Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1905-12-05
How BrockWay Bought Mu-
tual Reserve DireCtOPship.
GOT SEAT ON THE BOARD
FOR A $4,000 POLICY
President Burnham Bought Up a Pub
Iicity Agent for the Company
With the Proceeds.

New York, Dec 1.-The most in
teresting development in the legisla-
tive life insurance investigation today
was contained in the testimony of
Horace Brockway, a hotel proprietor,
and director Of the Mutual Reserve
Life Insurance company, who said
that he had given So 600 to President
Frederick A. Burnham of that com
pany at the demand of Burnham in
1898. Mr.. Brockway told the COM
mttee that Mr.. Burnham told n3;u
that If he would take out poles IN
The Mutual Reserve. he would make
him a director. Mr.. Brockway then
took out policies amounting To $4,000.
After having been director for some
time he was put on the payroll of the
company at $500 a week, received that
salary for four months, and then it
was cut to 5000 week
Asked what he did to earn the
money, he said he looked over some
loans for the company, was cpnsuted
by policy holders as 10 whether the
company was a good one - insure in.
and did whatever he was asked 10. He
had been getting $500 week eight
weeks when Mr.. Burnham demanded
the $4,000.
What President Burnham djd Nth
the money was explained by George
ID. Eldredge vice president and sec
retary of the Mutual Reserve Life IN
surance company, who testified that
President Burnham told him he had
given it to Hilary Bell, a newspaper
man and publicity agent of the COM
pany, To secure the publication Of arr
dicles favorable To the company at =
time when II WAS being criticised III
the newspapers Mr. Bell had said
that he could accomplish much more
with the money IL he were not com
PEELED to report to the company lust
what he expended ii for.
Burnhnm Too Sick TO Appear,
Mr.. Brockway said he is stil di-
rector Of the company.
The reason why President Burnham
was not cnlled before the committee
was given by his physician. who told
the committee today that Mr.. Burn
ham is too sick 10 appear or even
make a deposition.
Vice President Eldredge also testi-
fed that his company had much trou-
be with Andrew j. Clunie when he
was superintendent Of insurdI GO OF
California. and In six years from 1897
paid Thomas j. Clunie. the commits
sioner's brother $500 in counsel fees
to represent the company before the
Insurance commissioner and legisla-
ture of that state.
Mr., Hughes was investigating the
relations Of the Mutual Reserve Life
Insurance company with the New
York Life Insurance company when
the committee adjourned until tomOr.
row.
Senator Armstrong. chairman of
the committee said today that the
committee expected to hu'Sh its work
by December g. but that e it did not.
the committee would not Jass out OF
existence when the legislature assem-
blcd, unless so ordered.
VIII Finish the job.
New York, Dee. { senator Arm
strong chairman of the legislative life
Insurance committee. said today that
the committee hoped to finish the In
vestigatlon by December 81. but that
II not finished. the fact that the legis-
lature convenes January 3 would not
end the life of the committee, which
could continue In existence until the
legislature by joint action ordered the
investigation stopped. The senator