurance Company,
70 serve as chairman OF the executive
conmfttee. Mr.. Evans has long been
known as one OF the most efficient men
ir his Geld. and his appointment TO the
new place was taken 70 mean that the
Pheuix would be put on trmer basis
than il ever haE been
Although Edward ". 7 Gray. who has
been auditor of the Continental, has been
selected as president of the Phenix. Il is
Understood that Mr.. Evans viii be the
supreme power. and il is known that his
selection as chairman OF the executive
committee met with the fun approval OF
the state Insurance Department
Ar. ESsnss first act as e Phenix on
cial was 10 send a letter TO the agents
- The company. whose business has been
generally regarded as OF the highest
class tending 10 restore the confidence
that may have been disturbed by the as
fouishing condition Of affairs suddenly
uncovered BY the report Of the superin-
tendent of Insurance.
M Evans. while not concesling the
seriousness % the situation. declares his
oelief that the capital OF the company
N.5e0oOO-is stlu intact. and that there
n net surplus of SjOoo0o
Mr.. JEROME's WITNESSES
rhe men called before the grand jury
yesterday were Edwin II. Carter. % the
hrokerag &c firm OF Carter. Wilder e. Co.
a 10. 40 Wau street. Frederick Cutter.
bookkeeper for that concern: Charles F.
Roster. whose resignation as secretary
~ the PheniX company wa accepted
siter the report OF the state SUperin-
tendent % Insurance. and r. T. Dore-
mus receiving teller of the Chatham
National Bank
When the grand jury adjourned II was
SAID that the District Attorney had other
testimony 70 be given before the body.
M. Sheldon. IL is believed. has done
business with the brokerage firm. and
man of the financial transactions made
oy him as for the company are under
stood 10 have passed through the Chat
hsm Bank
IN Greenwich. Conn, where Mr. Shell
con has long been one OF the most popu-
iar residents, the revelations made by
the Insurance Department brought
great shock The keenest sympathy was
zen FOR the family. now with the ceposed
president a. The Naples. II was said
mere last night that Mr.. Shelcon's con-