Evening star. [volume] (Washington, D.C.) 1854-1972, 1910-03-21
NOT THE EX-ASSEMBL YMAN
Produces Rierdon Before Committee
to Explain Mistake.
KREMER AGAIN ON THE STAND
Tells of Contributing Money to Aid
in Fight Against Hostile Leg
islation at Albany.


insurance investigation this morning
Elijah r. Kennedy of the firm of Wood &
Kennedy. took the stand unexpectedly to
correct his testimony given Saturday.
Mr.. Kennedy referred to his testimony
that James A. Rierdon, ex-assemblyman
from the second assembly district. came
to him in 1901, seeking light in connec-
ton with the insurance bills Kennedy
brought Mr. Rierdon with him to the
hearing today. He said that he wished to
correct his cruel injustice to Mr.. Rier.
don in duplicating him. He said the man
who called on him was a large round
faced man. and that he was not James
A. Rierdon. He found this out only this
morning, when Mr.. Rierdon himself called
on him. He never had seen this Mr.
Rierdon before.
Mr.. Kennedy said the valued policy
bill was the strike BILL" which was in.
troduced oftenest at Albany. Supt
Hotchkiss referred to various sums paiC
to ex-senator Vedder as retainers for his
services in opposing the anti-compact bill
in 1900. Mr.. Kennedy said Mr.. VeddeI
was retained because he himself had not
time to prepare an argument on the bill
James A. Rierdon. who is now chief
clerk 1.-THE mayors Office, took the stand
and denied all the statements in Ken
nedy's testimony Saturday that referred
to him.
More Witnesses Summoned.
In the effort to find out who the
politicians" were who shared in the
fund raised by the fire insurance COM
panies for influencing legislation at AL
bany in 1901 Superintendent Of Insur-
ance Hotchkiss summoned today sew
eral witnesses. some of whom he is
sure ought to have the information he
wants. Mr.. Hotohkiss, when he ad-
journed Saturday the second days ses-
sion of the inquiry which he started
with such sensational results the day
previous. announced his determination
10 get at the bottom of the mystery
surrounding the expenditure of $S,511
by Elijah r. Kennedy, who represented
the fire Insurance companies in looking
after Albany legislation during the ses
sion in question. OF this sum, admit
tedl. expended for helping along legis-
lation the companies wanted, Mr.. Ken
nedy was able to recall only one spe-
cific payment-that Of $1,000 to George
W. Aldridge of Rochester, member OF
the republican state committee. Mr..
Aldridge aGmits receiving the money,
but ai.eges that it was a donation for
the republican county committee and
asserts that it was so applied.
Among the other witnesses summoned
to testify today were A. H. Wray, a
member of the finance committee of the
board of fire underwriters in 1901, and
Marshall s. briggs, vice president Of
the board the same year. both of whom
Mr.. Hotchkiss believes should know of
the transactions during the legislative
session of that year.
Kremer Again Called.
When Supt. Hotchkiss resumed his in
vestigation today William n. Kremer OF
the German-American Fire Insurance
Company, who was on the stand when
the hearing was adjourned Saturday.
continued his testimony. Mr.. Kremer
was member of the laws and legisla-
tion committee Ofthe New York board
OF fire underwriters in 1901.
Mr.. Kremer testified that year after
year bills known as anti-compact bills
were introduced in the legislature at AL
bany. These bills were designed to pre-
vent agreements among the companies
as to uniform rates. Mr.. kremer said
that the law firm of Davies, Stone &
Auerbach was the firm which did most
of the work for the underwriters board.
and that the chief legislation with which
the fire insurance companies were con-
cerned was the anti-compact bills and
the bill. passed in 1901, at a cost to the
companies of $13,311, to exempt the re-
insurance reserves from taxation.
Mr.. Kremer's testimony brought out the
fact that the fire insurance companies
troubles over the Reinsurance reserves
were not ended when the bill exempting
them from taxation was passed in 1901.
He said that in later years bills to repeal
the eXempting law were introduced SO
that the insurance men had to employ
counsel at high prices to combat these
bills.
Active in Other States.
Mr., Kremer spoke at length of the
work of the underwriters board He said
its activities were not confined to this
state. but that it combated threatening
legislation in other states as well.
How many times has your company
contributed from 1901 to the present to
funds to be used in connection with legis-
lation at Albany?' asked Mr.. Hurrell.
we paid $500 on April %. 1908. and
$500 on December 8. 1904
He said these contributions were made
to George p. Sheldon "in connection with
| legislation at Albany" in compliance with
Mr.. Sheldon's very insistent requests, "
and that there was pressing demand
companies contributed to this fund.
The Mr.. Sheldon referred to is the late
George Z. Sheldon president of the Phoe-
nix Fire Insurance Company of Brooklyn.
December 30, 1904. Mr.. Kremer got a
letter from Mr. Sheldon which was read
saying that there was a balance Of 500
needed in connection with the Albany
fund and asking Mr.. kremer to con-
tribute il. Mr.. kremer sent the money,
which was I'm addition to the previous
s.. 500 his company contributed that year.
Mr.. Sheldon told me the money was
to be used for legitimate expenses en-
tirely in connection with the Albany
bills said the witness.