New-York tribune., 1921-06-02
me that there ought to be power of
review over rates?"
"prnperfv rofaru,raod ,.an ,,

me that there ought to be power of
review over rates?"
properly safeguarded, yes"
Pressed by Mr.. Untermyer as to
whether he had any doubts as to
whether the state should have this
power, MIR. Evans said he still had
doubts, although he had been in the
business fortythree years.
When do you expect to resolve that
doubt?' queried Mr.. untermyer.
When | see more wisdom in the Leg
| islature," replied the witness.
Mutual Companies Excluded
"You know perfectly we'll, Mr. Evans ~
continued Mr.. Untermyer, Chat as the
law stands to-day the rates made by
this monopoly, no matter how extor-
tlonate they may be, are not renewable
anywhere"
Mr.. Evans said something about get
ting in wrong with his associates, and
then said he believed it to be true
"1ou don't consider that that condi-
tion should continue, do you?" asked
Mr.. Untermyer.
mo, do not" he replied, and added
that he thought that rates should be
reviewed by some one in official au-
thority.
Mr.. Untermyer then pointed out that
mutual companies were not admitted to
membership In the exchange unless
they ceased distributing profits TO the
policy holders in this jurisdiction.
Here Mr.. Evans justified thc exclusion
OF mutual companies from the exchange
on the ground, first that "he didn't sec
why they should work for people who
are trying to compete with them On d
different basis" and trying to underscll
the stock companies, and finally, that
ne didn't want to associate with cQin-
Danles that perhaps are not reputable -
Mr. Evans also asserted there was
DO good reason why brokers should be
required to got q license from the
exchange, in addition to the license
from the state, to do business here
and declared it was unreasonable.
"Then why don't you have the regu-
laticn eXpunged?" asked Mr.. Unter-
myer
Abuse of Power Admitted
Because" replied Mr.. Evans, "ycu
know Of some unreasonable laws that
yea don't have changed. thai you cam
not have changed"
Mr.. Evans asserted here, however
that the request to brokers rot to do
business with any cut exchange mem
bers and their being paid per cent
additional commission fer this was san
aouse of power" but that he did not
sac anything morally wrong with it.
Earlier Iii the session Samuel
Deutschberger, chief FIRE Insurance ex-
aminer for the State Insurance De-
partment, said that it was true that
the holdings of many fire insurance
firms were comprised of miscellaneous
stocks and industrial securities.
Don't you consider it unwise to
permit these fire insurance companies
to invest in common stocks that are
speculative in character ?" asked Mr..
Untermyer.
Speculation Declared Unwise
"Yes, I do"
"Do you think 10 10 wase to allow the
insurance business 30 become mere
annex of that sort O. speculative enter
prise Z"
"No."
Don't you know big insurance COM
panes are more employed in speeulat-
ing in the market in stock buying and
selling day by day and month by
month than they are in running the de-
tails of the insurance business and that
they have as many as 1,000 transac-
tions year. some of them?"
'Some of them have many such
transactions" Deutschberger admitted
Mr.. Untermyer then went into the
activities of the sprinkler combine, it
being developed that there was a class
of risk known as sprinkler risk in fire
insurance, wherein the rate of fire in
surance was lowered in proportion to
the value placed on the sprinkler sys-
tenn by the Insurance Exchange MEM
bers.
Deutschberger testified that the re-
duced rates were allowed only on
sprinklers that were approved" by the
exchange, other witnesses testifying
| that the manufacturers of the approved
sprinklers were in combine with
which the exchange members were
working hand in glove.
William F. Conran told OF the
! troubles his firm were having in trying
to get their device installed here. AL
though the State Superintendent of In
surance took hand in the matter and
! ordered the exchange to rcnlev the
discrimination against the device, the
matter was thrown into the courts
March !, 1920, by the insurance people,
where the matter now rests.
Similar experiences Of other sprink-
Ter companies were told by William M.
Johnson, of the United Electric Serv-
ice Company, and Harry l.. Coo, Of the
Arrow Alarm Company.
The hearings will be continued this
morning.