Omaha daily bee., 1899-02-23
Ten Dollars Mentioned in Another Letter as
the Auditors Share Of the Holdup,
oRNELL A POOR WITNESS FOR HIMSELF
Denies and is Confronted with Compromising
Documents by the Committee.
PAGES MISSING FROM THE LETTER BOOK
Auditor states lie Supposed Palms
Contributions Were just Little
Tokens of Itind Regards
OF the sender.

LINCOLN, Feb. o. -(Special.)-The ex.
animation conducted by the legislative COM
mittee appointed to examine into the insur-
ancc department scandal was held in the
Office OF the secretary of state today, and
at all times the room was crowded with
spectators The entire committee, consist
ing of Senators Prout, Currie and Hale, and
Representatives Evans Weaver and Fisher
was present. Prout acting as chairman
Auditor Cornell was represented by Attor-
neys Ed p Smith and w. T. Bryant. The
evidence was all taken down by stem
ograpEer.
Auditor Cornell and Examiner o. W. Palm
were the only witnesses examined during
the day and their testimony, coupled with
the many letters offered. was OF the most
sensational character making the case
against the auditor look very dark. MIR.
Cornell made a very poor witness In his
own behalf and at times evaded questions in
such manner as to call for continual repe-
tltions and occasionally a reprimand from
the chairman of the committee.
Palm was an equally bad Witness. Not
having been allowed in the room while his
chief was on the stand he was unable to
make his testimony 1T the letters that were
produced
The result of the examination, so far as
it has progressed is, according to general
opinion, that the auditor is hopelessly en-
tangled in the unlawful transactions of his
subordinates This sentiment is not regu-
lated by political opinions.
The examination was conducted by Repre-
sentative Weaver in the forenoon and by
Captain Fisher in the afternoon.
Identities CorncITs Letters.
The opening part OF the examination this
lANt
taken by the committee from the auditors
private desk Cornell was placed on the
stand and admitted that the only letter he
objected to being taken the from
Bailey p. Wagner which enclosed the
fifty trip passes for yourself and More
head" He said that he took the letters out
Of The dSsl, .hinre'c, Esai them nd
handed them to the committee
In answer to questions the auditor said
that the only insurance companies he had
personally examined were the Royal Oaks
of Omaha the Star of Jupiter of McCook,
and one in Denver-he could not remember
the name. He had also looked over evil
dences of property of the New York Life
at Omaha. From these he had received
money for his expenses. He had looked
through the books of one company in New
York with Mr.. Palm, but could not remem-
Der the name. OF the $3.50 received for the
work in appraising the property of the
New York Life at Omaha S. had been paid
to r. NJ. Taylor and the balance was for
hotel expense.
The auditor said that no one had author
ity to waive the fee for filing annual
statements Of any company, and If such
q thing was done it was in violation of the
law. The following letter was then pro-
duced by the committee and offered in
evidence
OFFICE OF THE AMERICAN FIRE IN
SURANCE COMPANY OF NEW YORK,
CHICAGO, Nov. s, 1S97.-John +. Cornell,
Auditor of State, Lincoln, Neb.: Dear Sir
Referring to your valued favor of the 9Th
inst, we are very thankful to you for the
kindness that you have done in passing SO
promptly upon the papers submitted for the
entrance Of the American Insurance COM
pany Of New York to do business in the state
We further thank you for the kindness done
in waving the charge of $50 for filing the
annual statement this year. The statement
to be published in the newspapers is also a
favor Kindly have the publishers forward
their bills and we will remit therefor at
once. Yours very truly,
T. w. EUsTIs, Manager.
AS to this letter the auditor had no ex-
PLANTATION. 1t had been received by him per-
sonally and was filed in his private desk.
One Hundred for Cornell.
The examination continuing, the auditor
holding up companies, or Offering TO divide
the fee money, he would have discharged
him. He would not think 1t good practice
on the part of the examiner.
The following letter was then produced
and read:
HARTFORD, Conn, Feb. 1, 1S9S-My
Dear Mr.. Cornell / shall try to make this
bill large enough you will be remembered
We got 500 apeace from the Hartford Fire.
Yours, o. w. PALM
Another letter was produced, showing the
method Of examinations adopted by Palm
and Gillian. The envelope OF this letter,
like those Of most Of the examiners letters
was addressed to the auditor at his city
| residence, instead OF to the office. The let
| ter was follows:
PATTERSON Raises he OTer.
ALLYN HOUSE. HARTFORD, Conn, Feb.
| 4, 1s0S-Hon. j. f. Cornell, L.ucoln, Neb:
My Dear Sir-We have today closed opera
tiOn with the Travellers, not to our satsfac-
tI1n fully, but after consideration we
desired that 1t was best to do so for the
present. The examination which is being
made seems to be thorough, as we have said
before, and we did not feel like bGginlng
new examination right iu the face OF The
! four states heretofore named, and to have
accepted "A partial report from them and to
have Joined in to finish would have been an
I injustice to ourselves and the state. So we
decided u await the report and so informed
! Mr., Patterson, at the same time placing our
selves at his mercy for the expenses.
Mr.. Patterson received your telegram au-
! tholEIug me to receipt for money paid on
expense account, and we were greatly sur
| prlsed when old Mr.. Patterson offered 20 pay
us 800, which he afterwards raised to $3.50,
which we promptly refused.
After returning to the hotel Mr.. Gillian
and | talked II over carefully and decided
! that inasmuch as we had intlmated that we
| would await the completion Of the present
! examination II would seem very much like
| spite work 10 change our plan at this time.
| SO we telephOned Mr. Patterson for prop
I osition in the matter, which was then placed
. at 5000 which we decided 10 accept rather
| than bring upon ourselves and the state in
surance department unnecessary newspaper
! nOtoriety.
| was called over to receipt bill and 10
| ceive check / never received such cool
treatment In all my dealing in life and was
l almost compelled by my feelings TO demand