New-York tribune., 1922-06-19
State Curb for
Wall St. Urged
Bv Untermyer

'e,, than % p,r cen. o. their assets IN
frst mortgage upon arcncumbered in
proved rsal property not 20 exceed two
thirds of tho appraised value o. ihe
property - the lfo insurance con
psntes contiruo 20 increase theu IN
,.s.rcer.g of ths charncter a. they
have been dong during 'he as; yeaf
,hcre Will he 10 need O. further leg 80
latior on this subject as % them.
5 There should 20 2 memorial 70
Congress covering two subjects o.
ee.siation bv thst body in me way OF
charging thc powers - the Fede
7fade Comm .ss.on 90 bring me pro
pofed sta.c and Fedora bodies IN har-
uonv e operation.
2. Members OF tnc legislature shou q
be rcos red n f'e with the clerN o. ne
oofr os wh ch -hcy a.o members DO
tailed ftatemen. ~ Their persona o.
professional Interest ~ any and ever
Kin hat e under cons deraticn. thst
this information shall be publicly an
norncod 20 the body when the Dill
co-e. I'd for cons derat'oT and that
.he mem bers 80 interested be dS-
ous,.fed and excused from voting on
sUcn hills.
NJ rntsrmycr expressed ms appre
citation of the loysl support Afforded
him by Senator Lockwood daring the
Investigation ard begged the laiter 20
reconsider his intention rot 20 accept
a denomination for tha State Senate
with reference 20 the bin limiting
inc Investments 81 FIRE and casualty
Insurance companies the counsel en-
rhatizsd that The necessity for nc
measure v1s clearly demonstrated oy
recent testimony showing that me IN
vc,tments in industrial ana other
speculative stocks BY many o. tnese
companies have resulted M setua.
losses Of millions or dollars and sti!i
further book losses through dspreeia
ton IN the yalde o. securities on hAnd.
lie pointed out hiso that cfiesrs ard
directors 90 these companies have beer
rs.ng the treasures of their companies
a. dumping ground" for securities
tha. .hey have Encergritten and from
which they have personally received
underwriting profits, while their con
rrOi over their companies has been used
10 relieve themselves Of their syndicate
opjiratiors by selling these securities
10 The companies they controlled.
The contention o. these men that
Inc character o. me Investment,
Of thsir companies or Whether
80 officers personally profit BY
tteir position is none 81 the pub
les business cenno. receive serious
c,rs.oerat:oa says NJ. Untermyer.
They cntireiv ,oso sigh 81 the fac,
;na. buyinc insurance is Ike buying
nrv o.fe- comnod IS. except that y you
o. bay aSu.t o. clothes We DO not p.r
for . un,i. it - delivered. but n Ve
buy insurance vf o.e required % pay
..r entire premium <or series o.
,car- ir aGt5rer. ard re companies
lo'L these pre- c.l'is thas paid before
any .sk q .lc-r-e1 or fcrviee ren 1treo
t~ trcs, for ihe.- pol cyho.dors and
nc i..ter a~e vt.y much concerned af
- ne v-ev ir which tncv a-e invested.
"ffey az also opparC.:l" bNrd %
80 Fac. ,ha. tns Continued so.vensy
e. tie Compsry and pethaps ,ho rhto
80 rfenigm &C largely influenced BY
tie chz-scfcr o. their investments.
Counsc. hrve referred 20 'he oppos
t.or 20 thc bill which came rom men
n ~ Ieeis.atrro "who are ofctrs OF
or personally interested ia or held re-
tairels from fre Insurance companies
and who used taeir post ems IS ineni-
bcrs ~ thc Legislature 10 detcst the
bis IN which 'tcy were nersonal!y oT
Ylttcssion-.iy interested.
Regards /; az Sea snd,l
"i rtgasi .ha. ~ .esnasl 81 me
~, magnitude" remarks tas eounss..
and ve- have never seer say public
. com a.nt eondsmning this perform
ance
Nj. Trterriyer MAKES ne additional
observation taat . the projected is-
fc-ns ale 20 30 Thoroughly achieved
I've must have slps..n.tnGents o. in
sarsrce who 1Te no. mere machines 20
execute :ie oroess o. .ne compahiss
,hcv are supposed 20 supervise.
o. TIE lssor sutst.oa tie !sTyet
savs if is h- .lea tn. the proposed
....e trade commission should have
irrsGict.cn C,e- the licensing or labor
boa.s rs proposed. 20 .nst abuses
pract!cei b. :he Bn.ons IN the manner
disclosed before the committee can be
eStei.rinattd.
In the prtssn; situation comments
-, counsel. "the labor unions are dis
credited by me dtspotic action of q
small minority 81 them. Unless the
pow.r 20 eliminate the abuses - lodge d
IN ,on. governmental authority organ