New-York tribune., 1922-03-10

State Industrial Commission. who spoke
against the bill, as did Charles H.
liioughby. secretary of the New York
State Insurance Federation.
TO my mind said Mr. Untermyer.
there is no branch of the service af-
fecting building construction more radi.
cally in need Of legislation than this
particular Legislation to which you are
now addressing yourselves
II have never before had the pleas
ure OF meeting Mrs. Whitney, although
have known OF her. and think she
again demonstrates the justice of the
reputation she bears for dressing up
glittering genoralities in such way
that they appear to be substantial argu
merits.
Il am here 10 present you facts
which We're developed by our commit.
tee under the solemnty Of sworn testi-
mony, out Of the mouths Of the insur-
ance companies leading officials
Il DO not eNaggerate when / say that
the insurance companies of this state
are engaged in palpablc criminal con-
spiracy to destroy the state fund and
that they have nell-nigh succeeded and
boldly make the sta temcnt that either
she state fund viii go to the boards ard
be driven out OF existence or this state
must take control of wor1men's com
pensation.
Scores Insurance officials
"Of all the lawbreakers we have en-
countered in the investigation Of the
committee the most fragrant, the de-
hant, those least subject to any sort
Of reasoning argument, have been the
chief officials Of the insurance com
panies.
In the insurance line, the fire and
casualty lines, including workmen' S
earned premium fund of about $780,
100000 which doesn't belong to the
companies at all. 1t s deposit and
belongs to tho policyholders. That
yields return Of about 100000 a
year in the way Of income Where do
you suppose this s35, 900, 600 goes? 1t
goes straight into their own invest
mont funds with their investment Sc
curity. When their books are made up
this interest OF $35,0OO.O0O a wear from
unearncd premiums -uncarned pre-
miums in which the company has no
interest goes into the Golfers of
their stockholders ss part of the re
turn on their own investment, a0d
their books are so kept that no ac-
count whatever is anywhere to be
found in favor OF the policy holder with
respect to this uncarncd premium
fund
"But that is the least Of the ofrenscs
OF the Insurance companies It does
seem strange on tho face Of it when the
state fund, little as its business H..
handles only 8 Dcr cent Of the work.
mems compensation, while the stock
conpanies do 10 per cent and the mu-
tuals Is per ccnt-~it does seem strange
rhat they should DC able to do this
business at Is per cent less than it is
done by the stock companies, and It
seems stranger still that. being able 70
do the business at 10 per cent less than
is dcre by the stock companies, they
should get so little Of the business and
the stock companies should get so
much
"The reason Of it is that the stock
companies, through their bureaus. are
making Illicit allowances and rebates.
undermining the state fund In this
country it hardly seems possible that
such downright thieverv as we have
found could exist in the insurance
business, but it does.
Criticizes Phillips
Mr.. Phillips, while head of the State
Insurance Department, was told about
conditions that exist in the insurance
business, but he did nothing to correct
these evils. The insurance companies
are still exacting great tributes from
manufacturers and industries at an
outrageous rate. Philips stepped out
as head OF the insurance department.
into an insurance organization VIII
he as state Official should have in
vostigated. We do not want state Su-