Show MUTUAL AL thousands of dollars went into campaign funds and much more was expended for t luncheons for force 4 MONEY WAS EASY TO GET new york oct 10 walter R gillette vice president of the mutual lite insurance company tes rifled before the insurance invests gating committee today that the mutual life insurance company contributed to the can national committee campaign fund in the last election in 1904 vice president gillette also stata cd thattie th atthe mutual lite insurance company contributed to the republican national commit 1 tee in 1900 and in 1898 he justified these contributions on he same ground as did pres ident john A mccall ot the new york life insurance corn pany saying that the st louis platform of the democratic party and the tree silver issue were a menace to the policyholders policy holders mr gillette said he authorized these expenditures after consultation with the president vice president and some members of the board ot trustees of the mutual lite insurance company the campaign contributions he said came from the fund controlled by the committee on expenditure alce president gillette further testified that the mutual life insurance company paid last year for luncheons for its clerical force in this city this was at the rate of almost a day new york oct john long member of the british parliament was n guest of tho insurance investigating committee at its session today the first witness was robert olyphant chairman of the expenditure committee of the mutual life insurance company from him it was expected to learn what became of 75 00 charged to legal expenditures athla sum was spent in three installments of each the last install 1 nent being paid the day after the presidential election last year mr olyphant said there Is no limit 0 o the money the committee on expenditures tures may authorize to be paid out the mutual life insurance company maintains a confidential fund for legal expenditures these details of payments for this fund were not brought before the board of trustees but merely the total amounts bills ameto this committee from the law after being duly author aed by the executive officers the moneys were usually drawn in cash an entry of on the books january 1904 witness said was paid to him in cash he was assured his was needed for the benefit and elhat all was regular dr Uil letie one of the vice presidents bold him it was for law purposes witness did not feel responsible to the company an executive officer having told him it was perfectly legal he look no vouchers for payment nor for others in august and december money was similarly expended mr olyphant said in the teim of office of liss predecessor J hobart heneck Henr ck and it occurred to mr 10 ascertain to whom the money went beyond the word ot an executive of fleer mr hughes then raised the bylaws by laws governing the expenditure of the committee and calling tar reports of expenditures tures to abia committee witness aid no reports were made in reply to questions by mr hughus the witness said he had heard contributions were made to campaign committees and be supposed they came ont of this confidential fund dr gillette had told him that campaign contributions had been made and there no other fund that this money could be taken from mr hughes then asked that dr gil belte be summoned james M beck counsel for the mutual atte insurance company asked that mr granniss be focused if dr bluette appeared as there were already present the president two vice presidents and the general manager of the company and somebody was needed to run the business mr hughes insisted however he could excuse nobody but would ailt the company to as little incon nce as possible questioning mr olyphant further mr hughee brought out that there wre five payments in 1903 of 25 OW each all made in the same way as tb aae in and out ot the con fund mr olyphant was asked it it was i a practice to look no further into expenditures tures when approved by vice president and witness replied we edve to vice president robert A granniss was then called he was asked about the contribution to the congressional committee previously discovered he presumed it was charged to law expenses as that would be tho natural course mr granniss knew of contributions to the republican campaign fund in 1896 1900 and 1904 but did not know the amounts contributions could be made without hla knowledge witness considered the company was justified in making contributions to the various campaign funds because of the free silver menace asked to approximate the contributions to the last national republican committee witness did not think it would exceed mr giannias Gr annias was excused tar a time and dr walter R gillette vice president of the mutual lite insurance company was called he said he made the contract alto the firm of C H raymond company agents of his own volition and no one was responsible for tills contract prior to 1903 but the witness and the president the vouchers were shown the witness all of biem had been approved by the witness except the one authorized by mr granniss dr gillette said they were tor legal expenses he did nothing to ascertain for what confidential purposes these moneys were used he did not know any one who could tell what legal matters required the payment of in one year to the gereal solicitor mr hughes then asked if the general solicitor could not get whenever he pleased without disclosing the purpose for which it was to be used and witness replied that ho could dr gillette said he never inquired into the reason of the mutual lites legal expenses being so much greater than the two other companies he said the general solicitor never made a report of what he all with koneya paid mm that he was never asked for a report and received no vouchers or witness stated he did not know how a cent of the money went dr gillette said that when he secured the in 1904 he told mr what he intended to nse ib tor he said no money biad been expended in any state or municipal campaign nor had there been any contri to any congressional committee beyond the one heretofore mentioned witness said that A C fields superintendent perin of the supply department receives a salary of a year but had not looked after this department part ment for several years owing to ill health his are transacted by a mr norris choso whoso salary he did not know dr gillette said yie accounts for telegraph charges postage taxes advertising ver medical serece law stationery and salaries were under his direct supervision an item ot for committee fee dr gillette said was for compensation ot committee members who are not officers of the company mr hughes pointed out that in 1901 was paid for legal expenses while in 1903 it was the legal expenses were reported at while choso of the new york life company were and those of the equitable witness said this was because of the growth of the business the fact that for the last two years he legal expenses were or more greater than ever before witness said occasioned an investigation only in a general way but thero were some cases of litigation in other states some frauds upon the company that bad to be fought and caused large expenses the expenses of the company in 1902 were in 1903 they were and in 1904 they were 7 witness was asked what he had done to reduce the cost of insurance and replied that he had done nothing more than he had explained in holding up any item of expense until he was assured it was necessary just before the recess was announced there was a sharp tilt between mr hughes and J beck counsel for the mutual lite insurance company mr hughea had asked that C A field the superintendent of the supply department be produced this afternoon when mr beck jumped to his feet and said mr hughea when this investigation was started we waived the services of subpoenas you sent us a list of the officers and employed emp loyes you wanted to examine and these with many others have been produced now it you expect testimony and want to disregard the state of athla mans health we will remand you to your lecal remedy subpoena him mr hughes replied that he understood the company stood ready to produce anyone called tor and he realized the right of the committee to subpoena anybody whose presence could not be obtained voluntarily chairman armstrong of the commit tee interrupted interrupt pd by saying this committee can subpoena and it MM can be obtained in no fields presence other way he will be subpoenaed solvency Is not at alfan question I 1 believe we can best safeguard tafe guard the interests of tho hundreds of thousands of policyholders policy holders in illinois by waiting until the conclusion of the legislative inquiry in new york and then taking such action as the report of that committee seems to indicate as necessary |