The Minneapolis journal., 1905-10-10
CLERKS ARE FED
BY POLICYHOLDERS
Gillette of Mutual Life Tells Of
Money Paid to Beat
Free Silver.
Besides the "Yellow Dog" Fund,
There Now Appears a
Ham and" Fund.

There Now Appears a
"Ham-and" Fund.
New York, Oct. 10.-Vice President
Walter r. Gillette of the Mutual Life
Insurance company testified before the
insurance investigating committee to-
day that the Mutual Life paid $72,S6l
last year for luncheons for it's clerical
force in this city. This was at the rate
of almost $3.50 day.
Dr.. Gillette also testified that the
Mutual Life contributed $4,000 to the
national committees cam
paign fund in the election of 1904,
$35, 900 to the republican national COM
mittee in 1900 and $4,000 in 1895. He
justified these contributions on the
same ground as did President John A.
Mccall Of the New York Life Insur-
ance company in the contributions of
that company, saying that the st. Louis
Eha frea silver Il ssna ao TO
the policyholders. DR.. Gillette said he
authorized these expenditures after
consultation with the president, vice
presidents and some members of the
board Of trustees Of the Mutual Life
Insurance company. The campaign
contributions, DR.. Gillette said, came
from the fund controlled by the COM
mittee on expenditures.
onphant and Expense Account.
The first witness today was Robert
Oliphant, chairman Of the expenditure
committee of the Mutual Life. From
him it was expected to learn what be-
came Of $75,oo0 charged to. legal expen-
ditures. This sum was spent In three
instaMments of 1926 900 each, the last
the presidential election last year
Mr.. Oliphant said there is no limit to
the money the committee on expendi-
lures may authorize to be paid out.o
The Mutual Life maintains, confden-
tial fund for legal expenditures. The
details of payments for this fund were
not brought before the board Of trustees
but merely the total amounts.
Bills came to this committee from the
law department after being duly au-
thorized by the executive officers. The
moneys were usually drawn in cash.
For the Pohcyholders.
An entry Of $4,000 on the books
Jan. 80, 1904, witness said was paid In
cash. He was assured this was needed
for the policyholders benefit and that
all was regular. Mr.. Gillette, one Of
the vicepresidents, told him it was for
law purposes. Witness did not feel
responsible 10 the company, an execu-
tive officer having told him it was per-
fectly legal. He took no vouchers for
this payment nor for others in August
and December, 1904.
Money was similarly expended, Mr..
Oliphant said, in the term Of office Of
I - IL, ~ L. Al,
and it never occurred to Mr.. Oliphant
to ascertain to whom, the money went
beyond the word Of an executive officer.
Mr.. Hughes then read the bylaws
governing the expenditures committee,
and calling for reports Of expenditures
to this committee. Witness said no
reports were made.
Campaign Contributions.
In reply to questions by Mr.. Hughes,
the witness said he had heard contri-
| buttons were made to campaign commit
| tees, and he supposed they came out Of
this confidential fund. DR.. Gillette had
told him that campaign contributions
| had been made and there was no other
| fund this money could be taken from.
Mr.. Hughes then asked that DR.. Gill
lette be summoned. James M. Beck,
counsel for the Mutual Life, asked that
| Mr.. Granniss be excused if DIR. Gillette
appeared, as there were also presi-
dent, two vice presidents and the gen.
eral manager of the company, and some-
body was needed to run the business.
Mr.. Hughes insisted, however, that he
the company to as little Inconvenience
as possible.
Questioning Mr.. Oliphant further,
Mr.. Hughes brought out that there were
five payments in 1903 Of $25,000 each,
| all made in the same way as those In
1904 and from the confidential fund.
! Mr.. Oliphant was asked If it was .
practice to look no further into eex-
| penditures when approved by vice
president, and replied: "We have to. ,,
| Explained the $4,000.
Vice President Robert A. Granniss
was then called. He was asked about
/ the $4,000 contribution to the congress
/ He presumed it was charged to law ex-
/ penses, as that would be the natural
course. Mr.. Granniss knew Of contri-
| buttons to the republican campaign
fund in 1896, 1900 and 1904, but did
! not know the amounts. Contributions
| could be made without his knowledge.
He considered the company was justi-
/ fed in making contributions to the va
/ rious campaign funds because of the
/ free-silver menace.
Asked to approximate the contribu-
tions to the last national republican
committee, witness did not think 1t
/ would exceed $4,000. The vouchers
for the $4,000 expenditures were here
presented and one of these was signed
i by Mr.. Granniss. This was the pay,
ment in August, bat witness could NOT
tell what it was for, altho he felt it was
| perfectly legitimate at the time or he
would not have signed the voucher
heard that a general agent in the state
4 Of Washington had contributed $4,000
! to the state campaign and he did NOT
believe it.