Atlanta semi-weekly journal. (Atlanta, Ga.) 1898-1920, 1910-03-22
INSURANCE SCANDAL
At ALBANY CROWS
Immense Sums Spent by Fire
Companies to ThWart
Legislation

NEW YORK, March 19.-Mercilessly
hinging question after question at the re-
luctant witnesses. and reading TO them in
rapid succession letters and kilograms
that told i'm unmistakable terms of the
activities of fire insurance companies ia
influencing legislation at Albany, VIM
Hotchkiss, state superintendent of insur-
ance, and his attorney, Alfred Hurrell.
forced startling revelations at todays
session OF the fire insurance inquiry.
II was shown that large sums of money
had been raised TO procure or thwart leg
is!ation between 1901 and 1906. These pay
ments, the majority of which were to
law firms. ranged from 500 to $1,000. The
three largest payments were of s17.500 to
the law firm OF Sherman &, Sterling in
1905 for work at Albany in connection with
legislation then pending; of $4,000 in 1906
for the same purpose, and S,S11 to Eli
jah r. Kennedy, a member of the insur-
ance firm Of Wood & Kennedy. 1t was
this latter payment that came out yester-
day when Mr.. Kennedys bill to the New
York Board OF Underwriters for $lS,31
was produced.
The witnesses examined today were Mr..
Kennedy. Charles L. Case, former chair
man of the committee on laws and legis-
lation OF the board Of underwriters, and
William y. Kramer, of the German
American Fire Insurance company, who
was vice chairman of the committee on
laws and legislation of the board from
1900 to 1907 and chairman in 1907 and 1908.
WOODRUFF is MENTIONED.
Timothy L. Woodruff, new chairman or
the Republican State committee and late
Senator John Raines. Representative
George f. Malby and former Assembly
man James A. Riordon, of New York.
were among those mentioned in the testi-
mony.
Mr.. woodruff spore Kennedy wrote a
letter in 1901. telling him that the in
surance bill which the companies were
opposing would not be pressed. Repre-
sentative Malby. then a member of the
legislature, evidenced a kindly interest
in the bills, as shown by letters to Ken
nedy. Senator Raines was amicably
disposed toward Mr.. Kennedy in his eff
forts to defeat undesirable legislation.
AS for Riordon, Kennedy said he came
to him with such show of interest that
he. Kennedy. became aroused and cut
short the interview, refusing a rep
resentative of interests affected to dis
euss pending legislation with a member
of the legislature.
One interesting statement made by
Mr.. Kennedy was that he had given a
present of $1,000 to George w. Aid
1
of Monroe county. This item was part
of the $4,000 officially disallowed by the
Underwriters, but later reimbursed TO
Kennedy by assessments levied upon the
insurance companies individually.
Kennedy said yesterday Aldridge got
$4,000. but today corrected his testi-
mony.
KENNEDY WON'T TELL.
Every effort to force Kennedy to tell
who received the remainder of the $4,000
was futile.
II was through the testimony of Case
that the payments of $17, 500 and SIS. 900
to Sherman & Sterling were brought
out. When vouchers for these pay
ments were submitted, Case said frank
ly that they were correct, but when 1t
come to telling the exact nature of the
services rendered he was vague. Sher-
man & Sterling, he said, were a high.
practiced firm" and the work entaiIed on
them as counsel demanded laborious re-
search and many trips to Albany to
argue before committees, interview leg
isl3tors, and keep in touch with the sit
uation.
Mr.. Kramer's testimony developed lit
tie new. His memory regarding the re-
endorsement of Mr.. Kennedy was very
vague.
Beyond admitting that his company had
paid 1919 toward such a fund he could
tell little.
INDIANAPOLIS, March 19.-Perjury in
his reports to the state insurance depart
ment of Ohio, and uttering false notes,
were admitted today by William White.
secretary of the Farmers and Citizens
Live Stock Insurance company. of Lima,
Ohio. testifying in the United States dis
trict court in the trial OF William II.
Marker, former cashier Of the First Ma
tional bank of Upton. Ind, who is
charged with embezzlement of 800 900 of
the funds of the bank.
The false notes for S25 900 were in the
names of fictitious persons. White said,
and were to secure a credit entry in ia
vor of the insurance company made by
Marker I'm the books of the bank
You forged those notes. didn't you?"
demanded Markers attorney
They were gotten up" said White.
You call it forgery. I wrote them un-
der Instructions OF William II. Marker"
ROCHESTER,. y. Y, Mar n 19.-George
W. Aldridge said today:
Il recall that Mr. Kennedy did make a
contribution to me as he says. 1t was
used for the benefit OF the Republican
party in Monroe county. The contribu-
tion was made without solicitation on my
part, and there was nothing improper in
the transaction"