The sun., 1919-09-25
INSURANCE GRAFT
INDICTMENTS NEAR
Grand Jury Goes Further Into
Handling Of Workmen's
Compensation.
wYNCOOP PROFITS Barred
f. Spencer Baldwin Tells OF
Relations With Art Metals
Construction Co.

Seven or eight former employees OF
the State Industrial Commission-law-
yers, lawyers runners and several
others mplicated-probably win be IN
dicted by the Grand Jury on evidence
already gathered of alleged frauds IN
the administration of the workmen's
compensation fund, so District Attorney
Swami asserted yesterday.
More testimony was taken In City
Hall during the day by Special Commas
sioner ]. F. Connor. appointed by Gov.
Smith to Investigate. and he augmented
MIR. Swann's declaration by saying that
evidence vet TO be introduced will reveal
extensive frauds involving many others
and showing, for example. that one con-
Germ benefited by alleged favoritism OF
the State Industrial Commission. sue
ceeded in delaying payments to the
commission of sums as high as 100000
and derived the interest benefits there
from.
At the outset of yesterdays hearing
Miles NJ Dawson, counsel for Commits
sioner Connor, announced that ne mao
decided to depart from his intention OF
presenting a history of the State insur-
ance fund.- and in view OF statement
made publicly by the Wyncoop Service
to shed more light on the activities or
that concern. II had been brought out
at a previous hearing that Mr.. Wyncoop
had given a S3.400 automobile to Mrs.
f. Spencer Baldwin, wife OF the man
ager of the State insurance fund.
.Mr. wyncoop denied he had access
TO the State insurance fund files" Mr..
Dawson explained. Il was looking TOT
that particular statement" He then,
~ CCNC n N
manager OF the fund. showed that MIR.
Wyncoop had repeatedly visited the files
and had taken folders to his own office.
To establish this Mr.. Dawson put into
evidence letters written by Muller to
wyncoop asking the latter to return GER
tain folders 1--WE will be glad to- send
a stenographer to your Office II neces-
sary in order to make up the records"
one letter read.
Says wyncoop Approached Him.
Mr.. Muller testified that wyncoop had
twice approached him and tried to hira
him while he was still employed by the
state bureau. Wyncoop did secure the
services of r T. Black. chief underwrit-
ing clerk OF the bureau. through whom
folders from the files were obtainao'e,
and also the services of two other en-
ployees of the bureau, Pearson AMI
Lenahan. he testified.
He declared that wyncoop was the
only person who had the privilege Of az
cess to the files. 'I recall two occ1-
slons," his testimony continued. when
after hours he went to look for a ne
himself" AS TO the value of this in
formation, Mr.. Muller said that Wyn
COOP would have the advantage Of get
ting leads to insurance risks and fint-
ing out detailed information about them.
Most of the days hearing was occu'
pied with examination of Manager II.
Spencer Baldwin of the State insuran e
fund. The most striking revelation that
he made of the apparent profits derived
by the wyncoop service was in relation
to the Art Metals Construction Company
OF Jamestown. He admitted that the
letters and other documentary evidence
which Mr.. Dawson put In indicated that
wyncoop had somehow got $4,000 out
az the payment of a little less than $751;
600" and for services. ''the maximum
value of which would not have been
over $500"
Other instances were cited In the tes-
timony for the purpose of showing that
by a contract agreement which wyncoop
made with policyholders, and acting as
@ go-between, he divided whatever bene
fits he could secure from the State with
his client so tfat when the State bureau
decl&red a dividend wyncoop personally
made the distribution Of 1t to clients.
Close Relations shown.
Still further indication of the close
relations existing between Wyncoop
and the State insurance fund was
brought out by Mr.. Dawson In connec-
ton with the Art Metals Construction
Company in letter wherein Wyncoop
NNaWRA
'to instruct your men not to discuss
rates with Mr.. Butt at ALL" Mr.. Butt
was the official of the company to whom
wyncoop referred State engineers who
were to make a survey of the plant
Mr., Baldwin identified letters showing
that that instruction had been obeyed
After showing how wyncoop had ne
gotiated for the transfer of clients from
one group of insurance to another, thus
benefiting by lower rates or larger divi-
dends, himself deriving half of whatever
gain was made. Mr.. Dawson drew the
statement from Mr.. Baldwin: II do not
know on what basis Mr.. Wyncoop set
tied with his clients"
81 never considered II was any OF ouI
concern to interfere between Mr., Wyn'
coop and his clients who were undeI
contract with him." said Mr.. Baldwin.
Don't you think It was a good dea
your duty to interfere where what hi
was doing was to obtain from the State
Insurance fund transfer to his grouI
with the result that he was entitled e
compensation on a six months period
during which the policyholder had beer
with you and not with Mr.. wyncoopT
Mr.. Dawson asked a moment later II
reference to the case of the futile
Bailey Manufacturing Company Of New
York.
Mr.. Baldwin made n non-committa
reply to the effect that he did not know
whether Wyncoop received the compen
sation. He admitted, however. that 1
Mr.. Dawson's conclusions were correc
that Wyncoop got $4,000 for the trans
action.
The hearing win be resumed to-day.
Merchants 10 Welcome MERCER.
Cardinal MERCER Of Belgium is to b.
the guest Of the Chamber OF Commerc
OF the State of New York at its frs