The Bamberg herald. [volume] (Bamberg, S.C.) 1891-1972, 1906-03-15
OFFICIALS INDICTED
Theft and Forgery in Mu-
tuaI Reserve is Alleged
FINDING OF GRAND JURY
President, First and Second Vice Pres.
i1ents Arraigned in Court and
Give Bond - Spent Money
to Settle Private Claims.

Indictments charging grand larceny
in the first degree and forgery in the
third degree by Frederick A. Burn
ham, president; G. D. Eldridge, first
vice president, and George Burnham,
Jr, second vice president Of the Mu-
tual Reserve Life Insurance compa-
Ey, were found by the grand jury ct
New York Thursday.
In all, five indictments were
brought against each officer, two for
grand larceny and three for forgery.
The alleged larceny and forgery
were brought about, according to the
Indictments, by payments Of $4,000 OF
the company's money to law firms,
the apparent purposes of which is al
legged to have been to settle claims
against the company, while the real
object is alleged to have been to set
tie actions which had been brought
against officers of the company as IN
dividuals
The indictments on which a charge
Of larceny is based allege that the
officers embezzled two sums, one II
$500 and the other of $1,000, on o.
tober "a, 1904.
The three officers appeared in the
court Of general session, where Judge
O'Sulliyan fixed their bail at S12,500
fer each and fixed upon next Thurs
day as the time for pleading.
George Burnham, Jr., when seen at
the company's Office after the jurys
action had been announced, said:
1--WE had been expecting this and
have engaged counsel to defend us.
Aside from stating that if there has
been any crime committed, it is but
a technical one, 1 do not care to dis
cuss the case"
In the first case of alleged forgery
the indictment charges that $500
was entered in the cash book as paid
to Nichols and Bacon, attorneys OF P.
P. Armstrong, to settle the 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 Mich
oils and Bacon in settlement OF an
action which they, as attorneys for J.
Douglass Wells, had previously
brought against Frederick A. Burn
ham individually.
The second indictment for forgery
charges that the defendants caused
the item of s1,500 to be entered on
the companys books as made in pay
ment to James Schell and Elkus for
legal services rendered by them to
the company. In reality, declares the
indictment, the money was paid with
instructions TO turn it over to the at
torney for J. Douglass Wells to reim-
burse Wells for disbursements which
he claimed had been made by him in
defending actions brought against him
nv Frederick A. Burnham individually
and by G. D. Eldridge individually,
and in order to induce Wells to con-
sent to a discontinuance of those &C.
tionS.
The third Indictment for forgery is'
based on the payment of $4,000 OF the
ccapanv's money on September "a,
1901. That payment, the indictment
charges, was entered in the cash book
as made to James Schell and Elkus
for legal services. The real purposes
of this payment is, however, alleged
to have been for delivery to Baldwin
& White, attorneys for J. Thompshon
Patterson, for the purpose of settling
one action which Patterson had pre-
viously brought against the company
and against Frederick A. ,Burnham and
G. 2. Eldr:dge individually, and three
actions which had been brought
against Patterson, one by G. D. Ed
ridge individually, one by FREDERICK
A. Burnham, aud one by the company.
In edition to the transactions OF
the Mutual Reserve, the grand jury
has before it a general consideration
of insurance companies.