The Washington times., 1912-12-26
JOHNSTON FIGURES
. N..sAARP TILT At !
!: INSURANCE PROBE
Counsel for Companies Says
Commissioner Took Too
: Much for Granted.
Continued from First Pase.)


merciai and First National concerns.
said he WIS largely prompted. by the
fact that 'Vhe value OF tho eouthern
Building seemed TO Jump about 100000
ever night. Immediately after Its pur'
Soase BY these companies.
Two Charges Prompted Probe.
- opening the hearing Congressman
Ben JohnspD, chairman Of the investi-
9atins committee. said thai two charges
had prompted tho probe-one that the
insurance companies were carrying
property for more than its real value.
and the other that the insurance meth
ods Of the companies are not what they
should be. Congressman johnson an
notinced q New York accountant had
bean put to work *. on the books Of the
The arm Of futile. Wishtman 4 Dud-
Icy. also mentioned In the johnson
resolution OF inquiry. was represented
q the hearing today. but the probers
Attorney Easby-smith demanded to
Know II there were pending any
charses .gainst Mr.. lngham. superin.
sendent Of Insurance.
Demands the Letters.
Congressman johnson was rather
evasive In his reply. and Mr.. Easily
smith then demanded to see the let
tsis sent by Commissioner Johnston to
the House District Committee. These
q Aplained the chairman Of the inve.ti.
Commissioner Johnston repeated the
story OF the valuation Of the Southern
Building and the order for its recap
ptrintendent Of Insurance. Showing that
J : had Jumped over 100000 virtually In
q night" as explained BY the witness.
Mr: Esby-smlth then produced a state
which was made public early in De.
cember, relating to the Southern build
ing appraisal. and the letter Of Charles
T.. Carusi. counsel for the First Ma.
said the companies would resist a reap
Rraisal unless sanctioned by either q
senate or House committee.
Superintendent q Subordinate.
Commissioner Johnston insisted that
this indicated q desire on the part of
the insurance companies for an investi.
gation. Attorney Douglas said 1t mere
~ referred to the Southern building ap-
praisement. and that It did not justify
the Commissioner assumption that the
companies we're asking to have their
books trown open.
I'm voting to permit the New York
1nsufence department to conduct an in
vestigation Of these two companies did
not 70 over the head of the superin.
las. ~
I'VE have q right to: he is a subor.
ainste'' snapped Commissioner John
lid you consult with the super,n.
,,SSnaent OF insurance before passing
.S;a SS we ys d,S ,S,n not ne need to DO so
''f thought this report OF his seemed
20 need some explanation
did you ask MIN for an explana.
No. IN the evolution Of things 1t got
ccmm'ssioner c Johnston.
we are not talking about evolu-
| make is that you did seek the advics
Of Mr.. 1ngham before passing that or
der Permitting thu state Of New York
70 probe Into the affairs OF two local
No" again roplied Commissioner
"csn you point out now ANYTHING
wronG wrong IN the report of the superin:
hanesd about ,4so. 900 0H" over n,s%t s
sseps 70 need explanation" said the
..Th.t.. was done by the approisers:"
:rdn "BIt y9n , did not not ask M Mr: E.. inshsm
aueried Attorney Douglas. I.caning
Johnston replied. with decided en-
phasis:
"The recognized authority Of the
insurance department of any State
anime INTO anv company in the Dis.
trict. Its books and affairs. can have
my consent to do so at any time. ~c-
Eardless Of the views Of the super
tntendent Of insurance
No Reflection on Ingham.
'"1n issuing an order such as you men.
tion. without consulting Mr.. Ingham,
do you not think II Is a reflection on
him?"
mo. ! do not said the Commits
sioner.
Attorney Douglas put into the rec
ord several letters which passed be-
tween the insurance companies and the
District Commissioners. or the superin-
tendcnt OF insurance. Some OF these
Commissioner Johnston said he had
SEN before. Others. he had not.
derstood the Commercial Company had
sought to do business In New York. IL
might be unfair" he said, TO throw
open their books to the New York
state Insurance authorities under other
And we are going to show that we
DIDN'T seek to do any such thing" said
In writing the Commissioners. Genera
Wynne, who In an officer In both COM
panies, referred to charges as emanat.
Ing from agents Of other Insurance
companies. certain bankers and real
estate ring.'
CONGRESSMAN George wanted to know
what General Wynnc meant by q "rea
estate 'ring. Commissl loner Johnston
said he didn't know; and Il was In con.
nection with this point that the com
n'ttee agreed to the request that tn.
Commissioners shall furnish a state.
ment OF the appraisais and valuation
Of all property ir the four blocks sur.
rounding the southern building, the
valuation OF which In the bone Of the
present controversy.
ARMY CHAPLAIN