The Washington times., 1912-12-14
CONGRESS IS URGED
To PROBE. CAPITAL
INSURANCE CASES
Ben Johnson, Chairman Of
Committee, Asks lnvesti-
CATION BY House.

gation by House.
(Conttnued from First Pass.) :,
Congressman johnson. Redas.d and
George may be asked to appear before
our committee later In the da" to make
such additlonsi statements a. they
wish. or We may act on the informa-
ton at hand. No action could be taken
during our fifteen minutes session this
morning"
The three members Of the Distr ct
committee are confident the searchlight
y e b. turned on the admin!'trstion
syranss and mambars o. the Rules
committee seemed favorabiy inclined
toward the probe. II 10 probable an In
qyify will be under way before the
The introdGction Of the resolution fol-
amohH leaders OF the House, and -.
pecially members Of the District Com.
York conferred with members Of the
District Commission and took an &C.
tive part In the prellminaries.
Before Rulss Committee.
A. soon ns II was drouped In the
bex. the resolution was referred to
the Rules Committee, which orrang-
% 70 meet today to consider early
action. This resolution provides that
Tie Investigation shall be made by
eetAer the District Committee or any
subcommittee thereof named by the
chairman: gives the full powers u.s.
ually conferred In such cases OF sum.
moning witnesses and Administering
oaths, and directs that no witness
shall be excused from testifvinE on
the ground that to testify might in
criminate himself.
The inquiry thus directed has to do
with the financial affairs Of the com.
panies named. and. the promotion OF
their business. Recently the Southern
Building, at Fifteenth and II streets.
was bought by the two hre insurance
companies jointly. lncumorances
amounted to Si,3o0.o Coz were assumed. and
$s%s,s7o paid for the equity above the
incumbrances.
Valuation Exceeds Price.
Immediately after the purchase. an
appraisal Of the property was made by
three appraisers named by the District
sunerintendent OF insurance. George w.
Ingham. The appraisers fixed the vslue
Of the property at 3e,ooo.oo. and this
ngure was accepted by the Insurance
Commissioner.
This valuation was objected to. as too
higk, and District Comm, ssioner Jud-
son took the matter up with Mr.. Ing
ham, who insisted that the valuation
xas all right, made In the proper fash
ion, by experts Not sat'shed. Mr.. Jud-
son insisted that a new appraisal be
made, and the commission 10 ordered.
Commissioners Jndsen and Johnston
voting for IT,, while Commissioner Ru'
"S:H GrHit,cism Of the 100000 appraisement
II based on the theory that this large
Increase In value appeared N the re-
port Of the companies. 10 their credit,
and made II possible for them to show
would otherwise have been possible.
The Commercial Fire Insurance Com
pany has been In operation In the Dis
trtct for long time. anu only recently
WiKhtn.an & Dudley interests. The
First National Fire Is a new concern
which ~ bel ng financed. Stock In both
companies has been on sale. and has
sold most readily and on favorable
terms.
Company Protests Change.
On behalf of the insurance interests
II 10 considered that the valuation OF
the building was properly made. ano
that II 10 not excessive; the 'property:s
income producing capacity just:fyinE
the nsure named by the appraisers.
Robert J. Wynne. former Postma ster
General. and president Of the First Ma.
tional Fire insurance Company. while
Ssn"E Ess, dssv'' f1S chss.s ss matter = cu9ss ss
counsel for the company. which vlgor::
ousiy declared that the company would
oppose any attlcks on the appraisal that
has been made. and would insist hat. !!
any further valuation IL undertaken. !,
be under the direction Of either the
Houhe or the Senate committee.
Who have introduced the resolution r. n
At Ms word, and have. the District COM
mittee conduct the whole inquiry.
Insurance Superintendent Inghatn hal
been under attack In connection witt
the whole anair. and there have beer
from his oiiice. lie has not been re
moved. however. and II Is expected will
hold the fort peRdinE the investisa lon
insham Is a newphew of senstor Gal
Nn6sr, Of New Hampshire. chairman 0
the senate Dis:rlct Committee.
Original Appraisers.
The original appraisal OF the souther
Building was made by II. II. Darne!lls
Alex. T. Hensty and William !
Lipsconb; the first a former assesso
Of tho District. the second a real estat
dealer, and the third a builder. 4 ne'
appraisal wns ordered. to be made b
Harold l.. Doyle and William I
Hoover. In cooperation with third o
whom they were to agree: but this hn
been postponed. pending completion 9
an examination OF the books OF III
Commercial fire.
Organization Committee.
The stock selling activities OF the pro
moters have been carried on throus
letters and other literature. One lett"
recently sent out bears dato Of Novenl
bsr Is. and IL on the stationery OF tn
First Nstionsi Fire Insurance Compan
Of the United States. 1t names. on tn
lstterhcad. the following organlzatio
committee. and describes them thrs:
Organization committee - ust c
0sprse W. Atkinson. United State
Court Of Claims.
Charles +. Csrusi. dean Of the M
tSonal University School OF Law.
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