Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1921-10-26
CITY ARSON GANG
HIRES FIRE F|ENDS
Donaldson Tells Of Insurance
Firms Giving $4,000
, for Their Capture
SAYS He WON'T STOP PROBE

Professional firebugs known as
"torchcs" are employed by an arson
ring IN this city, according to Thomas
n Donaldson, State Insurance Com
missioner. in his first public statement
since the fire insurance ocanAal started.
Activities of these men. according to
,ba Commissioner, have resulted in "s
nIethorn Of suspicious fires. Come what
NAV hc declares, he will continue to
conduct his Investigations. lie admits
Gre insurance companies subscribed
total of $40. 900 to pay the expenses of
Tho investigation into certain fire in
slrsncc adiusicrs' methods. aud Hnys
,hc institution of criminal proct edings
by certain adjusters against George r.
NcCern. n detective. and Harry FOX.
ianitor Of IN Office building. will not de-
fer him from continuing the probe.
Mccain and Fox were held In $1,000
bail each by Magistrate Bcnton last
Monday on a charge Of conspiracy, in-
yolving the riqing Of desks of certain
fire adjuSters and wire tapping.
Mr.. DonaIdson's Statement
The statement follows:
The 1921 Legislature passed an act
providins that all adjusters of claims
against insurance companies who re-
ceiyed compensation for representing
rolicyholdcrs must apply to the 1nSur-
snce Commissioner and qualify for n
license as public adjuster. The act pro-
yides that the licensee shall be trust
worthy and competent to transact busl-
ness as public ndjustCr in such manner
a. to safeguard the interests Of the pub
lie The new law was actually drafted
several years ago. A revised draft was
discussed with certain adjusters, agents,
brokers' and company officials before il
was submitted TO the 1921 Legislature.
From start to conclusion the act was
an Insurance Department measure.
Immediately after the new law took ,
effect the Insurance Commissioner OBJ
tained for the first time nm array of
facts from authentic sources which cs-
tsblishcd suspicious origin of scores of
fires: indicated the presence in Phila-
dolphin Of professional arson men.
known rs torches involved certain
agents and brokers In adjustment fee |
splitting and overinsuring of low grade ,
properties and contents. and showed .
brazeD methods Of certain individuals .
known ms public adjuStcrs of fire claims. .
Department Without Funds
THE Commissioner. being vested with
discretionary powers under the new
license Inv. found 1t urgently necessary
TO acquire full information. The City
Fire MdrShal's Office was admittedly
ovcraxcd In its efforts to investigate
scores Of suspicious fires and activities
Of individuals concerned in the results
Of the fires. The Insurance Department
had neither funds nor working staff to
conclude thorough Investigation Of
subject which was wide and deep in
its rnmfications.
Each Of the stock fire insurance
companies Of Pennsylvania was asked to
contribute modest amount of money
TO permit Of investigation by the In
snrnnCc Commissioner and special
staff. TIL" amount subscribed was less
than 100000. The most prominent de.
tectivc agency was first employed and
after n test ont period. actually upon
The advice Of tho agency. it was deter
mined to undertake an intensive w.
vcstiCation. and this was arranged for
by the Insurance Commissioner by the
employment of former member, during ,
the recent war, of the intelligence sec
ton Of the army
Knows OF No Lawlessness
80 far as the Insurance Commits. /
Eonrr knows. no agent working directly ,
Or indirectly under him committed law. ,
Jess acts of any description. II was =
never the intention of the Commits
kOncr nt the time of starting the in +
vcStigation 10 institute criminal nrosc- +
cutionS. 1t was campaign of in.
scstigat!on TO determine whether or not |