New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1905-12-06
"HOLD UPS" FOR HUNDREDS
MUTUAL RESERVE Paid.
Queer Light on officials Of Western
IStates-McCIeIland Remembers.


yesterday. IN these "'1old-ups' the Missouri ana
Iowa denartments of past years placed In
an exceedingly curious light by Vice-Presioeii'
FSldridge who kept the stand during most OF 'he
session The former denials of charges iIau0
that the Mutual Reserve paid Lou "a" "
$4,000 for the modification of his report re
gardIng this company were renewed
shown, however that the report mace "
SUPERINTENDENT Payn by a subordinate Nailuei
oaI ,,.s materially modified by the omission or
ope recommendation made by him. rms rec
on,mendation would have reduced the surplus
OF the company from approximately S1'i'V'o0
10 about s23.O coo. Large legal fees for various
examinations by the New-fork state Dep'i :
r,ent were shown. These were pald III NUS
instances to either Edward Lauternach VI
Roardman. Platt & Solely, or its predecessor
Tracy, Roardman & PIatt. who represented lhe
company.
senator Charles p McClelland, of West
chester an appraiser at this port was recaleo
yesterday and remembered that the So,oVo EQui-
table voucher he had forgotten all about repre-
santed a favor he had done for his close IrleiIN
- bo.+ AZ the .f4ouse OF Mirth." Andrew &
Fields the MutuaTs Legislative generalssinio
AT Fields's request he had signed the Voucne.'
- o,nIained 70 permit the other to adjust ms
accounts but he renewed his former aeclala-
ton that he had never received any part OF tl'e
money and knew nothing about the cnouiA
stances attached to its payment
inst at the close of the session an lnteres1Ai1e
,oin+ was brought out that makes the aO'e
of President Durham through illness S' -
5enIorable Earlier sessions developed INC -
that when the Mutual Reserve acquil
Northwestern Company, 1t PAID 10 Do"A
,,rrfa,,, SOL 600 in Communication of his COM
iss;one Yesterday the further payment roi
s4oeo0o to Merriam in connection with TINS uea1
r-ae shown The most interesting part Oh thiS
4f,ir was that this money was at once as
SIGNED over by Merriam TO George Slorni M
Storm was identified by Mr. Eiorlose o
former tobacco manufacturer ana CLOSE -
of President Burnham. now dead. Storln nv
q. +be Savoy together with Burilhalh a' w
time and MI Hughes was evidently ANXIOUS
- End ont if this money ultimately fouho us
way to Burnham
THE REPORT CHANGED.
Tho examination of the Mutual Reserve by
f,Y,ner Superintendent Payn, in which II was
charged. the $4,000 payment was made 10 Fayh
bv Burnham, was probed with great minute
,-ess nv Mr. Hughes. The examination was
made as a result of charges made against the
,,1,,,,.r, and Examiner Vanderpool of the
5e,artn7ent reported 10 the Superintendent con-
earning the condition of the company By care
r,,1 cross questioning Mr.. Hughes brought out
the fact that one of Mr.. Nanderpools recoiii
rnendations apparently Of Importance was Hot
contained in the final report. which also olo
not discuss the charges. The portion oiii'loU
was a recommendation that the assets oi 'ii0
company allowed. be reduced by Sl,Ifo'oo'' INC
cum on deposit in various departments at home
and abroad This would have made the surplus
500 $50 insteadlof S1107.526. the sum finally
allowed Mr. Hughes examined the final re
mort and could find no trace Of even men
tion Of the original finding of Mr.. Vanderpool,
hut Mr. EIdridge insisted this was usual ana
maintained that there had been no request n1aoe
nv the company for such elimination ray
rnents for legal expenses in this examination
and other pending affairs for that year were
shown 10 have been made to Edward Lauter-
zach asgregating S2O.50O, and to James. Shell
E F,lkfns of S121S5 49, A small portion Of
this went to the department TO defray the cost
Of examination in accordance with the law.
Mr. Hughes went over this ground several
times. framing every sort of question that might
show any money paid TO former superintendent
Pawn but the witness insisted that the S4O,ooo
had never been paid, declared that President
Burnham had emphatcally denied any such
nay7nent and insisted that no important onis-
sion such as would call for such a payment had
been made in the report. He admitted. however,
that during this time Mr.. Burnham was getting
his 5000 week contingent fund.-" but insisted
none Of this was used for this purpose. This
fund he explained. paid Bur1ham's expenses
abroad and I'm this country, included an item
of 81 900 paid for a charitable Hebrew fair,
but no campaign contributions. Mr.. Eldridge
was positive that Payn received no money
directly or indirectly" from the company.
PAYMENTS in the course OF examinations in
later years were discussed in detail One of
S15O27 TO Tracy, BoardInan & Plat in 1900
was coincident with the introduction Of bill
in +be legislature on which there were several
public hearings. Apparently the bill was
..iockeved" by the insurance legislators, for 1t
was first reported by the committee and then
Teoommitted on the motion OF member of the
committee. one of the favorite methods en-
ployed at Albany of bringing interests to
terms Ultimately the bill failed. but it was
passed the following year, when the company's
legal expenses amounted to $4,000. Mr.. Ell
aridge was sure this money did not go for any
improper purposes. Other legal expenses in
other examinations We're shown
THE IOWA .'HoLD-UP"
1t was while this was being considered that
Mr. Eldridge suddenly volunteered the interest
ing information that the Mutual Reserve had
been held UP" in Missouri and in Iowa In
1900. after license had been granted the COM
pany in the latter State, Max Behler, VINO.
Eldridge declared was well known to insurance
men in this city and an examiner Of the Iowa
Insurance Department. appeared at the New
York office and brought with him his nineteen
year-old son. Mr.. Behler. Mr. Eldridge test-
fed informed him that he had come to make
an examination of the affairs OF the company.
After ten days stay he departed saying that
after the Republican campaign in Iowa was
ended he would corce back and finish. He then
presented bill for s4s9 7s for his service and