Imperial Valley press., 1932-11-15
BR|BE CHARGE
To Be EPROBED
by GOVERNOR
Accusation Of Dishonesty In
State Insurance Commission
To Be Investigated.
Fits ALSO INTERESTED
Los Angeles District Attorney
May Submit Matter To Grand
Jury For Action.

SACRAMENTO, Nov 10. aJ.p) -
Governor Rolph today ordered state
investigation of allegations that two
employees of the state insurance
commissioners office had solicited
$4,000 bribe as the price of re-
newing the license of the Benjamin
Franklin Bond and Indemnity COM
pany of Los Angeles.
The governor requested Clarence
S. Morrill,, chief of the state bureau
of criminal identification, to con-
duct the inquiry into the charges
after receiving a report on the case
from Judge w. A. Smith, his private
secretary. Smith told the governor
he did not consider mis- information
positive enough to be considered as
evidence.
According to Smith, the bribe ac-
cusation came from Edwin v.
Jones, president of the indemnity
corporation, who stated the over
ture was made to Benjamin F.
Boyd, Los Angeles manager of the
concern, while the books of the
firm were being examined and its
right to do business in California
questioned.
Previously a complaint had been
filed with the governors office that
the corporation was writing bonds
in Los Angeles without having de-
posted adequate securities. In
quiry developed, Smith said, that
the firms license had been sus-
pended by E. Forrest Mitchell, state
insurance commissioner.
Attention of the governors Of
flee next was drawn to the case,
Smith said, when Jones complained
that the license of his company had
been improperly withdrawn ana
efforts to renew it had met with
the bribe overtureS. Smith said he
had requested Jones to produce al
fidavits on the alleged bribe Incl
dent, but that the insurance COM
pany president failed to do so.
Governor Rolph said he hao
heard of the complaint in San
Francisco yesterday and that his
only other information on the mat
ter came from hurried glance at
Smiths data. He refused to make
public what he said were conf
dental letters" in the file pending
a report from Morrill, on the results
of his investigation.
LOS ANGELES, Nov. 15.-URl-
The district attorneys office today
launched an investigation into
charges that employees of the state
insurance commission demanded
bribe for permit to allow the Ben
jamin Franklin Bond & Indemnity
corporation to operate in this state.
Attorneys for Edwin v. Jones,
president of the indemnity firm,
laid before District Attorney Buron
Fits what they claimed was evil
dence that two employees of the
insurance commission office had
demanded $4,000 "and no less" to
permit the firm to operate in CAL
iforna.
The Benjamin Franklin Bond g.
Indemnity company is an Arizona
corporation.
E. Forrest Mitchell, state insur-
ance commissioner, had threatened
to revoke the firms certificate of
authority to operate in this state,
according to a petition already on
file in superior court.
Wayne Jordan, chief of the dis
trict attorneys complaint depart
ment, said that his office would
thoroughly investigate ever Los An
geles phase of the query, which
centered in Sacramento when Jones
complained to state officials OF the
asserted attempted bribe-seeking.
Official decision to open the in
yestigation was reached after Tho
| mas O'Brien, chief trial deputy
district attorney, submitted to Jor-
dan a copy of lengthy letter re-
Gently sent to Sacramento by Jones
embodying the charges.
Benjamin F. Boyd, general mana
ger of the concern, delivered the
evidence to the district attorneys
office.
The Insurance firm yesterday Sc
cured a continuance until Nov. IL
of hearing on petition to re-
vocation of the corporations GER
strain Mitchell from threatened re-
4