The news & observer., 1905-12-06
Threats Against the Mu-
tuaI Reserve Life.
STORY OF ELDREDGE
Charges Rejecting on the Management
of Himself and President Burnham.
Fifteen Thousand Paid to Me-
Donald, Who Stirred Up the
PoIicY-HoIders
lBv the Associated Press )

New York. Dec. 5.-InstanceS in
which the Mutual Reserve Life In
surance Company paid an aggregate
of about $4,000 in what Vice-presi-
dent George ID. Eldredge of that COM
pany called hold ups" were related
TO tho life Insurance investigating
committee by Mr. Eldredge today. In
one case, in 1898, Mr.. Eldredge testi-
fed, the company paid $4,000 to
John Mcdonald, a Philadelphia law
yer, who had been active in organic
ing the policy holders of the Mutual
Reserve Life Insurance Company into
a movement which charged President
Frederick A Burnham of that COM
pany with mismanagement and de-
manded his removal. The charges
also reflected upon Mr. Eldredge's
management as vice-pfesdent, and
threat was made to ask for the ap-
pointment of receiver for the COM
pany.
Engaged in this movement of the
policy holders also was J. S. Hof-
fecker, former auditor of the com
pany, who had been dismissed or who
has VeSigned Before leaving the
company Hoffecker informed Presi-
dent Burnham that he resigned be-
cause their ideas as to common hon-
esty differed SO much, and because
he knew of so many questionable
transactions of which President
Burnham had approved Mr.. Ed
red%e declared that Hoffecker <was
not dismissed until he had demanded
an increase in salary from S35 to
500 a week and especially had said
it was safer for the company to keep
him than to let him go, in view of
what he knew about the company.
Another instance of a hold up, MIR.
E!dredge said, was in 1890, when
Max Behlery a so-called examiner Of
the Iowa Insurance Department, came
to New York with his son as an as
sistant, examined the Mutual Re
serve Life Insurance Company and
presented to it a bill for $4S9 for the
examination Rather than pay the
bill the company withdrew It's bust
ness from Iowa; but a little later
paid the bill and another of 1916 to
Max Behler for a verification of his
previous examination in order to get
permission again to do business in
Iowa.
$500 as Illegal Fees.
Mr.. Eldredge told about how he
tried to secure a license for his COM
pany to do business in Missouri i'm
1898, and found that 1T would have
to employ w. H. Phelps, an attarney
before it could do so. Phelps got the
license for the company in three days
and was paid $500 as illegal fees
Mr.. Eldredge said:
Mr.. Eldredge testified also that he
was certain there was no truth in
the statement made to a Canadian
investing committee by James d,
Wells, former vice-Dresident of the
Mutual Reserve. that President Burn
ham of that company had told Wells
he had to raise $4,000 to pay to the
New York Insurance Department in
1899, when Louis F. Payn was sup
erintendent of the insurance.
The witness had previously stated
that q portion of a report made by
Isaac Vanderpool. an examiner of the
New York Insurance Department
after an examination in 1899 was
after a hearing before the
insurance department and before 1t
was placed on file. The part struck
out recommended that the committee
be not allowed to call it's lease of it's
home office an asset and include it in
its surplus. Mr.. Eldredge declared
that the Mutual Reserve Company
paid no money to the New York State
in 1899, except for tha
examination.