New-York tribune., 1911-02-02
NOT TO CITY CLUBS LIKING
Fire Insurance Men Call Graft
Report a Vindication.

The fire insurance fraternity in this city
consider the report of the legislative In
vestigating committee distinctly favorable
to their calling. Opinions differ greatly,
however. over the necessity or efficacy of
the specific reforms proposed. On the other
hand. the City club. which was chiefly in
terested in the graft end Of the investiga-
ton is highly disguised with the outcome.
"The whole question Of reforming the
legislative procedure so as TO make bribery
and corruption less possible was not
touched upon" said Robert s Binkerd,
secretary Of the city club, last night.
The only recommendation for legislation
designed to lessen graft is that providing
that legislators inform the authorities Of
any attempt to bribe them. Such a pro-
vision is totally inadequate for the situa-
ton
In a letter 10 Chairman Merritt Of the
committee. dated December II, the City
club pleaded for report Of some value in
the reformation of legislative procedure
and pointed out specific remedies. Yet
there is no discussion whatever in the re-
port Of the power OF the rules committee
which allowed Aids to pursue his notori-
Gus course. No attempt is made To dissect
a system which kept such men as Bedell
and Goodsel at the head OF important
committees I'm the Senate. No recommends
tion is made 10 cut down the number OF
special and petty local bills, although Judge
Bruce said during the hearings that an at
tempt would be made 10 remedy this abuse.
In other words the committee has
ignored the main purpose Of its creation,
which, according TO Governor Hughes, as
expressed i'm his message of April II, 1910.
extended beyond the bounds of mere dis
closure The members Of the committee
evidently consider ed that they were ap-
pointed merely to provide grist for the dis
trict attorneys. As a matter of fact, they
didn't even accomplish this.
Elijah r. Kennedy, the insurance broker.
considered the report A distinct vindicaton
of the conduct Of fire insurance i'm this
civ MIR. Kennedy has kept in close touch
with the committee in its investigation of
fire insurance and testified at its hearings.
He is not in favor. however. Of most of its
legislative recommendations.
lie regards the proposed law putting the
exchanges under the supervision of the
state Superintendent Of Insurance as un-
workable because the State superintendent
js not conyersant as rule with the de-
tails entering into the daily conduct of
the business. Mr.. Kennedy doesn't under
stand. either, why fire insurance brokers
should he licensed 10y the state any more
than stock brokers. grain brokers or mer-
chandisc brokers' Of any sort. With re-
eard 10 the recommendation that all COM
panics report to the Superintendent Of In
surance the amount of insurance issued
by them in the congested value sections
in he
asks this question: What IS a congested
valve section
Rut Willis O. Rohb manager Of the New
York Fire Insurance Exchange. views the
various recommendations with more favor
There is no reason in the world" he
said Yesterday, "why underwriting organi-
cations should not be subject 20 the super
vision ~ the state superintendent as well
ae the companies. As matter of fact the
underwriters have always recognized the
Justice Of this argument
81 approve Of state licenses for brokers
but their value would depend entirely
upon the provisions safeguarding them
Exchanges should not be compelled to do
business with n crook just because he may
have obtained 4 state license
Mr. Robb was one with Mr. Kennedy I'm
regard 10 the conCested value section pro-
vision Theoretically he could see no oh
lection 10 II. but in practice he said that
no matter what definition was used the
congested district would be changing
RAPIDLY both here and in Chicago, where
such a requirement as proposed had fallen
into disuse
Both ne o.1 Mr. Kennedy were in favor
Of the appointment Of a state fire marshal.