Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1910-03-21
INSURANCE PROBE.
Startling Revelations in
Fire Insurance Inquiry
High Priced Counsel Received
S32,50O Tor Services.
Letters Relate Activity Of Fire In
surance Companies at Albany.


New ! oYk. March ao-Mercilessly
| hurling question after question at re-
| luclart witnesses and reading to them
| III rapid succession letters and tele-
grams that told in unmist able terms
| of the activity Of tire insurance com
| DanicS in influencing legislation at Al
oany, William H. Hotchkiss, state su-
i.erintendent of insurance and his at
torney, Alfred nurrel, forced startling
revelations at Saturdays session OF
the fire insurance inquiry.
It was shown that large sums had
been raised 10 procure or tnWart legiS-
Iation between 1901 and 1864 These
payments, the majority of which were
to law firms. ranged from 500 to $17 800
The three largest payments were of
$li5o0 tn the law firm Of Sherman 81
Sterling in 800, for work at Albany in
connection with legislation then pend
ing, OF SIS 900 in 1905 for the same pur-
pose. ami of SSH to Elijah H. Kennedy.
member of tn. insurance firm of Weed
& Kennedy.
1t was this latter payment That came
out when Mr., kennedy'S bill to the
New York board oi underwriters for
$l2,3l1 was produced.
The witnesses examined were Mr.
Kennedy. Charles i. case. cx-chair-
raiI OF the committee on laws and leg
lSlation of the board of underwriters,
and William n. l<rcmcr Of the German
American hrc insurance company, who
WAS vice chairman Of TIE committee. on
laws and legislation Of the board from
1909 to l9o1. ana chairman in 1907 and
1905
Timothy t.. Woodruff. now chairman
of the Republican state committee: the
late Senator John Raines, Representa-
dive George J.. A!albv ana Ex-Assem-
oly man James /. Rierdon of New York,
were among those mentioned in the
testimony.
Mr.. Woodruff wrote d letter in 1901,
testified Mr., Kennedy, telling him that
the Insurance tax bill would not be
pressed.
Representative Malbv, then a MEM
Der of the Legislature evidenced a
kindly interest in the bills. as shown
by letters to Kennedy, an old friend
OF his. Senator Raines was amicably
disposed toward Mr. Kennedy in his
efforts to defeat undesirable legiSla-
ton.
AS for Ricrdon Kennedy said he
came to him with such a show of in
terest that he. Kennedy became
aroused, like chain lightning" and
cut short the interview, refusing as a
representative affected to discuss
pending legislation with u member OF
the Legislature.
One interesting statement made by
Mr.. Kennedy was that he had given d
present" of $1,000 to George w Aid
ridge of Rochester, Republican leader
of Monroe county.
This item was part Of the $4,000 Off
cially disailowed by the underwriters.
but later reimbursed to Kennedy by
assessments levied on the insurance
companies individually. Kennedy said
Friday that Aldridge got $500, but Sat
urday corrected his testimony.
Every effort to force Kennedy to tell
who received the remainder of the $4,000
was futile.
1T was through the testimony of
Case that the payments of ST., 500 and
$4,000 to Sherman * Sterling We're
brought out. When vouchers for these
pay llNIIlS Wclt submitted tIdSt Sctll
frankly that they were correct. buzz
when it came to telling the exact ma
ture OF the services rendered he was
vague
Sherman Il Sterling, he SAID. were a
high priced firm" and the work en-
tailed on them as counsel demanded
lahorlous research and many trips to
Albany to argue before committees, in
terview legislators and keep in touch
with the situation,
Mr.. Case testified that Reuben L. Fox,
now dead. the secretary of the Republi-
can state committee had been paid an
annual retainer of $3.50 for years for keep
ing the insurance men advised Of the
progress of legislation.
a letter from Timothy l.. Woodruff to
Mr.. Kennedy said that the bills would
not be unduly pressed. Mr.. HotchkisS
asked Mr. Kennedy if the letter would
refresh his memory as to whom the gifts
amounting to $3.50 were made. Mr.. Ken
nedy said that it would not.
A telegram FROM the late Senator
Ranes to Mr.. kennedy was read. 1t
said: mistake about his honor. Bill is
all right"
Mr., Kennedy said he presumed that
Mr., Raincs meant Gov. Odell by his ref
crence to This honor"