New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-06-25
Sweeping Inquiry Asked
for Companies Alleged
to Have Used State OFF,
cials as Rubber Stamps
Peabody Ousted
During Hearing
Daugherty Wires Crimi.
nal Action Will Be Ia
ken Against Combines

The completion Of the examination of
Charles A. Peabody, president of the
Mutual Life Insurance Company, and
a summing up of the work of the Lock
wood committee with the constructive
suggestions for the more permanent re-
lief of the housing situation by it's
counsel, Samuel Untermyer, marked the
suspension yesterday of the commit
tees investigation until the fall.
Mr.. Peabody's examination was once
again matter of running tilts and
clashes with Mr.. Untermyer, the lively
give and take affair winding up with
the suggestion by Mr.. Untermyer that
"the sergeant-at-arms had better escort
Mr.. Peabody from the witness chair"
Mr.. Peabody then left the stand and
went out of the hearing chamber fol-
lowed by the sergeant-at-arms.
Insurance Inquiry Urged
In recounting the work of the com
mittee and submitting his recommends
tions for proposed legislation asa cor
rective of the evils exposed by the in
vestigation, Mr.. Untermyer pointed par
ticularly to the practices of some of
the life insurance companies, declaring
he had seen enough to satisfy him "that
some of these companies require thor
ough investigation, but which was not
however, within the jurisdiction of the
committee"
In this connection he asserted that
"the companies are SO powerful and
their legislative agencies SO active that
scme of the superintendents Of insur-
ance have been rubber stamps to re-
cord the will of the companies"
Mr.. Untermyer also attacked the re-
ported plans of the Department of JUS
tice to begin its drive against the ma
tion-wide combinations by civil suit in
equity. He said he would not be made
party to any such camoufage; that
such action would be "ghastly farce
and that "it is just this sort of soft
pedaling and pussyfooting in pretend
ing to pursue the big, powerful fellows
for violating the antitrust laws that
has brought us to our present deplor-
able state, where these men have al
most gotten beyond the reach of the
law"
Untermyer Issues Warning
81 hereby serve notice." he went on
con the Department Of Justice that if
it. be true, as currently reported, that
they intend to fiddle with this grave
peril while the people of the country
are being day by day worse exploited
they will have the house tumbling over
their ears before they get much fur
ther on that line"
Later in the day Mr.. Untermyer re-
Fol +n1n /
torney General Daugherty:
Gust received your letter of the 23d
We are comforting with Colonel Hay
ward, who is here to-day, fully regard.
ing the matter of undertaking to Sc
cure the assistance necessary for him
to proceed on behalf of the government
"We do not intend to limit our activ.
tiles to civil proceedings, notwithstand.
ing the rumors you have referred to in
your letters. am wiring you instead
OF writing. in order that it may reach
you before you sail"
1t is understood that in the face o1
this telegram Mr. Untermyer will give
the Attorney General his aid and CO.
operation in legal action taken against
combinations by the government.
Mr.. Untermyer preceded his summing
up by announcing that the four fire
insurance exchanges in the state, which
include almost all the big stock com.
panies in the country, had modified
their regulations in accordance witt
his recommendations and had alss
agreed to support legislation for the
further supervision of their business
AS it is, he said, competition in the
fire insurance business now has beer
restored.
He declared that the housing situa
tion was far from being solved, an;
that the most salutary single thing
thus far done outside the breaking ur
of combinations and prosecuting cor
rupt labor leaders was the enactmen,
of the law permitting the exemption q
new buildings from taxation for ter
years.
He said the exposure and correction
of irregular practices by officials o.
large financial institutions should i'm
prove the condition of the mortgage
loan market. The testimony ha;
proved, he asserted, that mortgage
loans are the most profitable and stable
investments, in the long run, and thai
CONTINUED ON page sour)