The Morris County chronicle. [volume] (Morristown, N.J.) 1877-1915, 1906-03-13
THE INSURANCE AXE FALLS.
Three Mutual Reserve Officials In
dicted in New York Gil,
LARCENY AND FORGERY CHARGED

President F. A. Isurnhams vice-Presfdent
George D. Eldridss and second
vice-Presidens George Burnhaln. Jr..
Arrested and BaiIed-- Grand Jury's Ac-
tiOn spreads Conformation.
New York City.-The first tangible
result to appear as the result Of Dis
trict Attorney Jerome's examination Of
the testimony that was taken by the
Legislative Insurance Investigating
Committee was the Indictment Of three
officers of the Mutual Reserve Life In
surance Company ON charges Of grand
larceny in the first degree and forgery
in the third degree The men indicted
are Frederick A. Burnham, president;
George D. Eldridge first vice-president,
and George Burnham, Jr., second vice
president. In all, five indictments were
brought against each officer, two for
grand larceny and three for forgery
The alleged larceny and forgery was
brought about, according to the indict
ments, by payments of $4,000 of the
company's money to law firms. the APP
parent purpose of which is alleged to
have been to settle claims against the
company, while the real object is al.
legged to have been to settle actions
which had been brought against officers
of the company as individuals.
The indictments on watch q charge
of larceny is based alleged that the off
GERS embezzled two sums, one of $500
and the other Of $500, ON October "a,
1901.
The three officers appeared in the
Court of General Sessions, where Judge
! O'SullivaL fixed their bail at $12, SOC
for each.
In the first case of alleged forgery
the indictment charges that $500 was
entered in the cash book as paid to
Nichols & Bacon, attorneys of P. 2,
Armstrong, to settle claim of Arm.
strong against the insurance company
arising out of contract between him
and the company. In fact, however
the indictment charges, the money was
paid to Nichols & Bacon in settlement
of an action which they, as attorneys
for j. Douglass Wells, Lad previously
brought against Frederick A. Burnham
individually.
The second indictment for forgery
charges that tie defendants caused
$1,000 to be entered on the company's
books MS made in payment to James
Schell & Elkus for legal services rem
dere1 by them to the company. In re.
atty, declares the Indictment, the
money was paid with instructions to
turn it over to the attorney o. ]. Doug.
las Wells to reimburse Wells for dis
bursements which he claimed had been
made by him in defending actions
brorgls against him by Frederick A..
Burnham, individually, and by George
D. Eldridge, individually, and in order
to induce Wells to consent to 9 discon-
tinuance of those actions.
The third indictment for forgery is
based on the payment Of $4,000 of the
company's money on September "a
1901. That payment, the Indictment
charges, was entered in the cash book
as made to James Schell & Elkus for
legal services. The real purpose of this
payment is, however. alleged to have
been for delivery to Baldwin & White
attorneys 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 Geo.
D. Eldridge. individually, and three ac-
tions which had been brought against
Patterson. one by George D. Eldridge,
individually, one by Frederick A. Burn-
ham, and one by the company.
The indictments produced consterna-
ton among officials Of insurance COM
panies whose methods were exposed by
the Armstrong committee. Their fear
of the results of the probing of the
Grand Jury, under the direction OF Dis
t1ict Attorney Jerome, was manifest
when it was learned that many Of
them had retained William Rand. Jr.,
former Assistant District Attorney, to
defend them.