The New York herald., 1922-03-13
AGAINST INSURANCE
FUNDS FOR HOUSING
St0ddard Withdraws Pro-
posed Amendment to
Lockwood Measure.
MIGHT BE OBSTACLE
Superintendent Says Inter
myer Claims 1t Will
Jeopardize Bill.
ANNUAL REPORT READY
Increase in Risk Business a
Featnre-Will Go to the
ANNUAL REPORT READY

Albany. March I2. I
Francis r. Stoddard, Jr., Superin-
tendent of Insurance, has withdrawn
amendments which he had proposed
to the bin introduced by the Lockwood
committee adding a new section to the
insurance law and permitting insur-
ance companies to invest part of their
funds in the construction of apart
ment houses to relieve the building
situation in New York Mr. Stoddard
announced he withdrew his amend
ments because Samuel Untermyer pro-
tested that the attitude of tie State
Department jeopardized the passage
of the bin.
The question OF such investments IS
discussed at length by Mr.. Stoddard
as one of the features OF his annual
report to the Legislature. to be sub
mitted to-day, reviewing the activities
OF his department for the last year and
recommending changes in the laws.
In answer to criticism made by Sam
fore the Lockwood committee. Mr.. Stod-
dard states that the department will not
grant further extension Of time to the
insurance companies to unload their
stock holdings unless they can show they
have made honest efforts to get rid of
their stocks. On one pretext or another
the companies have had two extensions
of ten year periods to unload securities
since first ordered to do so.
The companies show a gain Of new
business during 1921 Of nearly six bill
lions. which will bring the total close to
forty billions.
Prefers Freedom of Action.
Discussing investments of life insur-
ance companies, in view OF proposals to
Increase their holdings in real estate
and mortgage loans. Mr.. stoddard dep
recates taking away freedom of action
from these companies by any compul-
sorry legis.i lion as sure to invite dis
turbing complications with other States
and to affect adversely the funds be-
longing to millions of policyholders. He
further states that II merely permissory
legislation be enacted to allow mortgage
Investments of life insurance funds in
order to relieve the housing situation,
the smaller companies should be elm
mated from the measure, and utmost
care taken that the interests OF policy
holders funds be fully protected and
also be guaranteed an adequate return.
Referring to the criticism of the Lock-
wood committee as to the investments of
fire, marine and casualty companies, Mr.
Stoddard calls attention to the clear diff
ference between the trust funds Of life
companies and the funds of the classes
OF companies which are of more direct
concern to their stockholders.
While more latitude may be allowed
the latter Companies. he maintains that
no insurance company should use it's
funds In stock speculation, and advo-
Gates change In the law SO that an
insurance corporation may not dominate
or supervise even directly another com
pany doing the same kind or ,.inds of
business.
In particular, automobile losses were
excessive and were to a large extent
the cause OF financial embarrassment to
several companies.
The rise In security values promises
TO assist some companies to weather the
bad underwriting experience of last
year. but this experience, combined with
the prevailing business depression, has
produced difficult situation in fire and
marine lines, which has so far been met
without serious trouble
Attention In called to the large de-
velopment In the casualty and surety
hn "a.
Ia the lines in New York increased from
fifty-six to sixty-three during the years
from 1916 to 1920. and their net pre-
MUM writings from less than $685.
100000 TO nearly 1891 .0c 1000.
The figures as to reserve indicate
that the business of this class OF COM
panies was IN sound and most salts
factory condition at the close OF 1920.
and the indications are that the 1921
returns will reveal an equally favorably
condition.