Evening star. [volume] (Washington, D.C.) 1854-1972, 1912-12-17
BASED ON RECENT CHARGES
District Superintendent of Insurance
and Local Firm Included.
DGEs UNDER CRITICISM
Debate Of Resolution Shows That
Probe Is Invited by the Ac-
cused Corporations.

ing for an Investigation of the affairs of
the superintendent of insurance Of the
District OF Columbia, the Commercial
Fire Insurance Company of Washington.
and the First National Fire Insurance
Company of Washington, and of futile.
Wightman & Dudley, incorporated. was
adopted unanimously in the House of
Representatives yesterday Just previous
to adjournment.
The investigation may start tomorrow
in the office Of Representative johnson OF
Kentucky, chairman of the House District
committee, as there is a disposition to fin
ish the matter and lay all the information
before the House at the earliest possible
moment. At a late hour this afternoon
Mr.. Johnson had not appointed his sub
committee. but the expectation Is that he
will act as chairman and that Repre-
sentative Redfield and Representative
George and possibly one more will COM
prise the Investigating committee.
The committee on rules finished its
consideration Of the resolution late yes
terday afternoon. made slight changes in
the wording. and Chairman Henry pre-
sented 1t to the House.
Representative Cannon made a mild
protest, saying:
'Mr. Speaker, I do not know anything
about it or anybody connected with any
of these corporations. But why not just
enlarge it SO as to investigate every
thing in the District of Columbia and pay
for 1T from the contingent fund.-?
Mr.. Henry replied:
II think can satisfy the gentleman in
just a few words to this resolution.
The resolution was prepared and intro
duced by the chairman Of the committee
of the District of Columbia. The COM
mittee on rules heard the chairman of
that committee and two of the members
Of the committee. and also heard the at
tOrney OF the insurance companies desig-
mated in the resolution. The two insur-
ance companies are also DESTROYS of hav-
ing a speedy investigation just as pro-
opposition to the investigation from any
source. The committee on rules was con-
WINGED that the best thing to do would be
to bring in the resolution providing for a
prompt investigation"
Questions the Need of Counsel.
Mr.. Burke Of South Dakota asked why
it would be necessary to employ counsel.
Mr.. Henry replied that the matter is an
important one and that the employment
Of counsel would not be out Of the ordi-
nary.
Representative Cannon renewed his
comment. saying:
Mr.. Speaker, my understanding is that
here are two corporations created by vir-
tue Of federal law and operating under it.
II there is fraud upon the stockholders
or II they are wasting the funds Of the
institution; the courts are open. The rea-
son I asked any question about it at all,
without having any knowledge of it, was
that here is proposition to pay for an
investigation from the contingent fund of
the House by resolution without further
explanation. 1t seems to me II there is
something wrong full redress could be OBJ
tanned through the courts under the law.
But here, on mere suggestion of some
body, not of the corporations, 1 presume
and also asked for by the corporations
themselves suppose to establish, per-
chance, q credit which they think they
have not-it is proposed to investigate and
pay for the Investigation out of the con-
tfngent fund of the House. And l doubt
very much, from any knowledge that
have in the premises or any information
that has been furnished to the House, the
propriety or the wisdom of adopting a
resolution that would set committee of
the House at work, with the privilege to
employ counsel. l apprehend the commit
tee would not abuse its privilege; at least
uOpe IL WOUlu not, Out tno employment
Of counsel In many Of these cases, with
out knowledge. has raised in my mind, in
some Investigations that have been made
by the House, a suspicion that 1t is q
genteel way Of Matchmaking and giving
false information
Already Made Public.
This matter has been given publicity
In the newspapers" said Mr.. Henry.
Here are two financial institutions in the
District Of Columbia, and an institution
Of this sort is very sensitive kind of
plant, SO to speak, when such publicity
is given as has been given concerning
these two insurance companies in the
newspapers. They are just as anxious to
have this investigation as is the commit
tee on the District of Columbia. The Com
missioners of the District are also press
ing for the Investigation. AMI the COM
mittea on rules did not see DrODer IN go