Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-01-23


board that they would see that the Fire
mems OF Baltimore obtained large
amounts of premiums by reinsurance
that they would reinsure with the FIRE
take a little business and give to the
Firemen's of Baltimore and the president
declined their proposition.
Fought by Board Companies.
The board companies sent special
agents throughout New York state. visit
ing the agencies In which I was repre-
scented, and tried to get them to give up
my companies, and in a very few in
stances they succeeded.
In the, city of Utica had a non-board
agent. and as an example of the way
they do he would write a building that
was tariff rated at 81 for SO cents. He
would write ii at ~ cents. The board
would then meet and advance the rate on
that building to 81 and would then notify
the Firemens of Baltimore and my other
companies that the agent in Utica had
written risk at ~ cents that was tariff
rated at 81. They did that in numerous
cases but l advised my companies Of the
methods they were adopting"
Did you ever have any conversation
with the principal deputy of the New
York insurance department concerning
that" asked Mr.. Carusi-
MIR. Appleton has been the deputy in
slrance commissioner of New York city
for twenty-seven years. and was deputy
under Lou Payne and is deputy now. He
asked me when / was going to quit cut
ting rates and join the board 1 told him
never.
When was that?" asked Chairman
Johnson.
That was about ten years ago"
You ran your insurance business sim
ply as general agent of other companies
up until the time YOU tried to get COM
pany of Your own in the Protective? Is
that not so?' suggested Mr.. Carusi.
You never had trouble with the Best
Insurance News before you began to or
ganize the Protective. did you?"
No
And from that time on that journal
has published uncomplinentary notices,
has it not?''
Yes, sir
The witness said that the Best Insur-
ance News never attacked board COM
panies.'
Try to Force Off Local Men.
Mr.. futile was asked about the local
men on the board of the Commercial He
said that efforts had been made to get
some of the men off the board by out
siders
"Col. Harper got letters from Hart
ford from people that had never known
him. suggesting that he get off the board
OF the Commercial Fire" added Mr.. Tut
tie. and Judge Gould said that he was
told by bankers here to get off the hoard
and that Ralph Lee. the agent for the
large companies. Iabored with him very
earnestly to get of the board =
representative Berger asked: What
reasons did he give for his getting off the
hoard? Why should he get off the
board?''
Mr.. Carusi said: I'm the case of Judge
Gould. do you not know that the gentle
men who approached him carried up a
PrOfeCtfVa
and the Best's report?'
He carried Best's report to him.
Judge Prouty put Mr.. futile through
a long course Of questioning as to the
contracts between futile. Dudley &
Wightman and the Commercial Fire In
surance Company. Judge Prouty asked
him if he thought it proper to be on both
sides of a contract.
Il am suggesting this as an improper
principle said Judge Prouty.
DO you think, Mr.. futile. 1t is a very
safe thing for man that is representing
q company to make a contract with HIM
self, the proceeds of which and benefits OF |
which are so large that they could be put
in at $9.0Oh as a pure gratuity or worth
that on the face of it. without any fur
Their work or investment"
1T depends on the man and on the
proposition"
Considered It Worth SO, 900.
Just to simplify 1t. just as soon as you
got this contract, without having done
anything further under 1t, you consd
cred it worth $9.0O0?''
Yes. SIR; think the past results would
not seem to bear that out. but believe it
will in the future
You capitalized it on that basis?''
Yes, sir"
You made a contract as representative
of the company. or helped to make II as
representative of the company. with your
self. that would be worth $1,000. In 9TH
er words. that you could have sold or did
sell. as matter of fact, to a corporation
las firm-as individuals of i'm
We turned it over to ourselves a cor
poration. calling it worth $1,000
Here is contract. said Judge Prouty.
that you made with yourselves on one
side as president or oficer and on the
other side as a member of the firm,
which. the very minute that you got it.
made you consider it worth $1,000 in
clean. cold cash.
We considered it would be worth that
and a great deal more. as We had
chance to develop it,
1T was worth that without doing any
thing more?"
NO it was not We would have to OPP
crate under 1t and lend lot of money to
build up the business to a point where 1t
would be. The contract was not worth a
cent to stop right there, TO liQuidate it"
You capitalized II for 5000 and are
drawing dividends on that stock that was
capitalized?'
Advertising Taken Up.
The advertising accounts Of the South
ern Building and the Commercial and
First National Companies came in for a
little light from the witness under the
catechising of Judge Prouty. The COM
panies have increased their advertising
In the last two months. Judge Prouty
asked:
Were you fearful that you would not
get advertising enough during this in
vestigation?"
We'll, I did not know what kind We
would get"
well. did you think you could improve
the quality by paying these amounts to
the various newspapers"
I'VE worded our own advertisements"
You would improve the quality then?''
We'll. who else could write an adver-
tisement for us?
Well. advertising is one thing and re-
inc for thar