The evening world. Newspaper, July 20, 1905, Page 3

cAll the News. _PRICE « ‘ONE CEN cE ~ GOVERNOR YIELDS TO THE WORLD’S DEMAND FOR INVESTIGATION OF THE EQUITABL $685,000 EQUITABLE CARLTON IS So Impressed by the Continued Reve- lations of Insurance Scandals that He Sends a Message to the Legislature tnercot to such investments, the relations of such companies to subidiary | Recommending the Appointment of a) Joint Committee to Suggest Needed, Reforms. (Special to The Evening World.) ALBANY, N. Y., July 20.—Gov. Higgins to-day surrendered to the Public sentiment in favor of a complete investigation of the insurance | companies as voiced by The World. To the surprise of everybody he sent a message to the Legislature calling attention to the insurance situation and recommending that it take | up the matter. said: “The unfortunate scandals recently made public by the internal dis- sensions fn the Equitable Life Assurance Society and by the comprehensive investigation of its affairs by the Superintendent of Insurance, have, not without just cause, aroused a fecling of intense alarm in the breasts of the thousands of our citizens who have invested their money in policies of life insurance, and of the thousands of non-residents who have been taught to Respect the New York companies as safe and secure. EVILS THAT EXIST. “While the business of Mfe insurance, as at present conducted, is subject to State supervision and regulation for the purpose of guar- anteeing solvency and the falfilment of contracts on thé part of the companten, it in evident that evils and abuses may exist under our law that earnings which should be credited to the policy-holders may In his message, which caused a sensation, the Governor be diverted to other purposes, that expe! extravagant nod wasteful, that unwise in made and that trustees their personal advantage. 7 .t auch @ condition of affairs ca redectn discredit upon the ate. “Legislation is no panacea for the ills of the body-politic that rise from a disordered moral sense. The mu!tiplication of penal statutes does not di- minish the spirit of lawlessness, but is rather a symptom of its growth. BUT IT IS APPARENT THAT OUR INSURANCE LAW IS IN SOME PAR- TICULARS OBSOLESCENT AND INADEQUATE, AND THAT THE MAN- AGEMENT OF THE FUNDS OF THESE GREAT COMPANIES IS NOT SUFFICIENTLY SAFEGUARDED. » “The State owes a duty to policy-holders and beneficiaries beyond that of comparing assets with Habilities and permitting the companies to justify their existence by the exhibition of » satistactory balance sheet and the Prompt payment of losses. SOME NEEDED REFORMS. “Investments must be restricted, salaries must be limited to amounts benring a closer relation to the commercial value of the services rendered, trustees must be held to a strict accountability and the policy-holders must be given m more effective share in the rnment of the compani: ‘It may well be that the harsh and arbitrary remedy of dissolution and receivership should be made not a penalty for insolvency, but also a summary check upon a solvent company when it becomes irredeem- “2 NEW YORK, | at once acnsisting of three members of the Senate and five members of the Assembly, which committee shall, after the adjournment of the extraordi- nary scasion, proceed to investigate and examine the business and affairs of life insurance companies doing business in the State of New York, with ref- erence to the investments of enid companies, the relations of the officers | corporations, the government and control of said companies, the contractual relations of said companies to their policy-holders, the cost of life insurance, | the expenses of said companies, and other phases of life insurance business deemed by the committee to be proper, for the purpose of drafting and re- regulating and relating to life insurance in this State as said committee may deem proper. Further Resolved, That the said committee be. and it hereby ts, au- thorized and empowered TO REQUIRE AND ENFORCE THE ATTEND- ANCE OF WITNESSES AND THE PRODUCTION OF BOOKS AND PAPERS, TO ADMINISTER OATHS, and to employ counsel, stenograph- ers, clerks and such other employees as may be necessary for the purposes of the investigation, and a sum not exceeding 850,000 is hereby appropriated out of any moneys in the Treasury, not otherwise appropriated for the purpose of said committee. Both Houses this afternoon adopted the resolution. The Senate members! of the committee will be Armstrong, of Rochester (Chairman), and Tully, of Corning, Republicans, and Riordan, of New York, Democrat. Speaker Nixon said he would not immediately appoint the Assembly members. In the Assembly Democratric Leader Palmer accused Gov. Higgins of lacking nerve, saying that he did not come out in favor of an investiga- tion until Boss Odell, of the Republican State machine, had returned from Europe and talked about the need of an inquiry by the Legislature. The action of the Governor created consternation in tne insurance lobby and among every member of the Senate and Assembly. It was | summed up by Senator Cassidy In this way: “Higgins was driven to some- thing he should have done voluntarily. He got scared at the eleventh hour.” ance companies, remarked: “It looks as if the Governor had finally becn driven into a corner, where he could not escape the clamor of the policy- holders for immediate and effectual relief. It would have been far better if the Governor had declared in favor of an investigation before thit.” THE GOVERNOR EXPLAINS. In explanation of his message, Gov. Higgins said to The Evening World | correspondent: “T have not recommended. nor do I now recommend, legislative investi- gation of life insurance companies. I have recommended to the Legislature | that it take the subject under consideration, so that it may dispose of it as its wisdom may dictate. My own position in the matter remains unchanged. “Tl have never said that I would prevent a legislative investigation by refusing to permit the Legislature to consider the matter, as I have the power to do at an extraordinary session. nor has it been my intention at any time to assume such & responsibility. If a legislative investigation is to be had it is better that it should begin at once and not be delayed until the regular session, 61x months hence. “The extraordinary session was called to consider the charges against Justice Hooker. I thought best to await the final disposition of his case before recommending other matters for consideration. I have at np tiin> closed my eyes to the gravity of the life insurance scandals, nor have I for one moment turned my back on the policy-holders and their bene- ficiaries, “Tll-considered haste provoked by angry and impatient clamor would serve no useful end. As I have often said, I shall in my own way labor unceasingly to secure the correction of abuses and the punishment of wrong-doers without the slightest regard for the social, financial or politi- ably the plaything of lawless greed. THE STATE CANNOT fos Ti citimanstn s coin Auencesotiany many) THE SUBJECTS OF ITS SUPERVISION TO EXIST AS LICENS! PRODIGALS OF OTHER PEOPLE'S MONEY WITHOUT eacouine AN ACCOMPLICE TO THE OFFENSB. “We cannot judge all life insurance companies by the sins of one. ehould not destroy the edifice to rid ourselves of the vermin that ae 4t, nor should we Kill the parent to stop the progress of the siseaee. A a vision of our insurance laws is necessary, but it should be made wit! ness, deliberation and intelligence, and after careful study and Neereniay “Within the scope of his authority and the mits of his time the Super- {ntendent of Insurance has performed his duty with impartial thoroughness, Although he has informed me that by reason of the statutory limitations upon his inquisitorial powers and by reason of the magnitude of the task imposed upon him he would welcome the aid of a legislative investigating committee, I have been of the opinion that he. with his staff of experts and with the authority vested in him to conduct investigations at the expense of the companies examined, was well qualified to collect all necessary evi- dence upon whihch to base new legislation, and that no other investigatiun outside the courts of justice was necessary or delrable pending the investi- gation now being conducted by him. “It is, however, of the highest importance that a revision of the insurance law should be enacted as promptly as ts consistent with a thorough knowledge of the subject. It is proper and neces the Legislature should determine for itself how the informa: h a revision may best be obtaine: jcted by fi tory results, “In order that you may be free to consider and act upon the question at this session, I, therefore, pursuant to the Constitution, do hereby recom- mend for your consideration the question of the appointment of a joint. committee of the Senate and Assembly, with the usual powers of such come mittees, to investigate, after your adjournment, the operations of life in-| *' surance companies doing business in the State, for the purpose of prepar- ing and recommending to the next regular session of the Legislature such proposed legislation as may be adequate and proper to restore public con- fidence and to compel life insurance companies to conduct a safe, honest and open business for the benefit of their policy-holders,”” ACTION OF LEGISLATORS, As goon as the message had been read Senator Armstrong introduced @ concurrent resolution providing for the appointment of a special joint) committee of three Senators and five Assemblymen to undertake the inves- tigation, The resolution was referred to the Finance Committee, The Finance Committee decided to report favorably on the resolution, which appropriates $50,000 for expenses, The resolution ia as follows: “Whereas, It appears from the preliminary report of the State Super- intendent of Insurance on the Hquitable Life Assurance Soclety of New York that the interests of policy holders and their beneficiaries in life in- surance companies doing business in the State of New York are not prop- erly safeguarded by existing laws and that revision of the insurance laws of the Btate should be undertaken, and, “Whereas, The inquisitorial powers of the Superintendent of Insurance sre limited to the examination of the officers and agents of the companies wel and their books with reference to their business and with a view of their solvency chiefly, and it is expedient that, as a basis for legislation, the oper- ations of such Iife insurance companies should be investigated as fully and 48 promptly as may be. COMMITTER OF EIGHT, the Assembly conens, tak @ im pam be, buna WOMAN FIGHTS FORCURIOS, NOT MGARREN CASH Former Wife Dec Declares She Does Not Need Any of the Late Millionaire’s Money. There will be no legal battle for the great fortune of Alexander H. McGar- ren, the aged man who lived for many years as a recluse in his fing brown- stone mansion at No, 104 West One Hun- dred and Twenty-seoond street. Mrs. Hester MoGarren, who separated from him after twenty-four years of married Ufe when he discovered that she had another husband living, announced to an Evening World reporter to-day that she would not fight the milMonatre's relatives for his money. She will, however, make a determined effort in the courts to get certain treas- MORTON GLAD THERE WILL BE AN INQUIRY He Will Do All He Can to See that the Equitable End Will Be Far-Reaching. Paul Morton, Chairman of the Board of Directors of the Kquitable Life As- wurance Soclety, made the following statement this afternoon concerning the Proposed letslative investigation of that concern: “I do not object at all to an addi- tional investigation of the life insurance companies of the State. The more complete and searching the legislative investigation is the better it will suit me and the better it will be for the Equitable. We hope that the proposed {nvestiation We a the New York jn- surance companies will be as exhaustive ures that the elderly rello hunter had | 29°T"propowe to make the Investigation red in bie home, Many of these fine | of the affuirs of the Bquitable which pieces of bric-a-brac, statuary and|began over a month ago by chartered paintings, Mrs, McGarren alleges, are | #ccountal “No half-hearted investigation will hers by. gift from her husband and from| restore the confidenee of the public in others, She {s willing to spend as muoh | the, life Insurance business, So far as as they are worth in order to recover | the uitable Society is concerned it them because of their sentimental value intention that the policy holders, to her, She declared this in the same m; the rustess, the new directors, and tne Chairman of the Board shall know tiv breath in which she announced that she} exact condition of had the artistic temperament. to bottom, Does Not Want the Money. aa 2 When Mra, Hester McGarren was seen| LTO RELEASE TUTOR at her home, No. 9 West Seventeenth} JN HIGGINSON CASE. Feet to-day she said to an Evening World reporter: Dr. Park, the tutor in the family of T don't want @ cent of Mr. McGar- | James Higginson, the banker, who was ren's money, I have money enough of|arrogted the other day in Norway my own to keep me comfortably. But | oharged with robbing the Higginsons of I will get my own, Aresents that he | gc, willbe me when we were first married | Attorney to-day 4 presents that othera gave me that | for extradition papers I never took from his home when we Department, not beliey Jewels were stole ago from’ aerial box in am q used by Miss Doroth Higginson, Saugaten of vhe ban information pas reached the District Attorney lead- him to belleve that Dr. er nat Inany way implicated 1n ‘stealing the worms. rk was o aon of tutor upon Thomas “ilggiegn iho of ry elles hi told at mn when tol sald that she was Bri beard uo affairs from top i} “The whole tastes were different, ts trouble was that our I had the ar- temperament and he didn't, We happy the greater part of our married life, however, and it is ridiou- lous to state that he grew to hate mg “I have been to see several lawyers to- day in reference to the aus 1 will prob- Gide tghdiant porting to the next session of the Legislature such a revision of the laws! Senator Stevens, who led the movement for an investigation of insur- | utr) v JULY 20, 1905: FINAL EDITIO | All the News.| PRICE ONE CENT. i Bank Examiner Judson Asserts that Item Allegations that He Robbed Is Not on Books of Mercantile Trust Company, Which re Has Examined. Nowhere on any of the books of the Mercantile Trust Company | } is there the slightest record of the loan of $685,000 which President H. C. Deming testified in the Hendricks inquiry his bank had loaned to T. | D, Jordan, Controller, and James W. Alexander, table Life Assurance Society, as trustees. an Evening World reporter to-day by Assistant Bank Examiner A. C. | known as Martinez, drugged him in his Judson just after he had completed his semi-annual examination of the [om 1" the St. Clair Hotel, at No. 120 books. quest of Gov. Higgins and Mr. Hendricks. Jordan Withheld Information. This fact, coupled with a statement | made to The Evening World to-day | by Paul Morton that he did not dis- miss Controller Jordan because he refused him information on the mat- ter of this $685,000, but for refusing information on another important | matter, has again brought Equitable | affairs to a grave crisis. When Mr. Judson finished his ex- amination of the books of the Mer- cantile Trust Company, which is one of the important links in the Equi- ‘table chain of financial organiza- tions, he was asked if he had found any trace of the $655,000 loan. “There is no record of it any- where,” he said. “Tt is not on the books of the company in the name of the Equitable Society, and it is not there in the name of elther Mr. Jordan or Mr, Alexander. As a mat- ter of fact, there is no record of any kind touching on this matter. I know, because I have finished the books and am now working in the vaults.” Deming’s Testimony Discredited. “But,” said the reporter, ‘you read Mr. Deming’s testimony before the) Superintendent, that such a loan was! being carried on the books in the name of Mr. Jordan and Mr. Alex-) ander and that it had been trans-| ferred by them to the Equitable So-| ciety?” “I did read it,” sald Mr. Judson, “and naturally looked for a record of the loan, I found no record, how- ever, anywhere and that is all there is to it.” Mr, Deming was asked about the loan later, but he would not talk. | He was told of the statement made by Mr, Judson, and he sald: “You'll have to excuse me; I have nothing to say.” the absence of the loan from the rec- Jords of the Trust Compuny. and be sald: ‘| don't know anything about it, and I won't answer any questions about it, 1 will say, right now, though, that Mr. Jordan was not dismised from the Society for refus- Ing information on this $685,000 loan. He was dismissed for refusing infor- mation on another very ‘mportant tr Paul Morton was then asked about matter,” ‘The absence of the record of this loan from the Mercantile Trust Com- pany's books deepens the mystery} surrounding {t. Every effort, private and official, to get the facts abont) this loan has so far failed, Yet that! there was such a loan is certain, for Mr. Deming swore to 1. His testi | mony is peculiarly interesting now) in view of this list development, It is as follows iu the Mondricks ree) port: What Deming Swore, Henry C, Deming was asked whether the Equitable Society carried a loan with the Mercantile Trust Company. He replied that it did not, Q. There Is @ rumor that the Equi- table Bociety is carrying a loan of pretty nearly $700,000 at your bank does not appear in thelr statements, A. That is a low in the names of James W. Alexander and T. B. Jordan, trustees, Q@ What do vou knew about the loant A. It was an amount that has stood on |ton robbed him of §700 and then tried our books for a good many years—I should think five or six year has been added to from time to time President of the Equi- | complainant against him {s Dr. Gold- This statement was made to |£mt® of Stamford, Conn.. Mr, Judson was specifically ordered to look for the record of | samo jewelry. this loan by State Superintendent of Banks Kilburn, who acted at the re- and reduced from time to time, Q. Does your company loan $685,000 on the obligation of two men as trustees? A. We have in this instance; yes, sir. Q. Do you know what that loan was made to them for, and what was the occasion for It? A. Four per cent. Q. What hae been the average amount of that loan? A.I should think prob- ably $300,000 or $400,000, Q. And what rate of Interest does the Mercantile Trust Company pay the So- giety, on \ts deposits? 2 per cent. Q And the Boolety always has a large deposit in the Mercantile Trust? A. The Society always had a large deposit with us, Q. Bo that it pays you 4 per cent, and you pay tt back 2 per cent? sir, Q. Isn't that really a claim against the Equitable Society? A. I have always considered A. No, I don't, Q. What rate of interest is pald to the Mercantile Trust Company on ‘this loan? A. We pay them nd it AL Yes: find the facts stated true. The pol now belleve that Carlton married mi of the Women with whom he had deal Ings, and ve that altogether hesk vives, the first four of wha are now 5 The first wife they believe was Ht Murray, who lives in Nebraska; (ee £econd, Lulu Ki of Covingtomg Ky.; the third, NDICTED ON ring, ith Bird, whose ho nd’ the fourth Mildred Pett Ky. , fs In Ohlo, son, whom Carlton under the name 6 Martinez, often Introduced as his were Jennie Smythe man, both of whom dled of lock. Jaw. Body May Show Polson. While the chemical analy: organs taken from the bod: Mary Gorman Carlton will not be a for some days, two of the siclins who were the exhumation: and autopsy are of the opinion that ® an unusual condition prevailed, sidering the period of interment. ple while enough condition, they say, warrant @ suspicion that poison rouge about her Ae: presents no definite evidence. The third physician, ©s oner's Physician Wue: does not that there was any condition war Ing the slightest suspicion of the’ Use of poison, an S nothing will setel oi Me matte the chemical anale ysis of the or Grand Jury Finds True Bill on Dr. Goldsmith. Frederick E. Carlton, under arrest In Brooklyn for grand larceny and sus- | pected of doing away with his two | wives, who died of tetanus, was rear- | rested in the Raymond Street Jail to- day by Detective-Sergeant Flay, of Manhattan Borough, on a warrant issued by Judge Foster, of General Sessions, changing him with grand larceny. The Grand Jury handed down an in- dictment against Carlton to-day. The ns. BABYS AWFUL SKIN HUMOR Doctors and Hospitals Cail Chronic Eczema and Said So Never Could Be Healed—Chi Was Getting So Bad Moi Didn't Know What To Do, CURED BY CUTICURA AT EXPENSE OF $1.7 “Words cannot express my g tude for what Cuticura Soap, Oink ment, and Resolvent have done formy # son, who when two} years old had. How. zema as bad as an child could have I had several do tors, but when the stopped treatin him his head wo! who alleges | that on July 26, 1900, Carlton, then Park Row and robbed hin of $1,500 and Carlton {s now under two Indictments for grand larceny, the o:her case being that of H. C. ub, who says Carl- to Kill him, The Kings County Grand Jury Indicted him for this larceny on Tuesday. No action will be taken on the in- dictment found to-day until the case In Brooklyn has been disposed of Secret Drugs Analyzed. It became known to-day for the first time that a large quantity of mysteri- ous medicine, the exact nature of which no physician has yet been able to de- termine, was found in the search of the room of Frederick E. Carlton, who fg in Jail on a grand larceny charge while the death of his two wives is up- der investigation by the Brooklyn au- thorities, Police Inspector Cross admitted at the tme his men selzed tho letters In the room at No. 1% Sands street that he | had found Carlton's medicine chest, but he said nothing of these other mysteri- ous medioines. The contents of the medicine chest have been analyzed and found to be harmless drugs, but the chemist has not finished with the other material. “I expect a report to-day on this medl- cine,” said the Inepector, “and 1 would not be surprised’ to hat my suspicions vad begin to get sores again, almost the”) next day. It goto bad I really didn’; At last we tool at to ant ° red the Equitable Soviety re-| confirmed. I thought it best not to men-| to the hospital, where the doctors said | Ponsibie for it. tion these bottles before. They ser-| he had Chronic Eczema. They gavel 4 Willem A. Day took up Mr. Jor-|tiinly had a suspicious loos.” me a wash for it, but said it was u fan's duties to-day. Judge Herrick was Caught Garlton in Lie. ish to think of it ever being cured, & caker on Mr. Mor and tt ts sald ® “The child was failing so I thor | he has accepted the pl offered him | Inspector Cross and Michael Gorman,| ~ must do something, and reading \y on the Board of Directors by the trus-|the brother of Mra, Carlton, have! about Cuticura, I went to the ne: q tees trapped Carlton Ina le, Two weeks be-| drug store and purchased aset of Cuth jj Morton Couldn't Find Jordan, | fore the death of Mrs, Carlton and at a) ura Remedies. I used half of it and 4 When the story of th ‘Time and again, it is said, Mr. Morton endeavored to have a talk with M dan, but he was not to be found. When Mr, Morton wanted him he had just Jou time when the physiclans were not cer- wn loan. wi | found some relief and improvement, brought out by the publication of the |‘n what was the matter with her! but thought the change for the betéer testimony taken before Superintendent | Carton told Gorman that he knew his! was only temporary, as it had been of Insurance Hendricks Mr. Morion be- | Wie had tetanus, with all the other medicines ordered ¥ ame aware of the loan und started w | acy’ ts eee knew Hts Carlton ts al-| by the doctors. But by the time | hed Hi trace tt Hegee 8 TANG Feplen used one and a half boxes of 1 took some cultures from the cat ment, one small bottle of Resolvemt, and one cake of Soap, the cure was }) complete and permanent, with nos a ji sign of asore from that day to this that scratched her and sent them to Parke, Davis ¢& Co. in Manhattan, They back word vaat the cat had tor Cross sent Detective Walden stepped out. Wavther Mr, Morton final- | {0 Parke, Davia & Co, to-day and had a| eVer two yeurs. 1 shall never be ly had an interview with him and then | oTough’ search made of thelr books. | out Cuticura Soap, I find it 90 good No record was found there of any such | for the toilet and for the chilaren.— Gisntlased him, or whethor he grew tired | communication from Carlton and there| yirg J Schopperle, 218 Frost | Step of trying to get information and then | WaS no record of the alleged examina- rs. chepperle, Fros dis! him, is not Known Hon of the cultures Brookly _ Y., Feb. 9, 1905. N ve reveal Morton t Paul M of 8. between President Roosevelt, hers at the th ton and ante e Fe The only explanation of these circu- rs that could be them by in all right. [Taller Shops: 110 Fifth Ave.—— | Te -MARK-DOWN of have t 8 them Blue, Furnas ume to bring n to join tn all the These are all Greys and the New Naples Mr SOME most success{ul season, public apprec superb ready. to Clothes mate such inroac our $2) and $25 lines tha: we en many” $35 aod $40 nd i arked Salesrocms; 39 and 41 Cortlandt Street, Sole Agent, the had been going on for from M Mr uae da large t to Equi- contaln Ime ‘of the which resulted nson Mr ‘as Vice-President of ‘btained was that ho Hoosevelt letters’ that he Atterbury System Clothes Ie the natural outcome gf a ‘Ge $25 Quaker Mor- in Morton's erral and Internal Treatment tor Avery een ay - COFFEE SALE Saturday and Old GOVERNMENT JAVA, the police have made a thorough tn- vestigation of th rd published exelusly rec Friday, Monday. ie of the no olders have ne tn ‘kindly, othe ‘en Jets ere Renulne, known and liked for 22 Slows Weaier vo ount of the Santa e pe af three generatio: OW! t- at Mr. Morton want f Mons: lowest ren: Zo C loti, such as 40 aoe, wD wnee Of \ineo ular price 25¢. Sale price. Our regular 50c, Black, Green and Mixed Tea, very fine Sale price... OUR TWO GREAT LEADERS: Broken Java, very fine, 20¢, 1 Broken Mocha and Java, 23c. Gillies 233, 235, 237 and 239 Washingtoi et, Park Tt) & Rarelay st, Extablieh cine y vontinue to give turer this big dite Uses as a bonus orto indus him to carry Bie ty Whilst he, puts, the, balagy xv ‘Ou ‘Trian| your mon Demand, ‘rrinngl four. tal (Fe nformation About cottage j Ni Verran COLLARS A-ply 166 VAN ZANDT, ri W! Emppared to cotto the om collar mii 43c| Write Company LILLIAN Mar O'LEARY Vuneral 2120 Sth n Friday at 2 P. art His wo Wie BADAX: LAUNDRY WANTS? EMA bib) sku its Bayerieucod gu nent Waliach 210 lotie Ruane SPECIAL FOR aud Nut k arveig analy ait ae shir Wai HIDAY, Cream Frat y at Cy on soft tale 210 24 owe Body irone: Foner Ney to learn, Wallach’s U huniry nog lieve of female. ay as | Ce aes