The evening world., 1921-06-01

sky limit: that they are barred
from Investing in bankrupt corpor1-
tions7 A. Well. they are not allowed
to invest in real estate.
Q. What! Arc you sure about thai7
A. Well. In general way, yes.
Q, Did you ever hear OF the Fire
Companies Building Corporation? A.
I did not say they did not evade the
law.
Q. That company represents
building; where Is II? A. At No. so
Maiden Lane. It Il occupied b, the
Continental Fire Insurance Company.
its subsidia ries and other tenants.
Q. DO you know that in the assets Of
the Continental there are listed n mil
lion dollars each OF the stock and
bonds OF the Fire Companies Build
Ing Corporation? A. didn't know
that was the exact amount
@. Isn't that a violation OF law?
A. 1t Is contrary to law.
Q. Has your department ever raised
an objection TO that investment? A.
No. but 1t isn't n violation of law. I
meant TO say 1t was contrary to the
spirit OF the law.
Q. DO you believe $2.oO0.ooo in the
money Of the Continental Company is
act uaIly invested in that building?
A. I do.
O. oh, very we'll. But as TO these
other speculative stocks. Do you re-
gard them as liquid Investments
for cash? A. Some OF the corpora
tions are entirely sound. even though
their stocks fiuctuate.
q. Wouldn't bonds be safcr--mOrc
reliable, more instantly available?
A. I think that Is true.
q. Do any of them invest In mort
gnges on real estate? A. Not to any
extent.
O. Yet fire insurance companies
make three fourths OF their profits
out Of real estate7 A large pro-
portion. -,,.
q. Don't you know that the Of
fioers Of fire insurance COM
pAniss are far more interested in
the manipulation Of funds In the
stock market than IN the fro in
suranee businsss7 A. ! wouldn't
o.Don't you know that tho COM
panies arc constantly, in tho stoci,
market-in and out. day by day. week
by week. buying and selling, hunting
stock market profits throughout the
YEAR, A. They arc active
q. DO not the books of any one OF
them show at least n thousand stock
market transactions a Year, A.
never counted Shem.
CONSTANTLY pABBIik0 IN THE
STOCK MARKET.
@. But II Is not an exaggerated esti-
mate. They are constantly buying
and selling speculative stocks on the
matketf A. All the time, all through
the year.
Mr. Untermyer then announced he
| would lay aside the matter OF in
vestments until he returned to thu
main branch OF the inquiry" lie
took up the close alliance between
the New York Fire Insurance Ex.
change and certain automatic sprin.
kier manufacturers
Mr.. Doutschbergcr swore that re-
duced rates BECAUSE OF sprinkler pro
tectlon were granted only to persons
who Installed certain approved
makes or sprinklcrs. The IDhnufac
tufers OF tho approved sprinkler,
are in n close trade combination.
The New York Fire Insurance Ex
change refuses 10 recognise sprinkler
outside the, combination. Mr.. Dcutsch
berger said. even though the devic'
waA satisfactory to the New Yor'
Five Department ana the Bureau q
Standards found them entirely 81 It's
factory.
The case OF the Conran sprinkler
was taken up In detail. william y
Conmn. President after obtaining
approval through the Fire Depart
ment and the Bureau OF Standards
applied 10 tho Exchange for rccoEni
tron as emitting the purchaser To ro
duced rates. This recognition wa
denied.
MIR. Conran appealed to Supcrinten
dent OF Insurance Phillips, who afte
n hearing found the Exchange wa
violating the law by enforcing a dis
elimination. The Exchange ignore,
an order TO remove the discrimina tol