The Washington herald., 1912-12-27


IN the face OF such business, when
Its directors passed such a resolution, II
looked to me as IL a wrong was being
done.
Approved by You"
'One objection I had to the report
was that it looked as though the sub
Ordinates of Mr.. Ingham who prepared
it had by the verbage endeavored to pro-
tect themselves. The report which was
addressed to Ingham set forth that all
papers have been submitted TO and ap-
proved by you Again they take pains
to state that the examination was made
by your ORDER"
Col. Judson said he had asked Daniel
Curry. member OF InghaTn's staff his
opinion OF the whole proceeding. Curry
replied. according TO Col. Judson, that
it was "a very bad report" He said
the report had been written while Ing
ham waited in order to catch a train for
New York.
Curry said man from the insurance
office OF New York had asked permission
to make an examination Of the books
OF the National Fire Insurance Com
pany and that Ingham had refused that
permission. This last statement, Judson
said, he had verified later.
When lngham returned from New
York Judson asked him about the re-
valuation which had boosted the value
of the Southern Building by $3.50 600 fou-
days after the insurance companies pur-
chased it. He replied that when the
companies asked for an appraisal he
had sent for HOpewell Darnellle. a for
mer assessor. and told him to get two
other men and make report Oar
nellie got Messrs. Hensey OF the real
estate firm of Swartzell Rhecm & Hen
sey, and William p. LipscOmb. a prom
inent builder. These three had made
the retaliation and been paid for their
efforts by the insurance companies.
lngham Not Qualified.
Before or after my talk with Ing
ham," said Judson, II had gone to Com
missioner Rudolph. under whose depart
ment Mr.. lngham's Office comes, and
proposed that We discharge Ingham and
get a frst-class man, put him in Charge,
and get line on these and other L Jm-
panies. l thought that Ingham was not
qualified for the work. particularly in
view OF the serious condition which con-
fronted us. I believed that this report
confirmed me in this conclusion.
Later Mr.. Darneille came into my
office and I asked him how he had made
this appraisal He replied that It had
been based principally on a letter re-
ceived from the companies purporting TO
show the earning capacity Of the build
Ing as netting per cent return upon
an investment Of 100000
Mr.. Judson. after first qualifying him
self as AN expert because OF his profess
sion. then offered the committee figures
to show that the building would not net
a 8 per cent return. The gross income
OF the building would be S1S5, 900 after lOl
per cent had been deducted for vacant
rooms, he said.
Allowing $4,000 for interest upon the
Sl.3OO,0oO mortgages, $4,000 for operating
expenses, $4,000 for taxes. $500 for in
surance and $4,000 for depreciation. the
other side of ;hc ledger would total Ut
t. Sl6,9C0, leaving the companies with
deficit OF nearly 500 a wear. Coz.
hudson declared that the Se46.57J equity
which the companies had purchased was
worth nothing ana the buiIdirg; Itself
was worth something more than the in
del tedness now iTrC:r bering t.
Saw Judge Gould.
Judge Gould a director in one NJ
the companies, came to my office about
December to inquire about nv activi- |
ties" said Col. Judson. 'T showed him
this statement. He said he did not know
much about figures, that he relied upon
Mr.. Carusl for his information, though
Mr.. Carusi and he had not much else
IN common. l told him to get some one
to explain the figures to him and then
come up again. He came up about De- |
cember with Mr.. Carusi and another
employe of the Commercial.
Mr.. Carusi admitted that the company
had lost about $4,000 during the year. |
1 then asked him about the resolution |
which had been passed a couple Of !
months before by the directors and set |
ting forth the alleged prosperous con- |
dition of the company. Judge Gould |
said that If he had known the company |
has lost $4,000 he would not have voted |
for the resolution"
Col. Judson then told of the resolution |
which had been passed by the Commits !
sioners Inviting the office of the insur-
ance department of New York to go over
the books OF the First National. He
said that Mr.. Darneille had informed |
Rudolph subsequently that
the application of the company to do
business in New York had been with
1rawn and probably for that reason the
New York authorities had not taken adj
fantage Of the Commissioners invita-
lion.