The sun., 1919-06-07
NEW LIBERTY'LOANS
ON WAY, SAYS DAY
Tells Lockwood Committee
Glass Told Him They
Were Coming Soon.
BONDS TIED UP FUNDS
Limited the Money Available
/. for Mortgages, Insurance
Executives Testify.

IneTe nabnt Deen enough money IOT
lending purposes because the big lend
Ing companies are loaded to the muzzle
with Government bonds. and without
mortgage money there can be no build
Ing. Life Insurance men emphasized this
fact yesterday in testimony before the
joint legislative committee, which Is
searching for light on the causes Of and
remedies for the housing situation.
Hints of another Government loan to
come were drspped by william A. Day,
president Of the Equitable Life Assur-
ance Society of the United States. one
of the most interesting witnesses of the
day, who said that he was perfectly will
ing to do anything within limits in the
way Of first real estate mortgage loans
to avert what may be a critical situa-
ton in the fall unless there are moro
homes for workers. Judge Day said he
had 1t from the Secretary of the Treas
nry himself that the United States would
have to have more money and the loans
are not very far off.
Labor Costs Predicted.
Tho committee Is probing deep into
The question OF building costs-material
ned yesterday were inslstent that wages
arc not going to remain as they are. but
are going higher. On top of this was
the expressed belief by James p. Holland.
president of the Workmen's State FEEDER
alton of Labor, that American labor
will never DO willing to go back TO un-
sanitary houses. such as are to be found
on the East Side, which workmen are
deserving for more desirable quarters.
State Senator lockwood, chairman of
the committee, said he had requested
the New York representatives OF Con-
gress through Senators Calder and
Wadsworth to help by Federal legisia-
ton. He has asked them to consider
the exemption from income tax OF mort
gage securities in holdings up to $4,000.
Senator Wadsworth has called a con-
ference of all New York members for
next week. and Senator Calder prom
tsed to introduce a bill along the lines
suggested by the committee.
New York has furnished only SIC. o00,-
900 for home and apartment construc-
ton since January /, Chairman Lock-
doow said, as against $27,000.000 for
Chicago, $40, 00O, 900 for Pittsburg and
$4,000, 600 for Cleveland. and something
must be done for the 1900 families here
who need homes. AS the Legislature
can do nothing to erect houses and as
both the city and the State. according
to Corporation Counsel Burr, are with
out constitutional authority to do 80.
Mr.. Lockwood said. 1t must be done in
some other way
Judge Day testified that the Equi-
table Life Assurance Society, subsequent
to our entrance into the war. Invested
in 10000. 900 OF Government bonds, of
which about $4,000. goo were war loans
to the United States. The company sub
scribed for s40,0O0.000 to the Fourth
Liberty Loan. he explained. and ito
T do that we had to borrow s23 900, 600"
4 Now that. in substance. is the
3 Tea son." the Equitable's head said, why
we haven't money at this time to loan
on real estate mortgages"
do you understand there will be
further Government bond issues?' Judge
Day was asked.
Yes"
Either by drives or by Internal is
Sues"
YES. the Government will have to
have more money. The Secretary of the
Treasury himself told me that the night
before last. and everybody who knows
the situation knows that, and It is our
duty to turn in and support 1t as much
as we can"
How soon are those new Government
loans expected, Judge Day.
81 could not say as to that, but they
are not very far off. The Government
must have the money. and II is OF impor-
lance to everybody that 1t should have
IT,"
Louis ]. Horowitz. president of the
Thompson-Starrett company, testifying
as to price levels. said : 81 think they
are going up. ! believe that for prices
to come down you would have to figure
that labor was coming down. 1t Is an
economic proposition. 1t is not we'll for
labor to come down.
THE reason l think materials are
going to be higher in price is at present
the manufa cturers OF materials are Ia
large extent idle, and they are pre-
pared to take orders at such profit in
order to I'LL their shops up than they
would be willing TO once business be.
comes normal"
Walter Stabler, controller of the
Metropolitan Life Insurance Company
said his company bought about $780,
100000 United States and Canadian
Government bonds, being obliged tc
borrow money TO pay for them. His
company, he said, agreed with the Re.
construction Commission to make a loan
up to s50o,0 900 for the purpose OF build.
ing homes. 1t also has applications
from reliable builders for building loans
aggregating s2,500.000.
OF the $3.50, 100000 which the Metro.
politan has in mortgages. Mr.. StabieI
explained that S222.000,O00 was in New
York State.
Praises Plan to Aid Builders.
Clarence II. Kelsey. president Of the
Title Guarantee and Trust Company
said the Reconstruction. Commission's
plan to help builders will be good thing
and would push the wagon over the
brow OF the hill"
James p. Holland, president of the
Workmen's Federation OF Labor OF New
York, said American labor will not be
willing TO return to "old law" houses
lacking proper sanitation. many OF which
are now vacant on the East Side.
II know they won't" he declared
They never did get what properly be,
longed to them. They are getting 9
little now. Although some say It is ar
Increase Of 80 per cent, We are able
to dispute that. IL does not go to II
per cent, let alone 80 per cent We
are also ready to prove that the high
cost OF living went up months anc
months before any increase in wages
Edward /. Hannah. president OF the
central Federated Union of Greater
New York and Vicinity, said there are
100000 idle in all branches of trade IT
the state. This labor is within reach
OF New York II building is started up
MI Hannah was positive there will be
no reduction of labor cost as applied
70 building, The increase in wages dur.
ing the past four years. he said, has
averaged 10 per cent. He declared the
claim or brick manufacturers that they
cannot get labor is 'camouhage." Plenty
phan tn