New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-01-23
FIVE MORE INDICTED AS
ARSON TRUST MEMBERS
Grand Jury Acts Against Fire
Insurance Broker and Two
AdjuSterS.
TENANTS ALSO ON LIST
Judge Swami Criticises Meth
DDS of Insurance Companies
as Direct Invitations
to Firebugs.

to FlrebugS.
The grand jury yesterday returned
indictments against five alleged mem
beers OF the arson trust" making six
teen indicted since Ivy the Painter
began his confession All Of the five
charge arson in the second degree for
fires set in tenement houses Fires set
i'm business places have not yet been
brought to the attention Of the grand
Jury, although Royal II. Weller. the
Assistant District Attorney in charge
Of the investiga ton. was requested by
several insurance companies yesterday
10 inquire into $4,000 fire which oc-
CURED in loft building about a year
ago. Settlement Of the loss in this fire
is said TO have been adjusted by a man
already under indictment for tene-
ment house fire.
one of the indictments returned yes
terday is against a fire insurance
broker. He is the first broker to be i'm
dicted since the inquiry began. The
dishonest broker gets money out Of
fires by dividing profits with the adj
Juster. When the tenant gets his pol
icy from the broker he is told to come
10 the brokers' office If he has fire
and not TO trust an aGiuster.
Pays Two Commissions.
When the tenant appears after fire
the broker promises to attend 10 the
matter for him personally. and at once
turns the claim over to an adjustcr
with whom he has profit sharing ar
rangement. The result is that by hook
or crook the tenant has 10 pay two
commissions instead of one one
broker is said to have stuck match
beneath the rubber band encrclins the
document whenever he issued new
fire insurance policy.
Another man indicted Yesterday was
u tenant at the time the fire mentioned
i'm the indictment occurred. and is said
to have hired Icy the Painter" to
burn his furniture. Since that time II
is alleged. he has become a firemaker
himself. and "Izzy the Painter" TO
whose gang he is said 10 belong, credits
him with numerous successful fires.
The third man indicted is the tenant Of
the Nat who insured his furniture with
the broker who is charged with arson.
The other two defendants named In
the indictments handed up yesterday
% lsLt In, al
are Henry c. Freeman and George
Grutz fire adjusters. GrutZ is now
held I'm S2J,OoO bail and Freeman IN
500. 900 bail on similar charges. They
will be arraigned to-day to plead to the
new indictments. Ualess they decide
to tell the District Attorney what they
know about the arson trust" it is
likely that indictments will continue TO
pile up against them while they stay in
the Tombs.
Mr.. Weller expects 10 present three
more cases to the grand jury to-day.
Detectives and deputy fire marshals re-
port that the tenement house branch 81
the arson trust" has dsbandcd and
that It's members have fled 10 other
cities. There are now six bench war
rants out for men whom the detectives
have been unable 10 find.
Judge Swami Overinsured.
Reports have come in that some Of
the adjusters in their headlong race To
be FIRST at the fire have run down peo-
pie with their automobiles. The rec
Ords of the police and Coroner's office
are being examined. and if any such
cases are found prosecutions will fol-
low.
Justice Golf yesterday in the Grim
bail in SlJ,OOo in the case Of Robert J.
Rubin, an adjuster and former partner
Of Henry G. Freeman, who is charged
with arson in the second degree.
Judge Swami, Of General Sessions,
said Yesterday that in his opinion the
method followed by insurance com
panies Of insuring property without ex-
animation and then fighting every
claim made was an invitation to fire
bugs. Judge Swami had appraisers ex-
anime some Of his own property a few
days ago. and found that for twelve
years the property had been overin-
sured To the amount of SIJ,OOO He
took steps 10 reduce the insurance.
IhNkC0M CCTC CINC VChDC