The Washington times., 1913-01-25

Mr.. Redfield," responded Judge Gould.
You would know. as an Intelligent
man. that losses f1uctuate in insurance.
and that the early losses of the year
might be overcome in the general aver
age later. 1t is all based on a PROPOSE
ton OF averages"
You don't think 1t is a dishonest
thing ing to doT''
Now waving what ] might know
about insurance, what about the man
on the street who receives this book,
the average MANI"
Would Regard 1t As Estimate.
Il think the general public-especially
the investing public-is fairly well
versed in insurance matters and risks,
and that they would take a 1911 state
ment as such"
r Mr.. Redfieid then produced a stock
selling letter by the First National. He
referred to a paragraph in the pros
pectus which said that this great
company was assured of premium
income of over $ls0oo,oOO per year.
How was that assured" he asked
Judge Gould.
Il understand that to be the estimate
Of the underwriters, who said they
could furnish that amount OF business
Then It was an estimate instead OF
an assurance?'
Anybody would regard it as an es-
innate" said Judge Gould.
What that statement or assurance
based on written contracts!
Il am not familiar with that an
sw cred Judge Gould.
Judge Gould added that the statement
evidently WAS based on the promises
held out by various agents and UNDER
writer's. He agreed that assured IN
comer might be too strong. .'
Congressman Redfield then took up
the pamphlet, ITO the 1900 owners OF
the First National In this he noted
the statement that twenty-seven agen-
come of sl.472. 900 for the first year
He wanted to know why the latter
said million and the prospectus
larger amount. Judge Gould said the
letter probably represented the amount
later estimated, after certain companies
had been warned that they must not
handle the business of the new COM
pany This. however, was heresay
evidence. he explained.
Objects to "Guaranteed."
Mr.. Redfield objected to the word
guaranteed" and Judge Gould said the
business public would understand this
as an estimate OF the expected busi-
ness.
No insurance company guarantees a
certain amount of business II the word 4!
had been called 10 my attention / prob |
ably would have recommended. the elm !
ination of the word guarantee 1t is |
clear, however, that this was an est
mate and the average man could not !
cUnstrue il as legal guarantee. / judge |
tne average man by myself.
Mr. Redheld insisted that the language
was too strong, and that II II was an
estimate, that word should have been |
used.
Glad He Asked Question.
The statement may have been optim- |
Istic," commented Judge Gould. but |
no insurance company guarantees .
stated income. and ] would not. and I
don't think any other man for mo-
men: would consider the prospectus !
statement as a literal guarantee. ]
don't think any other intelligent man |
would.
firm of Tuttle. Wightman &c Dudley \
and the First National and Comm ercial |
companies. Mr. Redfield asked Judge
Gould what he would do II the COM
pa MES became involve in litigation and !
the case was presented to the court |
of which Judge Gould is member.
Il am glad you asked that question:"
siad Judge Gould. There are six
justices of the Supreme Court of the
District and 1T frequently happens
that case In which a Judge has
some opinion or Interest Is brought I
before him. He then assigns IL 10
ano ther Judge. / presume I have han
died twenty cases Of this kind witch
haye been handed on to me by judges
w. no did not care to sit for personal
reasons.
Tho affairs. OF these companies would
not be heard be me. ] would not be
connected with them IL ] were the only
Judge. In the event there should ever
be litigation, ] would not be embarras.-
ed In this particular. as some other
Judge would act"