The New York herald., 1921-06-25


the insurance mems notifications were
in the main. but not entirely. satisfac-
tory. The committee, he said would in
sist on clearer wording OF the regula-
ton regarding the admission OF the mu-
tual companies that there shall be
maximum as well as minimum rates,
and that the committee would expect
the support of the insurance men for
legislation that would give the power OF
rate review 10 the Superintendent OF In
surance with provision for an appeal to
the courts by either side.
Offers Prepared Statement.
Before leaving the witness stand Mr..
Peabody sought to have put into the
record a long prepared statement he
had brought concerning Thursdays
disclosures. That privilege was not ac-
corded him. whereupon he issued the
following statement to the newspapers:
'The publications in the morning
newspapers as TO the alleged losses OF
the Mutual Life are in most essential
respects false and misleading. That
is probably due to the fact that the
insinuations contained in the questions
asked by counsel for the committee
were calculated and intended to give
false and misleading impression.
The supposed losses of the Mutual
Life are the losses due to the natural
shrinkage in market values resulting
from the late war and other causes.
On the other hand. the profits made
by the Mutual Life on the stocks sold
since 1906 are many million dollars more
than the losses measured by present
market values of the stocks remain
ing"
In summarizing the work Of the COM
mittee and outlining proposed remedial
legislation Mr.. Untermyer said in part;
my regret at the interruption which
Ii brought about largely by the state
OF my health and the imperative orders
OF my physicians Is tempered by the
fact that the unsettled financial condi-
tlons would render 1t in any event in
advisable to continue certain phases of
the Inquiry at this time. although there
Is no intention to offer any evidence
that would throw suspicion upon the
soundness of our financial structure or
that should disturb public confidence.
THAT has never been and will never
be our intention in so far as 1 or any
member of the committee can prevent
that result. Isolated cases of personal
dereliction would serve only to en-
phasize the general integrity and con-
OF our CHltSS
our task proves in the end to be highly
constructive there is no justification
for the work we are doing.
"The absence of a loan market is
due In no small measure to practices of
officers OF financial institutions in the
use Of the funds intrusted to them
that should be exposed and ended.
Their exposure and correction should
improve general conditions
Remedial Programme Considered.
Continuing, Mr.. Untermyer said that
much already had been accomplished
in the way of preparing a basis for
n remedial programme. At the same
time he felt IL would be wrong to de-
lude the public by any announcement
THAT the housing problem was solved.
The most salutary achievement so far,
he thought. was the breaking up OF the
price fixing mbines both by labor
and material dealers, the attempt to
create a loan market and the law pro-
viding tax exemption for ten years for
new buildings. Supertaxes on large in
comes, Mr.. Untermyer said, acted as
n deterrent by dvertng funds into
non-taxable securities, and this in spite
of the' fact that great masses of statis-
tics showed mortgage loans on real
estate to be the most stable. conserva-
tive and best income paying invest
ments of the large financial institu-
tions under examination.
After repeating the reasons which he
has frequently stated as making neces-
sary criminal prosecutions OF the vari-
Gus combines and groups Mr.. Inter
myer says:
These conspiracies would never have
grown TO their present dimensions but
for the fact that in the rare cases in
which convictions have been secured
there has been a travesty OF justice In
most OF the cases before this committee
began its proceeding by releasing the
on payment Of fines That
has served as an Indictment to further
crime of the same sort rather than as
q deterrent
THE people of this country pay about
$3.50. 1000, 900 a year In premiums for fire
and marine insurance OF which the great
bulk is paid for fire insurance. The
business has grown TO be one of the
most complete and oppressive monopolies
ever known, but 1 believe that this con-
dition Is nearing an end. II arose from
the fact that the Legislatures in several
ot the States have expressly authorized
competitors in the fire insurance busi-
ness 10 get together and Ak the rates
that the public should pay.
'The four fire insurance exchanges in
this state, not content with this auto
cratic power. used their exchanges to
criminal conspiracies The
offence was so plain on their own con-
fesslon that they have been compelled
10 accede TO the demands OF this COM
mittee that will break UP these monop-
olies. They have also agreed 20 support
legislation by which the rates fixed by
the exchange shall he subject 20 the APP
proval OF the superintendent OF Insur-
ance and 20 the review OF the courts.
Regarding city Contracts.
"Thc present law regarding city con-
tracts should be amended so that when
ever a contractor defaults on n con-
struction contract with the city thosiat-
ter shall have the option OF adopting all
existing subcontracts instead OF being
required TO reject them all and to re-
advertise for bids.
THE present restriction offers a pre-
MUM 20 contractors who happen to have
entered into Improbable contracts to
default on the contract so as 10 release
similarly situated. The
instance OF the Cumberland Street Hos
pitnl demonstrated the necessity for this
legislation.
"The penal code should be amended so
as TO give the people the same right OF
appeal IN criminal cases as that now
by the defendants. except that
the people shall only have the right OF
appeal on questions OF law.
There should be limitations on the |