The Montgomery advertiser., 1905-10-11


 Company. asked that Mr. Grannis be excused if Dr. Gillette appeared as there were already present the Presi- dent two Vice. Presidents and the Gen. eral Manager of the company, and somebody was needed to run the busi- ness Mir. Hughes insisted. however. that he could excuse nobody, but would put the company to as little incon- venience as possible # Conndentfsl Fund. Questioning Mir. Olyphant further. Mir. Hughes brought out that there were five payments in 1893 of S25.000 each, al made in the same way as those in 1904 and out of the confidential fund. Mir oiyphant was asked if 1t was a practice to look no further into ex- penditures when approved by a vice. president. and witnes replied: We have to-"
 Robert A Grannis was then called. He was asked about the t25.000 contri- button to the Congressional committee previously discovered. He presumed it was charged to law expenses that would be the natural course. Mr. Gran his knew of contributions to the Re- publican fund in 1896, 1900 and 1904. but did not know the amounts. Contribu- tions could be made without his knowl- edge. 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 Republican committee. witness said he did not think 1t would exceed S20,000. The vouchers for s25.000 ex- penditures were here presented and one of these was signed by Mir Grannis. Witness said no contributions were made to the State campaign fund.
 MT. Grannis said he had instructed Mir. Humnel from time to time rela- tive to attention to Legislation in va rious States. but he could not recall the particulars.
 'Is your mind blank on this sub ject?" Mir. Hughes asked.
 Not entirely.'
 Well. will you please state anything that might be in it."
 You mean in my mindy' asked the witness.
 Yes"
 Well, out of respect to you. I won't speak it." hotly retorted the witness.
 Mir. .Grannis described the legislative work similar to the testimony of Att torney Thummel last week and said the expenditures for this work did not al- ways come under his direction.
 Gillett's Testimony.
 Mir. Grannis was excused for a time, and Dr. Walter R. Giilett, vice-Presi- dent of the Mutual Life Insurance Company, was called. He said he made the contract with the firm of c. H. Ray mond X Co. of his own volition, and no one was responsible for this contract prior to 1903 but the witness and the President. The $25.000 vouchers were shown the witness. All of them had been approved by the witness except the one authorized by Mir. Grannis. Dr. Gillett said they were for legal ex- ta txn for what confidential purposes these moneys were used. He did not know anyone which could tell what legal matters required the payment of $100,- 00e In one year to the general solicitor. Mr. Hughes then asked if the general solicitor could not get s25,o00 whenever he pleased, without disclosing the pur- pose for which 1t was to be used, and the witness replied that he could
 The legal expepfes for 1904 were represented Hf s3S4.0O0, while those of the New York Life Insurance Com pany were s172,0o0, and those of the Equitable s704.000. MT. Gillett said he never inquired Into the reason of the Mutual Life's legal expenses being so much greater than the two other conn panies. He said the general solicitor never made a report of what he did with moneys paid him. that he was new CT asked for a report and received no vouchers or receipts. Witness stated he did not know where a cent of the money went.
 vice-President Gillett also stated that the Mutual Life Insurance Com pany contributed $35,000 to the Repub- iican National Committee In 1900 and $15,000 in 1896. He justified these con- tributions on the same ground as did President John A. Mccall of the New York Life Insurance Company in the -Ekx CF fhnf uou the St. Louis platform of the Demo- cratic party and the free silver issue were a menace to the policyholders. Dr. Gillett said he authorized these expen- ditures after consulting with the Pres ident, Vice Presidents and some mem bers of the Board of Trustees of the Mutual Life Insurance Company. The campaign contributions. pr. Gillett said, came from the fund controlled by the Committee on Expenditures.
 pr. Gillett said that when he secured the $100.O00 in 1904 he told MT. Oli- phant what he intended to use 1t for. He said no money had been expended In any State or municipal campaign, nor had there been any contributions tQ any Congressional committee beyond the one heretofore mentioned.
 Costly Lunche0ns.
 MT. Gillette said that the Mutual Life Insurance Company paid $12,S6l last year for luncheons for It's clerlcal Iorce in this city. This was at the rate or about s250 day.
 An item of $3S. 900 for committee fees, MT. Gillette said was for compensation of committee members who are not ofn- cers of the company. MT Hughes pointed out that in 1901 $243,OOO was paid for legal expenses, while In 1sO5 1t was s347,00o Witness said this was because of the growth in the business. The fact that for the last two years the legal expenses were $loO'ooO or more greater than ever before. wit ness said occasioned an investigation "only in a general way" but there were some cases of litigation in other States, some frauds upon the company that had to be fought and caused large txpendit tres.
 The expenses of the company in 1902 were $5,47s,93s. in 1903 they were $6,- 721,3S3, and in 1904 they were $7,199.- 530. Witness was asked what he had done to reduce the cost of insurance and replied that he had done nothing more than he had explained in holding up any tenn of expense until he was assured 1t was necessary.
 Just before the recess was announced there was sharp tilt between MT. Hughes and Judge Beck, counsel for the Mutual Life Insurance Company. MT. Hughes had asked that A. C. Fields, the superintendent of the supply de- partment. be produced this afternoon. when MT. Beck jumped to his feet and said. MT. Hughes. when this investiga- tion was started we waived the ser vices If subpoehaes. You sent us list of the officers and employees you wanted St,nra