The Washington times., 1915-02-02
Rouse District Committee Head
Asserts Superintendent En-.
couraged Methods Used.
ALLEGES INCREASED RATES
Congressman Charges They
Have Been Raised From so
to 100 Per Cent,

The existence Of a fire insurance
trust in the District of Columbia is
charged by Congressman Ben Johnson.
chairman of the House District Com
mittee, who told the House late yes
terday that such O. trust had recently
sprung up here, and the superintendent
OF insurance. Charles F. Nesbit, had
been OF assistance in promoting it.
Mr.. johnson asserted that Mr.. Mes
bit had urged the president Of the
Commercial Fire Insurance Company
to sign the article which created the
trust. 'and he never desisted in his per-
slstence in that direction until after the
Commercial Insurance Company had so
signed
One Company Crippled By Others.
Congressman Johnson further
charged that the Commercial Com
pany. by abolishing agents commits
sions, Incurred the displeasure Of
other insurance companies and agents
and that it was crippled by this an
tagonism. After the crippling of the
Commercial, Mr.. johnson said. "Wal-
ter A. Brown and William H. West
Canvassed the insurance companies
doing business in the District of Co.
lumbia for the purpose Of forming an
insurance trust. which is now in ex-
istence in the District"
Continuing, with reference to
Messrs, Brown and West Chairman
Johnson said:
While they were canvassing the
city Of Washington for the purpose
Of forming this trust, upon several
took lunch with Charles F. Nesbit.
the present inspector of insurance in
the District of Columbia.
Urged By Inspector To Sign.
Upon one occasion, If not upon
both, and I think upon two occasions.
Immediately after the inspector of in
surance had taken lunch with these two
gentlemen. he, Mr.. Nesbit. inspector Of
insurance. called upon the president of
the Commercial Fire Insurance Com
pany and urged him to sign the articles
which created this trust in the District.
and he never desisted in his persistence
in that direction until after the Com
mercial Company had so signed.
about two weeks ago I had a con-
versation with the inspector Of insur-
ance over the telephone relative to some
insurance subjects. He suggested that
he come to my house that evening He
came. and while he was there. unex-
pectedly to me. Mr.. Tuttle, former presi-
dent of the fire insurance company.
and his wife. came to make a visit to
me and my wife.
Says Word "Trust" Was Used.
"Mr. Tuttle came into my house just
at the moment when I was talking to
the inspector of insurance about his
having encouraged Tuttle to go into
this insurance trust. and because Of the
presence of Mr.. Tuttle l again brought
the subject up in the presence of Mr..
Tuttle and the insurance inspector. In
that conversation Mr.. Tuttle reiterated
what he had heretofore said to me. and
that was that the inspector Of insur-
ance had been. I think, on two former
occasions to him and encouraged him
to put his company into this trust
WAS the word trust used in that
converse tion?" asked Congressman
Moore of Pennsylvania.
1T was, in every part of 1t, an
swered Mr.. Johnson.
Had To Destroy Obstacle Here.
Mr. johnson, whose speech was un.
expectedly a part of the debate late
yesterday on routine bills in the House
said he had in his possession a copy
of the constitution and bylaws of the
Underwriters Association of the Dis
trict of Columbia. This document. he
said showed that it had been printed in
New York in 1913
In other words,' he said, the inten-
ton to form n trust here was a pre-
conceived one, ana they waited only for
the destruction of the local company
that stood in their way before they
brought this trust into existence"
Chairman Johnson said he understood
that Edward r. Hardy, OF New York.
is the managin ghead of the insurance
trust which had hold of all insurance
matters in that State.
Trust" Organized BY New Yorker.
1T develops that Mr.. Hardy" con-
tinued Mr. Johnson. who is at the
head of the insurance trust in New
York, came down to the District of Co
Iumbia, and has formed the insurance
trust that has now raised the rates in
tho District from 50 to 100 per cent
Mr.. Johnson reviewed the investisa-
ton of two years ago before his com
mittee relating to the Commercial
company This company, he said, was
doing we'll until it artagonized Certa in
interests by cutting out all agents'
commissions and giving these commits
sionS TO the insured
The rates now being charged by ''th"
trust" he Cont"nd"d. are far in excess
y
The insurance agents started some tine
ago fight on that company.
Says Nesbit Aided "rrust."
II regret to say that some OF the
methods used" said AIR. Johnson, "Were
encouraged by no less IA parsonage than
the superintendent Of Insurance mere.
The present superintendent If insurance
did many things to injure the CONNER
cial Fire Insurance Company. One
thing he did was that when the COM
mcrcial company had succeeded In rent
ing two stories of its building to the
Department of Justice. the superinten-
dent OF Insurance., and other high Of
hcials. stepped in and advised the De-
partment of Justice against making the
lease
He also told the Commercial company
lhat the Sl5oUo spent In improving their
tNlidlng. would have to count as an ,X-
rcnse rather than an asset When this
Gentleman was TO be appointed, | be-
lieve. from what ] gather, it, was Los
siple at least for him to become an in
strument of the Insurance trust. DO
HSt know him personally. An l know