The sun., 1903-12-08
GRAFT OF FIRE "ADJUSTERS. /"
KORNFELD ONCE SPENT ALL
NIGHT DAMAGING GOODS,
Insurance PatrOlman Helping-Merchants
Who Gave False Hills to Enable
Burned.0ut Customers TO Prove
Heavy Losses Are to BE Prosecuted.

Heavy Losses Are to Be Prosecuted.
Recorder Goff postponed yesterday until
Friday the sentencing OF Max Kornfeld.
the insurance adjuster convicted OF filing
false proofs Of loss by fire. Prosecutor
Garvan, to whom Kornfeld has made
confession involving merchants. lawyers,
insurance adjusters and one public offi-
cial was not informed why sentence was
postponed
Some of the confessions made by insur-
ance adjusters who have been convicted,
or who are about to plead guilty, name
one OF Fire Marshal Freels staff.
"There Is no evidence against him but
the word of these convicts," Mr.. Garvan
said yesterday. I do not think that he
carr ever be prosecuted.
"Three features of all these cases, Mr..
Garvan went on, "are the giving by mer-
chants Of false bills used to support false
claims for large amounts Of goods totally
destroyed; the destruction of property
after fire by the insured person by con-
nivance with the fire patrol, or its destruc-
ton by the fire patrol man himself.
Merchants who have given such false
bills are to be prosecuted. kornfeld got
about 40 per cent. of the moneys paid by
the insurance companies on losses under
$4,000 adjusted by him. On larger losses
the percentage was smaller because eIsaI, large
The public adjuster is q sef-constituted
official Some of them have fire alarms
in their houses and go to every fire, others
employ messengers at Police Headquarters
to notify them of fires. they are IKE
the lawyer ambulance Chasers.
They have printed forms o. contracts,
but to get job they will agree to any terms.
In some cases the printed forms stipulate
that they shall get 2S per cent. OF the % money
recovered. When the assured objects 70
through the 3 and leave the 5 standing;
When they get home they erase the pencil
mark and hold the assured to the printed
rate. In some cases they boosted the
losses on their own hook and got so msrn
more out of the companies than the actual
amount asked for by the assured that the
assured never did know what the adjusters
GOT
Kornfeld gave Mr. Garvan list OF prop
erty that had been destroyed. in some
cases showing where he and fire patrol
man had worked all night long carrying
goods into the cellar OF prominent business
man, and wetting them down or IN otner
ways destroying them.
Here's loss OF 500, Mr. Garvan went
on, "in which one item was $3.50 for bath
tub that stood in a plumbers window.
Kornfeld says that he and the fire patrol
man stuck an iron bar through the bottom
Of the tub Here's case in which the los5
was $3.50. the adjuster got $3.50 and the
assured 5000 Here's the CASE Of Benjamin
Gold of 1871 Madison street. The company
paid 1915 on his claim. All he got was
81 7.5O, and Immediately he became public
adjuster and took his brother into the
business.
Here's a case where man executed
bill of sale to escape creditors ana there
after took out an insurance policy IN MS
own name. When the loss came he couldn't
prove it. as his property stood in the name
OF the assignee So he called in lawyers
and it took three OF them to frame up
deal by which they drew up, a paper ex,
cluding the articles on which he wanted
to present his claim of loss. He swore TO
it and dated it back Five indictments
will follow in that case:
-In two cases under investigation, one OF
more mo- than $50 900 and the other is that Of
president OF corporation employing
more than 400 persons He admits that
he gave false bill to an insured man to
help him prove false proof OF loss. One
Fifth avenue merchant is under investiga-
ton "
The president OF a fire insura nee company
said Yesterday that the annual fire loss in
New York city amounts to about $4,000 900.
Mr. Garvan says that Kornfeld figures that
40 per cent OF this money is paid on false
claims-or boosted claims.
Insurance companies cannot take every
claim into court. said the fire insurance
soon be said abroad chat 1t was no use to
get insured when if you did have fire 1t
would cost you all you had to fight your
claim ir court. Public adjusters are a
purely local institution, They are un-
known outside Of New York city,