Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1910-03-22
Spent to Influence Legis-
|stors at Albany.
fire Insurance Probe Deve|opes
Interesting Testimony.
limitations Of an Organized Sys.
TEN Throughout the Country.

New York, March 21.-Oune of the
mass of promising generalities which
has characterized the fire insurance
inouiry started in New York on Fri
dav last, there cropped up today testi-
roony that three foreign fire insurance
companies paid handsomely to have
the so-caled Grady fire insurance bill
uassed by the Legislature at Albany in
1904, The bill was passed and is still
law, Notwithstanding that it was
opposed by domestic companies who
subscribed $4,000 for the purpose and
nlaced it in the hands of the late
George p. sheldon. one time president
Of the Phenix Insurance Co, of Brook
lyn
These Incidents were described on
the stand by f.. Fl. A. Correa, vice
president of the Home Fire Insurance
Co., in whose opinion the bill in ques-
ton was brought through" the Legis-
lature by the foreign companies. Just
how the fund raised to combat the
measure was spent was not made clear
except that Mr.. Sheldon used it i'm en-
i poying counsel, FOR travelling expenses
{ and for entertainments in going to
Albany"
But New YOrk'S state capital was
not the only point Of interest to the
National Board of Fire Underwriters,
according to the testimony of the day.
There were limitations of an organized
system of influencing legislation
throughout the country. 1t was shown
that in the years to which the inquiry
has been confined to date-19O1 to 1906
large sums were spent for the most
part nomnally as counsel fees" to
put through or to suppress bills in
many states. according as they affect
ed the interest of the companies. No
state capitals were specified, however
when William H. Hotchkiss, state SUI
perintendent of insurance, resumed his
Investigation of fire insurance companies
today, William N. Kremer of the Ger
man-american Fire Insurance Co. who
was on the stand when the hearing was
adjourned Saturday, resumed his testimo-
ny. Mr. kremer WAS a member of the
laws and legislation committee of the
New York Board of Fire Underwriters.
which in 1901 passed on Elijah r. Ken
nedys bill for $t3,21l for expenses In
cured in connection with fire insurance
legislation at Albany.
Alfred Hurrell, counsel for the state in
surance department. examined the wit
ness. Mr. Kremer testified that year af-
ter year bills known as anti-compact bills
were introduced in the Legislature at AL
bany. These bills were designed to pre-
vent agreements among the companies as
to uniform rates. 1t was brought out
at Saturdays hearing, through Mr.. Ken
nedys testimony. that these anti-com-
pact bills were regarded as strike bills. +"
and that 1t was thought that the insur-
ance men ought to ''he reasonable" with
certain influential men at Albany to have
the bills suppressed.
Mr.. kremer said that the law firm of
Davies, Stone & Auerbach was the firm
which did most of the work for the I'M
cerwriters' board and that the chief legis-
lation with which the fire insurance COM
! pahies were concerned were the anti-com-
pact bills and the bill, passed in 1901 at a
cost of 1891 to the companies. to exempt
Inc reinsurance reserves from taxation.
Mr. kremer's testimony brought out the
TACT that the fire insurance companies
troubles over the reinsurance reserves
Continued on Page Twelve).