Los Angeles herald. [microfilm reel] (Los Angeles [Calif.]) 1900-1911, 1905-10-11
GIVES $4,000 TO
CAMPAIGN FUND
VICE PRESIDENT OF MUTUAL
ON THE STAND
Insurance Official Tells Method of Dis
bursting Large Amounts of Money
Charged as Law Expenses"
No Questions Asked
By Associated Press.


NEW YORK, Oct. 10.-The first wit
ness at the insurance investigation to-
day was Robert Oliphant. chairman of
the expenditure committee of the Mu-
tual Life Insurance company.
Mr.. Oliphant said there is no limit
t. the money the committee on expend-
lures may authorize to be paid out.
The details of payments for this fund
were not brought before the board of
trustees but merely total amounts. The
money was usually drawn in cash.
An entry of $4,000 on the books Jan
uary 80, 1864, witness said was paid
to him in cash. DIR. Gillette, one of
the vice presidents, told him it was
for law purposes. He took no vouchers
for this payment nor for others in
August and December, 1904.
In reply to questions the witness said
he had heard contributions We're made
10 the campaign committee and he sup
posed they came out of the confidential
fund. Mr.. Gillette had told him that
campaign contributions had been made
and there was no other fund that
this money could be taken from
Mr. Hughes then asked that Mr.. Gill
lette be summoned.
Questioning Mr.. Olphant further Mr.
Hughes brought out that there Werc
five' payments ii 1903 of $4,000 each,
all mode in the same way as those in
1904, and out Of the confidential fund
Campaign Funds as Law Expenses
Vice President Robert A Grannis
was called and was asked about the
$25O0 contribution to the congressional
committee previously discovered. He
presumed it was charged to law ex-
penses as that would be the natural
course. Mr.. Grannis knew of contribu
tions to the Republican campaign fund
in 1896, 1900 and 1904, but did not know
the amounts.
Walter R. Gillette, vice president of
the Mutual Life Insurance company,
was called.
Mr. Hughes asked the witness if ths
general solicitor could not get $25, 600
whenever he pleased without disclosing
the purpose for which it was to he
used, and the witness replied that he
could.
The legal expenses for 1904 were re-
ported at $364,000, While those cf the
New York Life Insurance company
were S1740O0, and those of the Equitable
S2O4, 900.
Mr.. Hughes pointed out that in 1901
$243, 900 was paid for legal expenses,
said this was because of the growth
of the business.
Asks for No Vouchers
The expenses of the company in 1902
were 5,47S, $780, in 1903 they were 6,72l,
3S3 and in 1904 they were 7199,530. Wit
ness was asked what he had done to
reduce the cost of insurance and re-
piled that he had done nothing more
~ % I'M
any item of expense until he was as
sured it was necessary.
DR.. Gillette said he never inquired
into the reason of the Mutual Lies
legal expenses being so much greater
than the two other companies. He
said the general solicitor never made
a report of what he did with moneys
paid him, that he was never asked for
a report and received no vouchers or
receipts. Witness stated he did not
know how a cent of the money went.
Witness said that A. G. Fields super
intendent of the supply department, re-
ceives a salary of $4,000 a year, but had
not looked after his department for
several years owing to ill health.
Dr. Gillette said the accounts for tele-
graph charges. postage, taxes, adver-
tisine, medical service. law, stationery
and salaries We're under his direction
The witness testified that the Mutual
Life Insurance company paid S72,SG1
last year for uncheons for its clerical
force in this city This was at the rate
of almost $3.50 a day.
An item of $4,000 for committee fees.
DR.. Gillette said was for compensation
of committee members who are not
officers of the company"
The sessions of the insurance investi-
eating committee We're terminated for
the week ct the adjournment today be-
cause of the death of S. Fred Nixon,
speaker of the assembly of the legsla.'
ture of New York at his home in West
field, after a second operation for ap-
pendicitis