Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-01-23
R. R. TuttIe Again on Stand in
Insurance Investigation.
BUSINESS METHODS PROBED
Pamphlet Issued by First National
Target for Mr.. Redfeld.
ADVERTISING ALSO DISCUSSED
Money Expended in Interest of
Southern Building UP at
Today's Hearing.

Today's Hearing.
statements in the pamphlet issued by
the First National Fire Insurance Com
pany were used a target by Repre-
sentative Redheld, who had Robert II.
Tuttle. president of Tuttle, Dudley a.
Wlghtman, on the witness stand I'm the
insurance investigation again today. Mr..
Redfield took the pamphlet. page by
page and statement by statement. asking
pertinent and sharp questions about the
guarantees OF business which the COM
pany held out to stockholders.
C. c. Glover. in an executive session of
the subcommittee, asked that he be al
lowed to make a reply before the sub
committee to the statements made about
Mr.. Glover Oh the floor of the House
several days ago by Mr.. Sims of Ten
nessee.
The remarks in the House were contra
dlctory to a statement made by Mr.
Glover In the insurance hearing. when he
denied having fostered the Rock Greek
Park project for personal gain. The
subcommittee took Mr.. Glovers state
ment in typewriter form under consid-
Grafton, and will determine whether or
not 1t will be admitted to the testimony.
Mr. Redfield began a cross-examnation
of Mr.. Tuttle on the advertising accounts
OF the two fire insurance companies. MI.
Redfield followed a line of quizzing inau-
gurated yesterday by Judge Prouty. He
said the advertising campaign had been
decided on by him.
Isn't II a fact that the extent of the
advertising varied with the character OF
the testimony
mo"
The fact that the Companies ran a
three-column advertisement i'm one of the
M 81
printed reports of the cross-examination
OF the companys actuary was purely an
accident. said Mr.. Tuttle
as IT also an accident that when
the Southern building was under eXami-
nation the advertisements OF the build
ing were particularly large?"
Possibly not. This was all done to
snow the public that there is nothing to
fear under the policies of the CONNER
cial Fire Insurance Company"
Conference on Advertising.
Mr.. Redfield asked what conferences
had been held regarding advertising
There We're conferences"
"'"Was it accident or design that the ad-
verusement 4 speak of was signed by the
same man who was being examiner"
THAT was an accident"
Mr.. Redfeld read a Clipping from, a
Pittsburgh insurance paper which termed
the insurance investigation a political
squabble. Mr.. TuttleN said he had no
knowledge OF where the statement came
from: that he had not paid for il, and
had nothing at all TO do with it, Mr..
Tuttle said he had talked with Mr. Dud-
ley about the item.
Mr. Dudley sent out copies of il to
our stockholders" said Mr.. Tuttle zone
to each one
was it sent out to stockholders of the
First National?"
Il don't know"
IT was an accident"
''Oh, no.
Mt. Redfield took up the book "ro the
1000 Owners" the First Nationals pro-
spectus.
Was there more than one edition of
this: he asked. Mr.. Tuttie said he did
not know.
Isn't it a fact that a second edition
was printed with modified language"
Not that / know Of
There is a statement made i'm that
book on page :S2 dated 3-:sO-Ie which
means March 30, 1912. On page IL there
Is statement that agents had guar
anteed $1.473.OOO worth of business. Did
you. on March 80, 1872, have any such
guarantees?'
Il believe So
you are In charge-you don't know"
wasn't In charge Of that business"
He testified that the book had been
taken it to the Post Office Department
some care was taken with the book
said Representative RedfieId And this
is specific statement. Now let US have
one or more of the guarantees Submit
them all, if you please
Reads Mass of Correspondence.
Representative Redfield read a mass of
correspondence between the First Ma
tional Fire Insurance Company and Ed
ward Brown & Sons, western insurance
agency, in which the latter requested that
the First National quit using the western
firms name as an agent under contract
Mr.. Redfield asked about Toronto
firm which had withdrawn as agents
How many of the people named by
you withdrew as agents.
Mr. Tuttle named list, and placed the
blame emphatically on what has been
called the insurance trust"
Weren't these five included in the
twenty-seven who We're said to be guar
anteeing so much business?'
Yes"
Wasn't that statement made up with
out any definite guarantee by any one?"
Il don't know about that"
Mr.. Redfield called attention to further
statements in the pamphlet. The SUBJ
scribed capital of $1.O000O and SUBJ
scribed surplus of Sl,OO0.000 was taken up.
why didn't you tell people that S400-
900 of the money they paid i'm was to be
used for organization purposes?"
Mr.. Tuttle said he regarded that il had
been explained In the pamphlet.
The proht-producfng premium income
Is provided In advance, was a statement
in the pamphlet which was flayed to the
bone by Representative Redfield.
Explains Dividend Paying Policy.
Mr.. Tuttle continued on the wit
ness stand yesterday afternoon, ex-
planning the dividend paying policy of
the Commercial Fire Insurance Company.
He said all the directors voted to pay the
.wo dividends in 1911. and that there was
sufficient unexpended balance of earned
surplus in the treasury to pay the mid
year dividend He said there never had
been any suggestion to keep on paying
in order to sell stock. Mr.. Tut
lie also told how the company began to
hink of obtaining the Southern building
He said the Southern Building Corpora
ion had offered the Commercial an op-
portunity to take over the entire capital
stock, amounting to $4,000.
Mr. Carusi asked him about the fire
insurance trust" He said that every in
,urance man in the country knows such
trust exists, and he explained il as "a
of companies who fix the
ates fix the prices at which insurance
an be obtained and who fix the rate of
for agents and who tell the
gents throughout the country what CONF
,anies they can and cannot represent"
He continued:
when / had my first agency i'm New
York state the New York state board
Ient two men to see the present Of the