The Richmond Virginian. (Richmond, Va.) 1910-1920, 1910-06-11
Rates IRE HIGHER
THAN IN NORTH
Insurance Investigation in New
port News Brings Out Start
ling Comparisons.
MR.. LECKY Is EXCUSED
On Account of Taxation in Nir-
ginia New York Companies
Have Retaliated.
MIR. LECKY Is EXCUSED

4Specia. e. The Richmond Nirginian)
sEwPDRf NEWS. June LINE
trial OF the twenty-tnree insurance
unoerw rtters. charged with consi ring
Is sun IN progress.
After tive nays ot spaTrinS and
gritting Robert Leoky, az has com
yletea his testimony IN the court oi
justice ~ q. brown.
INT trial this morning was con-
summed in the examination OF local
snsaIance agents, y, W. srysut ana
W Lee towsii. The Commonwealth
sought to bring out the amount OF
commissions being eeid Powell re-
fused to d1vulge information.
On Commonwealth insisting court
gave witness until Monday to consult
an attorney.
The defense eudeavored to prove
that the ten per cent penalty i'm
posed on Newport News by reaso'.
OF its Ave per cent license tax would
result in a net gain OF only about
eight dollars tor each ~ the sixty
oon1ps MEG represented, the additional
collections, reported to be twelve
thousand dollars, the defense showed
would be about eight thousand, While
the defense claimed that excessive
taxation plus the normal dsbursc-
ments on each dollar OF premium in
come would consume the additional
preuniums collected, Court adjourn
ed until two O'Clock MONDAY follow
ing this examination.
Yesterday the examination OF the
witness by Commonw salih'e Attorney
Berkeley took a serious turn when the
witness declined 10 answer a question
as to the amount Of commission paid
agents In New York.
Mr.. Lecky insisted that this iufor-
nation was of confidential nature,
that 1t was irrelevant and that he
should not be required to divuige IL.
Mr. Berkeley insisted upon making
the witness answer, and witness ask
ed for time to consult lawyer. Later,
however. the Commonwealth was
satisfied by certain admissions made
by the witness which, while not di-
suiging the Information considered
confidential by Mr.. Leekx. answered
the purpose of the investigation
Mr.. Lecky had shown. however,
that he would under no consideration
give the information sought. saying
that he preferred TO suffer the penal
lies of contempt rather than to be-
tray q confidence.
In the course OF the exAmins ton
information of great interest was
brought out
1t was shown that the average cost
of insurance In Virginia for the year
1908 was si.4s per hundred dollars
worth OF protection. while the aver
age cost in New York was rs cents
or these amounts IS $40 per cent.
was paid back 10 New York in the
form Of fire losses and in Virginia
only IS 2-1o.
On account of excessive taxation IL
Virginia on New York companies New
York has retahsted. and. in aditior
10 the tax Of 2 per cent. on pre-
miums, Mr.. I.ecky stated that nj
COMPANY had a claim against II II
New York fer $500 additional taxa
ton levied by the State. This claim
viii be argued before the State Insur-
ance Commissioner of New York THU
month
Witness, when questioned as TO ~hsi
was done with companies that did no
comply with the regulations Of the
Underwriters Association, said thaI
they were expelled. but denied thai
they were biackisted,
Other witnesses were put on th'
stand, and considerable progress va
made yesterday afternoon in the case
There are seventy witnesses alto
gether TO examine,