The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1872-03-02
THE INSURANCE INQUIRY
the Check with Milltr's Forged Erdorssmeat->
more DISQUALIFICATION Pcnfields and
Eldridse'S Connection with Il.
The Forgery Said to Have Been Perps.
trated While in the Custody
Of Mr. Eldridge.
How Certain Insurance Commands
Got Into Bankruptcy.

Got Into Bankruptcy.
The Investigation into the administration Of tn
Insurance Department by George W. Miilcr was q.
sumed yesterday at the Board OF Fire Underwriters.
No. 1855 Broadway. Present-Mcssrs. T0bey, chair
man OF the sub. committee; A. w. LpDet, chairmaa
OF the standing committee and DR.. Aiken.
The first witness called was George J. Penhel4
President OF the westchester Fire Insurance Com
pany who 1t win be recollected, had possession II
the $500 check upon which MiAers endorsements
was forged. On being sworn, he said:-I reside n
New Rochelle have been president OF the companT
five years. we were examined by Eldrldge at Tho
request OF the Executive Committee; 1t consumes
part Of six or seven days; we pad SSee
for 1t; the check was left at ~
sent to Eldrdge at No. C0rtlands
street, think LETT 1t there In an envelope (seaed3
and addressed to EldrIdge; saw the check after
wards In Edridge's possession--s0me days after:
did not learn who delivered 1t to MIN; Eidridg1
came in and said he was short and wanted money
upon It; 1t was then endorsed with Miller's name:l
took 1t to Brownell 4 co. and tney paid me $500.
which left In an envelope or handed II to Edridge
at place In Wall street; my impression Is that lek
1t in sealed envelopes; don't know where the place
was; did not put MIXERS name on the check; d0u's
know who did; there Is not enough money IN tha
country to induce me to do so; we never
paid Eldridge 5000 In the Office for
the examinations; when we asked for
certificate Eldrldge said they usually got 500 pen
day; asked If $500 would do; he said yes; said
would send the check to No. Cortlandt street; tho
check was In nobody's possession but mine after
Eldridge gave it to me, and was endorsed when
received IL; Eldrldge said he did not want to %
identified With the check In any way: did not know
that he was connected with the Insurance Depart
ment; said ne was o lawyer In the western part or
the State; I Will swear that when sent the check
to Eldridge It was not endorsed with Mler's nann0
and when 1t came back to me II was so endorsed:
the examination was made in May; am not certain
whether left it there sent 1t to No. Cortlandx
street.
TO Mr.. Mier-Don't rccollect when the examina-
ton ended, but believe we got the certificate on
26th of last May; the investigation was very
thorough; Eldrdge said he was lawyer, ana un-
less he could make 500 per daY 1t wouldn't pay;
HAD conversation at the Sturtevant House with
Eldredge In the presence OF Crawford; asked fora
certificate; he said had better and see you ws
the Fifth Avenue Hotel; Crawford, Eldridge and
went to see you, but failed to find you; when
Eldridge returned with the statement and inquired
about the fees, when the amount was decided
upon as $500; wituese repeated the CONVERSE
tion as to the fees for the examination:
don't recollect how ! obtained the check from
payable to your or Edridge's order; am somewhat
mixed In nv recollection; my best recollection Is
that Mr. BOVINE left the check at No. Cortlanis
Q. How do you know |! was LEFT at all?
A. That Is our way OF doing business, b.t navD
iioa TO MI. Bovine Was that the check should %
Gays passed between receiving the certificate and
again seeing Eldridge and receiving the cheek;
New York ONCE; Mr.. Griffin was in charge
OF the New York office; there were seyeIA
handed back 70 me by Eldridge went and got tho
check Immediately; Browncl sent boy ont to get
did not count the money when ! got IL from
Brownen; put II in an envelope addressed TO En-
site Henry Clews banking house; Iswenr I did noe
draw a check that day for $500 at Browne Co...
the Butchers and Drovers' and Browneli's;
think endorsed the check at Brownells; think
mad not been SO endorsed Browncll would havD
called my attention to never informed you
oned :Ie dla not know your sgnaiure; inc cheek
was made payable to you 50 as to get voucheS:
~ % o weq ass eS RSss er BILL but
he said 1t was not usual to give them.
was ccnnecscd Win the Home Fire Insurance Com
pany; 1t was examined while was President IN
July, 1906 when Il TOOK charge the company, nave
pay It's debts; the receiver may De able 10 pN
TWENTY-FIVE cents on the dollar; the sale OF STOCK
one hundred thousand dollars In the Portland fire.
and don't think they had dollar capt. ,I after
BY Miller and southwick. and we paid 5000 By
checks on the LIST OF septemnsr 1870; never say
any entry OF $4,000 paid to Sewel Pierce.
Mr.. Miller here offered in evidence Il letter from
the former President OF the company, showing the
condition Of its affairs. Mr. TODey ruled that Y
could not be admitted, when MIR. Miller ciaimca
that was proper TO secure 1t as evidence as cx
tracts from stephen Engllsh's paper that had been
admitted time 9nd again. the committee sustaine0
Mi. Tobev's ruling witness was crossexaminea
by Mr. Miller, declared chat, being large capt
talisr he hoped to carry the company through, ana
had 81 assured Mr. Miller.
Georye II. Urowford, sw0rn-I am Secretary OF
with Mr. Penfeld to the Sturtevant House to see
Eldridge; In the first certificate there was s0m0
term In the phraseoogy OF II that did not please
Edrdgo and ne TOOK pa anu the Meess
firmed that or Mr.. Penneld; l am positive tho
amount agreed upon TO be paid for the examination
David s. Manners sworn-was formerly President
OF the New Amsterdam, and am now President q
the New Jersey Home; the Amsterdam was exam
med IN NOysmbsT ~ Miller and Ear ,as y We pss
paid; we received no report and none was made
public. lMr. Manners described at great
t4eSors the the csSasO sa 70 WI" pay s ssr
The reports OF these negotiations were mado
from time to time to Miller, who seemed to approve
them. and said they were dong a.! right wnen 60
Mead. came In and put Bernard Casscrly In charge
rs receiver; at THIS time the company was solvent
had settled with their Chicago creditors and were
exist; indeed, they were anxious to do so thcg
showed their sOlvency before Judge Cardvz0, bus
the receiver retained, only giving $40, 600 80.
by Mr. James Yearance, or the Aston; told me that1
mad better apply myself Tor o recelvershtp; yous
Mr.. Miller did not carry out In good latin what yoe
Question BY Mr.. Barnes-was you advised by a0
lawyer as TO getting receiver appointedf a. nG
good many; John Q. DImmick was one; Mr. wax