The Red Cloud chief., 1899-03-03
PALM UNDER FIRE
The Examiner Tells Investigators OF HIS
W. re In tho East.

Lincoln, Neb., Feb. 24.-The legis-
latiye investigating committee APP
pointed to investigate into the affairs
of the insurance department OF the
auditors Office, resumed its lAbors
yesterday morning at 10 O'Clock, y. w.
Palm beng in the witness chair.
Mr.. Pam was asked whether he had,
in investigating eastern insurance
companies, inquired as to whether
they had contributed largely to h
campaign funds of national party or
CARNATIONS, and whether he would re-
port such contributions as u~nauthor-
lied expenditure of funds. His an
swcr was that such contributions
were the business of the companies,
and unless they were rendered insol-
| yent thereby were not the concern of
examiners.
Being questioned as to a letter he
| had written Mr.. Cornell. saying that
Nebraska and South Dakota were
hardly competent alone to investigate
| certain large concerns, he explained
that such examination for the benefit
of but the two states would put the
| companies to an enormous expense,
which they would hardly feel justified
in mourning unless for the satisfac-
ton of q number OF states. Such ex-
animation would require much time
and a large number OF assistants, al
though the skill required would be
more than in examining smaller COM
panies.
lie had agreed with Mr.. Cornell that
the New York Mutual Life, having
lust been investigated by ten states,
should hardly again be put to the ex-
pense of a thorough examination by
Nebraska and South Dakota alone
He had, however, entered the office
of the New York Mutual and looked
over their books and securities for
which he had charged no fees, al
though the company paid his ex-
penses.
referring to a statement in his let
ter regarding Eugene Moore's convic'
ton, he said that Mr.. Moor had not
been delinquent In the matters of *
aminers' fees, as such fees In no ways
belonged to the auditor or his admin.
istration.
Regarding n letter ne had written
Mr., Cornell December 1, 1897, ir
which he expressed the belief that tho
New York Mutual was not going Il
submit to nm examination by himself
and Mr.. Kipp, the South Dakota ex
aminer, Mr.. Palm said he thought a.
the time that the company woult
rather withdraw from the state thar
incur the expense OF their examlna
ton. They had, however, taken hin
through the Office and shown hin
around"
Mr.. Palms attention was called 10
letter written him by the Svea Insur
} ancc company in August, 1893, regard
ing his appointment OF agents for tn
company at Portsmouth. Mr.. Pain
} said he had not notified Mr.. Cornell o
his withdrawal as special agent TO
the company.
Mr.. Palm said he had never with
. held from Mr.. Cornell a single cent o
money rightfully belonging to the au
ditor, neither had he ever paid him
y cent to which he was not legally en-
o titled. Neither had he, while cas-
o drawn on Mr.. Cornell, although he ha
been told that II necessary t was hi
: right and privilege To do so.
When the Royal Oaks of Oman
had been unable to pay examinatio
fees he had presented a voucher "a
e SAT. so on the state treasurer for h
services, of which ne was TO pay NJ
Cornell $40 for his assistance In III
n examination Mr.. Cornell had tol
e Mr.. Palm that he should he reimbur
n ed for his services and some ono hs
u told him further that there was
. fund in the treasury available for thi