Omaha daily bee., 1899-04-04

orders Of the United States by the Ne.
braska Insurance department under the
present auditor have been excessive and un-
reasonable.
The findings Of fact above pointed out in
regard to the examination OF eastern old
line insurance companies are fully cor
roborated and substantiated by the testi-
mony Of Thomas Gillen, who acted as an
examiner with Palm. Gillen says that $500
was too much to require of the Hartford
nre; that 500 would have been sufficient
knowing as he did the time consumed and
circumstance surrounding the examination
He says also in substance that the insur-
ance companies were not treated fairly and
that he knows OF no reason why the Ma
tlonal Life of Montpelier should pay one
cent to any examiner. That is the company
to which Palm presented his bill of $500
when no examination was made and at
tempted with CornelIs knowledge to coll
lect the same by threats, The evidence be-
fore the committee is conclusive that while
the charges made by the Nebraska exam
iners have not been in excess of the fees
charged by other states or even by Insurance
examiners of this state under Auditor Moore
and his predecessors, the charges of Palm
and Gillen were excessive for the services
rendered and presidents upon this point
within Nebraska or outside of it constitute
no measure OF the just and reasonable
charge which the auditor Of this state
should see is hereafter the rule in the
conduct of such examinations.
Promises of Presents.
Your has had no evidence
taken or testimony given which shows that
John f. Cornell has received any part of
or shared in any respect whatever the eX-
cessive and illegal fees so collected. How
ever, the committee has evidence and so
finds, that the Insurance Examiners Palm
and Gillen each expected to present MIR.
Cornell with a present of some kind either
in money or other article. The expression
complimentary" was used in several let
tiers and the words and figures 500 in an
other letter. The committee can best eX-
plain the evidence upon this point by setting
out the following exhibits, numbered q, 81
and 80.
ALLYN HOUSE. HARTFORD, Conn. Feb.
1, 1S9S.-My Dear Mr.. Cornell: | shall try
to make the bill large enough so that you
will be remembered. We got 500 apiece
from the Hartford. Yours. o. w. PALM.
ALLYN HOUSE, HARTFORD. Conn Feb.
4, 1S0S.--Hon. John f. Cornell. Auditor of
Public Accounts, Lincoln. Neb.-Dear Sir:
Mr.. Palm is writing you regarding our ex-
periences in Hartford, and | might add a
word on the same line, but will be brief.
The situation has been peculiar owing to
the Quadrennial examination provided by the
law of this state. Our relations with the
Hartford Fire passed off pleasantly. Mr..
Patterson, president of the Travellers. has a
standing reputation of being a fighter from
the start to finish, although we must con-
TESS that he treated us better than we eX<
pected in the beginning. The end of things,
however, is generally a reverse OF the be-
ginning, and so it was in this case. He
begged us to consider the matter of accept
ing the report of examiners now at work,
which we knew nothing of before We came
here, but after looking into the matter we
found that the examination was being car
ried on in a very thorough manner, the Con-
necticut department having employed two
expert actuarles from New York. one Mr..
Whiting. being considered the best in that
! line in the United States.
We decided for the present TO accept their
reports when finished as being full enough
to submit to you for your consideration. but
in no way binding upon you to accept 1t as
final. MIR. Patterson was asked to share our
expenses. He said he would fix that with
you. as it was nothing but a d-n steal,
anyway; he would look up the law. Mr..
Palm had you forward authority. He was
called over to the Office this morning and
was considerably insulted, as was evident
when he returned. AS i, understand 1t. the
old gentleman tried to auction him off with
$50 bids, reaching $3.50, after which Mr.. Palm
came to the hotel in disgust, almost deter
mined to obtain orders for a full eXaInina-
ton. | felt that ! must have been sent
here for some purpose, and together we con-
sidered the matter and finally Gained the
troubled waters by compromising the mat
ter at 5000. Mr.. Palm thought, in such a
case, where $4,000 was saved by the COM
pany, that we ought TO have had $400-at
least S300-as we fully intended to send you
a complimentary, but as he is on a heavy eX-
pense, and l am hardly remunerated for trip,
and further travelling and hotel bills TO pay
we are compelled to disappoint you this
time, sorry to say. VIII hope for better
things in the future.
Mr.. Palm is making a request regarding
my name being mentioned in letters. II
agreeable to you it would certainly relieve
him and myself from much embarrassment.
Thanking you again for the privilege OF
the experience Of this trip, with kindest
regards to yourself and family, l am very
truly yours, THOMAS H. l.
PATTERSON IA Hard Proposition.
ALLYN HOUSE. HARTFORD. Conn. Feb
4-Hon. John F. Cornell. Lincoln, Neb.-My
Dear Sir: We have today closed operations
with the Travellers. not to our satisfaction
fully, but after due consideration we decided
that it was best TO do for the present
The examination which is being made seems
to be thorough, as We have said before, and
we do not feel like beginning a new eX-
animation right in the face of the -four
5ldltS, utTtltlOTt me AM lNO nave az
cepted a partial report from them and Two
( have Joined in to finish, would have beer
, an injustice to ourselves and the state. so We
decided to await the report. and so in
formed Mr.. Patterson. at the same time
placing ourselves at his mercy for the eX.
penses. Mr.. Patterson received YOUR tele'
gram authorizing me to receipt for money
paid on expense account. and We were
t greatly surprised when old Mr.. Patterson
' offered to pay us 800, which he afterwards
, raised to $3.50, which we promptly refused
After returning to the hotel Mr.. Gillen anC
= | talked 1t over carefully and decided tina
inasmuch as we had intimated that we would
t await the completion of the present eX
5 animation il would seem very much lik'
Q spitework to change our plan at this time
so we telephoned Mr.. Patterson for
proposition in the matter. which was thel
placed at 5000. which w decided to accep
rather than bring upon ourselves and tn,
D state insurance department unnecessar!
> newspaper notoriety. | was called over II
receipt bill and receive check. ! never re
n ceived such cool and ungentlemanly treat
G ment in all my dealings In life. and wa
: almost compelled by my feelings to demant
access to the books and papers for re
; examination. except for reasons heretofore
r given. He wrote the check for 5000 and
n receipted for It, thanking him for his court
S esy, which was far from being worthy o
h any thanks. expected TO receive no les
a than 5000. and had fully decided that II W
q should receive that amount to send you $40