Daily press. [volume] (Newport News, Va.) 1896-current, 1910-06-12
JUSTICE BROWN REFUSES
40 SWALLOW" CLAIM
Counsel For Defense Contends That
Rate increases Provides Net Profit
of Only $500, But Court Can't See
u That Way-oniy Two Witnesses
Examined Yesterday.

Police Justice Brown again indicat'
cd very clearly yesterday that al Oh
The facts in the case must be divulged
by the witnesses in the trial oil tue
officers of the Southeastern Under
writer's Association when he gave w.
lee Powell, vice-president OF inc
Powell Trust Company, the ai'etha
tive of telling whether or not he IL
srept for any fire insurance companies
which pays him more than hiieeh per
cent. commissions or going to jan
Mr.. Powell at first declined TO ans
wer the question and stated that ne
desired TO be given time before being
forced on the point. He was given
until tomorrow afternoon TO make up
his mind whether he will asnwer or De
locked up.
vice-president Powell and N. W.
Bryant we're the only witnesses ON the
stand yesterday and Mr.. Powell VIII
be recalled when court convenes to-
morrow. Whom questioned by COUNSEL
for the State both of the agents seem
ed TO know very little about the in
surance business. Mr.. Bryant sara
that he wrote under rates contained
in rate book which he had receiv-
ed by express. He did not know where
that book came from or who sent II 10
hini, nut he took IL to be official. Mr.
Powell testified that he could not say
positively whether or not IL would
cost the Insurance companies $I,oOo
to collect $4,000. as he is not famii'
lar enough with the cost end of the In
surance business TO answer this ques-
ton.
Makes Daily Reports.
Both OF the agents testified that
they make daily reports on the insur-
once policies written to the stamp
ing office" of the southeastern Under
writer's Association in Richmond and
that employees OF this stamping office
returns The report and instructs the
agents 20 correct the policies. The
stamping Office reports to the com
ranies on the policies written by the
local agents.
cisins $500 Net Profit.
ea<sopusel fer tAe defense. In the
sfs,ss-examination OF Mr.. Powell, I'M
uertook to prove that the ten per
cent. increase in rates made by the
association will net only $500 profits
for the companies this year. The d.
tense estimated that the total amount
Of premiums received here this year
which are not effected by the ten per
cent. Increase will be $4,000. The
ten per cent. increase would give
$4,000 additional The defense claim
e6 that IL will cost the companies
forty per cent to collect this $4,000.
or SO 200 to make the collections. To
this expense was added the $4,000 In
crease in the taxes in this city, max
ing a total expense OF $500, which
deducted from the ss.e00, left net
profit OF $500.
Asked IL he was afraid OF what the
association would do TO him II he
answered. Mr.. Powell said he had no
fear OF the association. He declared
that he had no reason to think that
The association would take his COM
panies away from him 1; he answered.
Ibe witness said that he had no
reason TO think that the association
would withdraw from Newport News
in the event that the accused insur-
ance mon are convicted. He had
stated some time ago that Il was
possible that the insurance companies
would withdraw from Newport News.
He had no reason for believing that
they would, however
Must Carry Fire Insurance
Mr.. Powell said that his companies
have loaned considerable money in