New-York tribune., 1921-06-04
Fire Risk Probe
TO End Only ON
Reform Pledge
Insurance Leaders Confer
With Untern1yer on Pro-
posed Changes Asked
by Lockwood Committee
Legal Remedies Sought
State Rate Supervision and
Elimination of Broker
age Control Suggested

Executives of leading fire insurance
companies conferred yesterday with
Samuel Untermyer, counsel for the
Lockwood committee, concerning pro-
posed changes in practice upon which,
1t is said, the committee will insist as
prerequisite to discontinuing the in
vestigation into affairs of the New
York Fire Insurance Exchange.
Mr.. Untermyer would rot discuss
what had transpired at the meeting,
which was held in his Office, at 100
Broadway. 1t was learned, however,
that no understanding was reached and
that further conferences would be held.
The Lockwood committee, it has been
made known, is not inclined to drop
this line of investigation unless the in
surance interests agree to foster reme-
dial legislation and correct certain
practices revealed in recent hearings.
Among the suggestions which the
committee favors, according to reports
in insurance circles, are the following:
The enactment of legislation to provide
supervision of rates by the Superin-
tendent of Insurance.; the elimination
of supervision of brokerage by the eX-
change; permitting mutuals to become
fullf1edged members of the exchange,
and rate revision on an underwriting
profit basis with reserve interest taken
into consideration.
Insurance Leaders Present
Those who attended the conference
yesterday included Henry Evans, chair
man of the board of the Continental
Insurance Company; James J. Hoey,
vice e-presi ident of the same company;
Cecil F. Shalcross, United States man
ager of the North British Mercantile
Insurance Company; Charles G. Smith,
president Of the Great American Insur-
ance Company, and F. c. Buswell, vice
president of the Home Insurance Com
pany.
In connection with disclosures made
Thursday before the Lockwood com
mittee concerning alleged gouging of
borrowers by life insurance companies
and savings banks, Edward D. Duffield
vice president of the Prudential Insur-
ance Company of Newark, one of the
concerns mentioned at the hearing,
yesterday issued statement denying
the charges.
"The burden OF the story circulated
is that the Prudential imposed condi-
tlons upon those asking loanS," said
Mr.. Dufield. "The Prudential has
never imposed condition upon any
one. We have never told borrower
that he must buy certain property
from US first. In the five cases under
discussion the borrower offered to buy
at the same time he made application
for a loan"
Ready to Face Committee
Mr.. Duffield expressed his readiness
to appear before the committee. "We
assume" he said, chat Mr.. Untermyer
is desirous- of learning the truth, and
we assume that he will ask some one
to tell the facts. We furnished him a
schedule showing our loans and sales.
ina hundred transactions in New York
there were only five involving joint
propo ositions."
Officials Of several other companies
mentioned in the testimony Thursday
also denied there was any merit in the
charge that unfair bonuses had been
exacted from clients.
The investigation revolving around
the life insurance companies and saw
ings banks will be resumed next Tues
day. The inquiry into the fire insur-
ance companies, which was abruptly
halted Thursday, also will be continued
next week, it is said, if the confer
ences begun yesterday do net result
favorably to the committee.