Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1906-03-09

MAGNATES
INDICTED
By Grand Jury for Larceny
and Forgery.
PRESIDENT AND VICE PRESIDENTS
EMBEZZLED TEN THOUSAND

New York, Mar. S.-Indictments
charging grand larceny in the first
degree and forgery i'm the third de-
gree by Frederick A. Burnham, presi-
dent; George d. Eldrdge, first vice
president, and George Bunham. Jr.,
second vice president of the Mutual
Reserve Life Insurance Co. were found
by the grand jury today. In all five
indictments were brought against
each officer, two for grand larceny and
three for forgery. The alleged lar
ceny and forgery was brought about,
according to the indictments, by pay
ments of $4,000 of the company's
money to law firms, the apparent pur-
pose of which is alleged to have been
to settle claims against the company,
while the real object is alleged to have
been to settle actions which had been
brought against officers of the com
pany as individuals.
The indictments on which charge
of larceny is based alleged that the
officers embezzled two sums one of
$1,000 and the other of S1,500 on Oc-
tober "a, 1901.
The three officers appeared in the
court of general sessions, where Judge
O'Sullivan fixed their bail at $12.50O
for each ana fixed upon next Thursday
as the time for pleading.
George Burnham. Jr., when seen nj
the company's office after the turys
action had been announced said:
We mad been expecting this and
4 nave engaged counsel to defend us
I Aside from stating that if there has
I been any crime committed ii Is but a
| technical one, ! do not care to discuss
the case"
I'm the first case of alleged forgery
/ the Indictment charges that $1,000 was
entered in the cash book as paid 10
| Nichols and Bacon. attorneys of Il.
/ j. Armstrong, TO settle a claim of
/ Armstrong against the insurance COM
pany arising out of a contract be-
tween him and the company. In fact.
( however the Indictment charges. the
money was paid TO Nichols and Ba-
. con in settlement of an action which
they as attorneys for j. Douglass
+ Wells. had previously brought against
/ Frederick a. Burnham individually.
/ The second indictment for forgery
charges that the defendants caused the
/ item of 1880 to be entered on the
company's books as made In payment
/ 10 James Schell ana Elkus for legal
services rendered by them to the com
pany. I'm reality declares the IN
/ dictmont, the money was paid with
Instructions TO turn it over to the at
/ torney of j. Douglass Wells to REIN
burse Wells for disbursements which
I he claimed had been made by him I'm
/ defending actions brought against him
by Frederick A. Burnham Individually
and George y. Eldredge individually,
and in order to induce Wells to con-
sent to a discontinuance Of those ac-
tions.
The third Indictment for forgery /.
based on the payment of $4,000 of the
company's money on September "a
1901. That payment was entered IL
the cash book as made to James
Schell and Elkus for legal services.
The real purpose of this payment
is, however, alleged TO have been foi
delivery to Baldwin and White, at.
torneys for J. Thompson Patterson
for the purpose of settling one action
which Patterson had previously
brought against the company and
against Frederick A. Burnham and
George D. Eldridge, individually, ant
three actions which had been brought
against Patterson, one by George n
Eldridge individually. one by Freder
ick A. Burnham and one by the com,
pany
e In addition to the transactions OF
the Mutual Reserve, the grand jury
has before it a general consideration
OF insurance companies. Regarding
the general situation the grand jurJ
recently asked Judge O'Sullivan, o
the court of general sessions, for guild
lance In the proposed investigation. To
day Judge O'Sulllvan and also Dis
trict Attorney Jerome advised the jury
to wait before beginning its investi
cations until opinions of legal author.
tiles can be obtained upon the ques
tions involved.