Evening journal., 1913-05-28
WAR ON SOME
INSURANCE
COMPANIES
New York Department Pro-
tests to Governor Miller
About Delaware
Concerns
POSTAL DEPARTMENT
ALSO TAKES A HAND

The New York COmmerclal yeslel-
day devoted almost a column to the
alleged selling Of fraudulant fire in-
su.a anoe, and mentions Delaware cor
porations IN connection with the bu e
ness. II also sets forth that the New
York insurance department has lod
ed complaint with the Pustofiice De-
partment and has made a formal pro.
test to the Governor of Delaware
against the chartering Of mutual con-
Germs in this State for the benefit of
alleged agents who, Il Is charged, pay
the expenses of procuring such char
ters.
Among the persons or firms named
by the New York department charged
with selling insurance OF doubtful
or worthless value by the use OF the
United States mails is Berka Donnell
Jacobs. Ford Building, Wilmington,
Del. In speaking Of Jacobs today,
PostofIice Inspector NJ S. Plummer
said that he had left the
city and his whereabouts we're not
known to the postoffice authorities.
Mr.. Plummer said he is now seeking
Jacobs
The article in the New York Com
mercial follows:
In an effort to stop the selling OF
fraudulent fire insurance, the New
York insurance department has lodg-
ed complaints with the Postoffice De-
pErtment and has made a formal pro-
test to the governor Of Delaware
against the chartering of mutual con.
Germs in that state for the beneht OF
alleged agents who, it is charged. pay
the expenses of procuring such char-
ters
James J. Hoey second deputy sup
erintendent Of insurance, has offered
the services of j. l.. Woods, chief OF
the departments complaint bureau
to the Postoffioe Department, in help
ing to procure evidence against the
agents under charges
Nine persons or firms are named by
the department in the communication
sent by Mr.. Hoey to the CHIEF post
Office inspector at Washington They
are charged with selling for several
wears insurance of doubtful or worth
less value by use OF the United States
mails" Here is the list
Frank W. Anthony. No 2122 Dor
chester Road, Brooklyn; Claire Web
ster Anthony, doing business under
the assumed name of the Citizens In
surance Agency, No. 800 Broadway
New York; Charles S. Atkinson & Co.
No. / Liberty street. New York
Harry A. Woodcock & Co, No 95 Viii
liam street. New York; c. +. Chad.
wick & Co, Second National Bank
Building. Cincinnati: Mrs. Irene Fos
ter. No r127 La Sale street. Chicago
z. Frederick Brennan, doing business
under the assumed name of Capito
Fire Underwriters. Dover, Del; Berks
Donnell Jacobs. Ford Building, vii
mngton, Del.
Mr.. Hoey says that the invsriable
custom OF these agents is 10 send cir
culars by mail TO insurance agents in
all parts Of the country especially in
the western and southern states, Of
fering to place difhcult lines at re-
duced rates and Offering liberal
commission on insurance placed
through them.
The risks are placed. saws Mr
Hoey, in irresponsible mutuals or
eanized in states where the laws are
lax. When one group Of these
mutuals has been forced 10 stop be-
cause OF the commissions and losses
another takes it's place He says
further that the department has
knowledge that the. money paid for
the charters of these mutuals comes
from agents using their policies and
IS later returned to them out Of the
funds of the companies.
The history Of II fraudulent con-
Germs operating from one ONCE in
Philadelphia raided in July. 1912. by
the Pennsylvania authorities is out.
lined and It is stated that the evid.
ence used 70 prosecute the six in
dividuals concerned. now in the pos
session of Morris Wolf special deputy
attorney-general of Pennsylvania
might he used by the postofhce
authorities in working up cases.
II is also charged that there are
now remaining these three Delaware
concerns. The Home Fire, American
Fire and Mercantile Fire g. Marine
II is charged that Brennan is the gen
eraR agent Of these three and that he
AZ one time served six years and sia
months in Sing Sing prison for for
gerry. II is stated that Brennan ad.
mitted to Mr.. Wood and Deputy In.
surance Commissioner McCabe OF
Delaware. that the Anthonys and II
A. Woodcock had paid for the chart
ers Of these companies.
The letter addressed to Charles r
Miller. Governor Of Delaware, reads al
follows:
This department has received nu
merous communications from the in
surance departments OF several othel
states. complaining of the operation
of a group Of fire insurance agents
several of whom have their Offices II
this state. whose practice Z is 10 sci
insurance in irresponsible companies
by circularizing agents in other states
offering to place difficult lines az re
duced rates in licensed companies. of
ferine a liberal commission on sucl
business as they are able 10 secure b,
this means.
This insurance is placed in severa
Delaware mutual fire insurance com
panies. These companies are being ex
plotted for the benefit Of the agent
who advanced the money for securing
their charters, and who thereby ar
enabled to put in officers willing =
make contracts with them, whereof.
they. as agents, receive from 40 to 81
per cent. commission on business
written. They accept no risks oi
property located in Delaware.
This matter has been brought Il
the attention OF Hon. William r. Nc
Cabe, commissioner Of insurance an,
banking, Dover. Del. who informe,
us that he Will have an examination
made OF the three remaining mutua
companies doing business on thes'
lines. with a view TO revoklng their II
1-L-o In. - L.