The New York herald., 1922-06-19
UNTERMYER WANTS
BILLS REINTRODUCED
Asked Lockwood i'm Letter
Before Sailing to Revive
Lost Measures.
STOCK LAWS URGED
Would Limit Insurance In
vestments and Regulate
the Exchange.
WANTS UNIONS LICENSED
Restriction Aimed to Curb
Despotism or Leaders by
State Labor Control.


bills sponsored by the Lockwood COM
mittee, but lost in tie Legislature at
the last session. has been recon-
mended. along with some additional
legislation. notably that designed to
regulate the operations of the Stock
Exchange, in a letter written to Sena-
tor Charles G. Lockwood by Samuel
Untermyer, counsel for the committee,
just prior to his sailing abroad.
He asks that the proposed modifica-
tions in the State Trade Commission
bill which was passed by the Senate
but did not reach vote in the Assem-
form, with membership increased from
three to five, owing to TIE additional
powers granted and the imposition
of prison sentences made mandatory.
The recent disclosures of the losses
sustained by fire and casualty insur-
aBce companies In the acquisition and
purchase of Industrial stocks and the
profits which the directors of these
companies made in underwriting stocks
subsequently disposed of to the corpora
tions in which they were interested are
cited by Mr.. Untermyer as a. conclusive
argument in favor of bill limiting these
companies in the same manner in which
the investments of life insurance COM
panies are restricted.
Sees s2oO,OOO,9oO Saving.
The passage of the reform legislation
advocated by the committee, Mr.. Inter
myer informed the chairman, would have
the result of saving the people of this
country from $200,O000o to 100000
COO year in premiums and still allow
very generous margin of profit.
The licensing and supervision of labor
unions through the agency of the State
Trade Commission is recommended as
a means of curbing the "despo tism'
exercised by some OF the trade organ
izations toward their members and the
public, and 1t is suggested that a bill
to this erect be introduced and fur
thered in the Legislature.
Unless the power to eliminate them
tunscrunulous labor leaders) is lodged
in some governmental authority" Mr..
Untermyer predicts, Organized labor
will eventually be driven TO its own
destruction. These reforms cannot be
enforced by n series OF judicial deci-
sions. 1t is essentially an administra-
tive problem. and the sooner II is solved
the better 1t will be for organized labor
as well as for the general public"
Rules for stock Exchange.
Much stress is placed upon the regu-
lation of the Stock Exchange. Brokers
are not to be allowed to speculate for
their own account: complete details
must be furnished to the public concern
ing all security issues. and particularly
with regard to syndicate agreements
dealings in when issued" stock are to
be prohibited unless all facts connected
with the proposed issue are published,
and the expulsion or suspension Of a
member and the elimination of Sc
curity from the exchange is to be made
subject to a review OF the courts.
There are certain agreements that
brokers' are now requiring their GUS
toners to make" states Mr.. Untermyer,
Gin order to nullify or circumvent the
law that was intended for the protection
Of their customers, which should be de-
clared unlawful. Among these are the
agreements permitting them to rehypoth-
ecate securities held by them for an
amount in excess Of the sum owing on
these securities by the customer One
/
abuses almost indemnity"
The State monopoly Of the Workmens
Compensation Insurance. which the
committee favored but felt that there
was not sufficient proof of its advan-
tages to justify the introduction of a
bill in the Legislature has now been
amply supported. Mr.. Untermyer feels,
by independent testimony showing the
satisfactory manner in which the mo-
nopoly has been administered in other
states. No argument worthy of the
term" has been made against 1t. Mr..
Irntermyer declares, and points out that
saving in premiums of $12.000,000 to
the industries of the State could be ef-
fected
A state Monopoly.
"The State Fund cannot coexlst with
the private companies that are bent upon
it's destruction" the letter adds