New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-01-04
MURPHY SAVING W0ODlDENY INSURANCE LAMTY
State Official and Exchange
Manager Contradict Johnson.
STATISTICS CRITICISED
Underwriters Have Long Con-
sidered Fire Department Data
Untrustworthy, They Assert.

Because Fire Commissioner Joseph
incendiary fires In New York City and
that an inspection of premises before in
surance was issued would prevent many
OF these peculiar blazes. the Commits
sioner was criticised yesterday by both
w 4. Emmet. State Superintendent Of
Insurance, and Willis O. Robb, manager
Of the New York Fire Insurance FIX
change. Both say that Mr. Johnson .
ideas are wrong and that he overesti-
mates the facts.
In lengthy typewriter letter Mr..
Robb. after saying Mr.. Johnson claims
G) that one-fourth of the fires are in
cendiary; (2) that the underwriters are
largely To blame for this because CD they
issue policies without inspection, and 90
that inspection would prevent the fires
to large degree, writes:
Each of these statements has some
truth in it, each is, as made. quite ms,
leading, and the inference you draw ana
seek to have the Mayor aud the publc
draw from them all is absolutely raise
Mr. Robb says that the estimate OF one
fourth incendiary fres is too large that
the Commissioner does not know what
every underwater OF twenty years ex-
perience in New York City long ago
found out-"that all Fire Department sta
tistIcs are incorrect and untrustworthy.
The insurance man says his idea Is tla'
the fraudulent losses do not increase the
volume OF all losses more than ~ per
cent. proba bly, less. either In the city or
the country.
The two chief offenders among the
fraudulent household furniture claimants
saws MIR. Robb, are the man that mas
stocked up for the brokers' benehL ana
then removed mis- stuff before the fire. ana
the nerson who swears into fire loss
more than he owned. The manager OF
the fire insurance exchange writes 10
the Commissioner,
The preposterous oyerinsurance repre-
scented by the N2..,bt OF policies you re-
Gently paid 500 or 500 OF the citys money
for and then huns up as an exhlDlt'
would not have been worth go IN the
hands Of four actual policyholders OF
criminal instincts residing IN the Tour
locations the several policies cover me
fraud involved I'm the mere attempt 10
procure such an auount or Insurance
on such property vrtiates a New YORK
Standard Policy and no one would dream
of trying to collect loan under such
circumstances.
Mr.. Robb also says that 1t is not pos
sible to make an inspection Of every
apartment whore policy il taken out.
because the cost would be too high. This
is the view 81 Nj Emmett. who SAYS
the present rates might be doubled. Mr.
Emmett says:
The person who taxes out a policy FOR
81 900 or so on property worth $50. with
Tho object Of burning up his place and
collecting the race OF the policy. IS an
inhniteslma atom In the great Insurance
world
NIr Emmett SAYS that he has no knowl-
edge that public adjusters are In league
In criminal consplracies Tor the purpose Of
making fictitious appraisals as Mr.. john
son charges" The state Superintenden
SAWS there is . bill 10 BE- introduced that
viii license the adJusters and control
them. lie If w. favor of more stringent
Jaws FOR The punishment Of arson.
They are beside the point" said Com
missioner Johnson 90 answer last night
1T Is no argument 10 say that because IL
would cost something 10 make an inspec-
ton and would throw an extra cost on
the honest 80 per cent of the policy
holders the p per cent Of crooks might
as well have policies anyway The
insurance companies pay out far more
money ir 'osses than we think they
should. They pay out about N6OO'Vo a
year which is about s2.O0o 90 too much.