New-York tribune., 1906-07-29

Another concerns manager laid most stress
on the consDiracies of small business men, like
those Of frequent occurrence in fire insurance.
Even with better detective work and sterner
magistrates, there would remain the organized
clannish frauds Of a certain class of the popu-
lation Just as the loss of millions by profess
sional and amateur perpetrators of arson was
stopped by the concerted action of the fire in
surance companies and as the bank burglar and
forger have been put down by the relentless pUr-
suit Of the bankers association, so must the
burglary insurance companies unite against their
conspiring enemies.
The most OF our losses" said this manager.
ARE on mercantile risks, small clothing estab-
lishnents. pawnshops and the like. A group of
men is frequently concerned in the plant An
entire family has been in the plot, and we have
cases where the proof strong that owner,
burglar. watchman and lawyer planned the job
together The broker gets the policy, the owner
arranges for the crime the watchman let's in the
thief and the lawyer is ready to claim the in
surance and defend any all Of his clients.
Relationship among several Of the conspiratOrs
makes them more confident and gives
harder task in getting evidence In many false
claims find inventory Of stock any
other record by which the value of the goods
may be proved; yet, if we refuse 70 pay, the
owner makes a hue and cry that hurts our busi-
ness with the public"
INSTANCES OF FRAUD CITED
once a clothing dealer reported that burglars
had taken 81 900 worth of goods The company
detective found that the iron bars in front Of
his windows had been sawed from the inside and
there were other evidences OF colusion. Pay
ment was refused. and the policy cancelled; but
a few days later the dealer, as if his trust in
insurance were mistaken. coolly applied for
In he al
legged to be stolen were found in charge of the
owners brother in a neighboring city. Again,
owner who claimed a 1000 loss, when con-
fronted with certain suspicious facts. settled for
$3.50. Another policyholder tried to collect be-
fore breakfast on a lot Of goods that had been
carted away by horse and wagon from his
Broadway store the previous evening. Then
there was a fake claimant who shot himself TO
avoid exposure and mis- partner left the country.
These are the more sordid cases, prompted
bv the avarice or fear Of bankruptcy of small
shopkeepers east Of Broadway and below 23d
street Women and men of respectable name
also fail victims to the temptation. They act
ss individuals and defraud the companies only
once which is not so hard on conscience and
,,al,as detection difficult. Stolen jewelry is the
,,,4,,rai and easy form OF their claim on the
,o,,nan,, treasury II takes some effort TO
range a theft of bulky merchandise. While few
diamonds may disappear at any time with
vlsusibIe ease. Women who gamble in stocks.
nIav the races and indulge in bridge whist are
believed to have defrauded insurance companies
os thousands OF dollars. Having lost money by
gambling. they pawn their jewelry and then re-
mort to their husbands that it has been stolen
In some cases they have been known 10 ger IN
a,,~ance with the immediate purpose OF reaNz-
ing on the burglar claim SO as 70 hquluAle
debt OF the card table.
C.l.,ma based on honest error and an exag-
,.r,tod idea OF company obligation are likewise
numerous. A woman policy holder asked to De