New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1886-07-25
LOCAL MISCELLANY.
INSURANCE METHODS.

CNDERG hOlNO lNrONANNE
WHAT oCrAvIUs PIERCE is DoiNG-his Rhco"D-
IS HE ENTITLED To A LicENstf
SUPERINTENDENT Maxwell of the State lnsura nee
Denartment. has so far acted upon HE TRIBUNE
exposures of the illegal fire insurance pIac.,. nS
now going on in this city ana BrooNiyn as 10 sehu
Iospector shannon down heie TO examine tno
hook, of such Insurance brokers aud agents as are
alleged TO he guilty of underground methoos. Mn'
Shannon called upon weed a. h "nnner5'
ING the fraud Indicated their possession OF va.
nable information. They invited the inspector "
examine their books but he said that ms l'i"d
tions did not include them MI Kennedy supP'I.u
INN with facts concerning certain brokers WHO aie
believed TO be irresponsible and certain companies
whose methods have invited suspicion; 90 re-
One of the brokers generally mentionen AZ nU
ouring the Department attention is Oc, Il
Pierce whose offices are In the western o III
building MIR. Pierce came to New. ON t no ont
Cago about six months ago ana loon on 90
n license TO place surplus INSURANCE 81
in unrepresented companies. Inc "a"
which governs tae issuing OF THESE iceiiseo of This
that they shall be granted only TO citizens ~ vu,'
State One wears residence in the STATE Is sup
posed TO be an essential qualification OF clllzcn no
ship 1t IS alleged by insaIs"ce them a" to re-
snect thai Mr. Pierce IL representing WIZ via
cat companies taking risks IN large alnoun.; ~
at low rates and placing 'neh mo 10 the com
M%"sfe& Of Dss N S} New Is BSs'' Sss
tne a. ,hn 'st pronounced unsafe by Mr.. Weed.
az 49, inccment was confirmed by ex-Superh-
tendent Mccall. , oor,os+ with
the insurance Department Of Illinois wmI ere BE
IN doing business in Chicago. ietter
has been received from Charles 7. Swlgert,
Insurance superintendent of that stare, uaien
Jniy IL 1856, III which he says: II prosecuted
Hctavlus Pierce IN 1882 for dong an underground
Insurance business for a certain Orleans com
nary which had not complied win We
laws of this Stats and becoVT was
judgment of 5000, ; wmcn w Was %
en,nha;ically that of a dealer IN illegal or uiuel-
crnund insurance" Nh. Pierce was seen IN ms Oh
ice Yesterday. lie said that superintendent Max
we'll had gwen him license TO solicit OUT
side insurance. though he had been ony SIX
months IN this State. He construed the
word citizen y III the law as meaning man wiz
CHARMED TO live III this state and declared ms III III
fcntion of dong 50, and he believed tlat 10 Ue
the view taken by SUPERINTENDENT n"G I ,,'.
eurance in the Monarch Company, which
h. SAID was perfectly trus!WoIthS !.
lie showed the reporter letter from the Monarch
people, III answer 10 one he iad wilt,en os,i In
were untrustwortty Ihcv sand they had received
several such letters, asserted Their RESPONSE
billy and added that ne need no, DO,
reply TO any charges. as 1t only IeL
had done bu. mess for the Belgca, but had eau
ccllcl all his policies with il. lie did business no "
for lie Louisiana. which he believed 10 pe eood
lie said that nothing could be proved agaln y
the Western mutuals when are 81 80 = 20,
co ldcnned among insurance men. ana uehic4 Ia az
l., WAS Going any class OF business MOI uohc ny az
otucr brokers lie SAID he had never had any con-
troversy with the Illinois Insurance. Departih n1
lie and the Attorney General nad io&c'ntI Piu
pared test case Tor SUBMISSION 10 the eoi'9' 4"
which lie was beaten. u, ro,ort
Several brokers have complained 10 the DePai''
u,ent LOT having granted license to MI fierce.