MODEL CITY TO GROW FROM TOKIO ASHES

"After a few years Tokio wil be a new capitol, built in the most modern style," declared Chosaku Hamada, a commissioner of the Japanese Department of Agriculture and Commerce, in an interview for the CRIMSON yesterday.

While Mr. Hamada was not present at the disaster, he has been constantly in touch with the Japanese official circles, and his position as Managing Director of one of the largest life insurance companies in Tokio has given him on opportunity to study the problem of reconstruction.

"Judging from reports from Japan," he said, "the work of reconstruction is going on very rapidly and smoothly. But the loss is enormous, greater than was expected and, of course, greater than anything we have ever known before. From this experience we shall learn how to build houses which will to a certain extent, resist earthquakes in the future, and so we shall be able to reconstruct an ideal city. Permanent building materials are scarce though temporary wooden barracks are now being built by the Government and by the affected municipalities. Permanent building should be finished in about two years. Tokio was a very old city and it was not an ideal one, but now it will be like building in a new field where there will be no obstacles."

In explaining the financial aspects of the disaster, Mr. Hamada said, "It has menat a loss to the life insurance companies of more than 50 million Yenn, or about 25 million dollars. They can easily pay the loss but other departments, such as fire insurance are unable to pay because the amounts are so large. Many companies have been protected by earthquake clauses which were previously inserted in the policies.

"The food and clothing situation is quite well settled and there are now no serious difficulties in the destroyed areas. The Government took charge of the food distribution and after two weeks the crisis was passed."

Mr. Hamada then discussed the organization of life insurance companies in Japan, comparing them to the European companies which he has been investigating for the Japanese Government during the past year. "The Government transacts the industrial business, but the ordinary insurance is carried by private companies. In Europe and especially on the continent all the insurance businesses are very weak. In Germany and Austria there are really no such concerns. Nearly all of them went bankrupt a year ago and under the present financial and political conditions it would be very difficult to restore them.

"American insurance is very progressive and in that respect the British business is incomparable to it. I should place the United States first, Great Britain second, and Japan third in the rating of modern insurance organization."