New-York tribune., 1919-06-05
Charges Companies With
Violating Law in With.
holding Loans on Mort.
cages and Stock Dealings
Opposes New Loan Bank
Fears Combine to Keep Up
Price of Building Sup
plies; Another Inquiry

Charges that life insurance compan-
les are withholding, in violation of the
law, loans on mortgages to deal in
stocks and bonds, and that conspir-
acy of dealers in building materials is
responsible for the estimated 800 per
cent increase in prices were made yes
terday by Samuel Untemeyer in a let
ter to Nathan Hirsch, chairman of the
Mayors Committee on Rent Profiteer-
ing.
The information contained in the
letter caused the Aldermanic General
Welfare Committee to announce that
it will begin an inquiry of it's own into
the housing situation, making four
bodies work on a solution of the prob
lem. The Welfare Committee will open
it's investigation with a session in the
City Hall this afternoon, with Alder
man William T. Collins chairman of
the committee, presiding. Mr.. Inter
myer will be the first witness. Frank
Moss has volunteered to act as counsel
for the committee.
Ground Already Covered
The announcement that the Alder
manic Committee is to take a hand in
the investigatory proceedings prompted
Senator Charles. C Lockwood, chairman
of the Joint Legislative Committee, to
issue a statement yesterday, calling
attention to the ground covered by his
committee. He invited Mr.. Untermycr
to testify at any of its sessions. He
announced that the committee will de-
vote its session next Monday to an in
quiry in the cost of building material.
On Wednesday he said the committee
will meet with the conference of
Mayors at Schenectady. A policy of
daily hearings will be inaugurated he
said
Senator Lockwood also announced
that he had been in communication with
big moneyed men who helped the ma
tion during the war and were helped
by the nation" in an effort to encourage
them to invest in the building of
homes. He said that the George A.
Fuller and Thompson-S -Starrett compa-
MES are ready to work at cost on units
of workinCmens dwellings. Ten fnan-
ciers each erecting unit of two family
houses in the outlying sections of the
city, could provide proper and adequate
shelter for thousands now suffering
from the shortage of homes. He sug-
gested homes built along the lines of
the "sunlight ports" in England.
Untermyer's Suggestions
Mr.. untermyer's suggestions for re-
lieving the crisis, as embodied in his
letter, include immediate disposal by
insurance companies of the bank and
other stocks which they were required
by law to dispose of eight years ago;
the compulsory investment in mort
cages and bonds in unencumbered real
property of onc-half of the assets of
life, fire, health and casualty compa-
nies and the savings banks of the
state; an investigation by the Federal
Trade Commission, or some other Off
cial body, "to break up unlawful COM
binations that now exist in the build
ing trades"
Opposes Home Loan Bank
The two plans strongly advocated by
the State Reconstruction Commission
came in for criticism from Mr.. Inter
myer. The establishment of a Federal
home loan bank is characte erzed as in
effectual, because of New York's own
peculiar problem and the difficulty of
the sale of bonds at this time Ex-
emption of mortgage loans from the
income tax was classed by Mr.. Inter
myer as "an insane idea" especially
since United States government bonds
are still subject to the tax.