The New York herald., 1922-03-19

superintendent ana the courts to take
into account the conflagration hazards
not only in this State but in other States,
which is another impossible requirement
and is most unjust to the insurers in
this State.
But the chief difficulty that renders
the administration OF these provisions
impossible is that no insurer who de-
mands relief win ever be able to prove
either the one or the other condition.
He should have been left free, as he was
left free in the bill as agreed to, 10
show that the losses on that class or
risks are trifling as compared with the
premiums paid and the burden should
| have been placed on the companies 20
gainsay the case thus made.
These are the identical provisions
against which we supposed we had sue
cessfully struggled and eliminated The
persistent underground chicanery re-
sorted to to restore them proves how
important they were. They were not IN
the bill as it unanimously passed the
Senate
THE third and fourth bills requiring
the insurance companies and savings
banks gradually to increase their in
yestments in mortgage loans until they
equaled 80 per cent. of the assets. inn
portant as they are, do not compare with
the others in urgency.
Bills UndebatabIy Honest.
However debatable may have been
the wisdom of these two bills, there
could be no honest differences OF opinion
concerning the others upon which an
argument could be based. The bill limit
ing the investments OF fire and Casualty
companies to those now permitted TO oe
made by life insurance companies ana
savings banks and requiring the COM
panies. within five years from December
next, to dispose Of their specuiatipe
stocks. upon which they have lost many
millions of dollars within the past rev
years, was not open to debate.
Many of these securities were the
worst kinds of cats and dogs. NO con-
servative private investor would nave
touched them The defeat of that Dill
permits these companies TO continue
their wild speculation with the hunureus
of millions of dollars of money that the
officials are supposed TO nolu IN uus'
for the policyholders.
This and the rate regulation bill han
PASSED the Senate by an overwhelming
vote but were denied the opportunity
of a vote on the floor of the Assembly,
where every man could have been put
on record by the Czar of the lower
house whose fiat is unfortunately SUI
preme in the closing days Of the session
under the undemocratic rules OF that
body.
"The action is significant and inde-
fensble, but is Understandable as Is tne
adverse action on other bills when We
consider that the Speaker is said TO
be a prominent director in the Glens
Falls Fire Insurance Company. which
| is one of our larger companies, and that
the real Superintendent of Insurance
who is now the head of the great bureau
| In which the big companies are COM
| bined and his factotum have both been
| desperately lobbying against this and
other insurance bills that went down
! to defeat. But that is only part OF the
| story.
! '"The State Trade Commission bill was
also defeated in the closing hours partly
through the action of the Speaker ind
/ refusing to report it out Of the rules
committee but more particularly, as
am told, through the incredible action
| of Thomas A. McWhinney, the vice
chairman of the Lockwood Committee,
who was in charge of the committees
legislation in the Assembly. This Is not
the first time that the committee has
had it's troubles of that character with
this gentleman. The part played by
Mr.. McWhinney a year ago has not
been, and | trust will not be, forgotten.
"It may be some satisfaction TO him
and his constituents to know that the
responsibility for the defeat Of this and
of each and all of the other antitrust
bills by which it was hoped to reduce
the cost OF living in the necessaries OF
life lie largely at his door. Through
his official relation with the committee
he was able TO exert an amount of in
fuence against the committees legisla-
tive program which he could not other
wise have done. He was ably assisted
in choking this sorely needed legislation
to death by the Speaker Of the Assem-
bly,, who particularly directed his efforts
to the destruction of the State Trade
Commission bill.
Only One Ray of Hope.
"The one ray of hope in the situation
is the passage of the so-called Metro
politan Life bill, under which the con-
struction of low priced apartments Is TO
be Immediately begun. That will go far
toward eliminating the housing crisis.
and l believe that in eighteen months
from this day the housing problem will
be nightmare of the past.
but that is not going to rid us of
this network of criminal combinations
in every line OF industry and that stand
as an impossible barrier against a re-
duction in the cost OF living in the neces-
saries Of life.
Il am not prepared to say at the mo-
ment what / shall personally do in view
of the impasse that now confron.s the
committee. There are many of these
combinations that should be prosecuted
and suppressed. There are Others not
yet exposed that can be exposed il II Is
believed that the committee Is justified
in expending the time and money neces-
sary for that purpose. But what justi-
fication is there for such an expenditure
when on the one hand the courts will not
punish the offenders and on the other
hand the Legislature refuses the remedial
relief that would make these exposures
effective and would rid the State OF
these conspiracies?