The Washington herald., 1913-03-28
COMP PANIES Will
.D0UNDERWRITING
First National and Commercial
Fire Insurance Quit Tut
tie, Wightman & Dudley.
CHANGES ON THE BOARD
No Action Taken on Resignation Of
Robert N. Harper, Which Was
Sent in Recently.

The vacating of all underwriting and
promoting contracts between the firm
of Tuttle. Wightman & Dudley. Inc,
am the First National and Commercial
Fire Insurance Companies has been
agreed to by the underwriting firm and
the boards of directors of the compani, :,
The offer to withdraw was made by
Tuttle. Wishtman & Dudley at the
last meetings of the two boards. 1t was
Immediately accepted by the boards
Under the agreement the firm itself dis
solves. its individual members having
given satisfactory bonds to the COM
panies to guarantee the meeting of any
expenses incurred by the Incorporation,
and which might lie against the COM
panies.
This action is a complete vindication
Of the majority report on the Congress
sional investigation. 1t is a direct slap
for Representative Ben johnson of Ken
lucky, who wrote the highly favorable
minority report. The vacating of the un-
derwriting and stock-selling contracts
meets the most important criticisms level
ed against the companies, does away with
the interlocking directorates by which
Tuttle. Wightman & Dudley, Inc, were
in a position to control both companies:
risks they will take in the matter of
fire insurance, and altogether. will be
I: n as a clear indication of a desire
to do business along safe lines and to
meet honest and sound criticism with
an open mind.
Changes in Board.
As a result of the investigation there
has been a number of changes on the
board of directors OF the two companies,
and several of the officers have resigned
The companies. however. rapidly are
readjusting their affairs to changed con-
ditions, and in view of that statement
in the majority report, warning stock
holders that II would be unwise to un-
load at panic prices without giving the
companies a chance TO pull up from the
heavy drain of organization expenses, the
companies are in an excellent position
ito pull ahead. Members of the investi-
eating committee yesterday expressed
privately the opinion that the divorce
ment of the firm of TuttIe. Wightman d
Dudley. Inc, the dissolution OF the nrm.
would go rar IN restoring conndence. rne
individual members or the underwriting
firm have not. il is understood, resigned
from the drectorates. nor did the criti-
cism OF the majority report contemplate
that they should.
Nothing has been done by the direc-
tors Of the Commercial on the resigna-
ton of Robert n. Harper. which was
sent in some time ago. AT least, Irienos
of Mr.. Harper declare he has not been
notified of any action upon it The local
banker was actuated primarily by the
bills submitted for counsel fees by Attor-
neys Charles +. Carusi and Charles A.
douglas. Mr.. Harper believed the
charges too high. in view of the condi-
tion OF the two companies.
Statement OF Companies.
The following statement was given out
by the companies yesterday
The underwriting for the Commercial
Fire Insurance Company will be in charge
of its president, MIR. Robert X. TuttIe,
and in the case OF the First National
Fire Insurance Company the ofrcers OF
the company will conduct the under
writing operations. Among the recent
changes in internal management of the
company is the election of Frederick S
Dudley as first vice president, and the
election of Spencer J. johnson. the we'll
known New York insurance man. as sec
retary OF the company. The position OF
treasurer OF the company has been nIied
by the election of Leslie Cramer, Of this
city.
A number of other minor changes
suggested by the insurance expert. Mr..
S. H. Wolfe, who, at the request Of the
company, examined and reported upon
their financial condition. have also been
adopted.
1t is understood that the local cor
poration of Tuttle. wightman & Dudley.
Inc, having completed the work FOR
which 1t was organized. Will dissolve