New-York tribune., 1906-12-06
BURNHAM ON STAND.
Joseph Contradicts Testimony of
Lauterbach on Wells Suits.

George Edwin Joseph. who represented James
Douglas Wells in several suits against the Nut
ual Reserve, was the first witness called yes
terday in the trial of George Burnham, jr. His
testimony fiat contradiction OF that pre-
viously given for the defence by Edward Lau-
terbach. On cross-examination he denied ever
having had a conversation with Lauterbach
about Wells's suit against Frederick A Burn
ham.
Philander B Armstrong vice-president OF the
Manhattan Fire Insurance Company was next
called. He testified that he was TO get a 80
per cent commission on business done for the
Mutual Reserve Company and a per cent
commission on the annual dues OF the corpora
ton, which was not paid to him. In reply to
a question about Burnhams reputation he said:
TT is extremely bad"
Isaac Lndo and William Porter, controller Of
the Mutual Reserve in 1901. were the next two
witnesses called. The latter developed into
valuable witness for the defence. On Mr.. Motifs
objection Justice Greenbaum told him that he
was not to decide the nature of the testimony
that he to give and that he was not to con-
slider himself as counsel in the case.
Seweu f. Tying. a lawyer, gave the jury a his
tory of the suits against the company and told
of the alleged Hbellous articles against the cor
poraton published in insurance newspapers
The defendant George BUrnham, jr., was the
final witness to take the stand. He gave his ad-
dress as No. G6 East 18th street. and said that
he had lived in New York for thirty years. He
testified that he had been connected with the
Mutual Reserve Company for eleven years. was
counsel for the corporation and received 500
week salary vice-president. He said that he
knew of the series of litigatiOns brought against
the company in 1900 and 1901. that he had often
seen and conferred with Joseph. who told him
that the poliCyhOlders resented the increase OF
the assessment and wanted a settlement
He testified that he had told Vice-PreSident
George Eldredge of the claims brought by Wells,
Levy and Hendrix and of the threatened suit by
Armstrong The vice-president. he said, had
told him TO confer with Colonel James and Fred
erick a. Burnham. The defendant then testified
that he had told Joseph he would not negotiate
cepJ a retainer from the company and agree 20
accept no further claim against the company.
Later he told Joseph that the company would
make no settlement with Wells Joseph. he said,
then intimated that he could get the Wells and
Patterson claims out of the way.
After these two claims had been disposed o.,
the witness said, Colonel James advised him 20
settle the other claims with Joseph and directed
him 10 draw the check TO Nichols & Bacon He
said that, acting on this advice, he saw Joseph
and the Armstrong contract for S1350O He
said, further, that he had never discussed set
tlement of the Wells claim with Joseph, and the
final agreement was that $1,000 be paid to Jo-
seph and the remainder of the $4,000 be put
in escrow on the surrender Of the Bendtx Levy
policies.
Burnham said that the warrants and checks
were recorded in the book of the company. and
the method Of settlement was approved by the
officers of the corporation. When the Patterson
matter settled and the Wells action dis
posed of the $500 was taken out Of escrow and
paid to Joseph.
Court then adjourned. The examination Of
Burnhan will be continued to-day.