Los Angeles herald., 1905-12-06
Mutual Reserve Gave
Large Sums
Vice President Eldredge
on the Stand
Philadelphia Lawyer Who Had Organ
ized Policy Holders to Demand
President Burnham's Removal,
Received $4,000
By Associated Press.

By Associated Press
NEW YORK, Dec. 5.-Instances in
which the Mutual Reserve Life In
surance company paid an aggregate of
about 100000 in what Vice President
George d. Edredge of that company
called "hold ups were related to the
life insurance Investigating committee
by Mr.. Eldredge today. In the case
in 1898, Mr.. Eldredge testified, the COM
pany paid $4,000 to John Mcdonald,
Philadelphia lawyer. who had been
active in organizing the policy holders
of the Mutual Reserve Life Insurance
charged President Frederick A. Burn
ham of that company with mismanage-
ment and demanded his removal. The
charges also reflected upon Mr.. Ell
dredges management as vice presi-
dent and threat was made to ask for
the appointment of IA receiver for the
company. Engaged in this movement
of the policy holders also was J. S.
Hoffecker, a former auditor of the COM
pany, who had been dismissed or who
had resigned. Before leaving the COM
pany Hoffecker informed President
Burnham that he resigned because their
ideas as to common honesty differed
so much and because he knew of so
many questionable transactions of
which President Burnham had ap-
proved. Mr.. Eldredge declared that
Hoffecker was not dismissed until he
had demanded an increase in salary
from $35 to $1O0 a week and practically
said it was safer for the company to
keep him than to let him go, in view
of what he knew about the company.
Another instance of hold up" Mr..
III Irn1 eot1 e.
Beehler, a so-called examiner of the
Iowa insurance department, came to
New York with his SON as an assistant
examined the Mutual Reserve Life In
Surance company and presented to it
n bill for $4S9 for the examination
Rather than pay the bill the company
withdrew it's business from Iowa, but
a little later paid that bill and another
of $346 to Max Beehler for vertical
ton of his previous examination in or
der to get permission again to do busi-
ness in Iowa"
Mr.. Eldredge told how he tried to
secure a license for his company to
do business in Missouri in 1898 and
found that it would have to employ w.
II. Phelps as attorney before it could
do so. Phelps got the license for the
company in three days and was paid
$3500 as illegal fees" Mr.. Eldredge
said.
Mr.. Eldredge testified also that he
was certain there was no truth In the
statement made to a Canadian investi-
cation committee by James d. Wells,
former vice president of the Mutual
Reserve, that President Burnham of
that company had told Wells he had to
raise $4,000 to pay to the New York
insurance department in 1899, when
Louis F. Payne was superintendent of
insurance.
The witness had previously stated
that a portion of a report made by
Isaac Vanderpool, an examiner of the
New York insurance department, after
an examination in 1899, was eliminated
after hearing before the insurance de-
partment and before it was placed on
file. The part stricken out recon-
mended that the company be not al
lowed to call its lease of its home office
an asset and include it in it's surplus.
Mr.. Eldredge declared that the Mutual
Reserve company paid no money to the
New York state insurance department.
in 1899 except for the examination.