New-York tribune., 1921-01-20
Lusk Tells LockwoodCon,.
mittee Counsel Opposi-
ton to Extending Probe
Exists Only in Fiction
Meanwhile Fight
BreWs in House
Amendments to Resolu.
ton Sllorn in Secret
Meeting; Hearing Held
From a Staff Correspondent


K. Lusk, majority leader of the Senate
to-day informed Samuel Untermyer.
counsel to the Lockwood committee,
that the opposition to the proposed ex-
tension of the committees powers was
largely fiction He indicated that the
Legislature would grant the committee
all it had asked.
Nevertheless, the opposition does ex-
ist. Members of the Legislature from
upstate have informed correspondents
and members of the Lockwood COM
mittee that they had been requested
by their local banks to vote against
the proposed broadening of the in
quisitorial powers of the committee.
The fact also remains that all the
new powers sought by the Lockwood
committee were stricken from the res
olution at secret meeting Of the little
group which ran the Legislature last
year. Action will be taken on the reso-
luton next Tuesday. While no opposi-
tion is expected in the Senate, mem
bers of the Lockwood committee fear
adverse action in the Assembly.
Untermyer Only Speaker
Mr.. untermyer was the only one to
speak for or against the proposed
amendments to the resolution creating
the Lockwood committee. The hear
ing was presided over by Senator
Charles ]. Hewitt, chairman of the
Senate Finance Committee. Assisting
him was Assem- blyman Joseph A. Nc
Glnnies, of Chatauqua, chairman of the
Ways and Means Committee. Senator
Lusk and Speaker II. Edmund Machold
assisted the chairman in interrogatin
Mr.. Untermyer.
said that the housing situation was
approaching not only crisis but a
cataclysm that is going to affect not
only the morals of the community but
it's commercial supremacy.
Defending the committees proposal
to investigate banks and insurance
companies, Mr.. Untermyer declared
that the loan market was being de-
pleted so that it menaced the building
industry. He instanced the policy of
tire insurance companies in investing
their moneys derived from buildings
in stocks.
Another cause, he said. was the
heavy surtax on incomes, which is
driving wealthy individuals and big
estates from real estate bonds and
mortgages to tax exempt municipal,
state and government bonds. He de-
clared that one object of the commit
tee is to find new source for the
loan. market.
Mr.. Untermyer justified the commit
tees intentions Of inquiring into the
organization, affairs and business of
financial institutions by declaring that
the present power to inquire into the
investments of these concerns was a
dead letter unless collateral matters
could also be investigated.
High Insurance Rates Cited
He declined to state the program the
committee would pursue if the extern
sion Of power were granted. Mr..
Untermyer cited, however, one fact to
show the need of going into the insur-
ance companies thoroughly He charged
that it costs four times as much for
New York as it does in New Jersey. On
big buildings, he said, this item alone
ran into tens of thousands of dollars.
Senator Lusk declared that he was
for granting the immunity provision
sought by the committee, adding that
ne believed it would require a spe-
cial act of the Legis .ature, to be
made law by the Governors signature.
Mr.. Untermyer did not share this be-
'ief, pointing to precedent and to a de-
cision OF the United States Supreme
Court upholding the inherent right of
the Legislature to delegate to e com
mittec power TO grant immunity to a
witness.
"'Thc mistaken impression has gone
forth and ought to be corrected" said
Mr. Unte1myer in addressing the hear
ing, chat there is some latent inten-
tion on the part of some one connected
with the committee to explode the
whole financial system of the city of
New York or to disturb it, and that
under these powers it is the intention
of this committee to go in and disrupt
financial affairs and perhaps do things
that might lead to an unsettlcment of
financial conditions chat are now sutfi-
cicntly unsettled as it is.
"Of course, no such intention turks
anywhere within the boundaries of this
committee. On the contrary, our pur-
pose would be to avoid any such cata
Continued on paso fsur)