New-York tribune., 1922-01-29
Fire Risk Men
Oppose Curb
On Financing. Z.
(csnIIuuo6 from papc ono)

o. whether We made money or los
money Is matter for our directors. ]
does not concern tie public. TheL j
ny postiom''
Frederick c. Busnveil senior vice
president Of tic Home Fire lnsuranc'
Company. tho largest concern in th'
state. had This to say: s.! recognize N'
duty on tho part Of the fire insuranc
companies other than to remain solvc!
10 meet their obligations. On 1llll
theory we clmim the right to do jusl ~
We darnod please with our assets
Chairman Lockwood. in order to at
tract attention - the 8 signliicancc .
Mr. Busy. rs remnIhs. here COM
mcntcd: "ihcn sour etatcMent is til.
He wants 10 get ali he can in rent, Al
The traffic I'll bear. and you want TX
set al the income you can on youi
assets, all tho traffic will bear, without
reference 10 any obligations 20 helping
cut the sources from which you gel
your money, is that rignt:"
"That is corrcct,' NJ. Ruswell re
piled.
Committees Last Meeting
The hearing married the last meet
ing Of the COMMITTEES, the Legislative
body adjouyniug indefinitely to 1igh
the powerful obDics being brought tC
bear by various interests TO crush il
when the question Of a cont ntinuance OF
i It's powers comes up before the Legiala-
turc shortly. MIR. Cntermyer is c.
pected to 90 South. TO Palm BeacI
about February =, and *, TO take q staff
If assistants with him TO aid in pre-
pairing an Intermediates report ON tho
bodys work and suggested remodia,
legislation.
Jesse PAillips, former state Super
ntendei. Of Insurance and now gen.
cral manager oi the National Bureau o.
Casualty and Surety Underwriters, VS.
questioned b. Mr. Urtermyer oA the
pYopriety Of public officials accepting
caice IN corporations over which She
had had supervision. Nh. Phillips only
resigned IS State superintendent Lass
year 1t was shown by Mr.. Untermyal
thst TIE bureau was nos made The sub
ject Of cNamina ion and rcport, as re-
quired by law, curing Mr. Phillips
administration
Mr.. Unternycr pointed to rnc Fed
cral regulation prohibiting officials o.
the Federal Reserve Bani, accepting o.
hcc with any bank FOR tvo yesrs after
retirement. Phillips insisted ii should
not apply to state Insurance officials.
Don't you aco chat some Of these
institutions under supervision might be
holding out offers Of profits to III off
cisl p asrod Mr.. Untcrrnyer.
Il see 40 harm replied MI. phillips,
''in 81 oficisl taking posi- ,1ith {. pri-
vate corpora tioI unless he Was iufu-
caced while in office"
Shows Losses III Speculation
tIr. Phillips questioned fgures sub
mitted by Mr. Untcrmycr showing
losses OF surplus and capital funds OF
insurance companies through invest
ments IN speculative stocks during mis-
administration. He expressed the opin~
:on that prohibitions Of the Armstrong
insurance act Of 1906 with reference 10
stock dealings by ire insurance com
pan!eS were unnecessary, and that the
profits OF stocl. speculatons by these
ilrins were far greater than the losses.
Willis 0. Robb, manager Of the New.
gave figures for the period Of 1912
1920 as follows: Premiums writtcn,
*2Ao,7OO.cOo; losses paid. 09,474,00O; !;
indicated gross profits, $156.2 900, OF.
about 40 per cent.
when al expenses arc paid oua Of
rh.s $156,226, coo the rest is prof. "a
ASKED NJ. Jntermycr.
.Hobb said part OF it Is tic increase
q unearned premiums which IS the
end OF 1920, lie said, was $3S 100000.
Mr.: UntermSer aaid it was only
$o,0O0,000.
Il. p. Moudes, an expert accountant.
thea told OF the losses Of the fire III
suranco companies incurred through
dealings IN speculative stocks. lie
put the losses Of The Home Fire lnsur-
ance Company, with which Mr. Bus
well is associated, IN the period between
1916 aNd December 81, 1920, at e..
919O11.
He said chat IN many cases inc stocks
ilsted as assets By the fire Insurance
;ir!ns mad no market quotation, such as
tne Tn Ana Company. lhe holdings OF
the concerns included stocks IN oil,
leather can metal raiIroa and other
;1dustr'es One OF the holdings Of tho
Home company was $l,OO0.0oO in the
'ln5erzone Corporaton.' Iil. Monacs
aid he couldn't ind anything about
the market price Of this stock.
"then ii IS not liQuid:' asked Nfr.
Laiermycr. "H ouidn't first mort
gago or . New York apartment house
De more liquid -
I'd say so,' replied Nendos.
Inc Continental Fire Insurance Com
pany, one o. the concerns With which
A~-''s - ~ 40 ooSOC tAtcU, sun ereU Z
loss OF $l,065,s27 in the Nve-ycar be-
rlod ended December 81, 1920, througi,
stoc. transactions 1t was testified.
ia Business TO Make Money
Win reference to the contem plated
move 10 force :ne fire insurance com
panies to disSorga their stocz holdings
w'Shln giyen period and prohibit
them from dealing furtner m such Sc
curities, Henry Evans said:
we arc III business to make money
g." risA our capital. and ii is a very
HAZARDOUS business. They have the
opportunity 10 lose o. make money in
,nvostments. That i sneir business.
II l~ not the state's business, any more
than II would be 10 tell the grocer or
any bod else IN the natural lire Of
business that they should contine their
Investments TO this. that or the Other
tAlng. We haze msGe nancy"
lie added tha, rnc enforcement NJ
the contempIated restrictions WOULD
take d LOT Of capital out OF the insi1r-
ance business.
Mr.. u"tern'yer went iuto the public
4,y campaign conducted by the insur-
''.'ce people last summer t. couujarac.
me effect Of The committees ,l;,.~
{! closures With respect TO the conduct 81.
ne '4re Insurance exchange. 1t appears
nat the campaign was sDonsored NV
me Natlonal Board of Undervriter.
nearly $o0,0O0 having been sDcn. fo,.
+dvertisencnts and circulars critic;~
ing the committee.
10 Mr. Buswell Mr. Unterr,vn, ,,.
tne following question::
assuming that there is 2 bous;,,,x
crisis OF great magnitude, endanpcrin9