The Washington herald., 1906-11-29

New York. Nov. 2S-One OF the first
things brought out when the trial OF
George Burnham, jr. for the larceny Of
$500, was resumed in the Supreme Court
to-day, was the statement that ss0.g0
was paid by Frederick A. Burnham. presl-
dent of the Mutual Reserve Fund Asvo-
citation, which Was then the Mutual Re-
serve Life Insurance Company. 10 Lon
Payn, former State superintendent of
insurance. in order that the company
could make report showing that it was
in good shape
This has been referred to before. both
at the Armstrong committee Investigation
and before the Canadian senate. Before
the Armstrong committee George j. Ed
rtdge, vice president Of the company. who
IS Indicted with the Burnhams. had been
asked about it. Mr. Payn said the story
was a deliberate falsehood. and that he
never got a cent.
William Rand. jr-. counsel for the. Burn
hams, objected to the introduction Of this
testimony before the jury. ard he was
sustained by Justice Greenbaun after
The whole thing had been thresbed ont
While the jury was out OF the courtroom.
Unless something should happen 10 omen
the door for the introduction Of the tes1f-
mony. which is not likely, il will not be
admitted at the trial
Objects TO Talk About Payn.
J. Douglas Wells, who was the Cana
dian agent Of the company. and beoar,a
Cne Of the officers Of the companv here i,
lSss, was on the stand when the incident
came up. The charge against Caorge
Burnh2m is that as counsel for the com
pany he advised his brother. Frederick
Burnham, to settle a private claim Of
Wells, against Frederick A Burnham.
and that Frederick A. did so for $500.
with the company's money.
Wells testified that he went 10 Eurore
in 1897 with his vile. on business for the
company, and that the company was 10
pay the expenses Of himself and wife.
Wells put in bin for $500. and was paid
when he came back il lSqS.
Then Assistant District Attorney Mott
asked him about a conversation he had
with Frederick A Buruham soon after
that This was the conversation ttat
Mr. Rand objected to. saying that il was
in no way binding on the defendant.
Justice Greenbaum said he was familiar
with the nature Of the conversation. but
he would exclude the jury and hear ar
gument on its admissibility.
Says Payne Demanded 100000.
Mr.. Mott said that President Burnham
told Wells that he needed money: that
Lou Payn had demanded $4,000 for q
favorable report on the company's condi-
ton. as the insurance department had
investigated the company and found that
It was insolvent Mr.. Burnham also told
SIR. Wells, according to Mr.. Mott. that ne
had had many negotiations with Mr..
Payn, and that Mr.. Payn had finally de-
cided to come down to si0,005 which Mr.
Burnham paid. Mr. Payn then allowed
the company To draw up a report to suit
itself. and a draft Of the report was
shown by Mr.. Burnham to Mr.. Wells.
wells told Mr.. Burnham, said Mr..
Mott, that the report wasn't worth 20
cents, because. If the company was in
solvent. that fact ought to be known, and
il would be better for everybody con-
Cerned. If the company was solvent and
in good condition why pay the money at
all?
But Mr.. Burnham told 1Ir- Wells that
he had paid the money out Of his own
pocket; that he had borrowed the money
from friends. and that he was crippled
He had borrowed $500 from
Horace BrOkaw. and he proposed to put
him on the payroll Of the company until
the money was paid"
jerome Comes 10 Rescue.
Thereupon, Mr.. Mott said. Wells loaned
TO Mr.. Burnham $3.50, which he gave
him in cash, Mr.. Burnham making that
request
Justice Greenbaum wanted TO know
what bearing all this had on the charge
that Burnham took the c0mpany's funds
to settle the debt after Wells had brought
suit
District Attorney Jerome came into
court and went to Mr.. Nott's assistance.
He said that il was a dishonest debt. and
that there were very good reasons why
Burnham should object 20 Wells suit
going to trial and thereby bring out all
The circumstances concerning the loan. It
was most cOgent to conceal the motive
for the loan. he said.
In addition, Mr.. Jerome said. Brokaw
had been put on one compa1y's pay roll
7t $500 a week until ne got $500 for the
oan he made to BUTnham. a PROPOSE
ion made to Wells" Mr.. Jerome said.
was that he should be put on the pay
roll and paid in a like manner. These
.wO things. taken together. would Indicate
hat Burnham took the money from the
company TO pay Wells. It was an iniqui-
lone f~or,-oorfor,