Evening star. [volume] (Washington, D.C.) 1854-1972, 1912-12-28
DISTRICT HEADS
BEFORE PROBERS
Commissioner Rudolph a Wit
ness in District Insurance
Investigation.
COL. JUDSON TAKES PART
IN ELICITING EVIDENCE
President of Board Expresses Con-
fidence in Supt. Ingham.
ADMITS THERE WAS NEGLECT
E. j. Stellwagen's Testimony Relates
in Part to Valuation of Property
in Vicinity of South
ern Building.

ern Building.
Edward j. Stellwagen, president of the
Union Trust Company, made the fiat state
ment today in the investigation into in
surance conditions before the House Dis
trlct committee that there is no real es-
tate ring in the District of Columbia, and
that as far as he knows there is nothing
like one. He said there is no community
OF interest among real estate dealers and
operators here. and altogether his testi-
mony was direct contradiction of the
statement that ''the real estate ring had
started the investigation through jealousy.
Mr. Stellwagen cheerfully and without
reserve said he had gone to Representa-
tive Burleson, a close and intimate friend
OF woodrow Wilson, and in his confer
ences with him had opposed both T.. f..
Jordan and Robert n. Harper az possi-
bilities for the Craftsmanship of the inau-
gural committee. He said that he had
used the fact that both of them had been
connected with the two fire insurance
companies now under scrutiny argu-
ment with Mr.. Burleson why neither OF
these men should be named chairman.
Representative Redfield of New York
continued his attack on George Ingham.
trict of Columbia. and under his ques-
tioning Commissioner Rudolph said he
believed Mr.. Ingham had been neglect
full i'm not making some comment IN
the report on the insurance companies
involved. instead of merely transmit
ting to the Commissioners the figures
and statements made up by employees
of the department OF insurance.
Mr.. Redfield asked Commissioner Ru-
dolph whether he had sought to put the
soft pedal on this insurance investiga-
tion because he might be seeking Senator
Gallinger's aid I'm his reappointment as
Commissioner, Senator Gallinger be ng a
warm friend of Mr.. Ingham. Mr.. Rudolph
replied with considerable spirit that if
he had to ask anybody for influence he
did not want to be reappo.nted.
Much of the testimony today was made
spicy by the delicate satire of Charles A.
wagens deelaration that while he was
Pon good terms with Col. Judson he had
opposed many OF Col. Judson's pet
Commissioner Rudolph Questioned.
Charles A. Douglas with Commissioner
Rudolph on the stand today. asked sever
al questions about the Commissioners
understanding as to several matters con.
cerning the stock of the Commercial Fire
Insurance Company. Mr.. Douglas read a
statement which said that money SUBJ
scribed by stock buyers went into chan
nels as follows: Fifty per cent to cap
ital. 30 per cent to surplus. and 20 per
cent to the expense fund.
Representative Redfeld asked questions
at this juncture The testimony showed
the superintendent of insurance has in
fact never reported as to the conditions
of the fire insurance companies. but that
the reports on the companies are from
Inghams subordinates to him.
ord haf l0.
ministration?"
Mr.. Rudolph thought there would be
time for a variation in this procedure.
but did not condemn the superintendent
Mr. Redfield asked him If he did not
think the superintendent should have
made a. true report, land should not be
deferred by thought of libel suits
Il don't know
Isn't it your duty to know!
I'm not a lawyer
Mr. Redfield asked several additional
questions. all of which were aimed AT the
conclusion that Supt lngham should nave
made report of his own on the TWO
companies.
Did he ever do anything with the re-
ports which an intelligent boy could not
do and is there anything i'm this report
which shows he has energy OF intelli-
gence?
Mr.. Rudolph did not answer.
Company's Surplus scrutinized.
Mr.. RedfieId wanted to know il the val-
uation on the Southern building was prac-
tically the surplus of the insurance COM
panies. what had become of the 100 per
cent premium on the stock.
Mr.. Rudolph said he did not go into the
matter. Further on, under a rather Wig
orouS questioning. the Commissioner SAID
the superintendent of insurance had no
right of action until the capital had been
impaired 81 per cent.
MIR. Redfield then said:
$50 if he had known of wrongdoing hs
would have been helpless until n certain
amount of the capital had been affectedy'
Further on Mr.. Redheld asked:
Can you conceive of an intelligent
of insurance knowing what
was going on and transmitting report
to you without any comment? Do you
not believe the man was neglectful?'
"In this case he was neglectful. lie
should have called my attention to it."
Are you a candidate for reappoint-
ment?"
"Yes, sir
us Senator Gallinger favorable to you?"
II suppose so. have not seen him for
a year"
Mr.. Redfeld asked the Commissioner IL
he had friends among the stockholders.
Il may have. 1 don't know. 1 know
some of the officers"
Mr.. Rudolph said he owned no stock:
received compensation to act as director.
that he did not know why Messrs. In
gersoll and E. f. Jordan had withdrawn
from the companies.
"Uncomplimentary Reports" Cited.
Commissioner Rudolph said Ingham
had told him that uncomplimentary re-
ports had reached him Ungham) about
Tuttle Wightman and Dudley.
And he said he would watch their
operations"
And he forgot that watch out when
he reported to you without commentr"
inquired Mr. Redfield.
James S. Easby-Smith asked Mr..
questions which drew out the
statements that the present insurance
law in the District of Columbia needs
that companies here had
suffered great loss. but that the law
would not allow him to act. Mr..
said Ingham had agitated tho
subject, and that the two had talked