The New York herald., 1922-03-12

unable TO agree all session ana tnelr
constant conflict has brought about the
present situation.
ested in one way or another in insur-
ance and the whole country is watching
the developments at Albany.
'The queer part of it all is that mo-
body has any real argument to advance
against any of the bills. Will any one
suggest, for instance, reason:
4 al. Why there should be no super
vision or control over the rates OF pre-
MUM charged by these companies which
have been permitted by law to make
these rates in combination and TO tell
the people what they must pay without
redress anywhere; or,
"2 Why the mutual companies that
do the business for 25 per cent. less than
| the stock companies (Which would mean
about $500, ,000,000 per year less) and
are unable to get the business partly
because of the crooked restrictions that
the Insurance Department has put upon
| them through the influence OF the stock
companies should not be given the right
| to compete in this State on equal terms
| as they have that right in other States ;
| or,
"3. Why the conspiracy of the stock
| companies to wreck and destroy the
/ State fund In workmens compensation
4 insurance should not be nipped before it
Is too late; or.
a. Why the companies should be
longer permitted to use the vast funds
of the policy holders as pawns In their
| stock gambling game for the benefit of
the officials and stockholders or,
"5. Why the companies should not
he compelled to invest 40 per cent. of
their assets n mortgages on real es-
tate. which long and consistent experi-
ence has demonstrated to be the best
| and safest of all. investments and which
yields 25 PEI cent more in annual in
come than the other forms of invest
ment.
Defiance by Insurance Men.
/ "All these questions remain unan-
| swered except one. In answer e that
one-the demand that the fire and casu-
atty insurance companies dispose of all
their speculative securities, as the life
companies were compelled to do sixteen
| years ago--their officers tell the public
to be damned they say defiantly from
the witness stand that 1t is none of the
4 business OF the policyholders or the pub
4 lie. what they do with the $3.50, 600, 900
Eof unearned premiums or with the
!
vast fund which the companies are now
and have been for years literally steal
ing out of the policyholders' pockets.
i Truly. we are a stupidity patient peo-
pie to tolerate the impositions that are
| practiced upon us year in and year out.
/ 1T seems impossible to arouse our
people to the point of protecting them
selves against having their pockets
picked provided the game is run undo j.
the auspices Of eminent respectability
and under cover of the intricacies OF
high finance Fire and casualty insur-
ance as 1t is being conducted to-day is
the most arrogant and unregenerate OF
our business activities.
Mortgages by Savings Banks.
THE savings banks Of the State have
an average OF AZ per cent. Of their assets
invested in real estate mortgages. Some
OF the largest and best managed of them
have over so per cent so invested. The
average of such investments held by life
insurance companies Of other States is
over 3S per cent. Our average Is only
p per cent. The Metropolitan Life,
which is the largest, best managed and
most prosperous life insurance Company
| in the world. has over 40 per cent. in
vested in mortgage loans.
why should not our insurance COM
panies be compelled to come up to the
average OF the other States In this form
OF investment? The only reason can
see Is that the power of a vast, secret
insidious lobby over legislation has
willed otherwise. All this talk about
'non-interference with the discretion OF
the men who manage these institutions
Is insincere claptrap and lip service.
Urges Curb on Insurance Men.
n n n Al.
investments of life insurance companies
in 1906 by preventing their further
specializing In stocks they would be In
solvent to-day. The policyholders have
been saved hundreds Of millions, and yet
the fire and casualty companies that
have, unfortunately. never been investi-
gated. are allowed to continue these
practices. IL is high time they were
stopped.
"If that manifest evil cannot be ended,
now that It's viciousness and the great
losses it has caused have been exposed,
the Lockwood committee might as well
go out OF business. So far as / am con-
cerned Il will 20 out of business. II
would be a most unjustifable waste
OF the money of the State to continue,
IL the malign power Of these companies
is so great and uncomfortable that such
fragrant evils cannot be checked when
exposed.
what is the use OF all this idle. in
sincere chatter about noninterfercnce
with the discretion Of the directors of
these insurance companies? 1t deceives
MOODY. We all know that the heads of
these companies are veritable czars and
that they are self-appointed and self
perpetuating.
why cling to the fiction that they
represent the policyholders? What
chance do you suppose the 100000 OF
more policyholders of the Prudential
Life Insurance Company would have oi
changing the control Of that hateful and
despotlc oligarchy that has come dowr
from father to son as though K were
heritage. and Is being used as II II
were the private property OF the heir al.
though he has not n dollar OF persona
interest In the company? The manage
ment could not be changed no matter
how corrupt or incompetent II might be-
come.
After decades of abuse OF power by
the men In control or these savings o.
, the people, and spurred by the disclos
ures of corruption in the Equitable Life
, the State was finally sufficiently stirred
to action In 1906 under the gallant lead
crship OF Mr.. Hughes that IL limited tn,
, Investments of the life Insurance com
panies We now demand that \