The New York herald., 1921-06-07
FIRE INSURANCE MEN
BALK AT SURRENDER
Untermyer Hears Some of
the Terms He Offered
Are Hard to Accept.
WOULD KEEP PROFITS
% to 30 Leading Concerns
Anxious to Straighten
Out Their Status.
LENDERS WILL TESTIFY
Effect of Unloading Undesir-
able Property on Builders
Is to Be Investigated.
WOULD KEEP PROFITS
LENDERS WILL TESTIFY

When the LOCKWOOD committee re-
sumes its public hearing at City Hall
to-day proceedings may be prefaced
by an announcement by Samuel I'm
termyer that twenty-five or thirty of
the leading fire insurance companies
have agreed to most of the terms the
committee has imposed as conditions
upon which suspension of further iSl-
vestigation will rest. While develop
ments yesterday did not warrant fore
casting this move as probability,
it is at least a possibility.
Representative insurance men met
yesterday at so Maiden Lane, under
chairman of the Board of Directors
OF the Continental and several other
companies, and discussed at length
the detailed terms Mr. Untermyer pre-
sented to committee that called upon
him on Sunday. While the exact text
OF these conditions was not made
public, it is known to have followed
closely the summary as outlined in
THE NEW York HERALD last Saturday
There are additional conditions. how
ever, of nature that makes the
whole proposed agreement something
more radical than any of the insurance
men had expected.
81 1t was learned unofficially. but from
authoritative sources. last night that the
agreement calls Tor very positive Gov
ernment control OF the investments OF
fire Insurance companies, much after the
manner the investments of life insurance
companies are supervised. That sug-
gestion, with the further one OF apply
ing income from reserve earnings to
reduction of premiums, has figuratively
taken the breath away from the insur-
ance men.
Yesterdays meeting began at 3 o'clock.
Just before Mr.. Untermyer. who
earlier In the day nao said he expected
some word from the conference, appar-
emily abandoned hope of hearing any
thing and left his office for his home
Half an hour later the insurance mems
meeting ended but none OF those present
would divulge the least hint of what
1t was considered significant that in
the negotiations in this connection the
insurance men. who first took the ma tier
up with Mr. Untermyer and who attend
ed yesterdays conference were under
writer's While the practices that are to
he modified materially affect the New
York Fire Insurance Exchange. the eX-
change, as such, does not appear to be
p party to the negotiations. This fact
was the subject OF considerable comment
yesterday in William street
Should notice Of acceptance OF Mr.. Un-
termyer's terms reach the lawyer before
the committee convenes. or should fur
ther parleys be requested by the insur-
ance men. possibly for trading purposes.
Mr.. Untermyer probably will announce
a further postponement of this line OF
the investigation.
In those circumstances he will con-
tinue on the subject OF building and
mortgage loans. II was learned that Mr..
Untermyer yesterday followed up his
telegram OF invitation 10 the life insur-
ance and banking officials. who have
made public denials Of the practices he
complains of, with subpnnas TO appear
to-day.
These have been served upon Charles
A. Peabody, president Of the Mutual life
of the Brooklyn Savings Bank. Accept
ances OF the committees invitations also
had been received last night from John
r. Dryden. president OF the Prudential
Life Insurance Company. and officials OF
several other institutions whose names
we're mentioned in last weeks testimony.
These gentlemen will be cross-exam-
tired concerning mortgage and building
loans in which the committee has shown
conditions imposed compelled the pur-
chase by the borrower OF undesirable
property at a high valuation, or else
that he accept Liberty or Victory bonds
at par for his loan when the market
value OF the securities was around s5 or
less
Mr.. Untermyer is far from through
with his investigation. II was learned
that he plans to continue II next Sep
ten1ber when he returns from Europe.
n had been generally understood that
the committee would finish taking testi-
nony some time before June 30 the date
Mr. Untermyer sails. Instead 10 merely
will adjourn. 10 continue when he re-
turns.
This course, IT was explained. is
necassitated by the great aggregate of
individual transactions in mortgage and
building loans which Mr.. Unterinyer
wants spread upon the record as a basis
FOR reform legislation along this line
In addition to this there Is the subject
OF building costs and rents In Office and
loft buildings. a phase OF the inquiry
that has not yet been touched upon.