Los Angeles herald., 1905-12-05
LIGHT CAST ON
MUTUAL RESERVE
SOME PECULIAR METHODS
ARE BROUGHT OUT
Hotel Proprietor Says He Was Given
$500 Week as Director, and
Then the President De-
manded $4,000
BY Associated Press.


NEW YORK, Dec. 4.-The most in
teresting development In the legisla-
tive life insurance Investigation was
contained in the testimony of Horace
A. Brockway, hotel proprietor and
director of the Mutual Reserve Life
Insurance company who said that he
had given $4,000 to President Freder-
lex A Burnham of that company at
the demand of Mr.. Burnham in 1898.
Mr.. Brockway told the committee that
Mr.. Burnham told him that If he would
take out a policy in the Mutual Re-
serve he would make him a director.
Mr.. Brockway then took out policies
amounting to $6000 After. having been
a director for some time he was put
on the pay roll of the company at 5000
a week, received that salary for four
months, and then it was cut to 5000 a
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 a good one to insure in,
and did whatever he was asked to do.
He had been getting 5000 a week for
eight weeks when Mr.. Burnham de-
manded the $4,000.
What President Burnham did with
that money was explained by George
d. Eldridge, vice president and actu-
s'irance company, who testified that
President Burnham told him he had
given 1t to Hilary Bell, a newspaper
man and publicity agent of the COM
pany, to secure the publication of the
articles favorable to the company at
a time when it was being criticised in
the newspapers Mr.. Bell had said
that he could accomplish much more
with the money if he were not COM
fn IN h,a In 1ct
what he expended 1t for
Mr.. Brockway said he is still a di-
rector of the company. The reason
why President Burnhan was not called
before the committee was given by his
physician, who told the committee to-
day that Mr.. Burnham is too sick to
appear or even make a deposition.
Talks of the cIunies
Vice President Eldridge also testi-
fled that his company had much
trouble with Andrew j. Clunie, when
he was superintendent of insurance
Of California, and in six years, from
1897 paid Thomas ]. Clunie, the COM
missioner's brother, $500 in counsel
fees to represent the company before
the insurance commissioner and legis-
lature of that state from 1897 to 1903.
Commissioner Clunie had raised the
point that the company ought to in
clude in it's policies the provision of
the California law relating to non-for-
feiture and to furnish certain lists
Of its policy holders in that state. Wit
ness said he engaged Thomas J. Clu-
ME and that he was an attorney Of
high standing. Thomas j. Clunie rep
resented the Mutual Reserve company
before the insurance department and
before the legislature Of California.
The license of the company, witness
said, was held in suspense during the
last two years in which Andrew ].
Clunie was insurance commissioner. 1t
was issued near the end of his term
During Mr.. Clunies term the COM
pany was in trouble in California near
ly all the time, Mr.. Eldridge added,
The successor to Mr.. Clunie, witness
continued, did not give the company
a license to do business in Califor-
MIA, but insisted upon making an in
vestigation, to which the company did
not submit.
The company engaged counsel to
represent 1t before the New York In
surance department in various exam
nations.
d Mr.. Hughes was Investigating the
ielations of the Mutual Reserve Life
Insurance company with the New York
state insurance department when the
committee adjourned until tomorrow.
Senator Armstrong, chairman of the
committee, said today that the COM
mittee expected to finish it's work by
December 81, but that If it did not the
committee would not pass out of ex-
isSsnce when the legislature assembled
unless that body so ordered