Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-01-25
and character enough to be kept from
epnine asfraY On risks.

and character enough to be kept from
going astray ON risks.
Z In a long statement Judge Prouty said
he saw many places where the interests
of Tuttle, Wightman & Dudley con
fiicted with the insurance companies. ne
wanted to know who there was 10 STAND
las a brick wall against the insurance
companies especially in the matter OF
the large advertising bills. Judge Gould
said II he had been consulted ne wouun
have paid SO to the newspapers.
Judge Gould later asked what benefit
futile and his associates got from the
advertising There was q sharp but
good-natured colloquy between the two
turists, and in response to q quesuon os
Judge Prouty, Judge Gould said:
II am not sitting as judge If your
honor please.
He said the advertising of the building
had not done any one line OF good ana
Judge Prouty asked several times who
would protect the company from expendi-
lures made by futile or any one Judge
Gould said the board OF directors is the
brick wall and is in the main not inter-
ested in futile. wightman & Dudley.
Judge Prouty added boards of direc-
tors are often soft-hearted when it comes
to embarrassing questions.
There Is no one in the Southern build
ing to look after such questions, Is
there?"
NO" answered Judge Could.
Representative Redfeld asked why the
statements in great space in New York
paper.
Judge Gould said he supposed 1t was
done to Offset attacks on the insurance
company.
Pays to Attend Meetings.
He said he received $50 a year each
from the two insurance companies and
that dividens and directors fees added
made a total Of So. $50 II Judge Gould at
tended all meetings.
Judge Gould said. however, that most
Of the meetings he had attended were
special meetings for which no fee was
paid.
He added he had heard all about the
action Of the Wisconsin state insurance
department in not allowing the CONNER
cial to do business In that state and OF
the libel suit filed by the Commercial He
said he knew the protective association
with which futile was associated had
incurred the disfavor of the New York
state insurance department.
Representative Redfield took up Ten
Items Of Progress" issued by the Com
mercial Fire Insurance Company, ask
ing the witness if he knew about the
statement as to losses in 1917, as out
lined in the booklets. There Is q discrep-
ancy in the book and testimony OF wit
nesses as to the amount Of losses.
Judge Gould explained he had no knowl-
edge of the matter.
Difficult to Figure Out.
LAS an officer of the company, paid
salary. did you not know the loss ratio
was greater than stated in the book?"
asked Representative Ked6eld.
Justice Gould answered that the loss
ratio in fire insurance is a difficult mat
ter to be figured out on the minute.
The fault found with the statement by
ID III a. %nHl
of losses only in an extremely favorable
period
Don't you know the companies must
have known that the losses were larger"
They couldn't have told on that date
what the whole losses were. The book
keeping does not permit it.
IF you asked me to invest in your busi-
ness said Representative Redfield, do
me that the losses for a certain period
We're so much. when for another period
the losses were greater?'
Judge Gould made a classic reply, tell
ing Representative Redheld: If I were
dealing with you personally. knowing
you to be. as you are. q man Of high in
telligence and with an expert knowledge
Of insurance, / would feel justified in
telling you what the losses were for any
into the whole business"
Question Of Honor, He Says.
Judge Gould and Representative Red
field fenced carefully about the question
Then you think you would apply the
: doctrine Of caveat emptor?'
No." answered Judge Gould. ''you are
asking me a question Of honor, and
not Of law
Representative Redfeld took I'D the
well hammered question Of the guaran-
tees said to have been made by agents to
: the First National Fire Insurance Com
pany. amounting to a supposed assured
premium income Of more than 1000 GOO
= year.
Judge Gould said he didn't know
whether or not there are definite writ
ten agreements to furnish that amount
of business. He said he understood the
situation to be that an understanding ex-
listed with agents throughout the coun-
try, but that the words assuring and
guaranteeing were trifie strong.
He said he had heard some Of the
agents had been influenced not to give
their business to the First National
He said he believed the booklet should
not be interpreted as an ironclad guar
antee and that the booklet is optimistic.
Said Redfeld: Guarantee is used in
courts. the name 0f the dean of a law
school. a former Postmaster General and
others. Don't you think the man on the
street would take the word guarantee
as legal guaranty?''
Judge Gould said there wasn't the
slightest doubt that the man on the street
wasn't fool enough to take such a state
ment as legal guaranty.
Not Misleading to Some.
Estimate would have been a better
word" suggested Judge Gould, ''but any
sane business man would not have been
misled."
Judge Gould was asked whether difiicul-
ten in the three concerns might be
brought to his court
Judge Gould thanked Mr.. Redfield for
the opportunity to explain why it would
TO occur.
If it had been possible I never would
have become a member of either COM
pany," he declared.
Mr.. Redfield asked about the statement
in some of the literature to the effect that
the Southern building is a rent producer
OF $4,000 year. Judge Gould said he
had no accurate knowledge of the matter
In answer TO Judge PrOuty. Judge
Gould said Robert T>nttla