Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1910-03-23
FIRE INSURANCE PROBE.

New L OTk, MafCn 2Z.-Ille DlS DlllS
paid year after year by big fire insur-
ance companies under the comprehen-
siva head of legal expenses, with oc-
casional incidentals We're again under
examination today when Supt. of In
surance Hotchkss continued the in
veStigation he is conducting into the
activities of the companies in connec-
tioE with legislation at Albany. Mr..
HotchkiSS was anxious to find out, if
he could, what the circumstances We're
which led a member of the board of
fire underwriters in 1904 to write a
letter in which the statement was
made that a bill affecting reinsurance
had been brought through the Sen
ate" in that year.
The superintendent, too, announced
his intention of following further nu-
merous promising trails uncovered
yesterday Some of these, he thought,
might result in bringing to light the
facts he is seeking regarding the eX-
pen3itureS of the tens of thousands of
dollars which it now appears the COM
panies contributed in 1901 and several
successive years to combat unfaVora- :
BILE legislation and help along bills in
the passage of which they We're inter-
estcd.
The reinsurance bill of 1904. which is
still a law, was the object of especial
solicitude on the part of the examiner.
State Senator Thomas F. Grady who
introduced the Reinsurance bill in ihe
1904 Legislature today vigorously de-
Tended the measures and combatted
the assertion that money had been
used to get it through the Legislature.
He said the bill passed the Senate
without opposition and added:
Il didn't get cent of it.
Senator Grady may be called TO tes'
tify concerning the measure.
When The fire insurance inquiry was
resumed by Supt. Hotchkiss, w. r
Noble, cashier of the Nassau National
Bank, testified that he had searched for
record of elijah R. Kernedys tran
sactiCns with the bank in 1901, the year
in which Kennedy got $l3,3ll for put
ting through the bill exempting rein
surance reserves from taxation.
Mr. Noble said he had found nothing
which would shed any light on Mr.
Kennedys transactions.
Frank j. Price of Brooklyn who was
an asserlblyman in 1901. then took the
stand. 1t was Mr.. Price who wrote to
Mr.. Kennedy that an assemhlyman
named Riordan might come to him
seeking light" in connection with one
of the insurance bills which was before
the Legislature, that year.
Mr. Price said at the outset, that al
though he bad referred in his letter
| to Assemblyman James A. Riordan, he
was mistaken He said ii was a case
of mistaken identity.
f. H. A. Correa, vice president O
the Home Fire Insurance Co, who
was on the stand vixen the session was
adjourned yesterday, was brought bac'
to complete his testimony Through
his testimony the activities Of the in.
surance men influencing Legislation
were brought up to few months ago
Mr.. Hotchkiss produced cancelled
check for 800 which had been paid or
oct. %, 1909, to the late George p. Shell
don, who was president of the PheniY
Fire Insurance Co, of Brooklyn. Th'
money was paid to Mr.. Sheldon as
travelling expenses" in connection with
| his work at Albany. Mr.. Correa coult
had been spent.
Mr.. Hotchkiss forced Mr.. Correa tC
admit that his company had made ar
erroneous statement in its annual re-
port for 1904 TO the State insurance de-
partment This was brought out by
testir.o ny in regard to the payment by
| the Home Fire Insurance Co. of $250f
| to Mr. Sheldon on Sept. p, 1904. -Thi!
payment was made known yesterday
| Today, however. the books of the Home
company We're produced and it was
shown that this payment was entered
as having been made for state tax
whereas in fact it went to Mr.. Sheldon
| for influencing legislation. Mr.. Correa
said the classification Of the item as
| taxes was the result Of a clerical error
The casualty companies were
brought directly into the inquiry witt
| the appearance as witness of George
| r. Seward, president of the Fidelity
| G. Casualty Co. Mr.. Seward testified
as to the activities of his company II
| trying to bring about the passage II
| 1901 of the bill to exempt from taxa.
ton the unearned premium reserves
He said that he sent Charles c. Maya
to Albany for his company to have
the bill, which originally exempted
merely the fire insurance reserves
btoadened so as to include the reserves
of the casualty companies. He sait
Mr.. Nadal represented his compan!
alone.
| For years." said Mr.. Seward, eth,
insurance and casualty companies hav,
been harrassed in every part of tn,
country by strike bills and by bill!
introduced by legislators who were no
we'll informed.
| 1.-The insurance companies have me
these harrassing conditions sometime:
by straightforward argument and ar
honest endeavor to meet these condi.
tions and sometimes by large payment!