The French Broad hustler. [volume] (Hendersonville, N.C.) 1896-1912, 1906-03-15
THE INSURANCE AXE FALLS
three Mutual Reserve Officials he
dieted in New York City.
ARCENY AND FORGERY CHARGED

resident f. A. BurnhaIn, Vice.Presfdent
George d. EIdridge acd Second
Vice-President George BurnhaIn. Jr.s
Arrested and B~aiied-Grand Jury's Ae-
ton spreads CONSERVATION.
New York City.-Ihe first tangible
result to appear as the result Of Dis
triet 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 mem 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. ap-
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 which a charge
Of larceny is based alleged that the Off
GERS embezzled two suIns one of $500
and the other Of $780,, en- October q,
1901.
The three officers appeared in the
Court of General Sessions, where Judge
O'SullivaL fixed their bail at $4,000,
for EACH.
In the FIRST case of Alleged forgery
the indictment charges that $500 was
entered lis the cash book as paid to
Nichols s. Bacon. attorneys of P. p.
Armstrong. to settle a. claim of Arm.
strong against the insurance company.
arising out Of a 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 FredericM A. Burnham
Individually
The second Indictment: for forgery
charges that tie defendants caused
$500 TO be- entered On the company's
books as made in payment to James
ScheIl & EIkus for legal services rem
dered by them to the company In re-
ality. declares the Indictment, the
money was, paid with instructions to
turn it over TO the attorney of ]. Doug
las Wells to- reimburse Wells for dis
burSements> which he claimed had been
made by him in defending actions
broUgl- against him by Frederick A.
4 pfO n n M f1uIi W ~ Il- .~ET I- -
D. Eldridge.. individually. and in order
to induce Wells to consent!tO c discon-
tinuance of t0Ose actions.
The third Indictment for forgery is
based on tbs 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 Schelli& 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% individuallyy-and three ac-
tons which had been brought against
Patterson. one by George d. Eldridge, |
Individuality one Dy tred09tck a. Burn.s
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
trict Attorney JerOmee. was manifest
when it WAS learned that many OF
them had retained Wil1lam Rand. Jr.,
former Assistant Distrh1d Attorney, to.
defend them.