New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-06-25

lie into the feeling of false security
that the housing problem is being
solved or that it is as yet very far on
the way to solution.
Result Of Comm-ssee's Work
"rhe most salutary single thing thus
lar done to stimulate building beyond
breaking up the combinations of cor.
rupt labor leaders, and still more cor.
rupt employers to maintain excrbitani
prices for building materials, and be.
yond the attempt to create loan mar
kct, has been the enactment of the law
permitting the exemption Of new build
ings from taxation for ten years.
1--WE have overwhelmingly established
by the mass Of statistics gathered from
all sections of the country that over
a long term of years, and year by year,
mortgage loans on real estate have
proven the most stable, conservative
and Nthe best income paying invest
ments of these institutions.
1.-THE abuses that grow out of prac-
tees exposed, together with the better
and safer returns from mortgages and
real estate are all material to persuade
the Legislature Of the wisdom of our
recommendation to require these com
panies to invest substantial per
centage of their future reserves in
mortgages on real estate, and to pro-
hibit them from hereafter continuing
their past and present practices with
respect to the use of the funds that are
In their keeping and in which they are
not supposed to have any personal in
terest or benefit. On the whole, have
seen enough to satisfy me that some
of these companies require thorough
investigation which is not, however
within the jurisdiction of this COM
mittee.
"What shall be done to suppress and
rid ourselves of the criminal combina-
tons that are found to be infesting
every department of the Building In
dustry?
"Until within the last few days sup
posed that comprehensive program
for instituting and pressing the prose
cutions Of these combinations had now
been arranged with the Department OF
Justice at Washington. After seven
months Of anxious waiting and con-
tinual disappointment we had reached
the stage of mutual helpfulness and CO.
operation. have, however, heard
within the last few days that the policy
on which we were supposed to have
agreed is to be radically changed, but
am still hoping that it is not true, us
cannot be made party to any such
camoufiage.
United States Action Termed Farce
cit is now said that the campaigr
is to be opened by civil suit in equity
10 be fled against the cement manu-
lecturers, or some ofher company, ms
the outcome of the disclosures oil the
criminal operations Of these prosperous
business highbirders- Such action at
this time would be Il CHASTITY farce
There Is already one such suit agains ST
these gentlemen pending in the Fed.
eral Court IL New Jersey, where it has
been peacefully sluM barring for eighteen
months.
"The defendants should BIZ this time
have been placed on trial. There is
nothing the matter with the case, ex-
cept the chronic procrastination OF gov
eminent bureaucracy and red tape. A
suit in equity now, when these mer
should be facing prison sentences
would be travesty Of justice. II
would mean the indefinite sidetrackins
Of the trial of the indictment. l shall
protest against this plan to paralyze
the results Of our work just as hare
and loudly RS know how.
"There are at leass twenty-five seu.
arate nationwide combinations in thu
building trades, involving 1850 or n1ors
individuals and corpo rations, that will
have to be prosecuted. This would in
volve the setting up Of q separate de.
partment with an Independent stat IN
der Colonel Hayward.
"As to further state prosecutions, az,
engagements have been made with tn;
state Attorney General for such prose
cutlonS based upon the TESTIMONY take1
blythe committee. AS result of con
Ference with the District Attorney Of
Erie County, preparations have been
made for the prosecution of number
OF the combinations that were found
to exist at Buffalo, some of which are
statewide.
"F the courts, however, follow the
last precedent set in New York City
the public will get little relief from
suits. Or applications for injunctions
in any OF these cases, as ridiculous
temporizing. The antitrust laws are
criminal statutes and should be en-.
forced as sucn by prison sentences.
Plan to Stimulate Trade
"Those that are now operating il
and their members punished by i'm
prlsonment. AT the same time we must
lind a way by which competitors may
enter into associations and agreements
for cooperation, but only under thc
most rigid supervision and restrain,
by Federal and state authority. NY
own thought is that we should recon-
mend the enactment of state law on
these lines, and should prepare a like
bill for the consideration Of Congress-
State action alone will not materially
relieve the situation
Every such association should re-
quIre governmental sanction for its
existence, and any person or coruora-
ton that IS connected with an asso-
clation, OF becomes a party to any
arrangement that has not received
such approval should be subject to
criminal action and punishment. That
is my first proposition.
The second proposition is this: That
both the state Law and the Federal
law should be amended so that on
conviction the courts will be compelled
TO impose prison sentences and shah
not have the power to suspend sen
fences.
1.-THE people of this country nav
about SS50,010,O00 year in prsmiu IS
for fire and marine insurance, of which
the great bulk is paid for fire iusu--
aRee- The business has grown to be-
one OF the most complete and opures-
save monopolies ever known, but ! be-
l1eve this condition is nearing an end
THE offense was SO plain on their
own confession that they have been
compelled to accede to the demand Of
this committee that they break up these
monopollas- They have also agreed to
support legislation by which the rates