Evening star. [volume] (Washington, D.C.) 1854-1972, 1912-12-28
Alleges "Unfair" Questions.


eaustic comments on the alleged facility
with which the press could have obtained
any reports on the insurance companies
involved had any been made by Mr.. Ing
ham:
Mr.. Douglas askedMr. Rudolph:
Isn't ii true that Col Judson got al
of his Information from these reports
from the insurance department to YOU
Il don't know where he got his In
formation" !
Did you ever hear any threats Of libe
suits?''
mo"
so far as you know. no light Of day
was thrown on the ofiice of the CONNER
Cial Fire Insurance Company?
LAS far as / know
You stated yesterday that your oppo.
sition to Col Judson's plan was that you
wanted to make a quiet investigation be-
fore opening the doors to the public
That was my position
Asking for No Favors.
Were You influenced because you are
candidate for reappointment and might
get Senator Gallinger's support
mo. I'm not asking for any favors. II
I can't be reappointed as was originally
appointed. without sending people to the
White House-then do not want the ap-
pointment."
futile soliciting stock subscriptions.
What would you say If you learned a
company was not allowed to do business
in the state of New York and had neg
lected to state so in &c letter of this
kind"
I'D say they were operating against
the sale of their stock"
That's Hypothetical question, isn't
it?'' said Mr.. Douglas.
Yes"
that the Commercial company has been
excluded from the state of New York;
No"
Representative George developed the
fact that an offer of over $SOO.OOO made
for the Shoreham property some three
years ago indicated a value of $50 per
foot for an area of 5000 feet imme-
diately across 18th street from the South
ern build ng. Mr.. George used Mr.. Stell-
wagons testimony before the George
committee last spring to prove that the
Shoreham superstructure was obsolete
ara therefore valueless.
Mr.. Stellwagen Called.
l.. ]. Stellwagen who was the next
witness. later differed with the testimony.
Mr.. Stellwagen was asked his bust
ness connections. and said he is active
only in the Union Trust Company. Rep
resentative johnson. chairman. opened
the questioning. asking him when he first
started talking about the Commercial
Fire Insurance Company.
we have been getting inquiries as to
these two companies for months-from
all over the country. The answer had
to be general, that we knew little of
them. but that there were good men on
the board A few weeks ago l found
on my desk a letter signed by Mr.. Wynne,
with the name Of the person to whom
o6d u .
to me by Charles ]. Bell. president of
the American Security and Trust Com
pany. Wynne Is the president of the
First National Fire Insurance Company.
1t spoke Of remarkable increase of
value. William F. Roberts. a director,
called on me and said he didn't approve
of making assets in that way, by in
creasing the value of the Southern build
ing. Also l received the report on the
companies which has been referred to
here so often-the report by Curry and
Hall, and transmitted by Ingham.
II glanced at 1t hurriedly, saw the in
creased valuation in the Southern build
ing. and took it down to Cox Judson, my
close friend"
Mr.. Stellwagen said he could not poss-
bly, relate the conversation he had with
Commissioner Judson. 1T had nothing to
do" he said. with the inaugural chair
manship in the inception. SuDseQ GENTLY it
did. I was opposed to the appointment
of either Jordan or Harper, and / used
the fact that their names were on the
leaflets of the companies. ! was opposed
to Jordan and Harper, and am opposed
to any man who seeks such an appoint
ment.
Distinctly Not so.''
Mr.. Stellwagen referred to the George
assessment report and said one of the
financial statements therein affecting the
Union Trust Company lis distinctly not
so.''
Mr.. Stellwagen said the fact that the
Southern building was diagonally across
the street from the Union Trust Com
pany has nothing to do with the present
investigation. He denied wanting to
dodge taxes by keeping down the valu-
alton.
Il would be delighted" he said, ito be
able to add one-half million dollars to
the assest of the trust company"
He also sad that there is an overpro-
duction' in the office building industry
here.
MIR. Redfield's questions were directed
toward the one statement that the Union
Trust Company would be very glad iegit-
iu4ately TO increase its assets II possible
Under Representative Georges quizzing
Mr.. Stellwa2en said there is, mo real
estate ring in this District There
couldn't be any such ring"
Did you ever suspect you were in the
ring?'
Not until 1 read the papers Of yester-
day"
You don't read Washington papers
much?'
:Oh. yes, do
he also said he had no knowledge of
the offers OF $90O.OOO for the Shoreham
property. He reiterated his statement
that the Shoreham property is .yaluabie
only as site. He also said there is a
vast difference between an offer and an
option.
Says Property Is Undervalued.
Mr.. Stellwagen said he believed the
Union Trust Company corner. assessed
at S2i foot. Is undervalued by about
81 foot. He said he assumed the as
SCISSORS will raise IT In the next assess
ment. He said, further. that when the
Woodward and Southern buildings sprane
up the Union Trust building began to lose
tenants. and within a year thirty-fiye
rooms have become vacant
MIR. Redhed asked Mr. Stellwagen to
assume company whose only asset is
the enhanced value of a building and TO
say whether he would make a loan IN a
concern OF that kind
Mr.. Stellwagen's answer was NOT ..ves',
nor no His bank does a business en-.
TREY on collateral, he said He was ex-
tremely cautious in the answering ri
hypothetical questions put by Represent
atiye Redfield concerning the solvency OF
a hre insurance company under various
circumstances.
Mr.. Redfeld wanted to know - a,
could be considered full information II