The evening world. [volume] (New York, N.Y.) 1887-1931, 1913-01-04
ARSON'S GROWTH
BLAMED ON THE
INSURANCE men
Expert B. N. Holden Declares
the Companies Fear to
Investigate Claims.
NO QUESTIONS ASKED.
Honest Policyholders Made to
Pay Losses Arising From
Firebug Industry.
No QUESTIONS ASKED.


Blame for the growth OF arson and
the increased number OF fraudulent
cisims which are paid annually by IN.
sursnce companies 10 placed directly on
the companies themselves BY Benedict
". Holden. . lawyer At 40. III Broad
way. The burden Of the decreased
number Of losses paid falls directly upon
the individual policy holders, who must
pay high rates accordingly.
Six months Of concerted effort upon
the part Of the companies 10 put the
flrsbugs and makers Of false elaine
out OF business would result In reducing
insurance rates about one.haH." said
Mr.. Holden to-day. lie IL counsel for
the General Adjustment Bureau. an or
sanisataon Of special agents Of the pTin.
cipA hrs Insurance companies. and 10
regarded - an expert In insurance
cases.
Present rates are high because the
| companies persist in regarding every
policy ~ . liability 70 It's FUN face value
! anA because they fail n resist nine out
| Of every ten suspicious cases for fear
Of obtaining . reputation for hghunS
claims.
The spincicss companies are 10 blame
for the conditions In New York to-day"
said Mr.. Holden. incidentally. he SAID
he did not think Fire Commissioner
joseph johnson overstatcd the situation
whom he asserted twenty-five per cent.
Of the frcs In New York were due to
dehberate arson. adding In the num-
ber OF cases where false claims for In
sussncs are made through large policies
being obtained on small quantities OF
household goods. or where household
goods are moved out prior to the blaze.
I would say his hgurss are most con-
servattvs."
ADVOCATES A FIGHT AGAINST
INSURANCE eWiNoLERs.
Mr. Holden believes II insurance COM
panies would start q hxed and deter
mined policy toward those who set nrs
to their houses and household goods IN
order TO obtain the insurance. the num-
Der Of biaxes would be grsauy ant
promptly reduced.
But they won't do IT," he said
Ninety per cent Of the smaller iosse'
reported to them arr paid in full or IL
part practically without an investiga tior
worthy Of the name. They are afra,t
to get the reputation of being COM
panies which carefully scrutinize claims
before they are presented. They arr
continually confronted by agents WHIT
plead they cannot get busint " II Tho
company 10 going to hold up ever,
, clsim for careful examination. and will
these agents representing dve or 81,
, companies and willing to give the busl
ness they get 10 those willing to pa!
the quickest and with the least rel
tape. they are at their mercy.
These companies sticking to . polio!
Of this sort do not realize they ar
bringing an indictment against ever
honest hSldcr Of ono OF their policies
The honest citizen 10 perfectly willin
that there shall be 4 careful scrutin
OF his claim. But ne wants II 10
every other claim, too. He wants :
know that his company ID not compellin
him TO carry incendiary losses throug
: its high rates while II Ii digging int
! the authenticity OF his claim.
But the insurance companies ar
. afruid Of the whole question OF rsnst
, sncs Of claims. They fear to xs, III
, name Of resistsrs and they are afraid :
20 into court and resist They have q
l. idea they cannot get a SQUARE dcal In
. courtroom against . man who has n.ad
. a claim for loss by FIRE.
"That position on the part Of the CON
n panies 10 absolutely untenable. ! kno
:, from my own experience In trying 70
surance cases and from the exper.enc
OF other lawyers that an insurance cor
pany A. . rtigant has . much bett'
n chance before court and jury tina
!. most OF the big industria corporations.
d ELIMINATE INDEPENDENT Ac
JuerERS.
T. "How II the problem TO be solved
r Mr.. Holden was asked.
, ny decisive action on the part Of Il
J. Insurance. companies and the eliminate
y Of the independent adjusters-thoss vi
seek 70 represent cftisens who have ~
tained aos . by fire. No one needs an u
70 iuster. You Will obtain just - mu
70 from the company direct As YOU will wi
the aid Of an adjuster, and in, additi'
you will have to pay him fee
But the companies have got 70 ma
. complete change In their policlea tn
Z must cease regarding an insurance ~
- icy ~ a liability. Right now. they hgu
on every policy - being = 100 per ce
Or loss. and only under the rarest and me-
unusual circumstances do they ever In
Ne policy"
What abeut the demand for p
10 lDspsetson touched upon by Mayor Ga
~ ~ and Commissonsr johnson at I
20 opening q the arson sxhibitr"
~, Holden was asked.
~ 1T 10 . good one. II II costa
lds much 10 make these inspections I
Tor company shouldn't write those p<
NJ. oiss. They owe II TO their other .
vt Icy holders. They should have an
mr. ventory Of all the household goods
"a other stun covered by every poll
~. They should inspect these goods 4
~ the books and papers OF every peri
MS protested against hre. They have
Ian right now. but II 10 not used In 10
wc cent OF the policies now In force.
ar. companies are afraid-thsy don't a
IA be too severe because some Of III
No rivals are lenient."
Five Mansacs 0on Aa0ck.
,ho UlIvA6. Portugal. Jan. A-Ons PER-
40 ~aa kiliAA ana nina nAsAnualv IN In