Omaha daily bee., 1909-12-26
OLD PLUM TREES STRIPPED
Former Method of Picking Fruit in
Insurance Orchard.
LAST EXPOSE RECALLS OTHERS
Brooklyn scandal R~eviVea Memories
of shady ways Of Insurance
Examiner Away from
Home.

The remarkable disclosures concerning
the manner In which former officials Of the
New York state insurance department Sc
cured large loans from the Phenix Fire
Insurance company OF that city, has pro-
vided the most sensational scandal that
has developed in insurance affairs since
the investigation by the Armstrong COM
mittee Of 1905 laid bare the waste and ex-
travagance in the management Of the three
great life insurance companies Of that city.
The specific disclosures in the Phenlx
case have been loans aggregating $39, 800
made to the late James f. Pierce while he
was superintendent Of insurance in 1898 and
1895; advances Of 500, 900 to Isaac Wander
peel while he was chief examiner Of the
insurance department. between 1899 and
1904; borrowings Of $50, 900 or more by Rob-
ert Fl. Hunter, who was Lou Payn's special
lieutenant, while that politician had charge
OF the Insurance Department during the
Black administration and while Hunter
was the first deputy superintendent Of in
surance in hat state; and advances OF
s6l,0O to William X. Bulkley. who was for
several years the third deputy superin-
tandent engaged with the work at Albany.
Hunter has explained that the advances to
him were made by George P. Sheldon, pres
ACllL "a AlAG tOllpalg PFlnDlld4lN' bA me
books show that the loans we're carried by
the company, Sheldon was indicted this
week FOR misa appropriation Of the company's
funds.
"~Junketing Tours for Examiners.
For years it has been a f~avorite prac-
tice for the insurance officials OF western
states 10 take a iunketing tour east in
the winter for the purpose OF examining
- A. a
These men used TO represent the type
OF Intelligence which is ordinarily seen
al a conference Of Tammany hall leaders.
one decrepit politician who came on a few
years ago for the purpose Of looking into
the affairs Of a great wall street fire
insurance company, spent three lays in
sPecting its books and walked away with
a $500 fee. In addition he received about
SIS a day for expenses and since the same
sort OF performance was gone through with
several different companies. his expense
Item probably netted him nearly 5000 for
the trip. 1t happened TO be a great foreign
Insurance company that he was invesu-
eating at that time, and the manager OF
the concern, an underwater OF interua-
uonal reputation, sized up the situation
by saying that he would noe employ the
services OF such a man for SO a week
Bur they cost the company nearly $40 ar
hour.
This instance hoy ever, was no wors,
than that OF another western iusurane,
commits 5ioner who took a Journey of sew,
eral hundred miles iT order to tell ths
most expert Indorwriters in the world how
TO manage their companies. This man
too, was OF a low political order. ana hat
about as much knowledge Of insurance ar
fairs as a Junior clerk in one OF the nr'
offices ordinarily acquires after a month
acquaintance with the business. He mad
demands upon one OF the if0 cumpanie
in a way which showed plainly that he in
tended to rescind its license 70 do business
In his state unless they complies viii
certain requirements" His demand con
sisted chiefly In letting him do sufncien
work 70 earn a thousand dollar Zee. Tn.
officers knew full we'll that the undertak