The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-06-06

| We are going to have agreements let's
make them open and under public super
vision. We ought really to get at the
manufacturers first and then at the
combinations"
As TO Life Insurance Funds.
| Mr.. Untermyer charged that, because
they had obtained from the Legislature
extension of the time originally granted
them In 1906 when they would have to
dispose of their holdings in railroad and
Industrial stocks, the life insurance COM
panies were the dominating power" in
Wall Street to-day.
Cant they be compelled to dispose
OF them?" some one asked.
Yes returned Mr.. Untermyer, III
the Legislature does its duty, but zap
parently It will not 1t seems that the
life insurance companies can get any
kind of legislation they want at Albany.
The Mutual Life Insurance Company
owned Pennsylvania Railroad stock of
the market value of 100000 on De-
| cember 81. 1918. OF course they've lost
| money on it."
Mr.. Cntermyer said he intended no
attack upon individuals, but only upon
system which Charles f. Hughes had
| exposed at the time of the insurance in
! vestigations in 1905 and 1905. The
whole trouble, he said. was that officials
OF life insurance companies were able
to WELD enormous power. and to make
money for themselves by investing the
funds of their policy holders In railroad
and industrial corporations rather than
by putting 1t into real estate mortgages.
where It would bring the policy holders
far better returns. The New York Life
Insurance Company, he said, had pur-
sued a fairly liberal policy regarding
real estate loans. He gave figures
showing that by far the greater percent
age of life insurance company funds
were invested in the sort Of securities
he insisted the Legislature should COM
pei them to get rid OF.
As far as loans on real estate mort
cages are concerned" he continued. "the
fire insurance companies are worse Of
tenders than the life insurance COM
panies. Thoir situation Is simply IN
credible"
To illustrate his point. Mr.. Untermyer
said that January 1. 1919, the United
States Fire Insurance Company had less
than 10 per cent. of its funds II real
estate; the Continental Life Insurance
Company owned 330,000,000 worth OF
stocks and had s2.700 in real estate /:
the Home Fire Insurance Company
owned s28.000,000 worth of stocks and
Justice Robitzel in the Second District
Municipal Court disposed yesterday of
$50 dispossess cases, ordering evictions,
however. In but two cases. Compromises
were reached in las instances.
Owners of Brownsville real estate
tore down rent strike literature yester-
day which had been pasted upon their
fire escapes by irate tenants. They were
under the protection of a detail of po-
lice from the Liberty avenue station and
were hooted and jeered. While they
were at work women threatened to
throw boiling water upon them from
windows. but none appeared. The land
lords and properties concerned were
Abraham Elman, 4S6 Alabama avenue;
Isaac Elman. 431 Alabama avenue, and
Jacob Silfln, 4S6 Williams avenue.
Denial by Insurance Men.
Mr.. Untermyer's charge that the big
insurance companies are putting OBJ
stacles in the way of improving housing
conditions by Withdrawing from a for
mer policy OF lending on bonds and
mortgages brought answers yesterday
from Frederick II. Ecker. vice-presiden
of the Metropolitan Life Insurance Com
pany. and Henry Evans, president of the
Continental Fire Insurance Company, in
which both said they considered the
statement unfair
Mr.. Ecker said that evidently Mr..
untermyer had lost sight Of the check
put on building operations by Govern
ment request and that the Metropolitan
finding opportunities diminished for in
vestment in this field had sought other
Investments Since April /. 1917. he
said the company has subscribed to
loans OF the Federal Government and
no 10.
100000. Bonds amounting to 100000
900 were taken in the Fourth Liberty
Loan issue and $4,000, 900 in the Fifth
isshe.
The company found 1t necessary, he
said. to borrow S33.500 900 in order to
make the S60,0O0.0O0 subscription, and
has still $22.500 900 on this account out
standing, which should be paid before
making other investments. The company
also bought $32. 00O. 900 in United States
Treasury certificates of indebtedness.
which were applied to bond payments
subsequently Issued.
Mr.. Ecker said that II II is true that
the practice OF loaning on real estate
was discontinued II was done for the
purpose of responding to a greater ne
cessity. In spite OF the companys Gov
eminent obligations yet outstanding Mr..
F,cked said that the company has agreed
TO make some loans on properties de-
signed to relieve the existing situation.
Answering Mr.. Un,ermyers statement
regarding the investment of stocks he
said that with the exception of those
acquired in lieu of bond investments
the company's holdings in stocks are of
total par value OF about $4,000, 900
out of total assets OF more than $500.
100000
Mr.. Evans said that the Continental
Fire Insurance Company, which was
specifically named in Mr.. Untermyer's
charges, owns securities covering rea!
estate mortgages in this city in excess
Of s1,15O,000, instead of the figure
$4,000, given by Mr.. Untermyer It is
not good business. he said. for fire IN
surance companies to invest in individ-
ual mortgages on real estate because
such holdings cannot be liquitated
easily to cover a sudden call on the
companys resources. Mr. Evans said
that like other companies large Invest
ments had been made in Government
securities for patriotic reasons