The sun., 1919-06-12
SAYS LOCKWOOD Is
INSURANCE COUNSEL
State Supt. Phillips Makes
Admission in Answer to
Moss Question.
UNTERMYER PROBE OPENS
Lawyer Asks for Data That
Would Take Albany Months
to Supply.

Tho city administrations official in
vestigation into the investments OF life
insurance companies and its hunt for
an alleged conspiracy responsible for the
very high price of building materials got
under way with a rush yesterday In the
office of David Hrschfeld, Commissioner
OF Accounts. Municipal building. 1t Is
being conducted by joint committee OF
the Mayors Committee Oh Rent PROFIT
eering, Nathan Hirsch, chairman. and
the aldermanic Committee on General
Welfare, william T. Collins, chairman.
The INJURY Is the result OF charges
made by Samuel Untermyer and his
expressed belief that the loosening up
of money for building operations Will
come Just az soon as the life insurance
rompnnies are compelled TO dispose Of
their large holdings in wall street
securities" and invest a fair share or
the proceeds in real estate mortgages.
Mr.. Untermyer. who has been Ill two
months, came to town yesterday to start
tho examination Of witnesses. He Is as
ISOLATED in the inquiry with Frank Moss,
who accepted an invitation TO act with
put pay MS counsel to the committee.
Moss Springs Surprise.
Mr.. Nose waited until the tail end Of
n two and q half hour session before he
interpoated any questions and then
he brought out for the record the state
ment that state Senator Lockwood,
chairman Of the Joint Legislative Com
mittee investigating housing conditions,
Is counsel for the Postal Life Insurance
Company. This information came from
Jesse L. Phillips, State Superintendent OF
Insurance, the lone witness OF the after
noon.
Mr. Lockwood was reQuester to per-
init Mr. Moss to participate In the cross
examination OF the Lockwood commit
tees witnesses. Instead of granting the
permission he ertended an invitation to
Mr.. Untermyer to appear before the
committee and ask any questions he
wished. However, the committee went
right along with its hearings and Mr..
Untermyer chided Mr.. lockwood for
calmly permitting the life insurance
heads to get away with it. and an
nounced his intention of assisting Mr..
Moss to conduct "a genuine. thorough
inquiry"
Mr.. Untermyer wore an orchid and
Mr.. Moss a white carnation at yester
days session, which was presided over
by Alderman Collins. with Mr.. Hirsch
sitting at his left.
Abram l. Elkus chairman Of the Re
construction Commission. started the
proceedings by announcing that he was
more than glad in every way to CO.
operate" with the Joint committee. The
Reconstruction Commission also is CO.
operating with the joint legislative COM
mittee, but there isn't any cooperation
that can be detected between the legisla-
tive body and Hirsch. Collins, INTER
myer. ct al.
Commissioner OF Accounts Hirschfeld
declared for the record that he too u
heart and soul' with the Hirsch- Col
Inns joint committee movement.
II am persuaded-perhaps am
wrong" Mr.. Untermyer said, but l am
persuaded that this is a simple problem
I think the renewal OF the building in
dustry can DO brought about IL we will
require the corporations to do what the
law really Intends them to do. and to
make the best investment known 10 the
State, and IL We will bring down the
price OF materials to legitimate limits"
Supt Phillips who was appointed by
Gov. Whitman in July, 1915. testified
there are fourteen life insurance COM
panies organized under the laws OF New
York. Mr.. Untermyer said the commit
tee would like to have him furnish from
the insurance Office records the total
amount of mortgages on real estate held
by each OF these insurance companies
for each year from and including 1905
to date and the amount that has been
paid off on the real estate mortgages by
year in reduction or in satisfaction OF
these mortgages. and the amount that
has been renvested or invested year by
year in real estate mortgages.
Would Take All Summer.
Mr.. Phillips said he would do the best
he could, but the Job was a mighty big
one and he felt he couldn't tie up all the
business of his Office by taking his Grip
pied staff from its regular work Of put
ting 1t on the Job exclusively 1t was
subsequently explained there Is exactly
half ton Of books and records contain
ing all the information that Mr.. Inter
myer is after and 1t probably would take
several men until well into the fall to
compile all the data. Mr. Phillips gave the
committee a cordial invitation TO Albany
to get the information 1t is after
Don't you know that the losses OF
life and fire insurance companies on rea
estate mortgages proportionately have
been far less than their losses on bonds
and stocks"' asked Mr.. Untermyer.
II assume that is So" replied Mr.
Phillips.
Mr.. Untermyer questioned the wit.
ness at great length concerning the
Armstrong law of 1905. which required
the life insurance companies TO dispose
of all their stocks in banks, trust com.
panies, railroads and industrials and
what notS" within five years, anG
ELECTED the information that the Legis
lature extended the time for disposal
TO 1915, and in 1916 again extended Il
for another five years. or until 1921
This time the recommendation for exten,
sion was made by Mr.. Phillips as Super.
intendent of Insurance. Mr.. Phillips
gave it as his judgment that It wam't
good time 10 dump securities, repre-.
sentlng the trust funds OF policy holders
on the market.
The New York Life Insurance Com.
pany was the only company which dis
posed of Its stocks within the five year
period.
Counsel took statements OF insuranc,
companies showing their various hold.
ings and gave up much time to n con.
sideratlon OF the reports OF the Mutua
Life Insurance Company, Of which
Charles A. Peabody Is president.
He wanted TO know why Mr.. Phlllip,
didn't compel the Mutual, which had 4
block OF $4,000. 900 OF Pennsylvania Rail
road stock thirteen years, to DISPOSE OF
II instead OF recommending his exten.
sion or time, and the State Superintend
ent said he believed then, and he be.
neves to-day, that it would be against
the interests OF the policy holders
Sees Chance To Curb EVIL.
Referring to the MutuaTs annual
statement for 1913 showing the make,