The evening world. Newspaper, May 26, 1921, Page 21

THE EVENING WORLD, THURSDAY, MAY 26, 1921. ENORMOUS RESERVE. | FUND OF COMPANES | S ADDING TO CT | | | Continued From Firet Page) | fes is intended to show the pre by them of United States stock com- | panies, | QName the ten leading stock) ¢ompanies and their premiums in| +1920, A. The Home of New York,| ¢/ $45,000,000; Hartford of Hartford,| more than $37,000,000; Aetna of Hart. | ford, more than $22,000,000; Insurance Company of North America, nearly | $20,000,000; Great American of New York, more than $18,500,000; Globe and Rutgers of New York, over $17,- 750,000; Continental of New York, | over $17,000,000; Fidelity-Phoenix of New York, more than $15,775,000; Na- tional of Hartferd, over $15,000,000, and Phoenix of Hartford, nearly $10,000,000, | Q. What proportion of these pre-| miums are absorbed by administra-| tive expenses? A. From about 28 per cent, to 45 per cent.; the average is less than 43 per cent. Q. What per cent. is absorbed by} commission to agents? A. Twenty- one per cent. CONCEALED OR UNREVEALED PROFITS. To all sorts of fire insurance som- panies $850,000,000 worth of premiums are paid, covering eight and one-naiz] billions worth of property. Q. If a man pays a premium of §160} what does the company do with the; money under the New York law? A. $50 is taken by the company to mect expenses and pay profits, $50 {s se: aside in the reserve to incet losses. Q. ‘What proportion of the losses is paid t A. About half, Q. Sot 25 of that held in reserve becomes a concealed profit of the company? A. Yes. It is there | in the company’s reserve, It cannot | be divided among the stockholders | while the company stays in business, Mr. Untermyer d he meant to} / show that the stockholders got the income from the savings due to sal- vage, at the cost of the customers. | “If 4 company ceased business to- day,” sald Mr, Best, “and paid the, losses vn the outstanding premiums! until they «xpired and then settled | up its accounts—about one-half of ine reserve would be divide among the stockholders. Is that what yo mean Mr. U er said it was ond asked ‘Isn't that a concealed | Pront . | it ‘an unrevealed should call Maxwell Reduced | tioned a profit” said Mr, Best Q. In-some companies that un- revealed profit. amounts to a million ollars a year? A. It does. Q. How much ts the yearly income of the ten leading companies from that source? A. Roughly, about $10,000,000. “If those earninge were added to the reserve, couldn't premiums be re- duced by $10,000,000?" asked Senator Lockwood. “[ suppose so,” replied the witness. AGENTS FIX THE RATES OF INSURANCE, Q. Rates are fixed by the agents? A. Yes. Q. Do you know any other business | ly speculative securities. the rates? | in which the agents fix A. No. Q. It isn’t so in life insurance? A No. Q. In the grocery business? A. I am | not so sure, Mr. ter). Q. Well, not under legal sanction? A. Not legally. no. Q. When these rates are: fixed by the exchange they are kept secrat, except from members? A. I so nn- derstand. Q. Mutual insurance companies, aa- thorized by, the State to do businass, cannot get those rates, even by pay- ing a share of the expense of’ the exchange? A.T understand the cule has been modified. Q. Within two or three days since Mr, Robb of the Exchange was ques- here? A. IT believe 80. (Laughter) Untermyer (laugh- Q. As a matter of fact the modifi- | cation only amounts to a rule that mutual companies may join the ex- change if they cease being mutual? I have heard so. : Q. In other States the law compels exchanges to admit all companies uthorized to do business in the State? A. Yes. I believe it should be the law here. Q. We in New of the procession? Q. Who keeps ou know that supervision of has been sought at Albany and has always failed? A. Yes. Q. Because of the lobby maintained by the exchange? A. I don't know anything about that. So th is no appeal to any higher or State authority from the exchange rate or classification? A No. And that should be cha Q. It is possible for anybody insurance directly from any compan without paving an agent's commis- A. Yes. us there? A. "The sion? A. No. Is the tax on policyholders in this trict brokers of the ire Ins Exchange is about $10,000,000 A. Perhaps a little te Q. E brokers must © the exchange rate? e, and insurance ex- panies do not agree to plac clusively with com: by the exchange, they cannot do busi- ness with any of them? A. Yes he State? Q. Is not that reprehensible? am willing to say that it is. AT | York are at the tail} approved | of the property owners dealt with the companies «direct there would be a saving to the companies of $5,000,000. Five per cent. of the premium here is a bonus to the exchange broker tor pledging himself to maintain the monopoly ot the members, Mr. Unter- er observed. So the policy holder pays extra for the tyranny under which he suffers. VU. There is no regulation over the nature of the securities in which Ave insurance reserves are invested? A. None. @. The losses of which the com- panies complained last year were due, net to low rates but to writing ft the shrinkage in investments in digh- A. Yes. paid vie Q. They “lost mon |huge dividenas—one company a ‘tion and another a million and a A. Yes, Mr. Best's testimony was inter- | rupted to permit President Lincoln R. Welch of the Fitchburg Mutual Fire |Insurance Company of Fitchburg to tell of the effect on races of the black- of ai companies by the ew York Insurance Exchange. He the & astern underwriters enforced rules ..ke those of the New York Exchange in Alnbama, Georgia, Florida, North Carolina and Virginia. Barred from rate making ex- changes maintained by stock com- | panies, he suid, bis company kept out of New York and the states named. Mr. Welch said his mutual rebated |to subscribers about 25 er cent. of its premiums which w bout the same as those of stock companies. saauaiaiadaasaa \FIRE BOARD GIVES NO HEED TO INQUIRY | Underw riters Not Conoerned by Lockwood Hearing — 1920 Big Fire Year. Absolute disregard of the Lockwood committee's investigation of New York's fire insurance charges was the , attitude taken by the National Board of Fire Underwriters at its annual | meeting which opened to-day at the | Waldorf. A few members of the board | before the meeting said they paid | little attention to the proposed in- vestigation. The investigation was |not mentioned at all at the meeting. | | J. B. Morton of Philadelphia, vice- | ‘president of the board, presided in the absence of Charles I, Case, pres- unable to attend. | |The president's annual report called | attetion to the high losses in the! United States last year, which were | approximately $500,000,000. | “It is a heavy charge on our com- | mercial interests to have so large a | ident, who was n though he bas a license| burden on preventable loss,” the re- |port continued. “Our country can jnever rise to the highest degree of PROPERTY OWNERS MUST IN-|Prosperity and efficiency until we SURE BY AGENT. Q. Under the law of from buying fire through a broker? A. Yes. Q. That isn’t true of marine, or life or any other insurance? A. No. Q It Prices —Now learn to reduce this enormous waste. New York, The loss last year was the heaviest ate property owners are prohibited |in the history of the country with insurance except |the exception of the year of the San Francisco fire.” The board decided to carry on dur- ing the coming year an intensive fire that were changed and half! prevention campaign. New Organization, Taking Full Control. -~ Turns Prices Back Three Years The last step in the Maxwell reorganization was the sale of the Max- well properties to the new and powerful organization, May 12. The first step of the new organization was to raise the value of the good Maxwell still higher, by restoring prices to the former low level of 1918. The reduction is $150 on each of the. four models, effective at once. This is the second price revision made by the new organization; and the total reduction from the high level, since Sept. 28, 1920, has been $310 on open cars and $350 on closed cars. What this latest action means, literally, is turning back Maxwell prices to the basis of 1918. The truth.is that the good Maxwell today is a better car than it was three years ago. It has been given a new goodness, by lowering costs, by increasing plantefficiency, and by greatly improving the manufacturing practices. The new organization now owns the great Maxwell plants outright. Its way is clear to carry out in full its larger plans and policies, It pledges itself never to stop working for the further betterment of the good Maxwell, and for the greater satisfaction of present and future owners of this good car. Touring Car $845 New Price List Roadster $845 F.0. B. Factory, war tax t0 be added Coupe $1445 Sedan $1545 MAXWELL DISTRIBUTING CORPORATION 1808 BROADWAY, Corner 59th Street TELEPHONE CIRCLE 5550 Bronx Branch: 175th ST! Py MAXWELL REET AND GRAND CONCOURSE. OPEN EVENINGS ‘The Good Telephone Tremont 4914 ASYLUM OBSERVES | MILK WEEK JUNE 5 TO 12, |anstes: he took 4 to reach the green, | golf. The former always had the up-|of the professional of the Raval -| —— and Wright, winning in 6 to 6, be-|per hand, and after the turn won| Cinque Ports Club, : 100TH ANNIVERSARY | ticaun © ner Urees ¥ came 2 up. fairly easily es ———_— | an le of Diet. ‘At the seventh Darwin drove ou:| TheGraham-Harrison match fluctu-|®!>¥ed Goat Clabes Barred Sm) Kagland. 4 ated. Graham was thi i HOLYAKE, May 26 (Tie Assodi~’ ealth ¢ Jopeland to- ft gainst 3 by Healt r Copeland to-day|of bounds and took 4 against 7 |Site, but omy one. Prominent Psychiatrists Urge Intel- | decreed a “Milk Weck,” June § to June] Wright, who became 8 up. Wright, i Bloomingdale Services Jammer months eighth and lost in 7 to 6, but he won|the seventeenth hole by two up and|Club Rules Committee, at a meeting 8 ‘ : Nin hot weather,” he said, ‘milk inthe ninth in 4 to 6, and stood 8 up at {One to play, to-day, decided to debar ribbed or Prominent medical men and paveh-| 9m form’ should be substituted for | jood golf was produced in the|slotted clubs, now in use by Ameri- © the turn, his lead being due largely to his outdriving his opponent. heavier and more heat producing foods, match between Hunter and Holder- The first food the average American ( ness. The latter was much fancied can golfers. The decision will become effective until after the which tegine ologists attended the celebration of amily should buy is milk, and the last t rf hi the Centennial ¢ © Bioo! e | it ah diape ‘0 win, but he could not hold the fine, | championship, on rae ee a eee ae ee Tee TC tna mniik fuentohes’ bejter| © Oerwin, then began to Improve | cusp playing of huster, who 8 8 son June 90 Hospital for the White | while Wright fell away on his game, insane, at nourishn t at a smaller e than) Il Plains to-day. Edward W. Sheldon, | “most any other article of diet \ewpecially on the greens, Darwin re- | Es gaining ground and then forging ch CTO ATA ATT ag President of the Board of Governors ahead until he became dormie at the view of the treatment of the insane, | By superb golf, Wright won the especially at Bloomingdaie. | eighteenth hole, sithoagh Darwis roteader ul . missed a three-yard putt for a half, SANGO RRR rl FOR GOLF HON R ) and the game, which was all square DARWIN BEATS HIM his tee shot, but Darwin's drive was sniccseilfihinia {a good one, and he got down in 6. | Wright's putting was weak, and he | took 6, from the championship after a thrill GARTER. @ Wide For Comrort E.Z Psychiatry at Johns Hopkins Medical | jat the eighteenth, went to the nihe- School, Baltimore, said the Bloom teenth ingdale Hospital helped to promot On the extra hole Wright pulled psychiatry by reducing the care «!| each patient to a study of sonal! y | and individual treatment. The hos- (Continued from First Page.) pital also did great work during t:« - thus becoming eliminated war, when’ its surgeons and nurses|the bunker and falling fifty yards] {rom the saved many men mentally | short of Wright's. His third was im 7 : k “One example of the murked steps|the rough beyond the green, end| The score by which Wright was psychiatry has mad said Dr.| Wright won in 5 to 6, becoming 1 up, | ¢liminated was: Meyer, “is the fact that people are| At the fourth Darwin's ten-yard putt | Wright— : beginning to be more eager to see the| rested a foot from the hole and he i: t ; : ; ; i; 8 ‘ 7 sand and strong points of men in-| squared the mateh in 3 to 14 seuees 5 6 6 6 . , stead of their weaknesses und de | Wright beeame one up again at the} Extra hole—¢ eats play for veins and muscles—wear a garter fects." fifth, where Darwin's second shot on| Darwin— j Pau bind. Wear the E. Z.—it conforms Dr. Lewellyn F. Barker, also of|coming to earth broke away to the| Out Cre ete 45 comfortably to the shape of the leg. Johns Hopkins, said half of the men- {left while the American's lay seven| In B34 56 6 5 Hh, "er vtneneey ant ert, waren, overywhere, Leck for the tal defectives cases could have been | yards from the pin, Wright winning| Extra hole—3, \cly by) The “inon. "Pe Haylor Ca, Brdgeport, Coun. x! avoided if the victims had been|in 4 to 5. Darwin appeared high-| TUBBS HAD UPPER HAND IN| fii wi Cou rica hve. \uremerer, reer studied in their youth, Psychiatry,| strung, and from the sixth tee he GAME WITH BEDDARD. ‘inp accordingly, must be introduced into | hooked his ball to a lay from which| ‘Phe match between Tubbs and! MG i ‘ oe the public schools, he was oblig ITU Testud STTCULAGROU WRF AUSTELL d to play out at right’ Beddard was not productive of good! JJ Se By the scores of thou- sands, men are turning to this new instrument of precision — Patented January 13th, 1910 To Alexander Graham Bell will always belong the chief honor of inventing the telephone. Bell’s work in itself superseded the efforts of Page, whose research was advanced in 1837; Bourseul in 1854; and Reis about 1860. In 1878 Bell’s trans- mitter was itself superseded by Hunning’s “granular carbon transmitter”; since perfected by A. C. White, whose “solid back transmitter” has practically displaced all earlier forms. OST inventions develop slowly. Here a little detail. There another—and so on, until you can hardly tell when the perfected device finally took shape. Here in the New Improved Gillette is one of the startling exceptions. At one stroke —micrometric precision, exact to 1/1000 inch, and these three fundamental discoveries, the Fulcrum Shoulder, Over! ' ing Cap and Channeled Guard. The result of the unequalled Gillette experience and_ resources, developed by nearly 20 years’ service to the shaving needs of every civilized people on the surface of the globe. Even measured against your old-type Gillette, the New Improved The New Improved GILLETTE SAFETY RAZOR Uses the same fine Gillette Blades as you have known for years—but now your Blades can give you ali the lux- ary of the finest shaving edge in the world, Identify the New lmproved ear Gillette Safety Razor represents an advance of 75% in shaving com- pester fort and efficiency. Gomneled Gnerd em sah, wig bie. serra wy » poi a we say ee Automatic Adjustment m pare lew Improv illette with any shaving me! prmens [eer ee rn or device you know now. Finer Shave — Service It opens up an entirely new era in shaving—the era of precision, of More Shaves from your Blades exact and predictable results. It is worth any man’s money — no matter how attached he may be to his old-fashioned razor or old-type Gillette. In SILVER and GOLD Shaving Sets and Traveler Outfits $5 «© $75 NOTB: — The Gillette Company assumes repensaiiry the serv sce of Gillette Blades when used in pode de on il lg hava either old-type or New Ih Gillette. But with IMITATIONS of the genuine Gillette, it cannot take responsibility for service of Blades. GILLETTE SAFETY RAZOR CO., BOSTON, U.S. A,