Arizona republican., 1905-12-05
A DIRECTOR
 SHAKEN DOWN
An Incident in the Mutual
 Reserve Life
The Money Was Needed by a News. paper Writer Who Wanted a Free Hand.

New York, Dec. 1.-The most inter- esting development in the legislative life insurance investigation was con- tained in the testimony. of Horace A Broadway, hotel proprietor and di- rector of the, Mutual Reserve Life In- surance company, who said that he had given $6,O00 to President Frederick A. Burnham of that company at the demand of MT. Burnham in 1898. MT. Broadway told the committee that MT. Burnham told him that if he would take out a policy in the Mutual Re- serve he would make him a director. MT. Broadway then took out policies amounting to $6,000. After having been director for some time he was put on the pay roll of the company at $500 a week, received that salary for four months, and then it was cut to $200 a week. Asked what he did to earn that money, he said he look ed over some loans for the company, was consulted by policy holders as to whether the company was a good one to invest in and did whatever he was asked to do. He had been getting $500 a week for eight weeks when MT. Burnham demanded the $6,U-5.
 What President Burnham did with that money was explained by George D. Eldridge, vice president and actu- ary of the Mutual Reserve Life In Surance company, who testified that President Durham told him he had given it to Hilary Bell, a newspaper man and publicity agent of the com pany, to secure publication of articles favorable to the company at a time when it was being criticized in the newspapers. MT. Bell said that he could accomplish much more with the money if he was not compelled to re- port to the company just what he ex- pended it for.
 MT. Broadway said he is still a di- rector in the company. The reason why President Burnham was not call ed before the committee was given by his physician, who told the committee today that MT. Burnham is too sick to appear or even make a deposition.
 Eldridge also testified that his com pany had much trouble with Andrew J. Clunie when he was superintendent of insurance in California, and in six years from 1897, paid Thomas J. Clu- nie, the commissioners brother, s75O0 in counsel fees to represent the com pany before the insurance commits sioner and legislature of that state. from 1897 to 1903. Commissioner Gu. nie had raised the point that the company ought to include in it's poll cies the provision of the California law relating to non-forfeiture and to furnish certain lists of it's policy hold. CTS in that state.
 Witness said he engaged Thomas J. Clunie and that he was an attorney of high standing. Thomas J. Clunie rep resented the Mutual Reserve company before the insurance department and before the legislature of California. The license of the company, the wit ness said, was held in suspense dur ing the last two years in which An drew J. Clunie was insurance cornmis- sioner. It was issued near the end of his term. During MT. Clunie's term the company was in trouble in Cali fornia nearly all the time, MT. Fl. dridge added The successor to MT. Clunie, the witness continued, did not give the company a license to do bus mess in California, but insisted upon making an investigation, which the company did not submit to.