Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-01-21
Expert Tells Methods of Tut
tie, Dudley and Wightman.
INSURANCE CASE WITNESS
Says All Improbable Business Is
Eliminated.
QUESTIONED BY MIR. REDFIELD
Company Writing Risks
in Five of the Ten Best In
surance States.

Testimony as to the conservative
character of the insurance methods of
futile. Dudley e. Wightman. Inc, was
given by Spencer ]. Johnson, an ex-
pert employed by the firm, at the
hearing held today by the subcommit-
tee of the House District committee
Investigating the insurance situation.
| Most of Mr.. Johnson's testimony was
; technical and meaningless to lay
man. but he aimed to show that Tuttle.
Dudley & Wightman, Inc, have elimi-
mated as far as possible all unprofit-
| able business and in no sense seek
business for the sake Of premiums
alone. Toward the end Of his testimony
he was quizzed by Representative Red
! field as TO the states in which the
firm was placing business for the Com
mercial Fire Insurance Company, and
developed the fact that out of the ten
! best states the Commercial is doing
business in five.
Mr. Johnson who is supervisor of the
underwriting and agency department. of
futile, Wightman & Dudley and who has
| been employed by the firm since NOvem-
Der last, was the first witness He was
questioned by Charles +. Carusi general
counsel for the First National Fire Insur-
ance Company and the Commercial Fire
| Insurance Company. The witness out
lined some of the relations between Tut
tie. Dudley & Wightman, Inc. and vari-
Gus insurance companies. The firm acts
as general underwriters and also places
stock of the First National Fire lnsur-
ance Company, and gets commission.
| Representative Prouty delved into the
general question of underwriters to in
surance companies.
| Methods Explained.
| Mr.. Johnson explained the methods of
handling business in the Office of futile.
Wightman & Dudley. claiming that the
! concern has a strong 'prohibitive list. -
meaning it wants to build up slowly with
out mourning risks too great. Mr.. john
son said he passed on all risks. and that
he passes on them very conservatively.
rs there any tendency to accept bust
ness for the sake of the premium with
out regard to the possible loss?'
absolutely no.
In reply to question from Representa-
tive Prouty. Mr.. johnson said that bust
| ness pride kept agents from turning in
| bad risks.
"Of course he said. there are care
| less agents. Men who have taken up
the insurance business last resource
are likely to be careless
He said Tuttle, Wightman Dudley
had refused $4,000 worth of business in
! a year and must get more than 5000 600
| worth of business before they can make
! much.
| The testimony, as drawn out by Mr.
Carusi, was to the effect that there is
| no temptation to write poor business on
| the part of futile, Dudley & Wightman.
: Asks About States.
Representative Redfeld asked him
where the Commercial does business.
| The witness named a list of states. Mr..
Redfield asked about Wisconsin. Maine,
Massachusetts and New York. Mr..
Johnson said Maine is bad state that
the fire loss is high there, that Wiscon-
sin is almost as bad. that New York is
bad and that it is not advsa BILE for the
Commercial to go into Massachusetts
just now
The best states for insurance COM
panies, he said, are California. Colorado.
New Jersey, Ohio, Oregon, Pennsylvania,
New York Virginia. West Virginia and
Montana.
.Out of these ten best you are operat-
ing in New Jersey. Ohio. Pennsylvania,
Virginia and West Virginia." asked Rep
resentative Redfield
Yes
"And there are five good states in
which you don't do business"
Yes"