Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-01-03
ALFRED N. BEST
HEARD AS EXPERT
Testifies Before Committee
Regarding Insurance Com
panies Under Inquiry.
EFFORTS TO SELL STOCK
BY DISTRICT CONCERNS
Unsparing in His Criticism of Liter
ature Sent Out.
PROSPECTS MADE TOO BRIGHT
William d. Hoover. Who Was Wit
ness Yesterday Afternoon, Gives
Views of Realty Values and
Appraisements.

AS"S Va nchlly vdlueS ana
Appraisements.
Alfred NJ. Best Of New York. president
OF company named for himseli and an
expert in the gathering of insurance data
today told rhe House committee which Is
investigating insurance conditions within
the District of Columbia that the Com
mercial Fire Insurance Company and the
First National Fire Insurance Company
have painted their prospects i'm colors too
roseate TO be substantiated by "A cold eA-
animation of the facts by an expert in
surance man.
Mr.. Best was on the stand all the morn
ing and consumed nearly an hour in
telling Of his relations with the fire in
surance companies. their officers and Wit
his efforts to obtain certain mformatiou
as To their stan ling. methods of selins
stock and general condition.
He said he had not been able To get
some OF the information asked for, and
also read from publication of his own
several criticisms which he had written
affecting the companies He was un
sparing in criticism of some of the
literature sent out from Washington
with the hope of inducing recipients
to become subscribers To the First Ma
tional stock.
Before the taking of the testimony
started Charles r. Carusi offered evil
dence To refute Il. j. Stellw3ge state
ment several days ago that there is n"
such thing as real estate ring in
Washington. consisting of maSazin.
story entitled The Plunderers Of Wash
ington. written by Robert w. Woollel.
The committee did not admit il as evi-
dence at the time. but may do so later.
Insurance Examiner a Witness.
Examiner y. NJ. Best. president Of the
Alfred NJ Best Company. New York. re-
porters and examiners of Insurance COM
panies. took the stand al 10 o'clock this
morning. when the inquiry was resumed.
Mr. Best is the first expert witness 10
go into what might properly be called the
insurance features.
Representative Redfield asked him what
Tie knew Of futile, Dudley & Wightman.
I'm the state of New York before the pur-
chase of the Commercial Fire Insurance
Company: their relations with the First
National Insurance Company. and with
the insurance departments Of any states.
He answered:
81 first heard of Mr.. Tuttle in Syracuse.
y. Y. Ny knowledge of him was gen
eral. | did not know Mr.. Dudley or
Wightman until they joined with MIR.
Tuttle. l.. u. Wood. attorney. conceived
the idea of organizing the Government
Securities Company. He abandoned II
and turned il over to the Protective Hold
ings Company. which was made up To
organize a whole series of Insurance COM
panies.
..Tuttle first worked with Ira \ Man
ming promoter Mr.. Manning was
criticised and he dropped out. Dudley
and Wightman became more active. Man
ming had planned to sell stock 10y solicit
ors Dudley and Wightman undertook
to sell il through the mails. Some stock
was sold. The insurance department
:hen started To make an examination
Reports of this examination have been
put in evidence.
Definite Information Scarce.
Mr.. Best said he could not get much
definite information about the company.
AT first the printed matter said II
would b.. a SJ.0JO,G0D affair The stock did
not sell very fast.
Il began to near Of negotiations with
small insurance companies looking to the
purchase or come company with the funds
Ct the stocn sold. and then heard Of the
purchase If the Commercial. Then |
began to hear about the First National
Fire Insurance Company. / understood
that 1Oo.eDD circulars were sent out. that
10000 replies had been received and that
- .o,o subscriptions had been received.
''In January. 1872. l.. ID. Bentley called
on me- He was "A special agent OF the
Commercial He asked me what | thought
of the two concerns. | told him some or
the statements in the circulars were in
accurate: that some Were half statements
and produced a wrong impression. At h's
request | wrote him letter. can I
produce il for Mr.. Ash of the New York
post office has il.
Mr. Best said he had received many let
tiers from the companies. but said he de-
Veloped very little Information as to how
much stock had been sold. etc.
Thomas Tileston of New York. in tho
insurance business. throughout the carly
months of 1917 lad been negotiating with
the companies Ia represent them in New
York. | threw out the suggestion that tl.s
entire scheme was "A promotion affair.
considered il excessive and inn roper that
the Frs; National had the contractGal
right 10 spend $1,000 i'm organizing.
.'Mr. Tileston assured me. however
that il was not such scheme. and that
the actual expenses Of organizing were
much less than they had the right 10
spend. He wanted me To come TO Wash
ington i'm July. Dut | told him | had
already asked simple questions and had
received no information. However. .I
went and spent the day in Tuttle's Of
flee.
Mr.. Best said they covered the whole
range of information desired
Asks for Complete Report
In my talks with Mr.. Tuttle July II
1 told him ! did not want to say any
thing in my reports that was unfair bul
that I needed from him fun information.
especially of the Commercial for | had
seen figures which indicated il was losing
money fast.
He promised me full information
told him that as the New York state in
surance department was on record that
the Protective Company was expensive In
It's organization and that as he had said
the facts showed the expenses were
smaller. 1 ought to have something very
definite He said Id get the facts. bur
never got them.
II believe that the men who went into
this company here want to build up a
real fire insurance company. but / have
told Tuttle and others that some of the
methods would have to be changed
said to Mr.. Carusi and Mr.. Dudley thai
would not discuss the propriety' of
some. of the methods used in selling
stock. They told me they were per-
fectly convinced they were lniny legi-