The Montgomery advertiser., 1906-03-09
FOR LARCENY AND FORGERY New York InSuranceMen
 Indicted. MUTUAL RESERVE OFFICERS Alleged That They Took 5000 of
 Company's Funds. Pretended that sum Was Paid te Lew Firms for Settlement of Claims
 which Really Were Per-
 sonaI Suits.
MUTUAL RESERVE OFFICERS

New York, March s.-Indictments charging grand larceny in the first do. gree and forgery in the third degres by Frederick A. Burnham, President; c. D. Eidredge. First Vice-Presidents and George Burnham, Jr Second Vice. President of the Mutual Reserve Life Insurance Company were found by tha grand jury today. In all. five indict- ments were brought against each off tcer, two for grand larceny and threa for forgery.
 The alleged larceny and forgery was brought about, according to the indict- ments. by payments of se.000 of the companys money to the law firms, the apparent purposes of which Is alleged to have been to settle claims against the company, while the real object is alleged to have been 10 settle actions which had been brought against officers of tho companies as individuals.
 The indictments on which a charge of larceny is based alleged that the of- ficers embedded two sums. one of S7.500 and the other of s1.500 on October 24, f90f.
 The three officers appeared in the Court of General Sessions where Judge o'Sullivan fixed their ball at s1a.500 for each and fixed upon next Thursday as the time for pleading.
 George Burhani, Jr, when seen nt the company's office after the jurys action had been announced. said:
 Statement by Burnham.
 We had been expecting this and have engaged counsel to defend ua. Aside from stating that if there has been any crime committed, 1t is but a technical one. 1 do not care to discuss the case"
 In the first case of alleged forgery the indictment charges that $7.500 was "A. 4a. Nichols and Bacon. attorneys of F. F. Armstrong. to settle the claim of ArTn- strong against the insurance company arising out of a contract between him and the company. In fact, howeve-. the indictment charges the money vas paid to Nicholls and Bacon in settis- ment of an action which they as att torneys for J, Douglass Wells had 1re- viously brought against Frederick 4. Burnhafn individually.
 The second indictment for forgery charges that the defendants caused the item of sl.500 to be entered on the company's books as made in payment to James Schell and Elkus for services rendered by them to the company. In reality. declares the indictment. the money was paid with instructions to turn it over to the attorney for J. Douglass Wells. to reimburse Wells for disbursements which he claimed had been made py nm Tn deIen0inE actlona brought against him by Frederick A. Burnham individually and c. D. Eld- ridge individually and in order to in duce Wells to consent to a discontin- uance of those actions.
 For Legal Services.
 The third indictment for forgery ig based on the payment of S5,0O0 of the company's money September 24, 1901. That payment. the indictment charges, was entered in the cash book as made to James Schell and Elkus for legal services. The real purpose of this pay ment, however. Is alleged to have been for delivery to Baldwin and White, attorneys for J. Thompson Patterson, for the purpose of settling one action Winch Patterson had previously brought against the company and against Frederick 4. Burnham and c. D. Eldridge individually and three ac- tions which had been brought against Patterson. one by C. D. Eldridge indi- vidually, one by Frederick A. Burn ham and one by the company.
 In addition to tho transactions of the Mutual Reserve, the grand jury has before II a general consideration of insurance companies. Regarding this general situation the jury recent ly asked Judge oSullivan of the court of general sessions questions for glIid. ance in the proposed investigation. To- day Judge OSullivan and also District Attorney Jerome advised the jury to wait before beginning It's investigation until opinions of legal authorities can be obtained upon the questions in- volved.