The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1872-03-03
THE INSURANCE INQUISITION.
Seeking for Corruption in the In
surance Department.
How Life Companies Spend the Policy
Holders Money-$20, 900 to Pass
One Bill-The Companies That
SsCOme Downs with the Cash.

hOAuCie MOucy -PSVsVOO " L ass
One Bill-The Companies That
''COme Down" with the Cash.
The Tweed Family as Stookhold-
ers and Receivers.
The investigation on the part or the Insurance
Committee into George w. Miller's administration
OF the Insurance Department was continued yester-
day at 156 Broadway; present.. w. Lippltt, chair
man, and Messrs. Tobey, Alkens, Babcock and
Enos.
Henry W. Johnston recalled-cOunsel for KnicKer-
booker Lie-wshed TO correct his testimony OF yes
terday The $4,000 paid to Hammond, he sand, was on
the 18th May, 1871; 1t was paid by witness own
check, ana not by the company's: 1t was made pay.
able. he believed, to HammOnd's order on the Corn
Exchange Bank; the taking OF testimony occupied
several days; considered it was necessary TO have
counsel present.
Q. For what purpose did you employ Hammonds
A. decline to state.
Q. Was there any questions of law arising IN the
course OF the examinations A. l decline to an
swer.
Q. Did you present any question Of law to Mr..
Hammond A. decline to answer until examine
the resolution under which you act.
witness read the resolution and said:-I don't
think that authorizes the committee to inquire into
my acts as counsel.
ID. X. Mangam swOrn-I am President of the Ma
tiOnal Trust Company; do not know OF q check
being drawn upon us IN blank by the Commonwealth
Company; was q director OF the Commonwealth
Fire Company. HIS evidence was unimportant
Theodore r. wetmore, Vice President OF the
Security Life, was sworn as the percentage paid
transfer OF 500 900 by the Insurance Department.
the charge was Oneth OF one per cent; relative to
a SUBSCRIPTION being taken up Tor the Miller Lie
bill OF 1875 witness sald MIR. Lawrence called and
they subscribed ST. 500 and paid 1t by check TO Law
rence's order; this was in the spring OF 1915 Law
renee said they were collecting 10000 for the pur.
pose OF defraylng the expenses OF passing the bill;
this list presented shows the companies taxed; the
payment was intended to aid IN the passage OF the
bill OF Mr.. Miller; the following Is the list; 1t may
vary $500 perhaps:-
Equitable Life Insurance Company .............. $500
New York Life Insurance Company y,5v0
United States Lille Insurance Company. $500
SonaeniaI ra a in.n 1nsrspSe ISo
Tota............. 800, OW
Our company was the last to subscribe; have
some DOUBT whether all these sums were paid, al
though Lawrence said they had paid their suoscrip-
tions; he did not say how the money was TO be paid
1t was thing we never did before.
To Mr.. Miller-Dld not understand 1t was to bride
the legislature; never PAD you any money never
To Mr.. Tobey-Lawrence Is out Of the city am
James +. r. MADDEN sworn-T am Secretary OF the
Amicable Mutual Lie; we were examined about a
year ago by sontnwSk and EdrIdge + consumed
teen hours IN ALL we paid $500 for IT. Mr.. Kendall
paid 1t; that Is all we paid the examination was
to Mr. Barnes that they paid Mr.. Miller S4OO Tor the
transfer OF securities. William NJ. Tweed Is a large
stakeholder IN the Amicable; he holds $20 900 IN II
Sewall and Pierce examined certain securities or
the commonwealth, and charged over $1,000; the
receiver Of the Commonwealth was Willlam NJ.
Tweed. AmlClDle
Ii. 4. snOft sworn-I am clerk Of william M.
Tweed, Jr, Receiver OF the Commonwealth; have
heard tnat $1,000 was paid Tor examinations, but
have not found the check; nave found 1t entered
on the "stub-check book" or where 1t Is supposed
to be entered; the number OF the check 627 the
Continental Bank; there are erasures In the body OF
check nave been unable to find; the check should
be In the hands OF the receiver; William Q.
to Seds Tweed was
IN st. Louis; this is the only check drawn
oer cecSs on s BOOK % are
whom paid ana the payee; This Is the only one
nnd lns check shows the date November IL.
amount $1,000; now have the cash book; page 32,
under the date November IL, revenue. Sl0,'' and
under November q, 1870 John Fowler, Jr., for
counsel fees, $1,000, written over an erasure
TO Mr.. Mlller-This change seems TO nave been
made before the second examination; have one OF
Doughty's checks not entered upon the books,
when appears to have been used by him; nave
checks OF his to the amount OF 81 or $2 900 not
between these raised checks and the entries, as
have said, are nearly $4,000; IN the testimony
before the receiver 1t was shown that Fowler got
the $1,000; the books were In state OF chaos the
receiver may have taken the $1,000 check TO his
office with others.
James Yercance sworn-I come to refute state.
ment Of Mr.. Manners as to the fact That mad made
q certain remark 10 him as TO how ne could himself
get appointed as a receiver; the statement lie attr
butes TO me Is totally lalse The Witness said he had
read the evidence III the City ana National Inteltt-
geraee,, Alexander Delmar's paper, aged seventy
two years. The evidence In the HERALD and Times
was then read and the examination concluded
., francs N: Blxoy sworn was appointed receiver
OCTOBER 1869; witness here reviewed fully the con-
d'tlon or the company AZ tile time and the mode or
counsel In the matter OF closing 1t up; was allowed
$l2,5 Tor my fees, with the understanding that
was 10 pay 80 goo to lawyers representing the Eu-
British COMMERCIAL; $4,000 was paid over to MI.
Mead
John Fowler, Jr., sworn-I am counsel for the
know nothing about $l,00O check L.. blank; the
President paid me $1,000; DON'T know how much
was paid for examination; received several thou.
sand dollars at various times Tor services can't re-
collect the dates; did great deal OF business for
the company; the 1000 was pald me IN currency
as counsel Zee, and never paid cent, directly or
indirectly, To Miller or otner persons or the Insur
ance department, nor to Hammond or Briggs; never
received cheek IN blank; when ! got the $1,000 I
went for IT, had been dunnlng them Tor several
days; Mr.. English asked me what l did win the
money; tod him l bought bread ana cheese with
II; shall be very happy TO crafty his curiosity.
The Chairman answered that Mr.. Rowland, wit
ness, had gone away without permission, and If he
was not present on Monday he would take measures
to compel his attendance. The committee adjourned
until napast ten O'Clock on Monday, when 1t Is ex-
pected that Messrs. Barnes and English VINO con-
duct the prosecution. Will close their size OF the in
vestgation. IL Is expected that Mr. Miller Will CON-
mence his defence on Tuesday morning, and take
the committee Will adjourn and complete the evi-
dence In Albany