The Brunswick news. [volume] (Brunswick, Ga.) 1906-2016, 1915-02-28
After Much Delay the Insurance
Case Has Been Taken Up
in Savannah.
WILL END ON THURSDAY
Motion Made Yesterday by At
torney for the Defendant to
Quash indictment Was Over
ruled by the Court.

R. w. burden, charged with using
the mails to defraud in connection
with the old Home Life Insurance
company in this city, is now on trial
in the United States court in Savan-
nah. The following account of yes
terday's proceedings in the case, from
the Savannah Press, will be of inter
est:
The government prosecution of Mr.
r. w. burden, president of the de-
funct Home Mutual Fire Insuance
company of Brunswick and Savannah
and others connected with the com
pany was begun in the United States
district court today.
Judge Emory Speer overruled a mo-
tion offered by Judge Max Tsaacs, of
Brunswick counsel for Mr.. burden, TO
quash the Indictment aft r argu-
ments were heard. The tri,l of the
case was Immediately entered upon
II is likely it will not be G. ncluded
until Tuesday noon
Mr.. burden and six others, includ-
ing Mrs. G. F. burden, his wife were
indicted, charged with the f.audu-
lent use of the mails in the operation
of an alleged fake fire insurance com
pany several years ago. 1t is charged
by the government there was a
wholesale swindle of the policyhold-
erS of the company and that the bulk
of the proceeds went to Mr. burden,
the principal The defendants are I:
Mr.. and Mrs. burden, Messrs. j. p.
Shelly, R. l.. Walker c. b. White, W.
N, Nanny and N. D. Cowart. They
lived at Brunswick at the time, but
since that time have scattered over
Georgia and Florida.
In outlining the governments case
Mr.. Earl M. Donaldson district attor-
ney said the prosecution would con
tend that the defendants, and espe-
cially Mr.. burden, were guilty by
reason of the fact that they organized
fake fire insurance company in
Brunswick, started business without
capital and sent agents throughout
the state to induce people to take out
policies. In carrying out the scheme
to defraud, the district attorney said,
they used the mails
From $3.50 to $4,000 a month was
taken in by the company, the gov
ernment expects to show OF this
amount, the government contends
most went into Mr. Burdens pocket
1t is charged Mr.. burden concOcted
the scheme, organized the company
and took practically all of the pro.
ceeds. The prosecution contends the
company had a board of directors
but they had practically no charge
of the affairs of the company. 1t
contends Mr.. burden directed affairs
and the board passed anything he
desired that he voted himself a
salary of $500 month and voted
his wife a large salary. In three
months Mrs. burden took out over
$1,000, the government contends.
During the life of the company
several losses were paid but this
was done, Mr.. Donaldson said, to ad
vertise the scheme The company
moved from Brunswick to Savannah
before it suspended
In stating the defense Judge Isaaos
said the company was properly or
NHnized under the laws of the state
Nj Georgia. 1t was "a mutual" fire
company, like others or
ganized and conducted at the time
until the, legislature of the state en-
acted laws which prohibited them
Prior to this act, Judge Isaac said
companies similar to the Home Mu
utla Fire Insurance company OF
b Brunswick sprung up all over the
state. There was nothing novel about
it, He denied Mr. burden organ
lied il. but declared it was started
by a Mr.. Bailey who went to Bruins.
wick as an experienced insurance
man and induced Mr.. burden and
others to go into it. Mrs. burden
did not get salary, he said, but the
funds she received from the com
pany were reimbursement for money
she advanced when the company
was organized.
For year after the company was
put in operation, the defense con.
tends, Mr.. burden received no sal
ary. The board of directors recu.
larly voted him a salary of $3.50 a
month and, later, when he devoted
all OF his time TO the business, in.