Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1913-06-24
AUTO|STS ASSA|L
RHODABECK FOR
AGENCY METHODS
Say He Is Using Office to
Build Up Insurance
Business.
MAY ASK FIELDER TO
TAKE DRASTIC ACTION
Practically Forces Patronage,
Members of N. j. Auto and
Motor Club Say.

That the office of local agent of the
State commissioner of motor vehi-
cles is being used by John M. Rhoda :
beck as means of build
ing UP large automobile
insurance business by methods
that are not at all to the liking
of automobile owners is the claim
made b ythose conversant with the
manner in which the office has bsen
operated since Rhodabeck took noid
less than a year ago.
Charges that the office is being
used largely as an insurance nince
have become so numerous of lats -has
it is probable that the matter VIII
soon be called to the attention Oh
Acting Governor Fielder. 1t mas al
ready been called to the attention OF
Job H. Lippincott. of Jersey Clty.
State commissioner of motor ven'-
c1es.
1t was called to his attention by
letter written by a number OF other
insurance men who protested against
Rhodabeck using his official position
to further the obtaining of insurance
for the company of which he is agent.
To this letter Mr.. Lippincott made
the rather startling reply that the
agent at Newark is entirely within
his rights to transact any business
which he sees fit as he is not paid a
sufficient compensation from this de-
partment to debar him from any
business; and it is. in fact, expected
that our agents would be engaged
in some kind of private business"
Since the receipt of this informa-
ton direct from the headquarters OF
the motor vehicle department OF the
State It is claimed that Rhodabeck
had been devoting even more time to
the soliciting of insurance than he
had previously.
1t is also alleged by members of
the New Jersey Automobile and Mo-
tor Club, at whose clubhouse Rhoda-
beck has room rent free primarily
Cor the purpose of transacting the
business of the State, that the meth
ads used to force automobilists TO
take out insurance In the company
represented by Rhodabeek almost
amount to coercion.
The complaint against RhodaDeck's 8
activities first came from a group
of insurance agents, who protested
against the unfair advantage given
him by being able to transact In
surance business right in his State
office. but since that time 1t Is
ella inned that the matter has been un-
der discussion in other quarters,
where the means used to obtain the
insurance has been the main object
of discussion.
1t is pointed out that as the NeT
Jersey Automobile and Motor Club
Is morally, il not financially inter
ested in a company that is being
formed for the purpose Of providing
automobile insurance for its mem
bers. Rhodabeck should conhne his
s activities to that company. As
matter of fact Rhodabeck at one time
did represent that company and was
drawing salary amounting to about
$50 per week for his work in obtain
ing insurance, and also for acting as
auditor of the Automobile club. This
ARA ngement ran for some time.
when. it is understood, that the Fro
moters of the new insurance COM
pany who are headed by j. 3. r.
Smith. former commissioner of motor
vehicles. found that the expense Of
the promotion of the company was
becoming too great to warrant the
weekly payment to Rhodabeck
This payment. it is said, was
stopped with the understanding that
when the company was fully organ
lied Rhodabeck would again be made
an agent. 1t is understood Rhoda-
beck agreed to- this plan, but within
a few weeks after his weekly stipend
of $50 week had stopped. he made
connection with another insurance
company and his since been boosting
that company to all automobilists
who visit his office on business in
connection with the State.
Just what form the proposed step
TO call the matter to the attention
Of Governor Fielder will take has not
been developed as yet. but 1t is
known that a large number of auto
mobile owners who feel that the local
agents office should be divorced from
the insurance end of the automobile
game are in favor Of a large dele
cation visiting Fielder and laying the
mo atfer- before him.