The New York herald., 1920-12-06
NEW STATE BOARD
TO END LABOR AND
BUILDING TRUSTS
Lockwood Quizzers Plan
Drastic Laws to Smash
Grafters and Bureaus
WILL REMEDY HOUSING
Institutions Lending Money
to Be Required to Invest
More in Realty.
MILLIONS TO BE SET FREE
Enormous Boosting of Taxes
by Hylan Administration Is
Partly Blamed for Crisis
MILLIONS TO BE SET FREE

AS AN outcome of the Lockwood
committees investigation of housing
conditions the Legislature in the early
days of it's session next month will be
sked to establish a building commits
sion to control the building industry in
this state and safeguard the putlic
against the abuses of grafters and
manipulators whose activities are
| being disclosed.
1t is the purpose to set up State
body, clothed with great powers. which
will stand in it's relation to building
somewhat as the Public Service Com
mission does to transit and public
utilities. This will be the first time
that building has been placed under
State control. New York, usually most
conservative of States, will be the
pioneer in this field. The committee
members believe this city's housins
problem will he solved and disposed of
in less than one year
Much radical legislation is sure to
result from this investigation. The
committee has not yet touched the
banks ard insurance companies, but
il is regarded as a certainty that the
State will pass laws requiring these
institutions to invest n cert9in percent
age of their holdings in real estate
mortgages.
$500, 100000 May BE Available.
Two hundred millions is the amount
estimated by some of the experts work
ing on this phase of the case as the
amount that can be released for build
ing before spring. This will be possi-
/ Bile under state control of the situa-
/ ton. with the financial institutions as
sured against fictitious values ah@ loss
! due to trade abuses.
/ Tho states investigation has gone far
( enough into the building scandal here 20
/ make certain that major operations mus
he performed before the public can DC
much relieved. That is the conviction AZ
least Of members of the Lockwood COM
nittcc and its counsel. who arc prepared
for another hard week in their hsht
/ against the building combinations,
! As they made ready yesterday at q
dav of conferences to unfold new evil
dence dealing with profiteerine. collusive
bidding and grating the state investiga-
tors made survey of the situation
/ They believe that even if nothing further
is developed enough has been shown TO
Justify the inquiry. The objects sought
at the outset were these:
smash the labor grafters who were
fattening on honest labor through the
use OF Illicit power.
Break up the building trusts which
had combination on essential mate
rials and were able through collusive
bidding TO regulate prices.
Lay bare the manipulation of piers
and public property whereby indepcn-
dent dealers were kept out Of the
market.
Find out why savings banks and
insurance companies were not invest
ing more money in real estate mort
cages and loosen the bands which
bound this market and restricted
building.
Results Due to BE Achieved.
/ The inquiry Is more than half way
/ completed. The committee believes thai
the following results will be achieved/
Many Of the labor parasites. al
ready indicted will be driven out OF
business ana homes. labor organiza-
tions permitted 70 work without pay
ing tribute TO grafters.
The central bureaus ana little COM
binations IN brick sand. limestone
and other building materials will be
broken up.
The State will establish some kind
Of control over Guiding 10 safeguard
the Iublic from repetition of condi-
4 tions which have existed for the last
few years. The rain idea viii be TO
end monopolies and profteoring in es-
sential building supplies.
Millions Will be released for real cs-
tate mortgages and next spring will
sec revival OF building 10 meet adc-
quatcly all housing needs OF the me
tropols.
Many sensations will be developed.
during the next few days. For instance
one subject on which the committee will
seek light Is the system of dealing with
empty bags in the cement trade. Politi-
clans are believed TO have been much
interested In that system.
h' N'iHihiNttNs Ehiutu ny CdnlUel L n
termyer, also will seek to learn some
thing more this week about the opera
ton OF city piers with a view TO showing
that independent dealers were crowded
out Of the market here unless they wcrc
able and willing to do business with the
System"
with this phase OF the investigation
out OF the way and "a few odds and
ends IN the labor situation cleared. Ms
f'nternyer viii turn as soon aa possible
10 tho financial situation. Accountants
and c1perts have been working for
weeks on hc books or big institutions.
Thc committee win show that financial
irwiut ona have been timid about In
vesting in mortgages because Of the
lavish expenditures OF the city admins
tration. which has boosted taxes beyond
all reason, aud. further, because of the
conviction that the prohteering in the
building trade, extorted by the grafters
in both labor and contracting put the
whole business on fictitious basis.
which made II unattractive, II not I'M
desirable. for investment by conservative
institutions