New-York tribune., 1922-01-30
State Insurance
For WOrkn1en,
UntermyerP Plan
Wants New York 10 Conduct
Monopoly, as in Utah and
Ohio. and Bar Private
Concerns From Field
Asks Reforms in Business
Would Make Fire Compa-
nics Get Rid of wildcat
Stocks: Secs Propaganda

In summing up the investigation %
.he ire insurance companies by the
Lockwood Housing Committee. Samuel
1-~-o-'ave~ tne committees chief cour-
SCI outlined yesterday HIS Suggestions
tor proposed legislation IN connection
with .his business. with view to
ringing the companies uncer more
general supervision a. tne state aAd so
eTecting a reduction in fhc cost OF IN
sursrco 70 the average householder.
Nr. Untermycr made 4 7lsin inst t7ee
suggestions were entirely his own and
Save not been discussed VITA members
~ the committee.
Would Amend Workmens Compensation
Noteworthy among his proposals is
the suggestion tina. orAinens 'ofn
rcnsation Insurance should be mace q
staie nonoaolv As il Is in Utah. ONO
and other states. and that private com =
ranjes should he barred from the felc,
He bases his contention on tho ground
that as the state very properly com
oel< the employer to take out this class
Of insurance. it should provide the IN
surance and thus prevent the employer
from being exploited
Er. Intern -er also believes That the
supervision Of the rates on all classes
of nre. casualty. indemnity and surety
Insurance should be placed under the
Jurisdiction Of the State Superintenc-
est OF Insurance, but with the right OF
either party 80 appeal 10 the courts
from his determination.
He suggested further that the super
irtendeuts Of banks and insurance
should be ineligible for Office with any
bank or insurance company for at least
Two wears after they leave their public
nosts. a is the case with members OF
the Federal Reserve Board.
An effort should be made, Nr. Inter
rnyer thinks, TO compel the fire insur-
wildcat stocks and all other stocks,
ps the life insurance companies we're
compelled to do. and to invest rea
sonable proportion Of their assets in
bonded mortgages on real estate, from
which they get their principal revenue.
If. a. the United States Supreme
Court has held added the counsel,
"the business OF insurance IA i'm
pressed with public trust and incur
anco should be q natural monopoly, in
which the rates are to be regulated and
maintained, there should DO "a stamping
Office 80 as 10 safeguard the main
ienance Of these rates. By stamping:
Office Is meant place at which every
policy is examined TO see that the rates
arc observed, and part cularly that they
nre not cut under cover Of juggling
ciassifications Of risks"
Would Watch "Katinc Bureau
Nr Jntormyer proposes. too, that the
so-ca,icd rating bureau should be
under tie mos. rigid supervision to
prevent the slashing OF established
rates spcnly or covertlV
Membership in the bureau, says the
counsel. should bc opened TO the mutual
companios. The result of this would be
thut the bureau would have to reduce
its rates to the point at which the mu-
tua's are now able 20 do business prof
itably. That reform alone. holds Mr..
Untermyrr would insure q reduction OF
ancc. or about $4,000 600 year to the
peonle Of the country.
"Surely, it cannot he possible. con
Guided Mr. Untermycr. chat sny
amourt of influence or misrepresenta-
tior VIII be allowed 20 stand in the way
- such manifestly necessary teforms
"The biggcs, issues that will come
before the Legislature shortly viii be
80 connection with the subject o. insuY-
snco. " Vhich g. Intimately related TO the
topsinq problem. They involve radical
questions Of future governmental POI.
ICY affecting fire casualty, surety, acci-
dent. burg ary. plate glass, autom obie
public liability and workmens compen-
sation insurance.
'The people Of this county paw out
annually in premiums in these line,
of Insurance the fabulous sum O.
Nbout $500 u0A coo The proportion
Of this atupcrdoua expenditure th2'
= = repaid t. tiem ~ the form Of losse,
= less than 60 rcr cent, showing al
economlc waste suffered by the in
surerH Of this country ~ this class @
Insurance q upward of $500. 600 ,00t
year large part Of this can b,
aved 70 them by change in legisla
'ive policy. 1hat can only be brourh
ahort II tse stranele hold OF thes,
companies caa toe taken from tn,
throats Of The people.'
Charges Misleading propaganda
NJ Untermyer referred to the vas
propaganda and leg islative bureaus
conducted by these concerns. comment
x that the Lockwood committee he,
10 slusn fund to offset this "mislead
ing propaganda hut that there wa
sufficient public spirit in the press o
America to spread the facts and t
ecfcal the gigantic lobby that the con,
panies are bringing to bear agsns
thc necessary corrective legislation"
Mr.. Untermycr Will depart or tn
South on February =. where he vii
prepare an intermediate report OF tn
committees inquiry for the Leg sla
'ure and include some proposed lcgis s
lation designed to assist IN relieving
tae cost Of housing. There - to be
J o. VI hq n n Sfcyn
pcriufenGont OF Insurance here wit
lespec. to certain Of these propose
legislative measures to-day.
Hoover 1 links European