The Barre daily times. (Barre, Vt.) 1897-1959, 1905-12-05
How a $4,000 Claim Result.
ed in S4.785 Payment.
MANUEL AT ODDS FACTS
Agents Representations Shown to Be
Misleading and No Effort at Cor
rectiou Made--Cortelyou and
Bliss May Be Called.

New York, Dec. 5.--Senator Arm
szfrong, chairman of the Legislative Life
Insurance. Investigating Committee, sale
yesterday that there was an erroneou.
suppression that the life of the COMMITTEES
would end at the beginning of the next
sneasion of the Legislature on Jan. 2
This he said was not true. The com
smittee would continue in existence and
xnuld continue to sit and take evidence
nnIess the Legislature by joint action
ordered il to stop the investigation. 1--WE
hDpe and intend,' said Senator Arm
Rtspng, "to finish this investigation BY
Dec. 81, and to make our report to the
Legislature when it opens. To push the
inquiry further than that would be an
attempt to exhaust an ilexhaustible sub
Ject- We have got at the main things
and the moral effect is half. We think
we nave done all we could in the time
at our disposal
The senator said il is possible that
Postmaster General Cortelyou and Corne-
illus N. Bliss Of the Republican national
committee viii be called, but he does not
see any reason why they should. Asked
about the probability of calling other
witnesses, among whom II. II. Rogers
mad been mentioned as a possibility, the
senator said the COMMITTEES was not APP
pointed to investigate the Standard Oil
Company. There are insurance men,
he said, sswho would be glad to have us
devote the twenty three DAYS remaining
to srs to something else than insurance.
George u. Eldredgee, vice president and
nctuary of the Mutual Reserve Life In
Hurnnce Company, was the first witness
before the committee yesterday.
MFR. Eldredge was questioned concern
ing claim against the Mutual Reserve
Life In favor Of Mrs. Jennie VI s. Potter
rf East Saginaw, Mich. This claim,
based on policy for $4,000 on the life
OF her husband, was presented on May
B. 1905, was approved July 10, and paid
five months and eight days after it had
been presented, Mrs. Potter receiving
$4,70D. The company had subtracted u
lien OF $4,000 created against the policy
xfhen the policy lapscd and was renewed
In 1909.
Mfr. Eldredge said the approval Of the
rzsim was delayed because II came in too
date To be included in the june assess
mcnts. The average time taken TO pay
such claims by post mortem assessment
ne said was from four and hail to
five and half months from the date Of
the presentment Of the claim.
Mr.. Hughes questioned the witness
about the Mutual Reserve Life Insurance
Company rates and Its estimates to
agents in 1897 that the rate would notbe
increased on the ten-year plan then
adopted Mr.. Fldredge said it became
necessary to assess the poIicyholders at
tho end of eight years. The estimates
Of rates to agents on the fivc-year COM
bination option plan which was subse-
qncntiy adopted was also insufficient.
In both eases extFa assessments were
1nade necessary because the mortality
WAS greater than anticipated. The
agents were notnotified that the estimate
was insufficient, Mr. Eldrcdge said. Mr..
Hughes asked the witness what esti-
snates In the agents manual squared
with the results. Mr.. Eldredge said he
did not know that they had proved true
or untrue, as the estimates were to cover
period Of ten years in each plan, which
had not elapsed Mr. Eldredge said he
did not believe the company would have
al,e surplus 1t estimated when the ten
years had elapsed.