The daily morning journal and courier., 1905-12-05
MADE DIRECTOR FOR TAKING OUT POLICIES
HUGHES PROBE UNCoMFORT- ABLY NEAR MUTUAL RE-
 SERVE LIFE'S HEART.

Horace H. BrOeIkway EnIIghtens Com
 mittee as to How He Got Into Di-
 rectOry of COmpany-Put on Pay Roll
 at $500 Per week-Had Taken 0rS=-
 s6,OOO in Policies on Request of Presi-
 dent Burnham-This Sum Paid to a
 Publicity Agent to Publish Articles
 Favorable to Company
 New York, Dec. 4-The most inter- esting development in the legislative life insurance investigation to-day was contained in the testimony of Horace H. Broekway, a hotel proprietor and director of the Mutual Reserve Life h. surance company, who said that he had given $6,OO0 to President Frederick A. Burnham of that company at the de- mand of MT. Burnham in 1898. MT. Broadway told the committee that MT. Burnham told him that if he would take out a policy in the Mutual Re- serve that he would make him a di- rector. MT. Broadway then took out | policies amounting to $6,0O0. After hav- i ing been a director for some time he was put on the payroll of the company at $500 a week, receiving that salary for four months and then 1t was cut to $200 week. Asked what he did to earn that money he said he looked over some loans for the company, was consulted by policy holders as to whether the company was good one to insure in and did whatever he was asked to do. He had been getting $500 a week eight weeks when Mir. Burn l ham demanded the $6,000.
 i What President Burnham did with that money was shown by the subse- quent testimony Of George L. Eldredge, vice president and actuary of the Mu- tual Reserve Life Insurance company, who told the committee that President l Burnham told him that he had given l it to Hilary Bell, a newspaper man and publicity agent of the company, to se- cure the publication of articles favor able to the company at time when 1t 1 was being criticised in the newspapers. | MT. Bell said that he could accomplish much more with the money if he were not compelled to report to the com pany just what lie expended 1t for.
 E MT. Broadway said he is still a direc-
 tor of the company. The reason why. l President Burnham was not called be- fore the committee was given by his # physician, who told the committee to-
 day that MT. Burnham is too sick to
 appear or event make a deposition Vice President Eldredge also told the committee to-day that his company had much trouble with Andrew J. Gu nie when he was superintendent of in- 1 surance of California, and in six years l from 1897 paid Thomas J. Clarke the commissioner brother, $7.5OO in coun-
 sel fees to represent the company be- fore the insurance department and leg 1 islature of that state.
 MT. Hughes was Investigating the re-
 lations Of the Mutual Reserve Life Iri-
 surance company with the New York state insurance department when the
 committee adjourned untii to-morrow. i Vice President Eldridge had been on
 the stand nearly all day,
 Senator Armstrong, chairman Of the
 committee, said to-day that the com mittee expected to finish It's work by
 December 31 but that, # it did not, the
 committee would not pass out of exis-
 tence when the legislature assembled unless that body so ordered.