Watertown weekly leader. [volume] (Watertown, Jefferson County, Wis.) 1906-1908, 1906-12-21
BURNHAM, JR.,
SENT TO PRISON.

BURNHAM, JR.,
SENT TO PRISON.
General Counsel of Mutual Reserve Life
Gets Two Years in Cell-0n Ad-
ministration Ticket.
NEW YORK, Dec. 11.-George Burn
ham, Jr., general counsel for the Mutual
Reserve Life Insurance company, re-
Gently convicted of larceny, today was
sentenced to serve two years in states
prison. Sentence was passed by Justice
Greenbaum in the supreme court.
The justice granted motion for
stay of execution until next Thursday
when counsel for the prisoner VIII pre-
sent papers in an appeal.
On Administration Ticket.
Considerable comment has been made
in life insurance circles during the last
few days over the fact tnat on the add
ministration ticket in the Mutual Re
serve, as candidate for trustees, are
George Burnham, Jr., Frederick A.
Burnham, president, and George ID. Eld-
| ridge, also vice president The two lat
ter are awaiting trial on the same
charge of which George Burnham, Jr.,
was found guilty.
Among the Mutual Reserve admins
tration candidates also is Horace ii.
, Brockaway, who was concerned III the
Lou Payn $4,000 check affair.
Elections End Tuesday.
1t was not a quiet Sunday in the
offices of the Mutual and New ork
Life. Many persons were on hand and
offices were kept open in order to re
ceive the great mail which comes each
day with the ballots, proxies, and other
/ literature of the campaign.
The offices of the international policy
holders committee, which organization is
fighting both the Mutual and New York
| Life administrations, were open early
and for all day. A large force was kept
busy attending to the mail, which came
in big sacks. Between Monday morning
and Sunday evening last week there was
received at the committee offices over
$4,000 ballots for the election OF trustees
| which ends tomorrow.
Reforms Effective New Years.
Many of the most important of the life
insurance reforms enacted by the LegiS-
lature following the report of the Arm
strong investigation committee become
operative on the first day of the new
year. On January l the law limiting
the amount of money a company may
expend to acquire new business becomes
!
the agents hardest.
This will have different results in diff
ferent companies. Averaged it will
amount to a shrinkage of between one
fifth and one-fOurth of the agents COM
missions. In other words, when an
agent was getting so per cent, or say a
commission of $50, for bringing in a
policy, he will get under the new law
$50 or $50.
Limit on Renewals
His interest in the subsequent or re-
newaI premiums also is curtaied In
some of the smaller companies the
agents have been getting a commission
on the premiums throughout the life of
a policy. On endowment policies they
are limited to > per cent of the renewal
premiums for nine years. On all other
policies the limit is ~ per cent for
/ nine years. This hits the managing
agents harder than the solicitors or field
men.
All of the companies must file with
the superintendent of insurance detailed
reports of their condition as of Deem
Der 81. This will be the first practical
test of the publicity section of the new
insurance law.
Lists OF securities purchased and sold
during the year, with the price fucua-
tons, must be furnished, with the profits
! or losses of each transaction. The com
missions paid on these trades must be
reported. Every penny spent for legis-
| lative purposes must be accounted for in
detail The name and compensation of
every officer or employee drawing a salary
OF 5000 q year or more must be fur
nished. Details of all real estate opera
lions are required.
Beginning the first of the year every
policy issued must contain the complete
contract between the insured and the
/ company.