New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1903-12-11
INSURANCE HEARING.
Bill Denying Use of Mails to Fraud
uIent Concerns Strongly Opposed.
TFRoM THE TRIBUNE BUREAU. I

Washington, Dec. 10.-Unusual interest mani
Tested IN the hearing given to-day by the Senate
Committee Postofhces and Postroads on the bill
introduced by Senator Dryden, of New-Jersey, by
request Of the fire insurance commissioners Of the
various States the purpose of which is to prevent
the carrying of fraudulent insurance business
through the United States mails. The measure has
met formidable opposition, and representatives of
large business interests appeared In force to pre-
sent arguments against favorable consideration of
its provisions
Among those in attendance at the hearing were
the Attorney General Of Indiana and Insurance
Commissioners Folk. of Tennessee. and Vorys. of
Ohio. in support OF the bill. and E. r. Kennedy,
E 7. Mostert. Seeley Z. Benedict and John r.
Waters. Of New-York; George Shepley, OF Provi-
dence, R. L, and a committee representing the
New-York Board Of Trade and Transportation. in
opposition.
Commissioner Folk first addressed the committee
and was subjected TO interesting cross-examina-
ton by several OF the Senator's. 1t developed
that the insurance commissioners themselves real
lied that the bill as introduced might precipitate
grave disturbance in legitimate and proper insur-
snce transactions. Senator Dryden explained that
he had introduced the bill only by request and that
II II should in its present form it would abso-
Iutely preclude the great life insurance company
Of which he is president from doing business
kennedy o then presented erede der fr9 ON
argument by Discovering any feeling Of resent
their effort to repress an undoubtedly fraudulent
business, the amount of which however. he thought
sioners He gave brief statement of the WaY in
which the so-caled surplus line insurance business
had arisen in this country, and declared that, on
the great properties of the country-cotton stores
grain elevators. mercantile warehouses and fac
tories of various kinds-the owners were unable to
obtain from FIRE insurance companies transactng
business in the places where these properties are
located. sufficient insurance to cover the value Of
the properties. The State of New-York has there
fore licensed brokers to obtain from companies I'm
other countries who have no agents in the United
States insurance TO supplement that obtained from
the represented companies. He declared that the
bill originally presented. would make it
criminal offense 70 do what the law Of the State OF
New-York had licensed these brokers TO do and
explained that large business houses all over the
country severely deprecated any attempt to CLASH
~ lotteries. q business such fire Insurance
where II was conceded that the fraudulent portion
that was carried through the mails was extremely
slight. as compared with the entire volume
z T. 1Ostert, OF New-York. representing indl-
Viduals, firms and companies recurring amounts
OF insurance beyond the capacity OF the COMPANIES
represented where the properties are located also
vigorously attacked the measure
At the conclusion of the hearing the chairman OF
the committee announced that the bin Wonid he
at once reprinted Ia its altered form ard thar
there would be further hearing at 10 o'clock next
Tuesday morning W