New-York tribune., 1919-06-12
Admits Insurance
Cash Would Relieve
Building Shortage
State Superintendent Phil
Z lips, Grilled by Inter
myer, Says Sale of Stocks
Would Release Money for
Investment

Samuel Untermyer, in questioning
Jesse l.. Phillips, State Superintendent
OF Insurance, at yesterdays session of
the investigation into the housing stu
tion being carried on Jointly by the
Mayors Committee on Rent Profiteer-
ing and the aldermanic welfare COM
mltttee, renewed his attacks on the Of
ficials of large insurance companies.
For more than two hours he grilled Mr..
Phillips, seeking to bring out that the
insurance men aspire to high places in
Wall Street and are reluctant to part
with stocks and bonds and turn the
companies assets to real estate invest
ments.
He asked Mr.. Phillips to produce at
later sessions records on the financial
activities OF the insurance companies.
According to d deputy of Mr.. Phillips,
the records requested by Mr. Inter
myer would weigh more than 1000
pounds. 1t would take a staff of ex,
perts more than three months to COM
pile them.
Questions Involve Lockwood
The examination of the witnesses
was conducted almost entirely by Mr.
Untermyer. Frank Moss, officially des-
ignatcd as counsel for the joint inves-
tigation, who is working without fee
confined his questioning to an attempt
to show Senator Charles C. Lockwood s
connection with large insurance COM
panies. Senator Lockwood is chairman
OF the joint legislative committee in
vestigating housing conditions, and
was the recipient of letter from Mr..
untermyer yesterday charging that the
legislative committees inquiry was in
effective and farcical
Mr.. Phillips told MIR. Moss that Sen
a,or Lockwood is counsellor the Postal
Life Insurance Company, one of the
smaller institutions. Both Mr.. Moss
and Mr. Untermyer sought to connect
Senator Lockwood with the Mutual
Lite Insurance Company, but without
avail. Mr.. Phillips said he had never
reard OF Senator Lockwood acting for
the Mutual company
Two Renewals Granted
The witness was closely questioned
ny mr. untermyer on the second re-
newai OF the tive-year extension made
IN A3ob to the insurance companies
10 enable them to dispose Of their
hoidings in stocks and bonds. In 1905
tne armstrong act was passed, giving
a!e insurance companies five years in
"h4cn 10 o'spo5 OF railroad and GER
taan other securities and forbiddinp
them 70 purchase more. In 1911 the
Legislature extended the time for an.
! o'ner fiye years, and in 1916, on recon-.
mendation of Mr.. Phillips, five more
years were allowed. This was broupht
Out IN Mr.. Untermyer's questions and
Mr. Phillips's response.
me witness asserted that he advised
an extension Of time because he
'hought II would "jeopardize the inter
eat OF the policyLolders if the insur.
ahce companies were forced to dunn
upon the market the remaining secnr-
TIES they had" Mr. Untermver asked
III any one lobbed for the bill. and
was met with vigorous negative
Lost Money by Delay
Mr.. un,ermyer tried to deyelop
through the witness the fact that bv
delaying the disposal Of their secur-
ties the insurance companies have lost
thousands Of dollars Of their policy
holders money. Tie inquisitor read
from the report Of the Mutual Lie In.
furance Company, showing holdings in
Sixth Avenue elevated stock. BROOKLYN
elevated. New York, New Haven &
Hartford stock and other sccurities,
which he said could hay|4een cold a.
-ra' nayv tjmcz ai3.x 1908. but