Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1905-12-06
How Mutual Reserve BOUGHT
OFF a Philadelphia Lawyer.
ELDREDGE TELLS COMMITTEE
NARROWING HUSH MONEY TALE
Superintendent Of Insurance Vandiver
OF Missouri Demands Clean Breast
From Mutual Reserve.

New York. Dee. 5.-Instances I'm
which the Mutual Reserve Life lnsur.
dnce company paid an aggregate OF
about 100000 in what Wee President
George d, Eldredge of that company
called 'hold-ups' were reisted To the
HE insurance investigating committee
by Eldredge today, In one ease, FL
dredge testified. the company paid
$4,000 to John Mcdonald. Il Phila-
delphla lawyer who had been active in
organizing the policy holders of tho
Mutual Reserve Life Insurance rcn;-
LalN INTO movement which charged
President Frederick A. Burnham ol
mat company with msmanagement.
| ana demanded his removal. The
charges also reflected upon Eldredge' i
management as vice president and
threat was made TO ask for the ap-
polhtment OF receiver for the COM
pahS Engaged in this movemeat ol
the policy holders also was j, 5. Hof-
fecker former auditor for the com
pany, who had been dismissed or who
mad resigned. Before leaving the
company Hoffecker Informed Presl-
dent Burnham that he resigned be-
cause their ideas as to common non
esty differed so much and because he
knew OF so many questionable trans
actions of which President Burnham
had approved. Mr. Eldredge de dared
that Hoftecker was not dismissed umIl
ne demandedan increase in salary from
$Sh To 500 week and practically II
was safer for the company 10 keep
MN thah let him go, In view 1f What
ne knew about the company
still Another "HOId-Up"
Another ingfanra nj "A IN
dredge said WAS in 1890 when Max
Beehler, 'so-caled examiner" of the
iowa insurance department, came To
New York with his son as an assistant
examined the Mutual Reserves ac-
counts. and presented to it Dill for
$4S9
Rather than pay the bin the COM
pahy withdrew its business from
Iowa, but a little later paid the ril
aud another of S346 to Max Beehler.
for veriicatlon of his previous eN-
animation, IN order 20 get permission
to do business IN Iowa.
Mr. Eldredge told also how he tried
To secure a license FOR his company to
do business Ia Missouri In 1885 and
found that 1t would have to enlpluv
w. II. Phelps as attorney before 1t
could do so.
Phelps got the license in three days
and was paid $3,500 as illegal fees"
Eldredge said
Mr.. Eldredge testified also th1, h,
was certain there was no truth IN the
statement made To a certain pvesti-
eating commission by former vice
President Wells that President Eurn-
ham had told Wells he had TO raise
$4,000 to pay to the New York in
surance department In 1899. when
Louis p. Payne was superintendent of
insurance.
The witness had previou-l. stated
that portion Of the repJrt made by
Isaac Vanderpool. an examiner Of the
New York insurance department az
ter an examination In 1899, was elm.
inated after a hearing before the in
surance department and before It was
placed on file. The part stricken out
recommended that the company be
nol allowed 10 call its lease of its home
office and assets and include it IN ity
surplus. Mr.. Eldredge declared that
the Mutual Reserve company paid no
money TO the New York state insur-
ance department in 1899 except for
the examination