The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1921-01-19
WOULD COMPEL
BUILDING LOANS
Bill in New York to Make In
surance and Savings Bank
Buy Real Estate Mortgages

New York. Jan. Estate supervis
l'i ana regulation of all business and
'raoe association by Il state trade COM
MISSION, probably will be one of The
recommendations made 70 the New
York Legislature b. the Joint lcgis-
'atlve committee investigating the
"building trust"
The report will be drawn up by
Samuel Cntermyer, counsel TO the
committee, and will contain sugges-
tions for remedial legislation TO cor
rect the abuses exposed by the COM
nlttee'S probe and stimulate the
building of homes.
The committee also is reported TO
be preparing a proposal for COM
pelling savings banks. life insurance
tions over (which the state has con-
troll to invest ii larger part of thei:,
assets in real estates mortgages
Under the plans for regulation of
trade associations, bipartisan COM
mission would have power to examine
costs and to fix reasonable and fair
profits in the various industries. A
uniform system of accounting would
be required of all members Of the
individual associations.
No agreeme mt between firms or in
dlVlduals relating to trade practices
might be entered into without the ap-
proVal of the commission. For bust
ness firms TO form an association or
enter into an agreement with other
firms, without authorization, would
automatically render them guilty of
a crime.
Mr.. Cntermyer believes that some
such form of regulations should be
extended not only TO the building
trades but 10 all other forms of in
dustry, since he believes trade asso-
Citations are accomplishing in prac-
tically >every business field what has
been done in the stone, brick. plumb
ing and allied industries. Where
the element of price regulation en-
ters, it would make necessary the es-
tablishment of uniform systems of
book keeping SO that correct figures
might be obtained from which TO
study profits.
Besides the commission, it is stated
that Il host Of other regulations aimed
at abolishing unfair trade practices
will be asked and statutes will be sug-
gested to restore the free flow of open
competition which formerly prevail
ed.
Members Of the committee have
intimated that they hope the propos-
ed state trade commission may serve
as the basis for federal body of SIM
1lr xr-it
national trade bodies along the same
lines followed by the interstate COM
merce commission in connection with
the railroads.
Life and fire insurance companies
savings banks and like institutions
that are holding in trust the savings
or the people, Mr.. Untermyer de-
clares, should be compelled to in
vest the bulk Of the trust fund so held
by them in first mortgages on unen-
numbered, improved, revenue paying
property in the great cities to the ex-
tent of not exceeding two-thirds Of
the actual appraised value of the
poverty"
With the processes of the law at
tions," he added, "and the legislature
encouraging construction and at the
same time adding to the stability of
our great financial savings institu-
tions by requiring them to put the
bulk OF their new investments into
real estate mortgages, the housing
problem and the evil of rent prof.
teering would soon solve themselves"
The report of the committee will
be drafted b. Mr.. Untermyer imme-
diately after the banking and insur-
ance inquiry has been completed
This phase of the investigation will
be taken up under a new resolution
enacted by the legislature giving the
committee full authority TO make a
thorough probe into the affairs Of
the financial Orpa i'm tiopS