The Stark County Democrat. [volume] (Canton, Ohio) 1833-1912, 1905-11-28
So "The Rantankerous
Friend From Up The
River" Speaks Of the
insurance Business,
D.
on the Stand.
He Says it Would Have
Been Ventilated in the
Eighties if They Had
Listened to Him-Pro-
vision for Heirs.

New York, Nov. 23.-William s.
Manning. OF Albany. graybearded, hale
and hearty, who Is the man referred
to as Senator Depews "rantankerous
friend IRON up the river" and who re-
CeiVed money annually IRON the
Equitable and other companies was
the principal witness before the in
surance investigating committee to-
day.
Prior to the testimony of Manning,
Charles E. Hughes, counsel for the
committee in the examination of the
will of Edward B. Harper. former
president of the Mutual Reserve Life
Insurance Co., obtained the informa-
ton that a provision OIL this will had
caused the election of the company's
present head.
Mr.. Harper's will bequeathed the
Mutual Reserve Co. contract with
the company which provided that he
should receive twenty cents upon
every $1,000 of insurance obtained by
the company while he remained its
president. The company, however,
was to receive the money only IL Fred
erick A. Burnham was made his sue
cessor. Mr.. Burnham was elected and
is today the head of the Mutual Re-
serve. From the contract it was shown
that Mr.. Harper received S279,875 be-
tween the years of 1881 and 1894.
George d. Eldridge, first vice presl-
dent of the Mutual, revealed in his
testimony that the purpose of the
Mutual originally was not to pay a
stated amount at death but to appor-
ton the payments according to the
size of the assessment The company
charged 25 per cent more than the
cose of the risk to establish reserve
for the payment of claims.
The company increased the assess
ment of policy holders in 1890 and also
changed the bylaws to permit of a
lien against each policy. 1t was shown
that a $4,000 policy holder would have
paid $1,000 up to the year 1909. When
the amount of the death fund was
insufficient to meet the losses the re-
serve fund was drawn upon for the |
deficiency. If. policy holder died
who had contributed the % per cent
excess he would not receive his pro-
portionate share of the reserve fund,
but it would hold for the survivors
thus making form OF tontine.
The increase of assessment of the |
Mutual in 1890 and 1895 was explained |
by Mr.. Eldridge as case of necessity |
the company needed the money and |
the olders members were not paying |
what their insurance cost"
Gerlnnd Brown, head of the bond |
and mortgage department of the Equit- |
able testified that Thomas CleaIy, an
alderman in Tweed's time, received |
$26,0 900 year as janitor of the Equit-
able building. Mr.. Brown produced fig
ures showing that after expenses for
help are paid Mr.. Cleary has only
$1,000 a year for himself
In examination, Mr.. Manning, "the |
rantankerous friends from up the riv-
err" admitted receiving a retainer of
$3.50 year from John A. Nichols
since 1888. Since 1891 he has only re-
ceived $3.50 year, one of the compan-
les to the arrangement having dropped
out. Mr.. Manning testified that he did
not know the money was from the
New York Life, Mutual and Equitable
until his compensation was cut. He
took his money, he said. from, Mr.. |
Nichols to look after the Interests of
policybolders. He said he had never
made threats against insurance COM
panies but admitted that he had
known that the insurance business was
"rotten" for many years.
In an interview he said: "If they
had listened to me this insurance busi-
ness would have been ventilated In
the eighties"