The Washington herald., 1909-06-20
COMPANIES PAY MEN WELL
TO STOP INSURANCE FRAUDS

the springs were charred human bones.
and the remains OF the doctors watch.
The widow collected 10000 OF life in
surance. A year later the doctor was
found In New Orleans, where he was
living under an assumed name He had
married again and was evidently happy.
But the Insurance companies that paid
the 10000 10 his supposed widow were
not happy when they heard he was alive
The first thing they did was 10 go quietly
70 his first wife and lay the facts before
her. She couldn't believe the story she
heard They offered 10 take her 10 New
Orleans and show her the man. She
went and saw him without being seen
by him. Then she did one Of the most
amazing things that a woman ever did
She told the representatives Of the insur-
ance companies that II they would say
no more and promise not to prosecute
her husband she would return the Sl00 coo
Permission 70 accept the offer was soon
obtained by telegraph and the money
was paid. The barn-burning doctor did
not know OF the settlement Perhaps he
does not know Of IL yet The woman
simply gave up the money and returned
20 her home IN silence. The insurance
official who told the story IS OF the opin-
ion that this Is The first time anything
about the case has ever found Its way
into print.
A mystery that has never been fully
cleared up. even 20 this day, had It's
origin in FL Paso, Tex A barber applied
20 the agent OF an Eastern company for
o0oO Of insurances. His application was
rejected on the ground that his occupa-
tion did not justify the carrying Of 50
large a policy. Then he went into par
ticulars. He said that while It was true
he was a barber. the tonsorial business
was really only a side line with him. His
chief occupation. he declared. was the
buying Of Southern land for Michigan
farmers. He himself according 10 his
story. had once farmed IN the Wolverine
State. and his neighbors. lacking an op-
portunity TO get more than savings bank
interest on their money. had authorized
him TO pick UP bargain lots OF land for
them wherever he could in the South.
The barber was plainly a man above
I his station. and a little investigation
among the tOwnsf0lk disclosed the fact
that he frequently went away on trips
1 thus tending 10 confirm that part OF his
story which related 10 the search for
I cheap lands. So the company cut his
I $4,000 application IN two and issued him
a policy for $500.
/ Three months later, while away on one
/ Of his trips, the barber was shot Weak
/ from loss OF blood. he was picked up by
/ a policeman and sent 70 a hospital. where
I a few days later, he died. He said he
I did not know who shot him. that ne was
/ set upon by tramps who tried 20 rob him;
| that he resisted and one Of them fred at
him
After the BARRIERS death the fact de-
veloped that he was insured in halt a
/ dozen companies for sums ranging from
I $500 10 S15000 The widow filed out the
claim papers and sent them on TO the
home Offices. The insurance companies
/ sent Inspectors 70 Texas 70 md out more
about the shooting. The investigation
4 proceeded several days without turning
( up anything OF Importance. one day, an
/ inspector was talking with q train con-
ductor about the murder OF the barber.
I wouldn't be surprised said the con-
/ ductOr. If the barber was the man who
/ tried 20 hold up a Southern Pacific train
and was snot by the engineer.
F, From this suggestion the fact was de-
velOped that the barber was unQuestion-
ably a train robber. trainmen who had
/ seen him IN action identified his picture:
/ his supposed trips 10 buy land always Oc-
CURED simultaneously with some new
I depreciation upon the railroads. and In
4 that part Of Michigan n which he said
/ he had lived nobody knew him So the
Insurance companies refused 10 pay
I The widow sued The companies re-
sisted on the ground that the insured met
4 his death while engaged In a criminal un-
& tCertakinE- The widows attorneys called
upon them 10 prove IT, They couldn't do
( II. They could md trainmen who had
Z seen him trying 10 hold up their trains.
+ but they couldn't find any one who would
swear that the barber was committing a
{ crime when he was shot. So the Texas
( jury brought in a verdict for the widow,
and the higher courts affirmed the judg-
ment- The companies paid. but they be-
4 lieved then and believe now that they
I were swindled- The suppOsition IS that
I the barber was loading up with life in
I surance preparatory 10 palming OF an
other body as his own. and that he was
killed before he could carry out his plan
How 90 insurance companies fight
frauds? They keep an army Of inspectors
I in the field All of the big companies
make Il a point 10 have an inspector visit
each new pOlicyholder within a year
/ from the date OF his policy. Ostensibly
I the visit IS only 70 ascertain how the in
/ sured likes his policy and 20 learn
whether his understanding OF the terms
OF the contract is correct. But the in
! spectOr does more than that He notes
whether the policyholder answers the de-
/ sCriptiOn Of the man who was insured;
whether there was any serious misrepre-
/ there are signs Of disease that must nave
/ been present when ne faced the medical
! examiner. II anything is wrong. the facts
! are reported 10 the home Office and the
policy IS Cancelled.
/ In the case OF larger policies the inspec-
tors. when IL is considered necessary 70
do so, ascertain the sources Of income
and the habits Of life OF the insured,
/ Usually this sort OF investigation IS con-
/ Quoted before a policy IS issued Reports
/ are obtained from commercial agencies.
/ Ordinarily nothing Is done afterward.
But II is when a suspicious death claim
! comes that an inspector is most busy.
/ The claim may come from Davenport.
/ Iowa The nearest Inspector may be in
/ Chicago. II so. a telegram is sent from
/ tho home Office instructing him 70 go 81
once 10 Davenport communicate with the
1 loCdl agent ana pLoCcc1 WIN lllt lAfSSll-
cation as best he can. pending the arrival
/ OF further instructions by mail and Jeie-
graph.
/ The work Of an inspector is really spe-
cialized. high-cIass detective work. AS a
rule he is a soft-pedal gentleman, but
when the time comes 10 make big noise
he knows how 70 make II. More than one
prominent citizen who considered life in
surance companies fair game has taken
the count when an inspector made Il
plain 10 him that he had placed himself
In jeopardy.
| Vet the number Of frar6s narnatrated