The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-06-06
UNTERMYER OFFERS
! HOUSING REMEDIES
Charges That Material Manu-.
facturers Are in Combine
to Keep Costs Up.
SUGGESTS NEW TAX PLAN
Urges That Insurance Com
panies Be Compelled to Buy
Real Estate Mortgages.

After asserting that the commercial
supremacy OF New York city was se
riously menaced by the scarcity OF nous
ing accommodations. Samuel Untermyer
yesterday added that the remedy for
present conditions was simple and
oIereu three specific suggestions for
brip sing II about.
He would first. he said, procure the
passage by the Legislature of a law re-
curing the life and fire insurance com.
panies TO dispose of their holdings ~
wall street securities and making n oh
hgatory upon them to put at least hair
or the funds at their disposal into mort
cages upon unencumbered New York
city real estate. Such a statute. Mr..
Untermyer asserted, would make s1Oo
ooo.oO0 available for building opera
lions from group OF a dozen life in
surance companies alone.
secondly. he asked for the prosecu-
non OF manufacturers OF building mater
iais and dealers in those commodities.
when he asserted were in illegal secret
o om 70 force prices UP beyond
an reason that they might reap ex-
horbitant profits. Although he said he
owned large interest in one of the big
steel companies himself, Mr.. Untermver
minated his belief that there was an
agreement between the manufacturers
as regards selling prices which ousht
ho' 10 be permitted. The makers of
cenent ana or bricks were also guilty of
similar practices, he charged.
II necessary to avoid a stoppage Of
the growth Of the city," said Mr.. Inter
myer in relation to his third suggestion
why not provide that vacant land be
taxed at twice the rate of improved
land? This is n modification OF the
henry George theory and. as improve
d.
would be decreased. I don't believe.
though. that this would be necessary II
the other two steps were taken"
VIII Call Insurance Heads.
Mr.. Untermyer was the first witness
before the joint session of the general
welfare committee of the Board of
Aldermen and the Mayors Committee on
Rent Proflteering, which have united in
an endeaVor to find some method of al
leVlating the present scarcity OF houses
here. Nathan Hirsct, the chairman. an
nounced that the committees would sum-
mon life insurance company presidents
70 testify next week and that he hoped
some way would be found of tapping
their financial reservoirs so that their
funds could be employed in financing
building operations.
Mr.. untermyer also condemned the
suggestion that Federal aid for buildi ing
be sought. Even If the Government ap-
propriated $4,000 900 and New York
city received its full share It would
amount to but about $25 600 900, he said.
1t looks TO me-" he went on, las
though some one were trying to draw
a herring across the trail in an effort
TO keep from having to assume respon-
sloillty. we can get enough money out
OF FOUR or five life insurance companies
IL they will dispose Of the railroad and
Industrial stocks they have no right 60
hold and invest in the best security In
the world-unimproved and unencum-
bered New York city real estate. From
twelve of these companies we could raise
500. 200. 600"
The great danger to New York Mr.
Untermyer said. was that laboring men
and others who found they had to pay
such high rates for homes here would
move elsewhere. Local manufacturers,
as result would be unable TO compete
with those in other localities.
Looks for Higher Labor Costs.
"I don't believe the cost of labor will
decline, but that II is likely to increase"
said he. I'VE must organize a system
or protection against cheap foreign
labor. Tremendous competition is COM
ing from miserable, wretched, starved
people who Will be willing to work under
any living conditions forced upon them
We need a strong protective tariff, en-
tirely outside of revenue, 10 guard
against their competition"
Mr.. Untermyer then discussed the
trusts and secret agreements between
manufacturers, which he asserted must
be broken up and suppressed. The price
OF building materials had gone up 200
per cent, he said, while the increased
cost of labor was not more than 20 per
cent.
THE cement industry is controlled
practically by the Atlas and Portland
people," he said. NO matter where you
60 the price is the same Bricks are up
200 or 400 per cent, but there is as
much clay in the ground as ever and the
increase in wages doesn't account for it,
/ am one OF the largest holders in one
of the steel companies myself. Although
] don't know of combinations myself. yet
the steel companies manage to have an
Unfortunate similarity in prices.
II believe that the building trades as
sociations ought to be investigated. Call
In the bookkeepers OF the big concerns
and get their prices. II you don't find
variations then you pretty nearly have
prima facie evidence-taken with the