The New York herald., 1922-03-11
UNTERMYER REVIEWS
INSURANCE CHARGES
Reiterates Underwriters Are
Banded to Extort Huge Pre-
miums From Public.

Upon his return from Albany yester-
day Samuel Unterniyer wrote an open
letter to w Z. Mallalieu backing up the
statements he had made In support Of
the Lockwood legislative bills by citing
statistics at variance with those quoted
by the National Board of Fire Under
writer's, or which Mr.. Mallaleu is gen
eral manager.
He repeated his charges that the
methods or the board were not repu-
table and declared that grossly exces-
sive premium charges were extorted
from the public every year--a condition
that the measures recommended py tne
Lockwood committee would alleviate.
You say that the members of the
board are banded together for the pro-
lection of life and property. | say they
and their allied bureaus are banded to-
gether primarily for the purpose OF eA-
torting excessive premium charges from
'the public" Mr.. Untermyer wrote. 1t
is of course to their interest to protect
life and property-mainly property
against loss by fire. but If you mean this
is humanitarian purpose rather than
for profit ] differ with you.
Absorption of Premiums.
For every 800 paid in premium only
s42 is paid in losses. The rest is abb
sorbed in expenses. many of which. to
speak charitably. are of doubtful char
acter, particularly the moneys paid to
influence legislation and for the main
tenance of publicity and propaganda bu-
reaus"
Referring to Mr.. Mallaleu's statement
that the claim ot s4Go. 100000. saving
in premiums through the passage of one
of the bills was a ridiculous error be-
cause the total fire insurance premiums
In the entire United States amounted to
only $550.00o.o00, Mr.. Untermyer re-
piled that he had included other casualty
insurance, and that the premiums OH
these lines. including the workmen' s
compensation, amounted to $1,564,SS9,-
554.
Permit me to say that the facts and
figures contained in the committee s
report are derived from official sources.
Before the report was published they
were checked by experts, who went
over all the figures at my request SC
that there should be no possibility OF
Untermyer explained.
He pointed out also that his asser-
ton that $sl4.O00,ooO goes annually to
foreign insurance interests was based
likewise upon official records and nc
denial had ever been made by the
board. although every opportunity had
been given the insurance officials to
make statements upon the stand
Premiums amounting to $100.0co,o00. In
addition to this sum, had gone an
nually to London Lloyd and other for
eign unlicensed associations. he said
and had not been reported to the State
superintendent.
Adherents of the Lockwood bills were
convinced yesterday that Mr.. Inter
myers vigorous pleading at Albany has
strengthened the support for the bills
They did not minimize the fact how
ever. that Mr.. Untermyer faces one OF
the severest fights of his career.
One of the bills against which the
greatest opposition has developed II
the act placing all insurance companies
directly under State supervision
measure which Mr.. Untcrmyer has de
clared would mean the saving VI from
$500, ,OOO, 900 to 500 900 annually.