Arizona republican., 1905-12-06
DRAWBACKS
 OF INSURANCE
The Mutual Reserve and the
 BlaCkmaiIerS
Large Sums Paid to State Superin. tendent, Examiners and Others on the Inside.

New York, Dec 5.-Instances Tn which the Mutual Reserve Life Insur- ance company had spent an aggregate of about $20,000 in what Vice Presf- dent George D. Eldredge of that com pany called "holdups" were related to the life insurance Investigating com mittee by MT. Eldredge today. In one ease, in 1898, MT. Eldredge testified, the company paid $15,00O to John Me Donald, a Philadelphia lawyer. who had been active in organizing the po- licy holders of the Mutual Reserve Life into a movement which charged Pres ident Frederick A. Burnhaln, of that company with mismanagement and de- manded his removal. The charges al- so reflected upon MT. Eldredge's man agement as vice president and a threat was made to ask for the appointment of a receiver for the company.
 Engaged in this movement of the po- licyholders also was J. s. EIoffecker, q former auditor for the company who had been dismissed or who had resign ed. Before leaving the company Hoff- ecker told MT. Burnham that he resign ed because their ideas of cominon hon. esty differed so much and because he knew of so many questionable transac- tions of which President Burnham had approved. MT. Eldredse declared that Hoffecker was not dismissed until he had demanded an increase in salary from $35 to $100 a week and practi- cally said it was safer for the com pany 10 keep "iro than to let him go in view of what he knew about the company
 Another instance of holdup," MT. Eldrcdge said, twas in 1891, when Max BeehIer. socalled examiner or the Iowa insurance department came to New York with his son as an assistant. eX- amined the Mutual IteseIve Life In- surahce company and presented to it a bill for $4S9 for the examinations Rather than pay the bill, the company withdrew its business from Iowa but little later paid that bill and another of S346 to Max Beehler for a verific..- tion of his previous examination, in order to get permission again to dc businuss in Iowa.
 Mir. Eldrcdge told how he tried to secure a license for his company to do business in Missouri in 1898 and found that it would have to employ w. E. Phelps as attorney before it could do So Phelps got tile license for the com- pany in three days and was paid $3500 as illegal fees" MT. Eldredge sald
 Mir. Eldredge testified also that he was certain there was no truth in the statement made to Canadian investi- gation committee by James D. Wells, former vice president of the Mutual Reserve, that President l,urnhani af that company had told Wells he had to raise $40,000 to pay to the New York Insurance department in 1899, when Louis F. Payn was superintendent of insurance.
 The witness had previously stated that a portion of a report made by Isaac Van Dcrpool. an examiner Of the New York insurance department after an examination in 1899, was eliminated after a hearing before the insurance department and before it was placed on file. The part stricken out recom- mended that the company be not allow ed to call its lease of it's home an as- set and include it in its surplus Mir Eldredge declared that the Mutual Re- serve company paid no money to the New York state insurance department in 1899, except for the examination.