Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-10-10
INSURANCE INQUIRY
Interesting Revelations in the
Testimony Today.
WHAT TBECAME FUNDS
STATEMENTS OF LIBERAL EX-
PENDITURES ARE AMAZING.
How Certain Uses of Money Were
Charged to Vatious Accounts
Mutual Life Methods.
WHATBECAME OFFUNDS

| Mutual Life Methods.
NEW YORK. October 10-Sir John Leng
| member of the British parliament was a
| guest-ef the insurance investigating com
| mittee at it's session today.
| The first witness was Robert Oiyphant.
chairman of the expenditure committee OF
the Mutual Life Insurance Company. From
| him 1t was expected to learn what became
| of s75, COO charged to legal expenses. This
| sum was spent In three installments of S25-
| coo each, the last installment being paid
the day after the presidential election last
| year.
| Mr.. Olyphant said there is no limit TO
| the money the committee on expenditures
| may authorize to be paid out. The Mutual
| Life Insurance Company maintains a con-
| fidential fund for legal expenses The de-
| tails 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 authorized by
| the executive officers The moneys were
| usually drawn in cash.
Cash for Law Purposes.
An entry of s25, 600 on the books January
| 30 1904. witness said. was paid to him In
cash He was assured this was needed for
the policy holders benefit, and that all was
| regular. DIR. Gillette, one of the vics prtsi-
| dents. told him it was for law purposes.
| Witness did not feel responsible TO the
| company, executive officer having told
him it was perfectly legal He took no
! vouchers for this payment, nor TOR others
1 In August and December 1904.
| Money was similarly expended, MIR. Oiy-
phant said, in the term of office of his
predecessor, J. Hobart Henrick, and 1t
\ n.nt, rod tn NJ
| tain to whom the money went beyond the
| word of an executive officer. Mr. Hughes
| then read y-tlse bylaws governing the ex-
penditures committee, and calling fer re-
ports 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 eontri-
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
| that this money could be taken from.
| Mr.. Hughes then asked that DR.. Gill
| lette be summoned. James NJ. Beck
counsel for the Mutual Life Insurance
| Company, asked that Mr. Granniss be ex-
! cused If DR.. Gillette appeared as there
| were already present the president. two
| vice presidents and the general man.
| aBeT OF the company, ana somebody was
| needed to run the business. Mr.. Hughes
| insisted, however. that he could excuse
| nobody, but would put the company to
| as little Inconvenience as possible
Questioning Mr.. Olyphant further Mr.
| Hughes brought out that there were five
| payments in 1903, of $4,000 each, all
made in the same way as those in 1904.
and out of the confidential fund.
Mr.. Olyphant was asked IL ii was a
| practice to look no further to expendi-
lures when approved by vice president,
and witness replied: I'VE have to-"
Various Campaign Contributions.
| Vice President Robert A. Granniss was
then called. He was asked about the
| $1,000 contribution Ito the congressional
committee previously discovered. He
presumed it was charged to law ex-
| penses, as that would be the natural
course. Mr. Granniss knew of contribu-
| tions to the republican campaign-fund
| in 1896, 1900 and 1904, but did not know
| the amounts. Contributions could be
made without his knowledge.
Witness considered the company was
| justified in making contributions to the
various campaign funds, because of the
| free silver menace. Asked to approximate
| the contributions to the last national re-
| publican committee, witness did not think
| 1t would exceed $4,000.
The vouchers for the 600 expenditures
| were here presented, and one of these
signed by Mr.. Granniss. This the
payment in August but witness could rot
tell what 1t for. although he felt il was
perfectly legitimate at the time he
would not have signed the voucher.
Attention to State Laws
Witness said no contributions were made
to state campaign funds. He had not heard
that general agent in the state of Wash
ington had contributed s5,0o0 to the state
| campaign. and he did not believe it.
Mr.. Granniss said he had instructed Mr..
III, lot =
| tention to legislation in various states, but
| he could not recall the particulars.
| rs your mind blank on this subject?'
| Mr.. Hughes asked.
mot entirely.
well, will you please state anything
| there might be In it?'
''You mean in my mind?" asked the wit
ness.
Yes"
We'll, out of respect to you 1 won't speak
it." hotly retorted the witness
Mr.. Granniss described the legislative
work, similar to the testimony of Attorney
Thummel last week. and said the expendi-
lures for this work did not always come
under his direction
Mr.. Grannss was excused for a time and
DR.. Walter r. Gillette, vice president Of
the Mutual Life Insurance Company. was
called. He said he made the contract with
the firm of c. H. Raymond & Co. agents,
of his own yolition. and no one was re-
sponsible for this contract, prior to 1908
but the witness and the president. The
So, ,000 vouchers were shown the witness
All OF them had been approved by the Wit
ness except the one authorized by Mr..
Grannis DIR. Gillette said they were Tor
legal expenses.
Money for Confidential Purposes.
He did nothing to ascertain for what con-
fdential purposes these moneys were used.
He did not know any one who could tell.
what legal matters required the payment
of 100000 in one year to the general So
Iicitor. Mr.. Hughes then asked II the gen.
eral solicitor could not get $4,000 when
ever he pleased, without disclosing the pur-
pose for which it was to be used, and wit
ness replied that he could.
The legal expenses for 1904 were reported
at 1864 600. while those of the New York
Life Insurance Company We're si72000, and
those OF the Equitable S204,00o. DIR. Gil
lette said he never inquired into the rea-
son OF the Mutual Life's legal expenses be-
ing SO much greater than the two cher
companies. He said the general solicitor
never made report of what he did with
moneys paid him; that he WAS never asked
for ox,7, txso7 ,n,-,.