The sun., 1919-06-05
BUILDING MATERIAL
PRICE PLOT CHARGED
Untermyer's Allegations to Be
Sifted by Aldermanic Wei
fare Committee.
LOCKWOOD SEES TRICK
Insurance Companies Are U.s.
ing Funds to Buy Stocks,
Asserts Attorney.

The Mayors Committee on Rent Prof
iteering and the General Welfare Com
mittee of the Board OF Aldermen have
arranged to sit as a joint committee to
investigate suggestions made by Samuel
Untermyer to Nathan Hirsch, chairman
of the Mayors committee. for the solu-
ton of the housing problem The first
session Of the inquiry, which promises to
he lively, will take place this afternoon
in the Aldermanic Chamber, City Hall.
The Aldermanlc committee was called
into the Joint action because 1t has the
power to subpoena.
The announcement that a brand new
inquiry was to be started while the
Lockwood joint legislative committee Is
proceeding with its big Job naturally
created stir among members of that
committee. Several Republican legisla-
tors made no attempt to hide their belief
that Mayor Hylan and his friends, who
have been trying to make proflteering
landlords have a heart, were trying also
70 steal the thunder OF the Joint legisla-
tive committee, whose creation was an
inspiration from Republican sources.
State Senator Lockwood, chairman OF
tho legislative committee, declined to say
what was in the back of his mind. Ho
did, however issue statement in which
he said the committee has been working
hard since It was appointed May to do
everything II could in q constructive
way to remedy the situation. He added:
THE Joint legislative committee han
cooperated with the subcommittee Of
the Reconstruction Commission az,
pointed by the Governor, with the
Mayors committee of the Board OF Al
dermen.
eff Mr.. Untermyer has any informa-
ton we will be glad to have It laid be-
fore us. or will be glad to have him OF
any attorney whom, he may designate
come before the committee"
Makes Two Charges.
There are two big features in Mr..
Unternyer's letter Of suggestions to Mr..
Hirsch on which the Mayors committee
and the aldermanic committee will base
their inquiry.
One is to the effect that moneys be-
longing to the people and held in trust
by tho insurance companies are being
withheld from the mortgage market SO
that stocks and bonds may be dealt in
or retained in violation OF the law Of
1905, which was enacted after the in
su-ance investigation in which Charles
Il Hughes was me examiner.
The second allegation made by Mr..
Unternyer Is that a conspiracy exists
among dealers in building material. Be-
cause Of this conspiracy. he Gays, prices
of building material have been advanced
500 per cent. despite the fact that
wages have been advanced only 80 per
cent. Mr.. Untermyer insists that such a
conspiracy Is criminal and that the con-
spirators can be put in Jail.
''There are three concurrent remedies
Rxr DO. ell fnf1 n vE-hi re
wholesome and constructive" Mr.. I'm
termyer said. THE two most important
ones are:
ITO restrict the investments of life
IRE, health and casualty companies and
OF savings banks. and especially of our
mutual life insurance corporations that
are organized under the laws of the
State of New York. so that they will be
compelled, as they should be in the In
terest OF the community regardless OF
the solution OF this question, to invest
the greater proportion OF their vast
funds in first mortgages on unencum-
bered improved real property within the
State.
THE first and most important move
for your committee TO make is to have
the insurance law and the law regulat-
ing the investments of savings banks sc
amended
Mr.. Untermyer's proposed remedy for
the building situation provided that the
Insurance companies be required, first
Immediately 10 dispose of the bank and
other stocks that they were required to
dispose of thirteen years ago. and tina,
the New York Legislature shall now
stop stultifying its own policies by ex-
tending the time for the disposal Of tbs
securities, and second. that at least
one-half of the invested assets OF The
IRE, nre, healtn ana casualty companie'
an" OF lhe savings banks be re-
quneo 10 De ihNesteo IN ponu ana mort
sase On l,iproseu uuehculnpereo rea
M''nIa ING S.a.e proVlueo tnal
uon ,o rs ,,,ny, 10 iau1 curing tne
= e. go, sham a. = ru' eiia'
,r,tted 20 lava 10 sxceaS .,,,n ~, ns pr
xaI,,e NJ tho land ana tn,rros,.ranat, ;. 'e
s s,.,
- SnPie'
'aThs existing situation tbreatens =,
destroy our commercial supremacy n no,
promptly and wisely solved" Mr.. Inter.
myer said. but strange to say its 80.
luton appears to me to be compare.
lively simple II our public officials will
exercise common honesty and ordinary
courage In using weapons that ara a,
hand In dealing with the abuses OF en-
trenched wealth and power that are re.
Sponsio,e TOT the present situation"
Mr.. Untermyer said that four New
YORK mutual lie insurance companies
alone nave to-day In their hands for In,
vestment considerably more than So.
100000, 900, belonging to about 10000.
900 persons, and their assets are CON.
stantly increasing.