The Red Cloud chief., 1899-03-31
THE INQUIRY ENDED.
HEARING OF EVIDENCE is
COMPLETED.
Many witnesses Testify Before tho Lcgis-
iativs Investigating Committee In Re-
gard to the onduc OF the Insurance


LINCOLN, March eO.-The legislative
committee appointed to inquire into
the state insurance department as con
Quoted by Auditor Cornell and his en-
ployes held a brief session last Friday.
Samuel Lichty, the insurance deputy
whom Auditor Cornell removed from
the Office, was the only witness.
Mr.. Lichty stated that he had not ad-
vised the auditors examiners to charge
mutual and fratcrnal companies more
than Is a day for examinations. He
was questioned as to his Interpretation
of the law as applied to companies or
ganized under this and companies or
ganized under laws Of other states. He
thought the limit Of Is n day applied
TO companies of each kind, but was not
positive. He was cross-examined by
the auditors attorneys and said he
would not swear that he had never
written a letter advising a charge of
SIS a day for the examination Of mutual
companies.
Mr.. Lichty said he wanted to correct
n palpable error in the testimony of j..
A. Abbott rs printed in The State
Journal. The printed report of Mr..
Abbott made him say that "a $500 state
warrant, drawn by Deputy Auditor p.
o. Hedlund, was indorsed by Lichty,
and was for packing books and blanks
in the auditors office
Mr.. Lichty explained that Mr.. Abbott
had said the warrant was Endorsed by
McGinty, clerk Of Auditor Moore, and
not by Lichty. Mr.. Lichty said he
thought the error in the newspaper
was unintcntional. lie asserted that
he never received u cent for work in
the auditors office, except his lawful
salary, and he had always opposed any
extra payments to others in the Office.
LINCOLN, March 20.--Thc Legislative
investigating committee held an ad-
jourDed hearing Saturday to give
Samuel Lichty another chance to tell
what he knew about the management
of the insurance department as con.
Quoted by Auditor Cornell. Mr.. Lichty
was formerly deputy insurance auditor.
The Investigating committee first
examined Mr.. Lichty and allowed him
to Continue his testimony begun the
day before. lie was shown the report
of John Simpson, examiner of insur-
ance companies, appointed by the aud
itor, on the TT. Wayne Fire Insuranc,
company of Indiana.
Mr.. Lichty was asked what h,
thought of Mr.. Simpsons report. II,
said he considered ii u page and a hal
complimentary letter, devoid OF tn,
character of an examination.
In regard to Mr.. Lichty licensing
Stromsburg company that was insolv
emit, Mr.. Lichty said that company wa
not insolvent us the auditor had said
and that the auditor had since ISSUED
n license.
"IIas Mr.. Cornell unlawfully receive,
any fees, tips or other things Of value,
asked Mr.. Weaver.
IL don't know about tho unlawful
part" said Mr.. Lichty. II know d
money he has received as auditor asid
from his salary, but | do not thinl
there vas anything wrong about 1t.
Chairman Prout told Mr.. I.ichty t
keep his thoughts to himself and an
swer the question.
The witness then explained that tn
auditor was under the law obliged I
accept service when a surety compan
was sued and he vas to get 81 on eac
suit. The law does not say that thi
money shall be paid TO the state. |
was understood that the auditor wa
to keep this money. The witness sal
he kept n record OF "a total of So so r,
ceived by the auditor. So far as til
witness knew, the auditor had kel
the So.
The witness explained mor fully
regard to his testimony that no fee
received from insurance compaui'
could be returned to the companies e.
cept by act of the Legislature. Aft,
further thought the witness eXplaint
that some money was returned to FIR
ternal companies. The witness an
others in the auditors office erred
collecting 81 for agents fees of frate
nal companies under u new law pass'
in 1897, and the error was correctt
and the money was returned, no blan
attached to anyone. The So fee W
in the act but was stricken out bcfo
it passed the legislature. Witne
wanted to explain this because Z
auditor had charged him with colle'
ing fees illegally.
In regard to copying letters NJ
Lichty said he did not always do so I
cause the auditors stenographer h
been Systematically taken away fro
him. The committee stopped N
! Lichty and told him he was wand'
| ing too far.
Attorney Cornell, one Of the al
itor's lawyers, cross-cxamined n
, Lichty.
, Didn't you make more work
!. the s~tenographer than all the Others
asked Mr.. Cornell. Didn't you ha
him write long letters and polite
stump speeches that had no beari
on the business Of the Officer"
I Mr.. Lichty started to answer, /
a the committee declined to let him
{ into that matter.
Witness answered that he had dc
like they did during the a and
: having any revenue stamps he pla'
postage stamps on an agents cert
cate, and marked the stamp 81. r."
Mr.. Llchty admitted the charge Il
: he manufactured revenue stamps
- we did before the war;"
u lie was asked who he meant
o 1--WE" but the committee declined
sr hear him on the subject.
70 The witness admitted that he