The Cairo bulletin. (Cairo, Ill.) 1???-1928, 1913-01-17
|HOYNE CHARGES
COMPANIES ARE
N ARSON PLOT
States Attorney Finds Evidence In
volving Insurance Firms
in Plot for Millions.
PLANS MADE AT DINNER
"FYrcbugs' Conspire as Wine Flows
in Clark Home, Witness
Declares.

Chicago, Jan. 16.---Charges that
| ogicials of certain fire Insurance
companies in Chicago are members
of the alleged arson trust were made
yesterday BY states Attorney Hoyns
connection with the investigation
he is making into the combine
whereby millions Of dollars have
BEEN mulcted from honest insurance
companies.
That a donner was held at which
the members of the alleged trust
all are insurance adjusters Joined
| ia discussion of methods whereby
their methods could be improved
while champagne flowed and lobste
shells cracked, was also brought tc
light following the indictment o
Joseph Clarke. at whose home in
Austin the affair was said 10 have
been staged
Clarke. who is an independent adj
juster. is charged with having at
tempted to bride Assistant States
Attorney Edwin j. Rabcr to use his
Influence to have a mo bill' filed
in case case of Edward and Paul
Covitz, held to the grand jury on 9
charge of arson. Clarke was later
released on $4,000 bond
Witness Name Kept Secret.
The affair of the dinner was
brought ont following the private
examination Of a witness BY the
states attorney. Mr. Hoyne declined
to make public the identity OF the
witness.
The States Attorney declared that
from the evidence given by witnesses
examined by him he had formed the
opinion that independent insurance
adjnsters, adjusters employed by in
surance companies and cer}2in off
cials Of these firms were duplicated
in the conspiracy.
According to the information OBJ
tanned by the prosecutor, the insur-
anec was placed by the 'firebAgs
with other insurance companies, SO
that their own members did not suf-
, fer any loss. The honest insurer.
Mr.. Hoyne said, was the only one
that suffered, because he had to pay
the increased rates made by the com
panies owing TO the risk they are
under on account Of the incendiary
fires.
The examination Of witnesses is
being conducted by Frank Johnston,
first assistant states attorney. He
examined fourteen witnesses yester-
day among them one person who is
said by ether witnesses as being a
member of the combine and another
man who was held to the grand jury
on a charge of arson curing States
Attorney Wayman's administration,
but whose ease was no billed be-
fore the grand jury.
Subpoena New Witnesses.
Subpoenas for other witnesses
were Issued late yesterday afternoon
They were for persons who, 1t is ex-
pected, will be able to give the prose-
|cutor information of the working OF
the trust.
A. A. Back. state chief deputy fire
marshal probably will be asked to
60 to the states attorneys office and
tell what he knows of incendiarism
in Chicago. 1t is said that he has
gathered data that may be of inn
portance to the states attorney in
his inquiry.
when say that I believe some of
the insurance companies aequiesce.
or have knowledge of incendiarism
do not mean the majority of the
concerns, States Attorney Hoyne
said 81 mean Just what said n
the words that Iu sed. Speaking
| about action that | might take ]
want to say it probably will be the
latter part Of the week before know
just when / will have the matter
ready for presentation to the grand
Jury"