Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1905-12-05

New York, Dec 4.-The most inter.
e.:ing development i'll the Legislative
life insurance investigation, today, was
contained in the testimony of Horace
II. ErockNaH &c hofel proprietor and
director of she N Etual Reserve Life In
surancc Co; VINO said that he had CIV
en- $4,000 to President Frederick A
Eurnham of that company at the de-
mdnd of Mr.. Burnham, in 1893. Mr.
Erockway told the committee that Mr.
Rurnham told bin that if he would
take out policy in the Mutual Reserve
that he would make him director. Mr.
RrockWay then took out policies
amounting 20 $1,000. After having been
a director for some time. he was put
on the payroll of the company at $500 u
week, received that salary for four
months and then it was cut to 5000 a
week. Asked what he did to earn that
mrny. he said he looked over some
loans for the company was consulted
hy pOlicyhodcrS as to whether the
company was Il good one to insure in
and whatever he was asked to do. He
had been &c ting 5000 a week for eight
weeks when Mr.. Burnham demanded
the $4,000
What President Burnham did with
tat money was shown by subsequent
testimony Of George ID. Eldredge, vice
president and actuary of the Mutual
Ers,rvc Lite. who told the committee
that President Burnham told him he
had given It TO Hilary Bell, Il newspa-
rcr man. ana publicity agent of the
company. to secure the publication of
articles favorable to the company at
time when il WAS being criticized in
the newspapers. Mr.. Bell said that he
could accomplish more with the money
if he were not compelled to report to
the company. The reason why Presi-
drrt 1.tff,ifi.i III Mas not called before
the committee WAS given by his physi-
clan, VINO told the committee, today.
that Mr. Eurnham is too sick to APP
pear or even make a deposition.
Vice President Eldredge also told the
committee. today. that his company
had much trouble with Andrew ].
CluIiG Wheu he was superintendent of
insurance of California and in six years
from 1897 paid Thomas j. Clunie. the
commissioners brother. $500 in coun-
sci fees t" represent the company be-
tore he Insurance department and
Legislature Of that state.
Mr.. Hughes was Investigating the re-
turns Of the Mutual Reserve Life with
the NV York state insurance depart
mcnt when the committee adjourned
until tomorrow. Vice President Ell
drcd%c had been on the stand nearly
all day
senator Armstrong. chairman of the
committee. said. today, that the COM
mittec would not pass out of existence
when the Legislature assembled unless
that body so ordered.
NV York. Dec. 4.-ScnatOr Arm
strong. chairman of the legislative life
inS'ranC" investigating committee, said
today that there was an erroneous i'm
prcssirn that the life of the committee
would end at the beginning of the next
session Of the legislature on Jan. ..
This h. said was not true. The COM
Erittcc would continue in existence and
could continue to sit and take evidence
unless iii" legislature by joint action
ordered it to stop the investigation.
We hope and intend" said Senator
Armstrong, TO finish this investigation
by Dec. Il and 10 make our report to
the Legislature when it opens To push
the inquiry further than that would DC
an attempt to exhaust an inc2hauStible
subject We have got at the main
things and the moral effect is half We
think we have done all we could i'm the
tune IT our disposal.
Tho senator said 1t is possible that
Postmaster General Cortelyou and Corr
nelius n. Elss of the Republican nation
al committee. will be called. hut he does
not sec any reason why they should.
ASKED about the probability of calling
other witnesses, among whom II. II. Rog-
CS had been mentioned as possibility,
'he senator said the committee was no.
appointed to investigate the Standard Oil
-. There are insurance men," he said
WE" would he glad to have us devote
III" other - days remaining to us to
something else than insurance" George
II, tidredge. vice president and actuary
"t The Mutual Reserve Life Insurance Co,
was the FIRST witness before the com
mittce, today.
MT Eldr2dce was questioned concern
Il claim against the Mutual Reserve
''' insurance Co. in favor of tMrs. Jen-
'. : Potter of Saginaw, Mich. This
,i'"'' hASed on policy for $1,000 on the
VI her husband. was presented on
-''H :" r"' YVES approved on July 10 and
l''S'Hl'ed i've months and eight days al
'r II had been presented. Mrs. Potter re-
ewing sl'to The company had subtract
.u Hen of $500 created against the poi
NY When the policy Iapsed and was re
newed in 1902
nr' Eldredge said the approval of tn,
IAN" was delayed because it came in toe
ia'e 10 be included in the June assess
i"eh'S' The average time taken to pa,
nuch Grams by postmortem assessments
&c SAID was four and half to five an,