Omaha daily bee., 1921-02-09
Letters Of
Officials
Explained
Joint Committee Probing
Charges Against Code Secre-
taries Said to Be Satisfied
With Interpretation.
Investigation Is Closed


Lincoln, Feb. ESPECIAL Telc-
gram 1.-The Joint investigation
committee probing charges against
code secretaries wound up its work
tonight. Its last official act was to
spend several hours in examination
OF letters written by Phil Bross,
secretary OF the department. OF
finance; ]. Z. Hart, secretary of the
Z department OF trade and commerce,
and d. NJ. Amsbcrry, secretary of
state, relative to the organization and
business sagacity Of men at the head
OF the Bankers Fire Insurance COM
paify. now iusolvent.
While the general finding OF the
!, committee is not known. it is re-
ported alAhoritatively that these
letters, injected into the investiga-
~A;on by democrats at the last minute,
We're explained satisfactorily.
'ghe letters. the committee decided,
were written in answer to requests
of friends of the officers for inforrna-
tion relative to the company and
at the time the men at the head OF
the concern did stand we'll in the
business world, as the officers stated
ii their letters.
Letters Used by Company.
These letters. which did not adj
wise the purchase OF stock. but
merely gave information relative to
the standing OF the men III the conf
pany. were used by the company III
advertising prospectus, without
knowledge Of the authors.
Furthermore, the committee learned,
The Bross letter was written while
Bross was secretary TO the COVER
nor and while Hart held minor
state Office. The Annsberry part of
the affair is not touched in the juris-
diction of the committee.
The committee will write its re-
port tomorrow and possibly it will
be presented to a joint session OF the
house and senate late this week at
( which time the two bodies will vote
on the confirmation for reappoint-
Ilent of the secretaries.
lnveStl&dvlon (ohCiuoeo.
The investigation OF the Bankers
Fire Insurance Co. by w. B. Young,
chief OF the state insurance bureau,
ended today. II includes afidavits
from practically all officers in the
Bankers Fire Insurance Co and the
ua8ankers Brokerage Co, which sold
thousands Of dollars of the Bank
crs Fire Insurance Co, stocks. This
information will be turned over to
Guy Chambers, special agent for the
insurance department.
AT the time the hcense was
granted to the Bankers Fire Insur-
ance Co. after. lengthy ipyestiga-
tion | still felt morally certain that
the connection between the brok-
cragc concern and the insurance
company wasn't right, but legally it
seemed TO hold water, so the license
was finally issued because felt
that ii it was not done the COM
pany would go into court and man
damus US to issue it," Young said
today.
Faced Precedent.
In addition we faced a prece-
dent established by the democratic
administration in granting a license
to the Bankers Auto Insurance Co.,
which had stock selling project
connected with sit appearing even
worse on the surface than the prop
osition OF The fire insurance COM
pany."
.My principal objection to the
plan was that officers of the broker
age company and insurance company
were related so closely in business
and in other ways, that / felt they
we're doing little juggling to cvadc
thc law which set a limit on the
amount to be spent in stock selling
aud organization.
Sold Stock at Profit.
"The brokerage company purchas-
paed thousands OF dollars in stock
from the insurancc company at SIS
share and then sold it in Nebraska
at SIS a share But we didn't think
we could prove satisfactorily in a
u.andamus proceeding that the two
firms were allied in the $40 differ
ence IN each share
The investigation brings in the
names OF Max Beghtol. n. w. Ken
Won, E. Il. Kenyon, Carl Sanden.
Gus Johnson ard Charles rMaixner.
Maixncr. who is in state prison now.
not only was connected with the
formation OF the brokerage company,
but also acted as the broker who
disposed of the stock OF the Banker
Auto Insurance company which was
licensed under the democratic ad-
ttiinistration, according to Young.