Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-12-05
INSURANCE INQUIRY
Former Sta'e Senator Nc
Clelland on the s and.
EXHIBITION OF MEMORY
VICE PRESIDENT ELDRIDGE OF
MUTUAL RESERVE TESTIFIED.
Told Of Payment of $4,000 to Avoid
Certain Suit by Policy Hold
eTs-Commissions.
EXHIBITION OF MEMORY

NEW YORK, December 5.-Former State
Senator Charles P. McClelland, now United
States general appraiser for the port of
New York, was the first witness before the
life insurance investigation committee to-
day. Last week Mr.. McCleland testified
that he mad never been employed by the
Equitable Life Assurance Society. He was
then shown a voucher for the payment of
S,5oO 70 him by the Equitable Society on
water account,
Mr. McClelland then said he did not re-
member the voucher Today he testified
that he recalled the voucher. ana thai An-
drew C. Fields, superintendent of the sup
ply department of the Mutual LIE Insur-
ance Company, had told him (McClelIand)
that the work NIcCIelland was doing for the
Mutual Life Insurance Company had ben
Gifted the Equitable Society also. that an
adjustment of the expenses was being made
by the companies and that Fields asked
him to sign the voucher the Equitables
share of what he had already been paid by
the Mutual.
II have never been retained by the EQuit-
able Society and never got a dollar Of that
money" said Mr.. McCleIland. 1T repre-
eented money paid me through the Mutual
Life" Asked how he remembered the
voucher, the witness said he got to think
Ing ABOUT IL. lie Sdlu ne no
water account nor any water bill on which
IT appeared from vouchers SHOWN last week
the Equitable Society divided $1,000 be-
tween McCielland, Charles Lewis and a
Mr. Johnson. Mr McClelland said he knew
nothtng about Lewis or Johnson.
Mr. McCieiiaud said he represented the
Empire Life Insurance Company as well as
the Mutual before the Insurance depart
ment and attorney general of New York
state, and was paid 500 for it.
Commissions for Policies.
George ID. Eldredge. vice president of the
Mutual Reserve Life Insurance Company,
next testified. He said that Fulton B.
Morse was general manager of the agency
department of the Mutual Reserve Life In
surance Company in 1877. Tor which he re-
ceived So per cent of the first years pre-
miums and S1.50 per S100a of renewals on
one class CT policies and 80 per cent of the
first years premiums and 20 cents per
81 600 on renewals for five years. Morse
was also allowed So, 500 a week as advances
to agents and a salary of S1O0 q week. The
total commission paid to him in 1897 aggre-
gated S4500O0 and in the same year the
advances TO him were $685.. 800.
Mr. Eldredge said the company had
vouchers for all Morse'S advances to agents.
In reply to questions by Mr.. Hughes, Mr..
Eldredge said that j. S. Hofecker an au-
ditor of the Mutual Reserve Company, re-
signed from that company in 1898 after
having refused to make an audit of a Balti-
more agents account as witness-in which
MIR. Hoffecker wrote that he could not au-
cit as requested. that our ideas of COM
mon honesty differ so much" T." and that he
knew of so many questionable transactions
approved by Mr.. Burnham that he could
no longer stay with the company. Mr.
Hughes asked if Hoffecker was then dis
missed.
Safer to Keep Man in Employ.
Mr.. Eldredge said Hoffecker was dis
missed after he demanded an increase in
salary from $35 TO 500 a week and prac-
tically said that lie knew so much 1t would
be safer for the company to keep him Mr.
Eldredge said brother cousin of Hof-
fecker in Delaware organized the policy
holders and that ''one McDonald' in Phila-
delphla and Hoffecker in New York were
active in the movement of policyholders
which threatened 10 move against the
management of the Mutual Reserve Life
Insurance Company and to secure the ap-
pointment of a receiver for the company.
1T was In the nature of eXtortion,' said
Mr.. Eldredge. But we had to consider
the expense and the interests of the policy
holders. We chose the lesser of the two
evils
Were the charges in effect that Presl-
dent Burnham had been guilty of misman-
agement and should be removed?" asked
Mr.. Hughes
There was threat of a receiver" said
Mr., Eloredge.
Against your management also?"
Il presume So
Mr.. Eldredge said the charges especially
on account of the large advances to Full
ton 3. Morse, the manager OF agents Mr.
Eldredge said the Mutual Reserve paid
$4,000 20 Mcdonald to settle the agitation.