The Red Cloud chief., 1899-03-03
SEARCHING INQUIRY
JOINT LEGISLATIVE COMMIT
TEE DElvlNG DEEPLY.
Insurance Department Of tho once Of
Auditor of Public Accounts Being
Thoroughly O%vcrhauled and Investi-
gated-synopsis Of Evidence.

LINCOLN, Neb., Feb, 23.-The joint
committee appointed by the legislat-
ure TO investigate the insurance de-
partment Of the Office OF auditor of
public accounts held a session yester-
day and considerable evidence was
brought out hearing on the matter.
The members OF the committee went
Into the auditors Office, and, with his
consent, went through the desks, taxi
Ing whatever they thought would be
needed for the purposes Of the inves-
LEGATIONS.
The auditor was represented by
Wilbur +. Bryant OF Harrington, and
Ed l.. Smith Of Lincoln, ex.deputy at
torney general. The legislative com
mittee comprises Senators Prout, Cur
rie, Hale and Representatives Evans,
Fisher and Weaver. Mr.. Fisher con-
Quoted the examination In chief,
though all committeeman asked ques-
lions. Senator Prout presided as
chairman. The examination was lis
tened TO by a large number OF people.
Previous TO the examination taken
yesterday morning, the testimony TAX
en- in executive session was read. Audi
cor Cornell was put upon the stand,
and during his examination Messrs.
Palm and Simpson were excluded from
che room.
The testimony read showed That Mr..
Cornell, as auditor, kept no record OF
examinations made of companies. In
formation concerning companies was
A-----.A-I a. IL. .l.N n. ....l,
know their condition. Mr.. Cornell
stated that he did not think oil pri
vate advices Of this nature had been
kept. He had q private letter book In
which he kept copies OF private cor
r~espondcnce. He was asked II the
committee had invaded his private
correspondence. lie replied that he
had given his consent TO the commit
tee taking everything of an official ma
ture, but some letters were taken
which should not have been taken. lie
would not say what particular letter
He was asked by Fisher is IL wasn't
y fact that the only letter he objected
20 being taken was one In which men.
ton was made Of sending him some
passes.
II objected to my private letters be,
ing taken"
"That was the letter from ID. ~
WaGgoner and IL was left on your
DESK" said Mr.. Prout. "Was not that
the onep"
Mr.. Cornell thought this letter had
been taken with the rest. The com
mittee assured him II had been left
on mis- desk. Mr.. Cornell proceeded
with the narrative Of his duties. liz
assisted In the examination of the
Royal Oaks at Omaha and the Star OF
Jupiter at McCook. He had received
fees for doing other work for insur
ance companies like appraising prop
erty. In New York ne had locke,
through the books OF n Security com
pany during the winter of 1897 will
Mr.. Palm. Some special work he ha,
done for the New York Life had beer
In the nature of nppraising propert,
In Omaha for which he had received
$40 as q fee. II. NJ. Taylor securcC
IS Of this for assistance, and the res
was for the auditors expenses.
What Is the fee for filing annua
placements by insurance companies
Mr.. Cornell?"
"The law will tell"
Cant you answer without rcfcrrin,
10 the law?" asked Mr.. Prout.
"I think II was $50 or $50 or some
thing like that. The law will tell"
"Did you ever waive such a fee?"
mo, siri l never did"
what does the statement mean /;
. letter dated from New York Noyen
Der 8. 1897. from the American Fir
Insurance company In which the con
HnnC TIM ylsG 10, fa. ....-- a. "a.
ennual fee?' said Mr.. Weaver, readin
from the letter.
VI don't know" answered Mr.. Co
nell, AFTER taking n long look at III
tetecr handed him.
did you waive that fceo"
did not. ! don't tend to all II
details OF my Office.
did you ever see the letters b
fore?"
III don't remember the letter"
Should your fee book show wbetI
or that fee was paid?"
ut should" said Mr.. Cornell.
The book was sent for and While "
messenger was out, Mr.. Fisher ask,
TO whom n letter on page 80 OF Il
auditors private letter books was ser
The auditor looked over the lcay
carefully and could not find the pap
"The page is gone, as a matter
fact, Is II not?" asked Mr.. Fisher.
Eyes sir" said the auditor,
The same question was asked 60
oerning pages 35, 81, AZ, AZ, As, 40 n,
IS with similar replies. The ind,
did not show the names of the pa
ties TO whom the letters on the mis-
Ing pages were sent and the audit
Odd not remember evcr tearing a lie
out OF the book except when the co
les were illegible. This was yolu
TERED by him after the Investigate
had gone on to other matters.
Mr.. Cornell was next questioned
10 fees Of examiners. He said that
IN examiner should put In a bill 1
$40 for two hours work examining
insurance company 1t was excess
and wrong. He had never approx
such q bill as far as he knew.
The question was then asked ~
had eve approved a bill of s2lO
che American Fire Insurance co
pany Of New York for an examinati