The New York herald. [volume] (New York, N.Y.) 1920-1924, 1921-06-02
'RINKLER TRUST IS
AIRED AS AN AID TO
FIRE RISK COMBINE
fetal of Several COmpan-
5 Admits Abuse Of Power
by Exchange.
ATE REVIEW NEEDED
'nry Evans Tells Inter
myer Practices Should
Be Stopped.
e FUNDS TO SPECULATE
tie Examiner Testifies to
Il FUNDS TO SPECULATE
Ito Examiner Testifies to
ctivities of Insurance Com
panies in Investments.

he charges which Samuel Inter
sr, counsel to the Lockwood legis-
We committee, made concerning the
Y York Fire Insurance Exchange
| rock ribbed monopoly were given
srtain sanction from within yester-
when Henry Evans, chairman of
board of directors of four large
trance companies, including the
tinental, admitted before the COM
Zee that certain practices Of the
aange are foolish" and unjust"
unreasonable" and ought to be
ped. He would not admit they
e criminal also, but when hard
Used by Mr.. Untermyer he con-
ID that the regulations complained
constituted an "abuse Of power"
lr. Evanss testimony was regarded
highly important by members OF
committee. as he practically in
led some of the reform legislation
CHI the committee expects to pro-
}. He agreed that there should be
10 power of review vested some
ne to consider the rates fixed by ex-
hSe member insurance companies,
he would not say that the State
erintendent Of Insurance was the
per ofiicer to have such power.
Sprinkler Trust Charged.
mother salient feature of yesterdays
Ion was the charge by Mr.. INTER-
3. with q certain amount Of admis-
from witnesses to sustain 1t. that
b u sprinkler trust" maintained
the cooperation Of the National
"a Of Fire Underwriters. This or
isation. which embraces 17s COM
les conducts laboratories In Chicago
ph prescribe the tests for sprinkler
private alarm devices. And 1t was
IN that these tests must be met
all devices approved before the fire
paries will agree TO allow a reduce
OF rates following their installa-
(which Mr.. Untermyer contends Is
hally control by the companies.
was brought out also that the Are
pAnies have been interesting them
- In real estate, ana own more Of
han their natural purposes require.
ph, according to an Official Of the
70 Department Of Insurance who tes-
q. Is an evasion" II not a violation
the law.
" al 4at No. 10 IL
90 Of the 100000 shares of CONT
tai Insurance stock, told about the
Companies Building Corporation
which he is president--which erected
ui,dins in Maiden lane in which a
e number of insurance companies
agencies have their offices. The
city Phenix and Continental COM
les. he admitted. own all the stocks
bonds Of the building corporation.
insisted that the property was a
i'd asset because he has had two Of
for It since the building went UP.
Luch Of tho earlier part Of yesterdays
ZION was devoted to inquiry as to the
Of investments carried by fire insur-
{ companies, and a witness from the
te Insurance Department testified
a number OF company investments
oh had come under his scrutiny were
highly speculative character
Discrim nation Is Alleged.
VILLAIN r. Conran, s Jacobs street,
hhsttan. an agent for an automatic
lnkler, said he had been trying for
Re than six years TO get the approval
he Chicago laboratory for his device
that after he had done SO was told
Willis o. Robb. manager OF the New
X exchange. that no premium reduc-
! would be allowed his clients despite
fact that the device had passed all
E required by the city and State Of
h's. He thought there should be gov
hent regulation of the exchange and
T sooner the better"
lonran was bitter against the sprlnk-
ring. which Mr.. Untermyer described
Similar to the Hettrick code of prac-
T. In its application to the building
lation. He delivered himself OF a few
crvations on his own account. Some
these were that while New York city
the finest fire department in the
I'D and the best equipment Il was
ling for insurance for the rest OF the
ntry. and that while 500 men were
ploy ed here at inspection work every
to protect hazards insurance costs
r. more here than anywhere else in
country. and those fellows in WILL
J street gamble with the money"
ne connection between the Chicago
Ioratories and the insurance COM
fes was established through W. u.
ilalieu. general manager Of the Ma
iai Board Of Fire Underwriters. who
tified that the corporate company
4 organized in Illinois, with capital
ok OF 1900, which was owned by
board and now In its possession.
AIRY l.. Coe. vice-president and gen.
J manager OF the Aero Fire Alarm
npany of Seattle. testified to dis
,nination exercised against his COM
~ by the stock companies OF tho
Idle West and Pacific coast While
mutual companies In this territory
,wed property owners protected by
device n 20 per cent. discount. the
ok companies would allow only liz
cent. credit.
lie device is an automatic alarm
istering on n ten degree change OF
,perature. which frequently brought
fire fighters to the scene before the
.omatic sprinkler heads opened. The
; on sf00.o0Oo00 worth OF property
'tected by his company was 1 cent
every 500 In 1920. The New York
I rate, he testified, was about 30
~ on every hundred dollars. II was
testimony that caused Mr.. Inter
N to remark that II looked as IL the
,nics were Encouraging rather
" encouraging new forms OF fire
.tion In order to keen premium
n at q substantial level