The Washington times., 1913-01-25
GOULD TURNS ON
HIS QUEST|ONERS
Seeks Authority for Claim He
Receives Pay for Use of
Name by Insurance Firms.
CONTINUED from First Page.)

Continued from First Page)
insurance companies and Tuttle. Wight
man & Dudley.
Il would feel under the sacred obliga-
ton TO act with fairness to the compa-
MES because of the people who are in
terested in them, because of my conuec-
tion with them" said Judge Gould. He
added that he felt no special obligation
TO the firm
Referring to the close alliance be-
TWEEN the two companies and the under
writing concern, Congressman Prouty
wanted to know II Judge Gould thought
II right for insurance officers TO make
contracts virtually with themselves
Judge Gould thought not, under the ex-
listing circumstances. Mr.. Prouty want
ed to know If Mr.. Tuttle and his asso-
ciates would not have built up the COM
panies. anyway. without the side con-
tract.
Judg. Gould said that companies had
had bitter experiences before the con-
tract with Tuttle, Wightman & Dudley.
and he thought the contract was a good
thing. He paid tribute to the business
ability, enthusiasm, and integrity of
members of the underwriting firm. The
firm, he said. Cancelled some risks which
seemed safe, and did not appear TO be
writing business for the sake OF pre-
MUM income - -
Thinks Directors Capable.
Congressman Prouty conducted long
examination regarding the policy of
the underwriters and their method of
procedure.
The man who is getting the golden
eggs out of a hen wants her TO stay
alive" said Judge Gould. I'm support of
his statement that Tuttle. Wightman
& Dudley were conservative In taking
fire risks.
Taking up the advertising bills of the
two companies, Congressman Prouty
wanted to know II there was anybody
in the two insurance companies to look
ters. rs there anybody to stand like
a brick wall against such expendi-
tures?" he asked WHO will stand
against advertising bills made by Mr..
Tuttle or anybody else?"
Judge Gould thought the directors were
capable of handling the situation. Per-
sonally. he said. he would. not have
placed the advertising.
Not Sitting As Judge.
Congressman Prouty. who used to be
a Judge wanted to know what Judge
Gould thought the advertising cam
paign had been worth or had accom-
plished
Il am not sitting as a Judge now.
your honur," said the witness, smiling.
Congressman Redfeld developed that
Judge: Gould receives 500 per year from
both the Commercial and First Ma
tional companies for his services as all
officer in the companies. Mr.. Redheld
also figured that II Judge Gould attend
ed all the board meetings his compensl-
iion, on the fec basis. would reach a
total of about s.. COZ. but Judge Gould
said ne did not attend all the meetings
and that no fees were paid for the
special meetings.
Asks About Advertising.
Congressman Redfield then picked up
Iirrature circulated by the Commercial
and First National companies and re-
minding Judge Gould that you are a
director in these companies the New
! Urk member began to develop what the |
Justice thought OF this sort OF adver-
Using.
I'm the Commercials book. Ten |
Items Of Progress" said Mr.. Redheld, |
ISSUED in May, 1912. there appears |
statement giving the loss ratio OF the |
as only IS per cent up to De- |
rember. 1911. Tht statement onits the |
much larger loss ratio between Decem- !
ber and May. Do you think tina: is !
right"' --
THE statement for 1911 was true and |
II was impossible to give in May the ]
oss ra ito for 1872" said Justice Gould.
the loss ratio for the first few months |
in 1912 was much larger. three times |
as large. as this % per cent carried In |
this statement
Was Entirely Justified.
The company could not tell in May !
what the 1912 loss ratio would be: the |
does not permit il. In |
losses go by averages. The |
winter losses are aiways heavier and !
are balanced up In the year round COM
putation. a scrupulously honest per-
son would have the right to assume that |
the 1912 losses would be no higher, all !
told, and the statement made In May |
necessarily could not give to- loss ra-
ito for the, new year"
Yes. but was the May statement !
complete. If You were asking me TO |
invest in your business, would YOU \
think. Il right to tell me that at the |
close Of 1911 you had made so much /
money. and to conceal the fact that for |
The first few months OF 1912 the process
mad been reversed?"
Il should say ] was entirely justified,