New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1896-03-07
uoT AFTER BOGUS LLOYDS.
40 INSURANCE. FRAUD EXTENDING
THROUGHOUT THE COUNTRY.

.~,vpr.ERs TO BE run TO EARTH As THE RE
or A CONFERENCE IN THE DISTRICT
ATTORNEYS oFrIcE-TIE QUEER
DATING OF PAPERS
hoeus Lloyds insurance swindle is ex-
,.,.s discussion in home and office. not only
'. ,ne city. but other localities, and with
~ ..so,s story OF the extensive bunco game
~. .'s.,o.ed-now thousands have paid for insur-
10 policies which are not worth the paper
80 are written on; how merchants In towns
IA villages from one end of the country to
-, -. o,her have been duped-one OF the most far
...hine snd corrupt money making schemes
- criminal annals is brought to light.
m. law which is now hot after those con-
AIMED IN the fraud lost no time yesterday in
loving upon the haunts OF the guilty, and
.Iscers were busil! engaged in obtaining every
iran Of evidence which would tell against the
swindlers.
AN OFFICIAL CONFERENCE
A conference was held yesterday afternoon in
,he Office of the Distrct-Attorney regarding
the evidence obtained against the men under
mspicion. Deputy AttorneyGeneral Rich
ards was present. He believed that his case
.sainst the men all eady indicted for insurance
frauds stronger than ever and information
cas- disclosed that will involve scores Of in
dividuals.
The three who said to be under Indictment.
Graham McAdam. Frank w. Anthony and David
vandergaw. are still missing and the police last
nisht were inclined to the belief that the much
wanted persons not In town. At their offices
and at their resorts not trace Of them could be
obtained.
QUEER METHODS BROUGHT TO LIGHT
In the discussion between officials In the Dis
trict-Attorneys office yesterday. features OF the
insurance swindle were revealed that showed the
amazing effrontery OF the men perpetrating
"wildcat' schemes. The investigation. as con-
Quoted so far has brought to light list of under
ground operators that includes convicts. all
around swindlers and forgers who have been
hunted by the police of leading cities for years
The game is enticing and easy to them. AS a
simple means Of soliciting other peoples money
and pocketing 1t the scheme is remarkable. A
few names are hung to the end OF a little agree
ment that the signers will pay insurance and on
this foundation Of paper an alleged Lloyds in
surance business rears aloft with high-sound-
ing sign swung to the breeze. The ubiquitous
and eloquent agent does the rest. For a nominal
sum he will insure property for large amount
IN this "Loyds' Of the high-sounding name.
calling for twice its value entices the unwary
And then. the cost is so slight only trife The
business Of the bogus Lloyds booms. But time
comes when some poicy-holders house goes up
In smoke. Armed with the policy. ne placdy
informs his Lloyds that he is ready for his money
A protracted inquiry follows When the days
have heightened into months. and the snow of
another winter flies over the ruins wrought by
fame and still no insurance money is forthcom-
ing the policy holder seeks out his "I4loyds"
again, and then learns that the concern Is dead
to the world The sign with the high-soundng
name is gone. and so is his insurance.
HOW THE LAW Is EvADED.
The scheme of starting insurance concerns to
solicit money without intending to pay any
policy has been made possible by the law which
uempts all Lloyds from State inspection which
"a business In 1892 or before. In that year.
bill was passed to suppress insurance frauds
by requiring that all concerns be subject to
State supervision and examination. but estab-
lshed Loyds. with unquestoned reputation.
were excepted 1t then became necessary for
wildcat" underwriters to show that they had
started in business in 1892. in order to secure
freedom from official investigation, which would
embarrass them in the hgh-handed game of
receiving money and giving nothing for Ii.
necessity
their organization led to the forging of papers.
the agreements in which persons formed them
selves into Lloyds associations. guaranteeing
TO make them read 1892" when they were In
reality drawn up and signed at later date is
what has led to action by the Grand Jury.
MUTE TESTIMONY OF THE '1ss"
In this connection is the mute testimony Of
bar Nv ha
evidence of P. J. Hanway. Editor Of The vigi-
liant" There are 1870 Lloyds concerns. IS of
which, he testifes. are unlawfully organized.
The Fulton Underwriters. Lloyds. at No So
Pine-st., he says. organized with Mark Hart.
a. attorney. When Mr.. Hart heard Of Mr.. Han
ways accusations rejecting the Fulton IN
derwriters, he protested. through his partner.
who called at Mr. Hanways Office, at No. ia
Nassau-st Mr.. Hanway's account of this In
terview follows:
II had not previously known that Mr.. Hart
had a partner, but when this individual intro
duced himself as Darius W. Ettineer became
interested at once. Underwriters in the bust
ness more than ten or twelve years ago do not
need to be told about Billy Ettinger the man
who. after q checkered career as public adjuster.
in which he was defeated many times by COM
panies which resorted to Pinkerton's detective
agency for help. started a remarkable bureau
Of informa tion' the object Of which was to fur
nish advance information to half a dozen sub
scribers at a very high price, Of fires which
were to occur. in time for the cancellation OF
any liability In locations he indicated How this
information was gained can only be guessed at,
but It was often correct. and Billy thrived ac-
ccrdingly After his death. about 1880, his son
continued his fathers business, but his patron
age became less and less. His last subscriber a
large English company, left him after the as
sistant manager had discovered that cuiprit
named as likely to have fire had not been at
the address indicated for more than three years
Since then. Ettinger has been public adJuster.
His purpose in calling on me was TO STATE