The New York herald., 1921-08-11
UNTERMYER PLANS
CONSPIRACY TRIALS
| FOR INSURANCE MEN
Hints at Indictments if
Fire Companies DO Not
Change Methods.
WILL RESUME PROBE
Will Give Officials Last
Chance to Explain to
Lockwood Body.
SAYS ROOT is DECEIVED
Sees Start of Propaganda Move
Intended to Prevent Pas
sage Of Regulations.
SAYS ROOT is DECEIVED

Samuel Untermyer. in a statement
sent from Carlsbad on July rs and
made public here last night, says that
the Lockwood committees investiga-
ton Of fire insurance companies, sus-
pended when Mr.. Untermyer went
abroad. will be resumed this autumn.
He says the disclosures have barely
begun" He also hints that an attempt
may be made to obtain criminal in
dictments.
These gentlemen" Mr.. Untermyer
wrote, speaking OF fire insurance men
and the renewal OF the Lockwood
hearings. will then be afforded the
fullest opportunity TO make the ex-
plantations which they have hereto
fore preferred not to make. but with
the equal freedom to the committee 10
develop all the facts. and, more par
ticularly, to test the question of
whether the practices in which they
have been engaged constitute a GRIM
inal conspiracy.
IT think It will be agreed that the
judgment OF the courts on that point
will be more conclusive than the opinion
of their own attorney. even though he
be so deservedly eminent a gentleman
as Mr.. Root"
Is Reply to Roots Opinion.
Mr.. Untermyer's statement is made in
reply to an opinion given by Elihu Root
on July 13 to the Underwriters Com
mittee OF Seven Of the New York Fire
Insurance Exchange. Mr.. Root held the
exchange to be strictly within the letter
and spirit OF the laws Of New York
state.
Mr.. Untermyer say, he gathers that
somebody has played mean trick on
Mr.. Root"
1T is manifest" he says. from the
very careful limitations OF Mr.. Roots
opinion that the committee has resorted
to the timeworn device, employed by
corporations when they want particu-
lar kind OF an opinion from a man
whose opinions cannot be purchased. OF
setting up straw man and proceeding
to knock him down. i venture TO assert
that when Mr.. Root learns the true
facts, and particularly the crucial facts
that have been omitted, he will be the
first to repudiate the application OF his
opinion to any such state OF facts as
were proved before the committee. and
that he will resent the use that is sought
TO be made OF his great name.
Mr.. Roots opinion Is the opening gun
OF a far reaching propaganda campaign
OF the Are insurance companies or
America to maintain their monopoly and
the accompanying burdens of excessive
rates that are being saddled upon the
American people. They begin their CAM
paign by seeking, through gross mis-
representation, to create a false senti-
ment In anticipation of the assaults that
are being launched by their press bu-
reaus and by their marvellous and here
tofore unbeatable lobby upon the legis-
lation that is about to be recommended
by the Lockwood committee to curb
their monopolistlc powers and TO re-
form the methods OF fire insurance COM
panies on the basis OF the disclosures
already made by the committee. which.
by the way. as to them have barely
begun.
what they primarily fear--and WISE
ly so--is, first, that their power to use
these vast trust funds In stock specula-
tions will be ended and that their in
vestments will hereafter be limited. as
are those OF life insurance companies:
and, second. that excessive and unequal
Are insurance rates and the methods
heretofore employed OF maintaining
them will be hereafter so regulated as
to prevent continuance OF monopoly.
oppression and excessive rates"
SAYS Reforms Were Promised.
Mr.. Untermyer says that the Lock-
wood investigation was suspended under
an agreement that the insurance inter-
ests would make certain reforms These
reforms" he says which have now
been partially accomplished BY the elm
nation OF old and the enactment OF new
regulations OF the exchange. were made
under the pressure OF the alternative
that II not made the members Of the ex-
change might be subject 10 Indictment
for continuing TO maintain criminal
cnnrpiracv."
The underwriters also agreed, he
saye. TO ioin the Lockwood committee
in supporting amendments 10 the flre
insurance law so that the reasonable
ness of rates fixed by the exchanges
shall be subject to the review of the
Superintendent or Insurance and the
courts.
"such." he adds. ARE the clrcum-
stances under which the inquiry was
suspended. but In view OF tho statement
that has now been Issued. and OF the
misleading publicity campaign In which
the companies have crh7rkci fo' tho
purpose Of influencing legislation, II
will be resumed In the autumn. so that
the Legislature may have before II all
tho facts as a basis for legislation"
Mr.. Untermyer contends that Mr..
Root rested his opinion on the false
assumption that an assertion Of Illegal
ity had been made against the agree
ment on rates itself and tho companies
In the agreement. II Is unlawful prac-
tces and not the agreement that con-
stitute n criminal conspiracy, according
10 Mr.. tTntermyer. He says that when
the law permitted tho companies 20
agree upon rates Il did not contemplate
"the possibility OF their using this ex-
traordlrRry power TO drive overv co..
pany into the exchange under penalty
OF extinction. so far as concerns business
IN thi. state. ana 10 force them 10 OH
serve the rates that tho Insiders nxed."