The Worcester spy. [volume] (Worcester, Mass.) 1898-1904, 1899-01-19
President Allison is
Bound Over
TO TIE GRAND JURY
Another Session Before U.
S. Circuit Court.

fltcnDurg, Jan. 1S.-At the afternoon
I session of the United States circuit
court at Boston, today, the case of
President Allison of the Safety Fund
Bank of this city, and of the former
firm of Allison & Borley, insurance
agents, for the alleged misuse of an
internal revenue stamp, was continued.
Isaac s. Borley was the first witness
of the afternoon, and it was expect,S
in light of the fact that he was the
one who informed the officers of the
alleged irregularity, that his testimony
would be of startling nature, but this
was not the case, as it was mostly of
corroborative nature.
He testified that he informed the
officers of the fact that stamps were
being reused; the practice was to use
stamps, whether they had been in
force or not This statement was
modified later, when the witness said
that he meant that only policies which
had not performed their proper func-
tons were bereft of their stamps. He
further stated that Oct. 10 he objected
TO the stamps being used as they were
10 Miss Younglove, and told her to ask
Mr.. Allison about them. Later she
said that Mr.. Allison said: "Use them
as they have not performed their func-
lions. The stamp on the check in the
case was shown him, and he stated
that he cancelled the stamp himself
Witness admitted that he had not had
any talk with Mr.. Allison regarding
the use of the stamps.
Deputy Collector Gill testified to re-
ceiving complaint and to coming to
this city and investigating the matter
Mr.. Allison was willing to give the in
vestigators all possible assistance in
their work and said that he had given
directions for the removal of stamps
and the reuse of them where the
stamps had been used on policies that
had not performed their functions.
Deputy Collector Sewall testified that
Mr.. Allison said he had told his clerks
to remove the stamps as testified to
by the other deputy.
At the session this morning Mr. Hem
menway stated that the complaint
was brought under section of the
revenue law, and proceeded to read
the same. He read a ruling by Com
missioner Scott relative to the redemp-
ton and reuse of stamps. He was in
terrupted by Mr.. Jones at this point,
who stated that the ruling in the
Standard was not a department ruling
Mr.. Hemmenway went on to say that
violation of the internal revenue law
was by no means criminal action.
He spoke of the instructions given to
the clerks to use stamps only on poll
cies that had not performed their
functions, and that his client had not
intended to evade the law.
Mr.. Jones here stated that under sec
ton such use of stamps was criminal.
Mr.. Hemenway replied that he should
rely Oh the testimony of the defendant
as to what he had done or permitted to
be done Commissioner Fiske stated
that the ruling read by the counsel from
the Standard did not sustain the claim
Of the defendant, but refers to the re-
demption of stamps.
Mr.. Hemenway further stated that
the stamps from the Leonard policy
was not taken from the policy by Mr.
Allison. and that he had nothing to do
with the transaction. The whole tran
saction was Mr.. Borley's. Mr.. Allison
was the first witness of the morning
and was on the stand for two hours He
spoke in a general way of insurance
business and how it was conducted:
stamps are not charged to companies
until they are used; the stamp on the
Leonard policy was Cancelled before it
was used; no charge would be made for
such stamps; did not remove the stamp
from the Leonard policy nor give direc-
tons for its removal, and did not see
the policy until yesterday
He was asked if he had read the law.
and replied that his honest interpreta-
ton of it was on the line as indicated
by him. He had never known of a
stamp being removed from an active
policy and had never given orders to
that effect
The letter book of the office was
shown to. and a letter was read to Mr..
Skllings of Winchester, asking for the
return Of the policy before mentioned
in the case under date of Sept. 16. and
a letter to Field and CoWles, on the
18th. cancelling the same. Checks that
were produced during the case, seven
in number were drawn for the office
force with the exception of one Mr.
Allison was asked why it was that this
should be the case, and he replied that
it was through no instructions of his
that the stamps in question were seen
on office checks only.
Mr.. Allison admitted that Borley
spoke to him about using the stamns
but that he was not influenced by what
was said for certain reasons. Being
pressed further, he stated that Borley
was drunk at the time.
Mabel Younglove was recalled and
testihed that the stamps used on the
Leonard policy were never charged to
the company.
M. F. Hemenway occupied an hour in
bis argument, and was followed bv Mr.
Jones. who spoke for about the same
length of Tine
at the close Of the arguments Com
missioner Fiske held the defendant in
the sum of $1,000 for the grand iurv
which reports March 4.