New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1916-10-22
AUTO FRAUD
PUT AT 100000
Confession of Young AID.
juster Shows Globe Co.
Victim in Many Cases.

Confessions made yesterday bv ma,
accused in a conspiracy TO defraud IN.
Globe Indemnity Company, Of As win.
lam Street, by means Of fake autoro.
bile accident claims show that as n,
as the adjusters Of this concern ,,a
others like it were concerned "eyerv.
body was doing it." Moreover. N.
"easy graft" was not confined to ne,
with wires and children.
One investigator. twenty years ala
who had just been promoted to the M.
sition from that Of Office boy, at a sal.
airy of SIS week, saved money enough
to buy car costing $4,000. With nj,
car the young adjuster, it is aller,d
began to file claims for fraudulent A..
cidents. His cousin was Represented
as the owner of the car. and with a..
money thus obtained he bought oth,,
cars. These cars rightfully belonr.d
to his employers as salvage in bona ID.
accident claims.
The young man is Frank McGinl.y
of 1855 Snedcker Avenue. Woodhsyen
Long Island, who is now in the Tomb.
charged with grand larceny. In q sta,.'
ment made yesterday to Assistant Dis.
trict Attorney Weller. Mckinley said
on February 16, 1915, he caused M,
cousin, II. 4. Weisner. of the same al.
dress, to report an accident 10 his ear
The case was investigated by William
f. Ramey, head of the claims depart
ment, and Robert +. Caswell, an inyes-
tigator, of Broadway and ST. Nieholm
Avenue, both of whom are indicted for
grand larceny on complaint OF the
Globe Indemnity Company.
Mckinley Tells of Frauds
Mckinley then caused a relative "a
go to the Globe Company and, posins
as Weisner, get q check for ss26 from
Ramey. The relative Endorsed the nam,
of Weisner on the check and Ramey
added his Endorsement Then, accord.
ing to Mckinley, Ramey took the check
to the Globe company cashier and had
it cashed.
Mckinley told Mr.. Weller that Of the
1925 he took $500, and s525 was spli.
between Ramey and Caswell. On Sep.
TENDER %, 1918. Mckinley says, he had
another loss on the same car. and his
relative again posed as Weisner and
the Globe Company paid $3.50 indem.
nifty. Mckinley admitted that in both
cases there was no accident At the
time of his arrest Mckinley had a car
in his garage which he bought from
Ramey for $500, under the name Of
George Miller. He said Ramey ad.
vised him to assume another name for
safety.
According to Duncan Reid, secretary
Of the Globe Company, his concern e.
Inmates that it has lost more than
100000 in two years time by means
of frauds growing out Of fake acct.
dents. Now Mr.. Reid says he has rea.
son to believe that the same fraud IS
being peruetrated in the department
which fixes indemnities for sutomo.
biles destroyed or damaged BY Ere.
Last Sunday, while riding between New
York and Tuxedo Mr. Reid told W.
Weller he counted four burned cars
by the roadside.
Owners Burn Old Models
"This is the end Of the season and
the proper time in which 10 begin to
get rid Of old models in preparation
for buying new ones Mr.. keld SAID
There are no difficulties in the way
of starting fires in automobiles, and
contrary to what might be expected
the running and motor parts are re-
built and sold at a fair profit
Mr.. Weller's investigation Of nc
confessions made by Mckinley and
Caswell duplicates two proprietors OF
automobile repair shops in West Sixty
fifth and Sixty-sixth streets in the
conspiracy to defraud the Globe Com
panv. These men, according to CAS-
we'll. padded repair bills on bona noe
accident claims at the expense OF me
Globe Company and in cases where the
ad;usters stole the salvage from 'he
company the repairers by agreement
effected the repairs for the cost Of 'n'
parts. Ill,
Indication of the manner In vhlea
the Globe Company was mulcted "eom.
ing and going" is shown by the ias.
that Ramey and Caswell succeeded y, u
lacking ND the indemnity and spIt
ting it with car owners, stealing ..'
salvage in bona fide accident case.
splitting the rake-off on padded repsn
bills and approving claims on suees''
sive fake accidents. .,ul-.,
Ramey has a wife and three chllo or,s
He drew a salary OF SlZo w' ",
Caswell was paid sllO a month. NJ J;
Weller. following the confession -
Caswell. went before Judge hoss III
IN General Sessions yesterday and ~. o.. -
Ramey's bail raised from S''''
s15 900