New-York tribune., 1922-03-09
Housing Bills
To Pass, Hint
OF Unternyer
Continued from page enel

Stewart Browne, of the Real Estate
Owners Association, who was formerly
identified with insurance companies.
As each opponent Of the measures
finished MIR. Untermyer would reply.
and in one of his speeches attacked
some of the insurance companies for
maintaining Legislative lobbics," pub
licity lohbies' and having in their
employ lobbyists who were not regis
tered and who were carrying on an
insidious propaganda.
Brownies Appeal Ridiculed
As tho lobbyists for the landlords
IL shed speaking against the bill re-
-'dring insurance companies TO invest
at least 40 per cent Of their future
investable funds in first mortgage a
practice long adhered to by most Of
the big life insurance companies--Mr.
UNtermyer said:
Il am little puzzled at the pathetic,
tender consideration of Mr.. Browne for
the fire insurance companies and his
want OF consideration for tho real cs
tate owners. whom he Is supposed to
represent. | hardly think anybody will
think seriously Of tho suggestion that
If larger funds were put at the disposal
Of real estate for the purpose Of loans
on mortgage it would not benefit real
estate. That argument seems a little
confusing to me- If Mr.. Browne is
here as representing the Real Estate
Owners Association and not AS rep
resonting the fire insurance companies,
then | should say that he ought to be
a very strong advocate of this bill. and
-bo, |, 20 lO1. hr, \, "
saying that the putting Of this vast sum
at the disposal of real estate would not
help real estate nobody is going to take
him seriously, if anybody ever docs.
Mortgage Loans Are Liquid
"He says The Ere insurance COM
panies above all others ought to have
they are liable to the confagration
hazard Fire insurapce~ risks arc
spread all over the country. In fact.
for English companies they are spread
all over the world Three hundred and
fourteen million dollars year in
premiums goes out Of this country to
Great Britain to the fire insurance
companies that are located in that
country which is nearly onc-fourth OF
all the premiums paid in this country,
amounting to little over one and one
half billion dollars. Our domestic
mutual companies arc practically OK
cluded from doing business here.
"But the risks of fire insurance
company are reinsured and rcinsurcd
over and over again. Every sensible
and conservative company reinsures
those risks. There is no class Of in
surance that is 80 scattered as fire in
surance or as to which the confagra-
ton hazard would be so likely to over
whclm company, besides which there
is or there should be a special fund
as sgainst a conflaCration hazard.
~ want to direct attention particular
ly to the suggestion that has been
worked TO the limit by these fire COM
arc not liquid. ] ,ay that mortgage
loans are the most liquid form of as
sets. The savings banks think they
are. They have AZ per cent OF their
total assets in mortgage loans and they
are the best and most conservatively
conducted institutions in the state.
The reasons Why they have SO largo
B. proportion Of their assets in mort
gage loans are two fold. In the first
place, because they are liquid; in the
second place, because experience has
shown that the income from mortgage
loans is % per cent greater than tho
income from all other classes Of Sc
curities."
St0ddard Fears Retaliation
Superintendent Stoddard, in oppos-
ing the bill. began by saying that he
regarded the Lockwood committee as
another branch Of the government. as
he did his own department.
This, OF course, must be under
STOOD" continued Superintendent Stod-
dard. "The Lockwood committee is
working for hoeing and the Insurance
Department is primarily looking out
for the interests Of the policyholders
With that difference, we are both try
ing to do our duty as we see it. Most
of the Lockwood committees bill ap-
prove of, and l am trying to aid the
committee"
Then Stoddard declared that his
principal objection lay in the fear that
if this state passed such an act other
states might retaliatc with like lesis-
ation.
Mr.. Untefniyer in reply first paid
a high tribute to Stoddard, and caused
laugh when he added: "Mr. Stoddard
is supporting our other measures be-
cause he has vision, and he is against
this bill because he has beam in his
eye. There can be no fear of retalia-
ton. Our New York insurance com
panies-the records in Mr.. Stoddard's s