New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1905-12-06

a copy of their report should be sent to the
Mutual Reserve but no copy appeared, ana IN
the interim the State Superintendent of Insur-
ance began to be ''rantankerous' and ask puz-
cling questions affecting the right OF the con-
pany to do business in Missouri F1nafy, MT.
Fgdridge went to Jefferson City and saw the
Attorney General, to whom the case mad peen
referred. He also employed a local attorney.
The case dragged along without setuenlene
until Mr. E1drdge declared, he abandoned All
hope and decided to come home. But at TINS
iuncture an employee in the Attorney General 8
office came to him and suggested that he had
employed 1.-The wrong man" for attorney, that
the lawyer retained not on friendly rela-
a new attorney. After some thought Mr.. FL
bridge decided to take the Tip" and employed
w H Phelps. paying him a retainer OF Soooo
The license was granted and the difficulties set
tied
How soon after you employed Mr.. Phelps was
the matter settled?" Mr. Hughes asked
Three days" was the significant reply
BIG PAYMENT TO AGENT.
A curious situation with regard to the pay
ments to Morton D. Moss, former manager OF
the Mutual Reserve agencies was shown. Mr..
F,1drfdge admitted that Mr. Moss had advanced
more than $4,000 in excess of what was due
agents and that this sum was in addition to
sSS 900 which he received through various con-
tracts and Overriding" contracts as Metropo-
ttan agent. This sum was received in time of
great financial stringency in the company. The
S15O 600 was never repaid, but making
contract with Mr.. Moss the company gave him
a lower rate Of commission and set this against
the debt
The case of a former auditor Of the Mutual
Reserve named Hoffnecker was also discussed.
Hoffnecker left the Mutual Reserve in 1898.
The reason, as explained by Mr.. Eldridge, was
that his request that his weekly salary of s35
be raised to 500 was denied. Mr. Hughes
thought he left the company because he re-
fused to audit books ordered, and read a let
ter of Hoffnecker protesting against question
able payments" Mr. Eldridge did not accept
this explanation.
Thereupon Mr.. Hughes referred to the move
ment organized by Hoffnecker and man named
Mcdonald to throw the Mutual Reserve into the
hands of a receiver. Similar organizations were
effected In various States and General B. T.
Tracy retained by the faction headed by
Hoffnecker, while Edward Lauterbach repre-
sented the Mutual Reserve. The charges made
at the time included that the company was
insovent and another that President Burnham
had n1ismanaged the affairs or the company.
The overpaynents to Moss were cited as exam
pies OF this. A settlement for $4,000 "in the
interests of the policyholders and to avoid liti-
seems to have been favorite one In many liti-
cations of this sort, in which the company has
been shown to have been involved.
MCLELLAND's MEMORY BAD.
The testimony of ex-senator McCIeiland was
confined to the $4,000 check of the Equitable.
On his earlier appearance before the committee
this voucher was shown directly after Mr.. Nc
Clelland had sworn that he never received any
money from the Equitable. His memory failed
him entirely. On his return yesterday he testi-
fed he had recalled the affair on his way home
that day. He said:
THE fact is that Mr. Fields came to me and
said that the work I had been doing was
much for the Equitable the Mutual, and the
two companies wanted to make an adjustment,
and asked me to sign the voucher to straighten
the matter out did not get dollar, except
the money had already received"
rs 1t true that you were willing to sign any
vouchers which Mr. Fields wished?
mo, sir and not for any man living" the
reply. With various memoranda on the voucher
Mr.. McCIelland declared himself unfamiliar.
Ex-senator McClelland also testified that he
had been employed at time by the Empire
Life in cases involving this companys report to
the State Insurance Department.
Just at the close of the session ce-President
Fldridge admitted that like Gage E. Tarbell
and George w. Perkins, he had taken commits
sons rebates
How did you justify this?" queried Mr..
Hughes.
Il don't justify them Just took them" was
the frank rejoinder. Mr.. Eldridge Will COM
plete his testimony this morning, taking the
stand when the committee reconvenes.