Abilene weekly reflector. [volume] (Abilene, Kan.) 1888-1935, 1906-03-15
FIRST UNDER FIRE.
Grand Jury Indicts Three Insurance
Company officials.
FOR GRAND LARCENY AND FORGERY.
Legal Advice IL Being Secured BE-
fore Commencing q General
Campaign of Inquiry Among
Other Companies.

New York. March 9.-Indictmenta
charging grand larceny in the first
degree and forgery In the third de-
gree by Frederick A. Durham, pres
ident; George D. Eldridge, first vics
president, and George Durham, IT,,
second vice president Of the Mutual
Reserve Life Insurance company, were
found by the grand jury Thursday.
In all five indictments we're brought
against each oflcer, two for grand
larceny and three for forgery. The
alleged larceny and forgery was
brought about according to the In
dictments, by payments Of $1,000 Of
the company's money to law firms,
the apparent purpose 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 charge
of larceny is based alleged that the
officers embezzled two sums, one Of
$500 and the other Of $500 on o.
tober 4. 1901.
The three officers appeared In the
court OF general sessions where Judge
O'Sullivan fixed their bail at $12,50O
for each and fixed upon next Thursday
as the time for pleading.
George Burnham. 1r., when seen at
the company's Office after the jury's
action had been announced, said:
1--WE have been expecting this and
have engaged counsel to defend US.
Aside from stating that II there had
been any crime committed 1t is but a
technical one. do not care to discuss
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 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 and Bacon In settle
ment of an action which they as at
torneys, for J. Douglas Wells had pre-
viously brought against Frederick A.
Burnham individually.
The second indictment for forgery
charges that the defendants caused the
item of $500 to be entered on the
company's hooks as made in payment
to James Schell and Elkus for legal !
services rendered by them to the COM
pany. In reality. declares the indict-
ment, the money was paid with in
structions to turn 1t over to the attor-
ney Of ]. Douglas Wells to reimburse
Wells for disbursements which he
claimed had been made by him in de-
Tending actions brought against him
by Frederick A. Burnham individually,
and by George D. Eldridge individually
and In order to induce Wells to consent
to a discontinuance of those actions.
The third indictment for forgery is
based on the payment Of $1,000 Of the
moneys 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 purpose
Of this payment is, however, alleged
to have been for delivery to Baldwin
6 White, attorneys for ]. Thompson
Patterson, for the purpose of settling
one action which Patterson had pre-
Viously brought against the company
and against Frederick A. Burnham and
George D. Eldridge, individually, and
.hree actions which had been brought
against Patterson, one by George D.
Eldridge, individually, one by Freder-
ok A. Burnham and one by the COM
)any.
In addition to the transactions of
he Mutual Reserve the grand jury
las before It general consideration
II insurance companies. Regarding
his general situation the jury recently
lsked Judge o'Sullivan of the court
II general sessions, questions for guild
Ince in the proposed investigation.
Judge o'sullivan and also
District Attorney Jerome advised the
ury to wait before beginning Its In
until opinions Of legal au-
horities can be obtained upon the