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About The Red Cloud chief. (Red Cloud, Webster Co., Neb.) 1873-1923 | View Entire Issue (March 3, 1899)
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THE BED CLOUD CHIEir.
JOINT LEGISLATIVE COMMIT
TEE DELVING DEEPLY,
Intarance Department of tlia Ofllco of
Auditor of I'lihllo Arcotinti llelng
Tknroaclil OTrrlmtilnil and Inre'tl
Cted Bynopili of Ktltlence.
LINCOLN', Neb., I-Vb 83. The Joint
committee appointed by 1he legislat
ure to Investigate tlie insurance de
partment of the oftk'0 of auditor of
pub Ho Accounts held n session yc-stcr.
day and considerable etldence was
brought out hearing on the matter.
The members of the committee went
into the auditor's office, and, with his
consent, went through the desks, tak
ing whatever tliey thought would be
needed for the purposes of the Inves
tigations. The auditor was represented by
Wilbur 1 Uryant of llartlut'ton, nnd
Bd P. Smith of Lincoln, ex-deputy at
torney general. The legislative eoin
mlttce comprises Senator I'rout, Cur
rie, Halo nnd Ilcprcscutntlves Kvaus,
Fiartier and Weaver. Mr. Fisher con
ducted tho e.Munlnntlon In chief,
thougth all committeemen naked ques
tlons. fe'enntor I'rout presided ns
chairman. The examination was lis
tened to by n large number of people.
I'rcvlotiH to the examination taken
yesterday morning, the testimony tnk.
en in executive ielon was reud. Audi
tor Cornell was put upon the stand,
and during his examination Messrs.
l'ulm and Simpson were excluded from
The testimony rend showed Hint Mr.
Cornell, as nudltor, kept no record of
ruminations mndutif companies. In
formation concerning compunle was
transmitted to lilm that 'he might
know tlicli condition. Mr. Cornell
ttated that ho did not think nil prl
vato advices of this nature hnd been
kept, lie hnd n prhatc letter book in
which he kept copies of private cor
reopondence. lie wa naked- If the
committee Hind invnded his private
correspondence, lie replied that he
had given his consent to the commit,
tee taking everything of an official na
ture, but some letters! were taken
which ehould not huvo been taken. Ho
would not say what particular letter.
Il-e wan nidicd by richer Is It wnsn't
a feet that Che only letter he objected
to being taken wns one In which men
tion was mndc of sending him borne
"I objected to my private letters be.
"That was the letter from 1). T.
Waggoner nnd it was left on your
Cwk," paid Mr. I'rout. "Was not "that
Mr. Cornell thought tills letter had
been tnken with the rent. The com
mittee nsnircd him It had been left
on this dealt. Mr. Cornell proceeded
with tho nnrrntho of lib duties, lie
assisted in the examination of the
Royal Oaks nt Omnlin nnd the Slur of
Jupitor nt McCook. He had received
fees for doing other work for insur
ance companies like appraising prop
erty. In New York- lie had looked
through the 'books of n Security com
pany during tho winter of 1807 with
Mr. I'alin. Some special work he hud
done fo'r the New York Life had been
in the wit lira of appraising proprrtv
in Omnlin for which lie had received
J7.60 ns a fee. It, M. Taylor recured
f5 of this for assistance, and f'he rest
was for the auditor's expense.'.
"What Is the fee for filing annual
ttfltements by ItiMirouec coiumnies.
Mr. Cornell?" '
"The law will tell."
"Cnn't yon answer without referring
to the law?" naked Mr. I'rout.
"I think it was $20 or J:,n i- mmn
thing like that. The law will tell."
"Did you ever waive Mich n fee?"
"No, sir; I never did."
"What does the statement mean In
a letter dated from New York Novem.
ber 8. 1807. from flip Anurl,n vi..
Insurance company In which the com
pany thanks you for waiving the $'.'0
annual fee?" paid Mr. Weaver, reading
from the letter.
"I don't know," answered Mr. Cor
nell, nfter taking n long look nt the
letecr handed him.
'Did you waive Hint fee?"
"lfhl rot T ,1n"'t teml all the
Cetalls of my office.
"Did you ever see the letters be
fore?" "I don't remember the letter."
"Should your fee book show wheth
er that fee was paid?"
"It should." said Mr. Cornol!
The book wn.s sent for nnd whllc the
messenger wns out, Mr. Fisher asked
to whom a letter on page 33 of the
"ltor's prlvnte letter tonka wns sent.
The nudltor looked over the leaves
C.IXt"U-y nml 00"111 ,lot nni1 the page,
rhe page Is gone, ns n matter of
fact, is It not?" asked Mr. Fisher.
"Yea sir," said tho audtior.
The samo question wns nsked con
cerning pages 35, 37, 43, 47, 45, 40 nnd
M with filmilnr replies. The Index
aid not rihow tho names of the par.
ties to whom tho letters on the mlfs
Pg pages were sent nnd the auditor
did not remember ever tearing n leaf
out of the book except when the cop
ies were Illegible. This was volun
teeredby him after tho Investigation
bad gone on to other matters.
. lr. Cornell wns next questioned ns
to fees of examiners. He said that If
en examiner rihould put In a bill for
f30 for two hours' work exnminlng an
nsuronco company It was excessive
and wrong, lie had never approved
suoh a bill ns far as ho knew.
The question wns then asked if he
bad over approved n bill of $210 to
tho Ainerlcun Fire Insurance com
pany of New York for nu examination
of only a few hours' duration by Mr.
Paha and Mr, Glllnn. (A. letter was
submitted to tho auditor dated Feb
ruary 14, 1603, bearing on the matter
containing a iicaltlhy remonstrance
galnet the charges of tho examiners.
Mr. Cornell eaid his attention wus
called! to tho matter by a telegram,
and he had replied that if the charges
were all rtgQit they ahould to paid. Ho
added that no examination could be
Bade in two hours.
"JId you moke rhem pay the bill?"
waa the question nut. ,...,,.
M dri't' remember. I don't think
they paid It, but I believe they net
tled it some way with Mr. l'alm."
A letter was read from tho Victoria
Fire Inwiranc'e company of New York
protesting, ngnlnst excessive charges
of examiners and refusing to pay
cniiio only on requisition from auditor.
Mr. uornell thought Mie requisition
wns made. He wns nskeil If he would
discharge nn examiner whom he knew
wns charging more thnn his i-crvlces
were worth. He replied that he would
nnd that he considered It dishonorable
for an examiner to do bo.
The following letter wns then rend:
Hnrtford, Conn. Hon. ,T. F. Cornell,
Auditor of Public Accounts, Lincoln,
February II, 1803. I shall try to make
tho bill large enough for you to bo
remembercrd. We got $100 apiece
from, the Hartford Fire.
0. W. l'ALM.
lie was asked If he discharged Mr.
Palm when he saw that letter. He
said he did not, nor did he. refuse to
Issue more commissions to Mr. l'alm.
He said in regard to the sharing of
fiws with him by Mr. Palm that pos
sibly Mr. Palm might have Intended
to mnkc hltu a present. He hnd some
conversation with Mr. Palm In which
he discountenanced t-hnt gentleman's
attitude In desiring to share fees. The
auditor admitted that some conversa
tion hail been hnd on the subject.
A letter from Hartford, Conn., dated
February .1, IfcOR, to the nudltor from
Mr. (II Ihin was rend. In the letter Mr.
Gillan refers to trouble hnd with the
Travelers' Insurance company; that
the president of the company wanted
thtm to take the rrpnit of tho state
examiners. After much trouble the
matter was compromised for $200. Mr.
Gillan expressed sorrow that Mr. Cor.
null could not come In on the amount,
ns It was hardly sufficient to pnyt his
nnd Mr. Palm'ii expenses. Mr. Cor
nell was questioned closely In regard
to thii letter nnd also one from Mr.
I'nlm along the same lines. He could
see nothing wrong in their course and
did nut recall them.
At the afternoon session n letter
from Pnlin nnd Olllan written In New
York wns shown to the nudltor. The
letter contained u request for nn or
der to examine n certain company.
The letter contained nn outline of a
messnge which the writers wanted the
auditor to wire them. The nndltnr
said he did not remember what the
Mr. Weaver nsked If Palm nnd Oil.
Inn were not junketing In- the east and
whenever they wnnteil to exnmiue a
company they wired him for an order.
1 no auditor iui not uiulcrstnml (hat
it was a junketing trip.
Ho denied Hint he hnd ever commis
sioned nn Insurance agent, or anyone
interested in nn Insiirnnce company.
A letter from I. 11. Odell, dated Jan
uary 23, 1807, wns read. It protested
ngnlntst Palm's appointment. The au
ditor said that upon receipt of the
protest he hnd examined into the mat.
ter and found that Mr. I'nlm wns not
nn Insurance agent, having turned his
business over to his wife. The audi
tor denied that the National Life of
Vermont withdrew from the stnte be
cause, it could not secure n license and
that n license wns refused beeuuhC It
would not pay Palm's bill for c.vnmi.
nation. Mr. l'alm did not examine tho
company., .'tome facts were brought
out about a S-'.OIK) policy In the Union
Life. Insurance company of Omaha. It
had no particular bearing on the pur
pose of the investigation.
Mr. Fisher questioned tiic auditor
closely about the trips of his nephew,
.1. A. Simpson, to Topeka to examine
the National Aid association. Mr.
Simps-on's charge was $10u, or $25 n
day. The nudltor said he did not know
whether Simpson had a pass to To
peka or not. lie did not remember
getting n pais for him. He thought
$10 a day was enough for frnternnl In.
lid Smith asked the nudltor If tlhere
was nny provision of law requiring in
surance examiners to turn fees over
to the state, either any portion of his
fees or nn exew-s of n certain amount.
The auditor wald th was not.
"Or n law requiring nn examiner to
turn over any part of his fees to the
auditor as n compliment?" nsked Mr.
"No, sir," answered tho nudltor.
Mr. Smith then tried to show that
If nn examiner charged reasonable
fees and should receive ns much ns
$10,000 In a year there wns no lnw
requiring nny part of It turned over
to the statu. It might be n defect In
the lnw, but he bellced nil would ud
mlt that such wns the law.
"Did you ever have any agreement,
directly or Indirectly, with any exam,
iners whereby you were to get nny
part of the proceeds of any examina
tions made out side the tnte of Nv
brnskn?" nsked Mr. Smith.
"2o, sir," replied the nudltor.
In regard to letters In which exnm.
Iners indicated their Intention' of mak
ing the auditor n present or doing him
favors, the auditor teMllleu that no
such promesrfl had ever been fulfilled.
'Hie following statement allowing
fees collected by Mr. Palm nnd Mr.
Olllan wns presented by the nudltor:
r.xAiiiNATioxs nT o. w. imi.m.
National Surety Co,, New Y( rlt 1211 0)
Now Kiiglund Matunl l.lfo. Mnss '.()) (I)
j'liemcii k Fund, Nowtrlc, N.J (.' ()
Nntlonal I'liton, IK.Io l'4 00
Weitturn I'mlenirltots' Ahh'ii, 111 Ill 41
MUwuulcco Klro, WIhcoiis'ii 114 sn
lMqiia, O'llo ns co
I'nlon Casualty & Surety Co., Mo 10J CO
Itoynl OuUk, nnmlin :.! co
Goinian Mutual, Omaha
EXAMINATIONS MADR I1T O. W. PALM AND
7II0MAS II, Olt.l.AN.
Hiirtford Plro. Connecticut J.TflO 00
'1 ravellors . Counectkut 0 10
h'ldollty .14 1 asuulty, New York.... 210 00
KUlolliv & Vi'v Kit Co.. ll'v'.tlinoro ur, co
U. S. l-'iilolliy Lo.. llaltlmori lift no
Atn 11 1 o ullnv & Trust '0., llu t muro.. . 6) (0
Am. r'rnn Surety Co., New Yorit SJO U)
1'rovli'eueo Fire, Hliorto Island 170 (ju
htato Mutuul, MnsKaohuheUs S.MJ (10
Amorli-un Klro. New York
liutuinucd Company ot North America
I'i'tin. Muti-nl I Ite. l'cnnsyhunln
Vlctorlv, New York.
l'rovlOeucoNuvltitfH, It. I
Weed & iwmicdy Co., Now York
Svoiv . ..... ..,,....
Iluloisa .., 2ft 00
Mr. l'alm was called to the stand.
He testified thnt he had been uu In
surance exumluer seven mouth;) in
two years. Ho admitted that when
he was ia New York he got commis
sions from the auditor on applying
for tho same; that he had commis
sions in his pocket or on tho way.
Mr. Palm was questioned closely In
regnrd to his statement of fees. He
snld lio haw no memoranda from
which he made tip the statement; that
it was mode up from memory and was
ubutantlully correct; that the charge
for each company could not possibly
be over $25 out ol tho way; that when,
he wus not certain he took tho larger
amount; that he kept tho fees, witli
the exception of what ho paid Air.
Mr. Palm denied that he paid any
money to Auditor Cornell, oven for
campaign expenses; that he presumed
that vlinteer he wrote to Auditor
Cornell was correct nt the time.
Then the Hartford letter was flashed
on Mr. Palm, a letter In which ho said
the examination in that case would bo
made large enough so that Auditor
Cornell "would be remembered."
Mr. I'nlm said 'lie had thought of
making 11 present to Mr. Cornell, but
he had not done so and the auditor
hnd never nsked him for money. 1
The committee nsked Mr. Palm If
he hnd not testillcd before the govern
or's committee thnt he hnd never
written the auditor any other peculiar
letter except the so-called "hold up"
letter. He said he had not. What he
did say was that this was one of tho
unfortunate ones that had fallen into
In regard to Instructions Mr. Palm
said the nudltor had told him to bo
moderate niwl to charge not more than,
$10 11 dnv nnd expenses for examining
within the stnte. lie thought his time
wns worth more. He said outside tho
state he had charged $100 n week nnd
expenses. In New York ho nnd Mr.
(lillnn hud charged $40 a clay for the
expenses of both together. The ex
peiifces depended 011 the amount of
He wns nsked if lie ever offered n
jiieieut to a member of tho present
legislature. After studying over this
matter Mr. l'alm suid he did remem
ber that thete was a bill before the
legislature and that insurance agents
were interested In having it passed.
A friend of his in Omaha told him to
tell IteprcKcntntlvo Weaver that If he
would look after tho measure $100
would be paid him if ho was put to
any extra labor. Mr. Palm raid his
friend was ready to pav the money.
He n'so said thnt Mr. Weaver said he
would not take It; thnt If a check were
sent he would rend It back.
This ended this branch of Hie in
vestlgntlon. r. Wenver. who wns pres
ent during the testimony, explnlned
privately that the bill In which Insur
ance agents were Interested was
house roll No. 1S7, Its purpose being
a laudable one In his opinion, being
the prevention of "overhead insur
At the afternoon investigation Au
ditor Cornell's nttomey offered sev
enil pages of official records for the
"Vnrposc of showing that there was no
fee from the Insurance company inai
hnd written a letter thankins the nil.
ditor for waiving the usual fee.
PALM UNDER FIRE
The r.iiinilniT TIU InvPHtlKUtori ot nil
Wi r! In tho Knit.
Lincoln, Neb., Feb. SI. Tho legis
lative imcstiuutJng committee up
pointed to instigate into tho ultalrs
of the insurance department of the
auditor's office, resumed its labors
yesterday morning ut 10 o'clock, O. V.
i'nlm being in the wit hum ohulf.
tMr. l'nlni wasiibkcd whether he had,
in Imcstliratinsr eabtern insurance
companies, Inquired as to whether
they hud contributed largely to the
campaign funds of nntionul party or.
ganizatlons, and whether he would x-o-port
such contributions as unauthor
ized expenditure of funds. His an
swer wna that such contributions
were the business of the companies,
and unless they were rendered insol
vent thereby were not the concern of
llcinir (iiicstloned ns to a letter he
hnd written Mr. Cornell, saying thnt
Nebraska and South Dakota were
hardly competent alone to investigate
certain large concerns, he explained
that such examination for the benefit
of but the two states would put the
companies to nn- enormous expense,
which they would hardly feel justified
In Inclining unless for tho Kitlsfnc
tlou of a number of states. Such ex
amination would require much time
nnd n large number of nssistants, nl
though the skill required would bo
more thnn in examining smaller coin
He hnd agreed with Mr. Cornell thnt
the New York Mutual Life, having
just been investigated by ton states,
should harldy ojmln be put to the ex
pense" of a thorough examination by
Nebraska and South Dakota alone,
iie had, however, entered the office
of the New York Mutual and looked
over their books and securities for
which lie had charged- no fees, al
though the company paid his ex
Referring to statement in his let
ter regarding Kiigeuc Moore's convic
tion, he said that Mr. Moore had not
been delinquent in the matters of ex
aminers' fees, ns such fees In no ways
belonged to the auditor or his admin
Regarding n letter he had written
Mr. Cornell December 1, 1897, in
whlt'li he expressed the belief that the
New York Mutual was not going to
submit to nn exninlnntlon by himself
and Mr. Klpp, the South Dakota ex
aminer, Mr. l'alm said he thought ot
the time that the company would
rather withdraw from the state thnn
incur the expense of their examina
tion. They hnd, however, taken him
through the office and "shown him
Mr. Palm's attention was called to a
letter written him by the Svea Insur
ance company in August, 1898, regard
ing his appointment of agents for tho
comonnv at Plattsmouth. Mr. Pnlm
said he hnd not notified Mr. Cornell of
his withdrawal as special agent for
Mr. Pnlm said he hnd never with
held from Mr. Cornell n single cent of
money rightfully belonging to the nu
dltor, neither had ho ever paid him a
cent to which he was not lepnlly en
titled. Neither had he, while enst,
drawn on Mr. Cornell, nlthough he hnd
been told thnt it neeessnry t was his
right nnd privilege to do so.
When the ltovnl Oaks of Om-aha
had been unnble to pay examination
fees he hnd presented a voucher for
$37..0 on tho rtnte treasurer for his
services, of which he wns to pny Mr.
Cornell $10 for his nsslstnneo ire the
exninlnntlon Mr. Cornel, hnd told
Mr. Pnlm thnt he should be reimburs
ed for his services nnd some "on had
toW him further thnt there wan a
fund in tho treasury available for that
Questioned ns to his letter of Febru.
nry 1, lb08, in which ho wroto to Mr.
Cornell that they received but $100
'apiece for their examination of the
' Hartford Fire Insurance company, Mr.
rami sum Uiat $J0O wna received; J 100
was necessary to pay expenses, which
left MrGlllan and himself $100 apiece.
This letter Is tho one in which Mr.
l'alm wrote that he would try to re
member Mr. Cornell.
Mr. l'ulm said ho knew very little
about the auditor's oidce, as 'ho was
seldom there, but he would guarantee
to find there the insurance reports he
had sont In.
Prior to ills duties ns examiner Mr.
Palm said he had been for three years
nn Insurance agent; beforo that he
was a bookkeeper in the German Nn
tlonnl bank of Lincoln, nt "probably
$50 a month." He commenced book
keeping nt 11 years of age, nnd has
been nt it ever since. He hnd been
bookkeeper for the liwing Clothing
cThnpany for nbout four years nt $73
n month. He hnd also tocu bookkeep
er for n Wahoo firm. His first experi
ence as examiner of insurance com
panies wns in 1897, under Auditor Cor
nell. In January, 1R08, ho examined in
Hnrtford the Hnrtford nnd Travelers
Mr. LIChty had told him thnt the
Trailers' tdiouM bo examined, us
they hnd refused tho Kansas depart
ment permission to examine them.
The Hnrtford was owned by the
New York Underwriters. He hnd
spent ntout four dnys examining in
New York as to tiic Underwriters'
method of doing business, for which
he received $300.
He could not remember how much
the Mutual Life of New York hnd paid
ns his expenses; did not know thnt It
was as much as $350 No other New
York company hnd paid him a cent
for his expcnbcs.
lie hnd not examined the New York
Life, although he had colled on them,
as he was examining the Nntlonal
Surety company In the same building.
The New York Life paid him no mon
ey. The Weed nnd Kennedy compan
ies paid .him nl told about $240. That
Included his expenses, lie did not
think the two of them spent over n
week examining these compnnieH. He
had made n thorough examination of
the companies, nnd detailed the work
done by him in this line.
The "Victoria of New York he
charged $100. ITc and Mr. Olllan spent
two days doing this work.
The i'enn Mutual of Philadelphia he
charged $100. lie did not examine
tills oouiiKtny. The company had been
examined just, previous to the arrival
of himself and Mr. Olllan, nnd nt the
request of the president nnd the com
puny nnd with Mr. Cornell's pcrmls-
slon he accepted this examination as
The State Mutual of Wooster, Mass.,
ho charged $240. He t.pent nbout n
week doing tho work.
He Niidjie regulated his charges ac
cording to the strength ot the com
panies. "You tempered the wind to the
shorn lnmb, did you?" nsked Chair
"1 sort of did. The only thing I re
gret isthat 1 did not charge more,"
wns the answer.
Ho examined tho Fireman's of New
York, spent three days and Charged
In New York he examined eight
companies in all.
All his charges were on the printed
list, save that of the Mutual of New
York had paid his expenses.
Asked how much board he paid a
day he bald:
'That depends upon the company I
wns w tli. 1 l Uirt stop on the Ameri
can plan 1 stopped on the European
Ho waited over n week for the deci
sion of the Mutual nnd they paid his
expenses while waiting.
His eastern trip covered about six
Senator I'rout asked: "I will ask
you, Mr. Palm, as tin. expert, don't
you know It would cost more than
you have charged nny of these com
panies to make a thorough examina
tion?" "It would not If a man would work
"Hut you are not a $2 -a-day man?"
"Well, at my rates, the companies
could not be thoroughly examined for
He had examined the Germnn Mnt
unl of Omnlin had Tecelved, he
fhotichr. $20 or $20 therefor. He paid
none of this fee to Mr. Cornell. He was
certain of that. This was in 1897.
In 1808 he examined ngaln to see if
the company was issuing "joint stocic
policies." He had a man buy a policy
to 11 nd out. For this he received, he
thought, $2.'. The check hnd been
sent Mr. Cornell, who turned it over
Questioned by Attorney Bryant far
Mr. Cornell, Mr. l'alm tchtitleu that lie
ha'd been educated in Sweden; ho went
to school and worked on books In the
evening nt the same time. He began
going to school at about 15 years of
and quit at about 18. He was then em
ployed ns a bookkeeper in a whole
sale house In Sweden nt 1,800 crowns,
board and rooms. A crown was worth
about 25 cents, but went as far In
Sweden us a dollar did heie. He came
to this country in 18S0, wheu 23 years
of age, and could not then talk ling,
His insurncc business here had not
been confined to soliciting; he also
wrote and Issued policies.
-Mr. l'alm tesUlleu that ns examiner
under Mr. Cornell 'ho worked otily at
specific times under tpeoillo commis
sions. At no time had ho paid nny portion
of his fees received as Insurance ex
alner to Mr. Cornell. He never expect
ed to und did not now intend to.
Mr. Wenver asked why ho hnd made
such promises in his letters und had
not lived up to them.
"Well, I did not get money enough,
an I stnted."
Captain Fisher asked if his Idea of
"a thorough examination consisted In
being courteous to the uig compan
ies." The question wns not answered.
Mr. Palm testified that Mr. Mboro's
ehortagc had, to his understanding,
consisted in retaining certain legal
Mr. Talm said he had In his posses
sion a letter from Mr. Lichty. lie did
not wish to produce it, .
"I do not wish to betray any man's
confidence entrusted to me In a per
sonal letUr; I do not think it honor-
nble nor right," said the witness with
an exhibition of self feeling.
He was thco peremptorily ordered
by Chairman I'rout to produce tho
letter al the next sitting, after which
the committee adjourned until 7:30.
At the evening session Mr. l'alm
pesentcd ihc Lichty letter in which
that gentleman mixed politics and
business. It is too lengthy for npper
nnce here. The letter showed that
Mr. Lichty was desirous of forcing nil
insuraneo compnnles an exnmlnatlon,
nnd he warned Mr. Pnlm not to forget
thnt Momtpeller company thnt had
written eo insultlnly last spring.
After the letter had beem read Mr.
Fisher took Mr. Palm In hand nnd
extracted some interesting testimony
in regard to the kind of n timo Mr.
Palm experienced during his two
weeks' stny in New York City. The
witness uns questioned closely nbout
theater tickets nnd cab hire. He fln
nlly admitted thnt he hnd n "hot
time." He denied, however, thnt Au
ditor Cornell joined him in nil things
becnuse Auditor Cornell's Ideas of n
good time were notrln accord with his
own. The committee wanted to know
whether the Insurance companies paid
the expenses of the "hot time." In
asking questions Mr. Fisher displayed
considerable expert knowledge nbout
"good times" nnd the witness hnd dif
ficulty In nnswering.
Mr. Pnlm snld the nudltor felt satis
fied to take the examination of other
states in certain cases when the ex
aminations were thought to be re
liable. Mr. Ilryant examined Mr. Palm nnd
nsked if lie remembered the contents
of the. Lichty letters he hnd destroved.
Mr. Palm said he could not remember.
He had paved one simply as n souve
nir from Mr. Lichty, ns showing thnt
Mr. Lichty had curiously mixed poll,
tics with business. He wanted to
keep It. and in answer to n question
from Mr. I'rout, said lie would con
sider it a favor if the committee would
return this one to him after making
such use of it as wus deemed neces
sary. "Did you not mix politics in busi
ness In writing to Mr. Lichty?" nskeil
"No. sir; not that T know of."
"Did you write Mr. Lichty that if
he would take care of the pops you
and Mr. Gilchrist would take care of
"Not that I know of."
Mr. Trout then sent for some of
Mr. Palm s'lettcrs to prove this point.
The Jotters were found to have been
locked up In a vault. There not being
n quorum the committee adjourned.
iamulnur 1'aliu'a Amtitant Toll Commit-
teo Wlmtlle Knuui.
Lincoln, Ne.b., Fob. 25. Mr T. II. Oil
lati of Auburn, who wus Insurance ex
aminer under Auditor Cornell, nnd ac
companied Mr. l'alm on his eastern
trip, was In the witness chair before
the legislative investigating committee
yeaturday. Mr. Uillau gave his busi
ness as that of abstractor, in. which
occupation ho had been engaged ut
Auburn since 1SU2.
In January, 18'Js, Mr. Gillnn testified
lie left Upton, Pa., for Montpelier,
t., to a&bist .Mr. i.ilni in insurance
examination, on notice received
from Mr. Pnlm. He had, nbout
Thanksgiving, 1S07, been- informed,
without solicitation on his part, that
iie would be accorded eucli a position.
About Christmas he left to visit with
relatives in Pennsylvania, and on Jan.
nary SI left them to proceed to -Montpelier,
He had never met .Mr. l'alm until
he met him nt Montpelier, although
he hud seen him ut conventions. Mr.
Palm and the witness then proceeded
to the oll'iue of the Nntionul Life In
surance company, which .Mr. Pnlm had
a commission to examine.
Itcttirnln-g to Montpelier, the ques.
lions of Captain Fisher brought from
Air. Uillnn 'the testimony that he, Avith
Mr. l'alm, had entered the office of
the Nntlonal Life, but that he person
ally never got further thnn the lobby
of the building.
On January 27, they left for Hart
ford. There the Hartford Fire lusur.
anCe company wns examined.
"I did not work," snid Mr. (lillnn,"ln
the examination of this eompnny."
"Did you shore nny of the proceeds
of the examination?"
"When wo left Hnrtford Mr. l'alm
gave me $200 or $205."
"What wns this for?"
"He said that was whnt I was entit
led to for my time nnd expenses."
They were nine or ten dnys in Hnrt
ford. Witness made no examination
of any company there himself, nor did
he assist in any examinations.
"How did you dispose of vour time
"Well, I arranged 'with Mr. Talm
that 1 should stay at the hotel, wait
ing for him to come and get me to go
Mr. Olllan had been once nt the of
flee of the Hartford Fire empnny nnd
twice nt the Travelers, not longer than
fifteen minutes nt any time. On one
of these oeenslons he met Mr. Hatter
son, president of the Travelers.
"You do not know what Mr. Pnlm
charged these companies, do you?"
"I don't know what he charged nny
of them. He collected the money anil
gnvo me whnt he thought was right."
The leteer written February 4, 1S08,
from Hartford, Mr. Gillnn snld he
very foolishly wrote nt the request of
'T wrote it in the Inngunge he gave
to me, using the pronouu 'we,' of
"Why was it necessary for you to
supplement what he wroto by writ
ing tho same thing over ngain?'
"I do not know. In fact it was not
"Did he dictntc the letter to you?"
"Practically he did."
llelng questioned, seriatim, sentence
by sontrnco, ns to the contents of the
letter, Mr. Gillan confessed ho knew
nothing whatever about Its subject
"When Pnlm nnd you first tniked
about the chnrge, what did ho say it
ought, xo ocr
"I do not remember. T noticed he
wns very angry about something."
Questioned further, Mr. Gillnn re
membered thnt Mr. Falm said he
ehould have at least $400, and finally
"I think we got all wo deserred,"
was the confession of the witness.
"Did not- Mr. Palm frequently
charge more than he expected to
"Well, he several limes accepted law
thnn his bill called for."
Questioned nbout the "complimen
tary" mentioned In the letter, Mr. Gil
lan snld Palm had suggested making
the auditor a present. Mr. Gillan had
personally seen- nothing wrong or out
of place in this.
Mr. Gillan received no nn&wer to
this letter from Mr. Cornell. He re
ceived no letters from tho nudltor,
but he had teen some of those re
ceived by Mr. l'alm.
"I nm quite certain that there wa
one letter In which he stnted that
whatever we collected was our own." .
The witness remembered seeing no
letter In which the nudltor openly pro
tested against being sent any money
Mr. Gillan believed the examination
of Insurance companies a serious mat
ter. "Were Mr. Palm's examinations so
"Well, in my judgment some of them
From Hnrtford Messrs. Vnlm nnd
Gillnn proceeded to New York city,
where they remained about n month.
"How many companies In New York
citv did you' icCeivc pay for examin
ing?" "I mndc no memornudumnndeanwrt
The witness bad never made nny re
port of examinations mndc by him nor
hnd he been requested to do so.
He had helped examine in New York
the Fldelltv and Casualty, the Ameri
can Surety! the American Fire nnd tho
Meed & Kennedy companies. Ho did
not know what he received for this.,
ns he wns paid at uncertain times and
The Providence Saving Life of iiew
York, he testified, had been examined
bv Mr. Palm. This company does not
npix'ar on Mr. Palm's list of companlea
examined by himself and Mr. Gillan-.
"Do vou not think Mr. Palm could
have gotten n cleric or stenographer at
nbout $10 a week to do the work you
"How much did yon -receive, per
"Well. I worked, or wns read to work
scventv.scven days, owl 'l
$1,105. out of which I paid all my traY.
elin.7 -and hotel expeiiRes."
The Providence Raving Life of New
York Mr. Palm nnd he did not ex
amino. taA Mr. Gilllnn. Ho did not
know how much the company paid
Mr? l'alm. (Palm's list of charge,
shows that tho company-paid hlta
JMr. Gillan's attention was called to
the letter from Mr. Palm to Mr. Cor.
""l SSl Brv to make the bill iarg.
enough so that you will be remember,
ed. We got $100 apiece from the HarV.
1 !.'!.. '
"What would you infer, Mr. 01"
that Mr. Palm received, judging Iron
this letter?" ' .,
"Two hundred dollars.
"If in fact $300 was received, fJJ
would vou Infer the other $100 went?
1 lere'.fudge Ilryant, for Auditor Oor.
,.ll, objected, but finally withdrew his
objection. Mr. Gillan tuuiwoxed aa foU
"f Vhould infer that 'yon' hnd been
mmenibt-nil. referring to Mr, uorne u.
that is the only inference
-Mr. Palm's llt of charges showttiat
In" fact $300 and not $200 was received
for the examination, being that of the
Hartford I'lrc Mr. T'a in testified
that the extra $100 -went for tho .,
IH'mT Gillan testified that Mr. Palm
UBiiallv had been served wi th Hquw
n" his' meals wh-ile in New York. Ha
did not think it was wine or branilr.
Mr. Gillan himself tid no ntoxlc-at.
inn liquors, nnd sharply called down
Captain FlHlicr on the ! "
him what his whisky bill Watt -been
while in New York. rut,n "
A letter from "Palm and Gillan,
dated at New York, was lnrodwd,
, .tA. nnnnrrliil IllPSe WOTKlH!
have made It a point not f"1"
pomipany by presenting bills too kvnr.
1V sacrificing n little ourselves in te,
we not only get the good will of the
companies nnd the freedom o the
offices thereby the Inner workings of
1, but we save tho home In.
surnn department and its official,
from the many hareli cr!"mif
which some ot them have been eub
Iwted. And we trust that you may
have taken -the Kime view ot our pro.
eccdi-ngs thus for." ' r,..'
The letter Is signed "Palm and GH.
Ian." and is in Gillan's hnndwrU ag.
'As a .matter of faot your examlna.
tlons were very superficial," were they
"I thought so." .
"Were they not unjust to the uoi.
"He was the judge, of that"
Mr. Giltan said that (he understood
that his nnd Palm's cbarges were to
lie fixed, or at, least passed on, by tne
a ml Mot bimrelf. nm..it
"Did Mr. Palm ever exprew hlmsell
nQ ,1 untuned with tha condition of
nv company examined?
"Not to my knowledge.
"Did he ever exercise any , otuoiai
"MWifkhc did; I think Mr. Palm
Is a good accountant."
"As n mater of fact, Mr. Palm was
only nfler the money -was ho not?
"As 'to that. T cannot, my."
"Did voni consider your exsamlnattom
of any of these companies -was a (snffl.
clent'protcotion for the jwople of No.
braska who might be doing business
with them?" . , ,
"Yes and no, too. At times T mlR-rvl
have desired to Investigate more thor.
oughly, but In every Instance mr
judgment was satisfied as to th sol.
venev of the company." I
Mr. Gillan believed that $300 for the
examination made by Mr. Pnlm of iha
Hartford Life, was n hisrh oharge. In
his judgment a rennonnble charge for
rueli an examination ns Mr. Faltn
made, would le about $100. Expenses
amounting not to exceed $3B nilghit ns
charged ngaliw the company in addi.
Hon to the $100. This would InteVude
raiirond fare from Montpelier to Hart,
ford and hotel expenses for tho Jtires
days tor the two.
Lincoln, Feb. 27 The above is the
work accomplished by tho Investigat
ing committee the pnst week, The pro
ceedings of the present week will ap
Motto of a club man "Late to bef
and early to ryes."
' ' -.!', ,t,;
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