The Detroit times., 1911-08-14
INSURANCE PROBE
IS At WORK HERE
Dozen Casualty Companies To Be In
vestigated-0ne Admits Condi-
tions Are Very Bad.

The special committee appointed by
the executive committee OF the Ma
tional Convention of Insurance Com
Inissioners to investigate casualty
companies that write Industrial In.
surance, which began Its inquiry in
New York, several weeks ago, re-
sumed its sessions In the Hotel Tul-
Ter, Monday morning, and probably
will spend the greater part of the
week here. II will submit its report
to the national commissioners In the
annual convention, which begins IN
/ milwaukee, next Tuesday, and IL will
be a sensational document.
One of the principal charges under
investigation is that certain OF the
companies have wrongfully withheld
money from policy-holders in making
settlements Of claims. In other words,
the policyholders have been defraud.
ed
II is rumored that the report will
show the amount withheld In this
manner will approximate $1,000 900.
Nearly q dozen companies, includ-
ln6 tour In Detroit, will be consid-
cred In the Detroit hearings, Monday
morning, the committee gave its at
teEtion to the General Accident, Fire
and Life association, OF Perth, Scot
land, which has United States de-
partment with headquarters In Phila-
dclphia. It's industrial branch is in
charge of c. II. Boyer, president OF
the Detroit Conference, an organiza-
ticn representing all the casualty
companies In the United States.
which Is meeting in Niagara Falls,
this week.
The company was represented be-
fore the committee by DR.. r, ID, Do
bic. head OF the medical department;
James ], Watson. assistant secretary
OF the parent company, and Attorney
Blauvelt, New York assemblyman
ard member of the insurance conf
mittee of the New York assembly.
The committee gave out the In
formation, Monday noon. that the
|company's Representatives had admit
ted that they had found conditions
in the Industrial end OF their busl.
ness even worse than those discov-
cred by the committees examiners.
They asked that consideration OF
their case be postponed until next
Tuesday, so that they might have an
opportunity to clean up" In con-
formity with the committees require
ments. They had found conditions
so bad, they declared. that they did
not want TO assume the responsible
ity of putting them to rights and for
this reason had sent for Norie Miller,
the general manager of the company.
Mr.. Miller, II was represented, had
sailed from Scotland. Sunday, on the
Baltic"
Messrs. Dobie and Watson also
asked the committee to withhold Its
bulletin on the company, giving tho
results of its investigation, In view
of tie promise to comply with the
committees requirements. This the
committee refused to do and the re-
port will be released Tuesday.
One OF the four Detroit companies,
the National Casualty, will be given
hearing during the afternoon. 9th
ers scheduled for hearings today are
the Continental and the North Amer
lean, both Of Chicago. Tuesday the
Phoenix Preferred Accident Co., of
Detroit, and the German Commercial
Accident Co., of Philadelphia, repre-
sented in this city by George Brown.
will have their inning.
Other companies that figure In the
Investigation are; The Standard Ac-
cident Insurance Co., Detroit; the
Federal Casualty Co., Detroit; the
United States Health q Accident In.
surance Co., Saginaw; the Massa-
chusetts Accident Insurance Co., Bos-
ton; the Fidelity Accident Co., Sag
inaw, and the Ridgely Protective as.
sociation, Boston.
L. II. Tobin, manager Of the indus
trial branch Of the German CONNER
cial Accident Co., Is In the city to at
tend the hearing on behalf OF his com
pany.
The "clean up" referred to by the
representatives OF the General Acct
(Continued ON Page six.D