Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-01-04

dropped because IneE pTOteSleu dSdliS
paying dividends. Mr.. Carusi said he die
not recOlect any such occurrence. Mr.
Carusi brought out the fact that the ole
Commercial Company, at 100000 capltai
had done business in Washington. ID. G.
for fifteen years, paid 6 per cent divf
dends and had thirty-six-thousand-do dol
lar surplus, and that when 1t was ex
banded il was no longer small com
pany.
Mir. Carusi asked Mr. Best to explain
further his printed allegation of decep
ton in that the figures did not explain
fully the real condition of the Commercial
Company.
Inquiry Takes Wide Range.
The Cross-examination was Of technica
character, bringing into the record fnsur-
ance figures covering The whole range OF
business Mr. Carusi challenged Mr.
Best's allegation by saying that Mr.. Bes
himself had used figures which are unfair
You were willing to make a statement
which practically imputed fraud against
these people?' asked Mr.. Carusi.
Not at all l simply made COMPARE
son of figures of other companies for the
year" replied Mr.. Best.
The particular matter over which Mr.
Carusi and Mr.. Best differed was on a
comparison of dividends and capital stock
The third critic SIN by Mr.. Best was
prefaced "a willful and discreditable mis-
representation on certain profits. Mr..
Carusi attacked this with vigor. using
technical insurance terms in his on
slaught. 1t grew too warm for Repre-
sentative Berger, who wanted to know
what trade profits" are. Mr.. Carusi
explained ii was money actually remain
ing in the treasury following the year s
insurance business
The underwriting profits We're ex-
planned as being the net business with a
deduction of expense.
The explanation. it was declared, did
not explain. and Mr. Best was asked to
stop testifying and lift the cloud of tech
nicalities which lowered over the COM
mittee's heads.
Alleged Insurance Trust Discussed.
The allegation that there is a fire in
surance trust and that Alfred NJ. Best,
president of the Alfred NJ. Best Com
pany. insurance investigators and re-
porters. is friendly to it. was made in the
course of the cross-examination of Mr..
Best yesterday afternoon by Charles F..
Carusi. counsel for the Commercial Fire
Insurance Company and the First Ma
ttonal Fire Insurance Company. The
crosS-examination was framed to estab-
Nsh several facts, many of them techni-
cal and having to do with accounting
matters, but the assertion that the pres
ent troubles of the Commercial Fire In
Fire Insurance Company arise partly
from the fact that there is an insurance
trust was interesting to every one in the
big caucus room in the House office
building. where the hearing was in prog
rees.
There is a possibility that from now or
the record will not be laden with quite
so much irrelevant matter as It has been
Representative Berger and Representa-
tive Prouty made vigorous protests yes
toriav against having listen IN CT
MANY essays speeches and personal
troubles and begged that the testimony
be limited hereafter.
LAS far as am concerned" said Judge
Prouty, fully one-half of the stuff in
the record has no bearing on the aues-
tons at issue"
Protective Company Factor.
The subject of an alleged fire insurance
trust was led up 10 by references to the
Protective Holding Company, which had
at one time been managed by Messrs
Tuttle. Dudley and Wightman. Mr. Best
had said that statement of facts con-
corning the Commercial and National
companies should include some reference
10 the Protective company. as in his
opinion the two companies now in the
limeliSht are simply an outgrowth of the
Protective corporation. which has since
been dissolved
Mr.. Carusi asked him if he meant to
intimate there was any discredit in hav-
ing connection with the Protective COM
pany. The answer was that The same
criticisms could be made now as then"
Under sharp cross-eXamination Mr..
Rest admitted that he had never made a
personal investigation of the Protective
company. but had based his findings on
figures made by "A man named Senior in
the New York state insurance depart
ment
Are YOU opposed to tho organization of
now fire insurance companies" said Mr.
carusi
II very much doubt the wisdom of
small companies being organized AS II
Is difficult for old-establshed companies.
which are small ones, to make a profit.
The organization Of small new companies
should be discouraged unless well fur
Wished with capital and surplus" ex-
nshed with capital and surplus" He ex-
million dollars is Il small company
rs tho fire insurance trust trying 10
keep out small new companies" asked
AIR. Carusi.
II never heard Of it,
DO you not know that insurance de.
partments In many states IN which the
trust is strong are opposed to the organi.
zation OF new companies?"
rs there such a trust?' interposed Rep.
resentafive Berger.
Il hadn't heard Of one" said the ex.
pert
Calls New York Board a Trust.
Mr.. Carusi. in effect. then said tina,
the fire insurance board OF New York Is
Il trust. and he continued:
Have you heard of the eastern con
ference, and n so. what is it?'
1T Is an association OF underwriters
having rules and regulations which vii
enable them To do business at a profit .
said Mr. Best People around the table.
smiled and one remarked that was a fine
definition OF trust Mr.. Best went or
TO say there never could be a trust fr
insurance
Right after the San Francisco fire,
am told. j. =. Morgan and others en-.
deavored To start -million-dollal
company that would be undeniably 6
trust, but they learned they could mo-
do so. As long companies have to ge
their business piecemeal from agent.
there can be no trust
Non-Board Company Defined.
II was explained then what mon
board" company is.
THE non-board companies" said Mr.
Best ARE those that will not enter int
any agreement as to prices. business
etc.
ibid you never hear that Robert r
Turtle for fifteen years conducted a gen
eral insurance agency in Syracuse anC
was always a non-board man?" asked Mr.
Carusi.
mo"
Did not a daily paper in New Yorl
publish an article recently stating there
is a fire insurance trust?"
Eyes. / talked the whole matter ovel
with the editor OF that paper. after tn.
article had been published, and h
changed his mind
You are a good friend Of the trust