Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-01-22
NOTHING PAID FOR NAMES
Salaries of Officers of National Com
pany Small, He Says.
DOUBLE PAR PAID FOR STOCK
Directors and Organizers Of Fire In
surance Concern Treated Ex-
actly Like Others.

today to give the early history of the
firm and its connection with the Com
mercial Fire Insurance Company and the
First National Fire Insurance Company
at the hearing held by the subcommittee
of the House District committee, Repre-
sentative johnson chairman
Under the examination of Charles f.
Carusi. Mr.. Tuttle told the committee
that the salaries of the officers of the
First National are very small, and that not
dollar was paid for the use of names.
He also testified that the directors and
organizers of the First National Fire
Insurance Company had paid double par
for their stock, exactly as every one else
had done.
Mr.. Redfield questioned him about
large volume of correspondence relating
to the Commercial Fire Insurance Com
pany. One of these was a letter to the
insurance department of. the state of Wis
consin, asking for permission to do busi-
ness in that state. Permission was not
granted. Mr.. Carusi read a letter to the
same department in which the statement
was made that the official who declined
to license the company had violated the
law, inasmuch as the company had COM
piled with all Wisconsin requirements.
Commercial Turned Down.
Mr.. Carusi read from the letter that
the actuary from Wisconsin had said the
Commercial would be licensed in Wiscon-
sin, and then went home and turned ii
down. Mr.. Carusi said that ..pumphandle
publicity pamphlets from the New York
insurance department had been the rea-
son for turning the Commercial: down.
Indecent was the term Mr.. Carusi
used in telling what he thought Of the
Wisconsin state insurance department.
A libel suit was filed, said Mr.. carusi,
against some OF the officials there, be-
cause of a report published In connection
with the Commercial Fire Insurance
Company. The action is now at issue.
he said in Wisconsin courts. and viii
reach a hearing In the January tenn OF
| the court.
Mr.. Carusi asked:
Has the extensive advertising done
| this month and in December been done
as part Of the defense of the com
pany?''
1T was
'And those bills will be charged to the
defense account?
Yes"
Two Concerns Expensive.
Mr. Tuttle said Mr.. Carusi's connection
with him began when he. Tuttle, wanted
to dissolve the Protective Holding COrpo-
ration. Expense of running two concerns
was heavy. he said. Col" r. ". Har-
per recommended Mr.. Carusi. This took
place in April or May. 1911. and shortly
thereafter Mr. Carusi became general
counsel for the Commercial Fire Insur-
ance Company, according to the testi-
mony.
when was l elected to the board. of
directors?"
In the spring of 1911"
When was Judge GOu.d elected"
About the same time. at the request
of Col. Harper"
when was the firm of Tuttle, Wight
man & Dudley Incorporated"
In 1911"
The stockholders were Ashley NJ.
Gould, Charles F. Carusi Ind W. NJ
Davis in addition to the three named
in the title.
The capitalization was $4,000 ac-
cording to the testimony.
Il took $3.50 in stock for legal serv-
ices. and Judge Gould was given 500
worth May ask you to tell under
what circumstances
Mr.. Tuttle said the company needed a
fifth man.
1--WE wanted him as director. be-
cause there had been some differences
in the firm. and it was necessary to get
q NTH man.
Mr. Davis got one share. said Mr..
Tuttle, worth So
The stock was divided as follows:
Carusi. ~ per cent; Judge Gould. per
cent; Mr.. Davis. One-tenth OF per
cent. and Tuttle, Wightman and Dudley
held the balance.
Mr. Carusi brought out that the un-
derwriting contract between the firm
and the Commercial Fire Insurance
Company began before he and Judge
~ baI connection WITH L..
Profits Not More Than $4,000.
Mr.. Carusi asked how much profit the
Turtle Wightman 4 Dudley company
had made out of the contract to sell
stock
Not over 5000.
He said. also, that the fire-underwrit-
ing onerations of Tuttle, Wightman &
dudley had netted a loss Of s. 800 up to
date.
Mr. Carusi explained the fire-underWrit-
ing contract had been executed before he
had been connected with the company
and that the stock-selling contract had
beau executed while he was representing
TuttIe Wightman & Dudley.
Taking up the First National Fire In
s,,rance Company, Mr.. Tuttle gave a list
Of organizers, including William H. Inger-
soil, recently resigned. who had been as
poration. Judge Gould was a member Of
the organization committee, it was stated.
..E. F. Jordan was asked to become a
member by me- added Mr.. Tuttle. "Mr
Harper was also a member. and Mr.
Carusi was already connected with the
company. Gen. Wwnne became a MEM
ber at Mr. Carusi's request, and Judge
Atkinson at the request Of Mr.. Harper"
WAS any money ever paid directly or
indirectly for the use of these names?'
Not a dollar"
..When did Gen Wynne's salary of
50 800 a year begin?"
"A few months ago..
Mr.. Tuttle said that Gen. Wynne, Judge
Gould and Mr.. Carusi had paid 81 1,OOO
for 100 shares of the stock. exactly the
same as others on the board paid for it.
..The point is that every one paid for
his share of stock at double par" said
Mr.. Carusi.
Tells of Office Methods.
Edward F. Fitch. Office manager of the
underwriting department Of Tuttle. Dud-
lev & Wightman, testified yesterday to
Office methods in vogue with his concern,
with special reference to the manner of