Evening Star Newspaper, June 1, 1937, Page 14

A—14 i THE EVENING STAR, WASHINGTON, D. C, TUESDAY, JUNE 1, 1937. INSURANCERACET LAD T0 LAWYERS U. S. District Attorney in New York Exposing Dis- ability Frauds. By the Associated Press S NEW YORK, June 1.—Crooked lawyers are blamed by United States District Attorney Lamar Hardy for the spread of an insurance fraud racket he has set out to smash. In two weeks he has blasted at it 80 mightily that 20 have been arrested and more will be, he predicted. Describing the racket “that may erop up in any big city” and how the Government broke it open, Harry said in an interview last night: “Crooked lawyers are at the bottom of it. They'll pick out a perfectly law-abiding citizen, often a man that's ¢ & . bad financial reverses, and lure him . into the game. \ “They'll often make him close out i . his business as evidence that he’s dis- sbled. They they call in crooked doc- tors and create amazingly realisti® fake ailments and pawn them off on the insurance companies as genuine disability cases.” Dramatics and Drugs. With drugs. ‘“dramatic” coaching | and painstakingly built up hospital records, they put up a case that even the company doctors, with the latest | ecientific apparatus, can't knock down. “If the insurance company is sus- picious and refuses to pay,” Hardy continued, “the racketeers will take the case to court, and they don't have much trouble fooling a jury of lay- wen. “The only way you can get at them & from the inside. Get a man in ® that he can watch and listen to the conspiracies being formed and the cases faked, and you have your evie dence. That's what we did.” And seven months’ secret investiga- Lion has disclosed a racket so exten- sive that they don't know its limits sven yet Racketeers Getting Millions. “Apparently it has sprung up within the last five years,” Hardy said Well, there are $10.- | €00.000.0! n insurance policies In | this country th; y| An estimated $75.000.000 is | in disability claims c\\'r.\‘; or a smart rack- | nd a substantial| 000,000 is going to the racketeers.” Are they operating outside New York? “We wouldn't be surprised to find that they are” he said. “Any big | city where there's a concentration of population is a happy hunting ground | for them. “The best part of the investigation {s that most of the stooges, the hu- | man race horses they're doping, aren't hardened criminals. They answer questions readily when we get them &nd implicate dozens of others. Spreads Graft Gospel. | “They're also the ones that make | 45 hard for us in the first place by | spreading the racket. A man with a | $100,000 policy, and there are a lot | of them, collecting $1,000 a month draudulently, goes and persuades his‘ friends who have policies to get into | the racket. “The trouble is, many of the com- panies being swindled are mutual | eompanies. All the unstributed money goes back to policyholders in divi- dends. That means that you and I ®nd any one else that has a disabil- ity policy are supporting these rats.” What's the answer? “Well, we're puttin, o i X ) S e ”‘2_” }E:mt\,h::;.s_m & Part of “American’s” Great Refinery at Texas City, Texas Are the penalties enough io dis- courage them? “Yes, I tnink they ought to,” he e e (l) 1933 © * - World's greatest refining unit built at Texas City, Texas Years on each conspiracy count, and we get several counts on most of them. “And seven years in prison is a long time.” Brain Twizzlers (2) 1937 + + * New units added. New scientific equipment added. BY PROF. J. D. FLINT. P @ [ ] AR v B i o Refinery capacity doubled . . . more than ever world’s greatest Ho, Sonny Boy and Juanita. Their owners were Mr. Lewis, Mr. Bailey and Mr. Smith, but not necessarily in order. d l d !. H 3 The followin, vail- o Do nte Rty araet ana mosi modaern reining unit! Tally-Ho, unfortunately, broke an Wnkle at the start of the race. Mr. Smith owned a brown-and-white @8-year-old i Sonny Boy already had winnings In 1933 the flat prairie-land at Texas City, Texas suddenly be- engineers, had been busy... pushing science's fight against e Bailey lost heavily although his came alive with industry! Giant cranes tugging at mighty beams crude oil! New, improved equipment was installed. New processes and girders! The staccato beat of riveting machines! The world’s perfected and patented. And as a result of these new processes T 80sS \s \youlL ge . SORE 'CAUSE A largest refining unit was being built. and equipment we can now build greater value into regular gas- Soon this great refinery was producing New Action American oline than was ever possible before! Gas...millions of gallons of it! The new refinery yie]lded the best The new gas is ready—NOW! We named it New Value regular gasoline we could possibly produce. And you recognized American Gas—because of its extra built-in values. it for the value that it was. You bought millions of gallons of it... It is known as a ‘“sweet” gas—meaning it's more and more and more! . A ) undesirable odors,—and no added chemicals! You'll say it's a As a result of your demand for American Gas, the giant cranes “sweet performer,” too—in mileage, economy, smoothness! e e returned to the Texas coast. The builders came back! The world’s L This race was the first that the horse A 5 1 Really, New Value Ameri ity e £ greatest refining unit was no longer big enough to meet the in- ¥, erican Gas sets a new measure for What was the name of the horse 2 ; value in regular gasoline! Try it—it’s the greatest buy in “regular” that won and who owned him? creasing demand for A. a 5 e (see(:im:ifi )é‘fa,) g el .menc n Gas that you’ve ever seen or used! Stop at the Sign of Greater Values 1037 We enlarged the refinery...more than doubled its capacity. But —fill your tank with New Value American Gas—then listen to Match Factories Busy. we did more than merely increase its size. Scientists, chemists, your motor sing its song of smoothness and performance! Argentina's 19 match factorles turned 4,500 tons of raw materials into more than 23,000,000,000 matches gz Mew Jabue AMERICAN GAS Antrol does away with ants for good. They toke T ON SALE FROM MAINE T RIDA-AT “THE SI 0 FLORIDA SIGN OF GREATER VALUES” is safe oround children or [l\ il G-“”'"""" American Oil Company— Also Maker of Amoco-Gas...World'’s Finest Motor Fuel | ANTROL