Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-05-17
CASH FOR A VERDICT
ALLEGED EQUITABLE BRIBE TO
WISCONSIN, OFFICIAL.

The most sensational testimony which
has been presented to the special insur-
ance investigating committee Of the Wis
consin legislature was given at Milwaukee
yesterday afternoon, when State Insurance
Commissioner Host testified that on June
10, 1905, the day on which the hearing In
the case OF tho state OF Wisconsin against
the Equitable Life Assurance Society for q
compulsory distribution Of the surplus of
that company to Wisconsin policy holders
was to be held by him. Secretary Of State
Houser entered the insurance commits
stoner's office and said that II Host would
render . decision In accordance with a
slip handed by Houser to Host that the
Equitable Life would give 1900 toward a
campaign fund for the denomination OF the
state officers In the next campaign. The
slip. Host testified. Houser handed to him
was presented to the commission and con-
tanned these words:
Petition is denied and same is dismissed
for the reason that a determination Of the
subject thereof requires the exercise of ju-
dicial function that cannot be exercised by
the defendant.
ut Is further announced as a rule of
this department that no similar proceed
inGs be entertained until a final adjudica-
ton OF the same Is had in the courts Of
the state
Host testified that he told Houser that
he would think the matter over. His de-
cision was against the Equitable Life
Assurance Society. which afterward took
the case into the courts and there OBJ
tained a rule adverse to Hosts order for
a compulsory distribution of the surplus
on deferred dividends policies at least once
in five years.
Argument Offered That Would Con-
vince.
Insurance Commissioner Host further
testified that Robert T. Luscombe, who has
for years represented insurance companies
before various legislatures. telephoned to
him three times from Chicago between
June 16 and July 81, 1908, the latter having
been the day on which Host rendered his
decision. and asked Host to come to Chi
cago. saying he thought he had argu-
ment which would convince Host that the
statute In question was not compulsory.
Secretary of State Houser took the stand
in his own defense and admitted that he
and Luscombe were friends. and declared
that Luscombe had handed him the writ
ten slip OF paper which he had handed to
Host and requested that he give 1t to the
insurance commissioner. Houser. however,
emphatically denied that any mention was
made Of a campaign fund contribution at
the time Of his handing the slip of paper
on which the Equitable decision was writ
ten to the insurance commissioner.
Houser admitted that he had asked Host
companies for a political campaign fund
against Representative Joseph W. Babcock.
in the third Wisconsin district, and said
Host had not taken unkindly to the sug-
gestion, but said he would think the matter
over. This suggestion in regard to the
Babcock campaign fund was, however. not
made at the time of the handing of the slip
in regard to the Equitable decision.
Both Secretary of State Houser and Insur-
ance Commissioner Host have been among
the supporters of United States Senator
La Toilette. Secretary Houser Is running
for third term.
In rebuttal, after Houser's testimony, the
insurance commissioner declared that
Houser had never approached him in re-
gard to obtaining insurance campaign funds
against Babcock. Once Host said some one
around the capitol. he could not say who,
asked him if contributions to the campaign
funds could not be obtained from the in
surance companies, and that he had prompt
ly said he would not be party to any such
requests for funds.