The New York herald., 1922-01-30

stamps to register the will Of the COM
panies.
Practically all the legislation on the
books-most of which is oppressive
against the publc--has been enacted on
the recommendation of the Superinten-
dent of Insurance at the dictation Of the
companies. A fair illustration of that
is found in the fact that while the legis-
lation of 1905, following the Hughes
Armstrong investigation, gave the life
insurance companies Ave years in which
to dispose of their stocks, each success
sive Superintendent of Insurance has
recommended an extension, which Is now
to last for five more years, making thir-
ty-one years. and for as much longer as
the Superintendent may choose. This
precious piece of legislation has already
cost the pc!icyholders Of those companies
tens of millions of dollars in unneces-
sary losses.
Attack on Phillips
"Our superintendents of banks and in
surance should be ineligible for office
with any bank or insurance company
(as the case may be) for at least two
years after they have left their public
posts. as is the case with members Of
the Federal Reserve Board. Here we
have Mr.. Phillips. who failed in his
statutory duty to examine this iniqui-
tous rate making monopoly. actually
stepping out Of this high public office
into the leadership OF bureau that is
operating in violation of law bu-
reau that dares to print a program con-
tanning resolutions frankly aimed at
the destruction Of the State Workmen's 8
Compensation Fund. with which he
was identified as a public official, with
elaborate unlawful provisions for the
like destruction of competition in mu-
tual companies. because the latter II
left free would be able to sell the in
surance (as it is doing wherever II CAM
at Is per cent. less than the stock COM
panies are charging and making money
at it. too.
"A close study of the subject of work.
mems compensation insurance has
brought me to the conclusion that pri-
vate companies should be barred out
OF the field of workmen's compensation
insurance in this State. and that this
branch of Insurance should be State
monopoly, as IL In in Ohio, Utah and
"a number of other States.
This contention Is based on the
ground that inasmuch as the State very
properly compels the employer to take
out this class of insurance, II should
provide the insurance and thus pre-
vent the employer from being exploited
as he now is for private property.
"Try TO Destroy state Fund"
"a mass of evidence has already been
introduced on this subject to prove
that the stock insurance companies
through the bureau OF which Mr.
Phillips Is at the head has concentrated
all its energies on the destruction of
the State fund and that the bureau OF
which all the great stock companies
are members are openly defiant in their
determination. Their resolutions pledge
the members to that policy. both as to
contain elaborate resolutions to insure
the carrying out OF that policy.
"The effectiveness Of this warfare Is
apparent from the fact that while the
State admittedly furnishes this form
of insurance at least Is per cent.
cheaper than the stock companies. II
does only from 10 per cent. to Is per
cent. OF the business. This anomalous
condition Is manifestiy due to the con-
tinuous drive OF the stock companies
by unfair methods of competition look
ing TO the dscrediting and destruction
OF the State fund.
"If the State had monopoly or was
permitted freely to compete for fair
share OF the business. which II would
doubtless secure as the result OF its
lower rate. the added volume of busi-
ness would, OF course. permit IL to do
business at q still lower rate
AN effort should. and ] hope will. be
made to compel these companies to dis
pose of their wildcat stocks. and In fact
of all stocks, as the rife insurance COM
panies we're compelled to dispose and
invest a reasonable proportion of their
assets In bonded mortgages on real
estate. fiom which they get their prin-
cipal revenue.
"If. as the United States Supreme
Court has said, the business OF insur-
ance Is impressed with a public trust
and insurance should be p natural
monopoly IN which the rates sre to he
regulated and maintained. there should