The Washington herald., 1913-01-04
Question OF Trust.

L
tails for 1910. The figures were: 1910. ss9.'
1850; 1911. u2s. 750; 1915, 31s4.l7,75o.
Question OF Trust.
Mr.. Carusi, In cross-examining Best
first raised the question OF fire In
surance trust
Does not the fire insurance trust" he
| asked. discourage the organization oi
smaller companies and the increase oi
capitalization Of others?" Representative
Berger CSocialist). pricked UP his ears.
MOT that I ever heard Of" replied
the witness.
Questioned as to underwriting boards
and their power, Mr.. Best admitted that
no insurance company could do business
in New York City except on insurance
rates fixed by the underwriting board
there. He further admitted that what
has been known as the Eastern Confer
ence was an association or board hre
insurance companies, which banded to-
gether for the purpose Of assuring them
selves business profits unless exceptional
fire losses prevented. This organization,
he admitted. applied what is known as
the separation" rule, which prohibits
agents doing business for non-ooaros
companies from carrying agencies also
for board companies.
"A non-b board company" Mr.. Best ex-
pldlneO, IN answer 10 n QueIy iEoiu iNcp-
resentative George, lis one which, in
any given territory, refuses TO identify
itsely with or come under the regula-
tion of the board of underwriters OF
that territory"
Relates Morgan's Interest.
Mr.. Carusi asked the witness II he did
not know of the existence of an ''insur-
ance trust" He replied that he did not
believe an insurance trust possible, and
related the incident about Mr.. Nor
gsn's interest in the question and the
decision OF President Evans. OF the Con-
tinentaI, as illustrative. The Continental,
he declared in answer to a question, Is
board or nonboard, according to the ter
ritory IL Is doing business in.
Mr.. Carusi then indicated an hitherto
urdeveloped line of defense.
DO you not know" he asked, that
Mr.. Robert r. Tuttle, VINO is president
OF the Commercial, during the fifteen
years he conducted a general fire insur-
ance business from Syracuse. embracing
in his territory New York and Pennsyl-
vania. was always a nonbosrd man."
THAT is true by report
Would not that account for a good
deal OF hostility against him or any in
stitution with which he might be con-
nectcd?'
1T might but l think II would not
carry any weight"
Some Facts and Figures.
The following facts and figures as to
the financial condition OF the CONNER
Cial. and Mr.. Best's deductions from the
statement of the superintendent OF in
surance, were brought out:
Mr. Redfield-CReterrinG TO the reporO
I ask you whether on the statement of
losses ii is not the fact that IL this com
pany had not had the premium on its
stock 1t would have lacked funds suf
ficient to carry it through the year, de-
spite the increased value OF the South
ern Building?
Mr.. Best-There is no doubt that the
actual disbursement for losses and eX-
penses. including the expense OF selling
stock, separately listed. were very great
ly in excess of the normal income OF the
from premium and interest on
its investment. Without footing the items
accurately. the income, leaving out the
premium on stock sold. and the increase
by adjustment in book value of real
estate, is under saO0, ,O00. while the dis
were $3.50, 1868 These are ac-
tual disbursements. not increases OF liza
hility. 1t is apparent that the company
had TO draw from some source approx
sl30.000 more than its normal in |
come in order TO meet these expenses
and losses |