New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1918-05-26
George w. Comstock, Man
ager of New Jersey Blu
reau, One of Prisoners
Fake Fires Alleged
Companies Said to Have Paid
Small Losses Without
Investigation

NEWARK, N. j., May 25.-George W.
Comstock, manager of the New Jer-
sey Adjustment Bureau and head Of
an insurance adjustment business in
New York, is under arrest here, with
three other men, all Of them being
charged with completely in scheme to
defraud fire insurance companies. The
alleged plot is said to be the most COM
pick and extensive attempted in the
East since "Izzy the Painter" betrayed
the larson trust" in New York five
years ago.
Comstock and his alleged accom-
plices, William A. Baird, an adjuster,
and Harry Harris and Lewis Diamond,
insurance solicitors, were far less reck-
less, according to the Indictment
against them. than New York's no.
torious fireburg. No charge of arson
has been made in connection with the
arrests. 1t is asserted the accused re-
garded fires as a needless risk and
never INDUCED in them.
Avoided Fires, Police Say
They thus avoided, it was declared
by Lieutenant Stadlman and Sergeant
Rath. Of the local detective bureau,
any danger of loss of life or investi-
cation by fremen. Their alleged
method was to take out insurance in
the name of one of the members of
the ring through broker, who also
was a member, turn in report of a
fire through an adjuster who was like
wise a member of the ring, and then
split the proceeds three ways. In some
instances the man in whose name the
claim actually was made is said to
have got only SIS or 500 as his share
Of $500 or $500.
Sometimes, for arts sake, the insured
man would scorch his walls and wood
work with a torch, it is said, but that
is as close to an actual fire as the con-
spirators are said to have found it nee
essary to go. The insurance companies
relied upon the adjuster's report, the
claim never being large enough to
arouse suspicion or encourage the ex-
pense of investigation.
confined to dwelling houses, generally
the actual homes of the insured men,
though, it is said, one of these is be-
lieved to have collected insurance at
least five times within the year on
tires" IN the same premises, his only
precauton being to change his name
each time.
Neighbors Didn't Know of Fires
In belated Investigations of these
"fires,' it is charged, it has been dis
covered that tenants living in the same
building where "fre" causing $500
"loss" occurred never knew that there
had been a fire. 1t likewise was found,
it is alleged, that the sole offspring
Of man who recovered several hun
dred dollars for the ruined "opera
gowns" of his daughter was girl
eight years old. The fireless fires are
said to have been occurring for at
least year.
About twenty-five of these are under
investigation, and it is expected that
more will be discovered Although at
least one of the men under arrest has
extensive business interests in New
York, there is no evidence to show that
any attempt was made to profit by the
scheme outside of this city. One other
man has been indicted and is a fugitive
from justice, and it is said others prob
ably Will be arrested.
The charge against those under ar
rest is conspiracy to defraud. Comstock
has been released in $4,000 bail. He and
Baird and Diamond pleaded not guilty.
A plea of non vult was entered by Har-
ris.