New-York tribune., 1921-06-10
Big Increases Paid by
Tenants i'm Downtown
Buildings Cited During
Prudential I'll caring
Dryden Holdings
And Banks Probed
Financiers Tell of Giving
Undesirable Properties
in Loans ; u. S. Laxity
i'm Prosecution Barred

Samuel Untermyer, counsel to the
lockwood committee, struck out into
esw ground yesterday with exposures
oil the gouging operations of the own
es. Of loft and Office buildings through
out the city. The testimony showed
thst in the period between 1915 and
this year the rents in Office buildings,
particularly in the downtown section,
had been boosted from 100 to 400 per
cent One case was cited of an in
crease of 400 per cent in one year.
In this connection Mr.. Untermyer
staged lively scene with his own
landlord, George T. Mortimer, the
president Of the corporation that owns
the Equitable Building at 12o Broad
way, where Mr.. Untermyer has Offices.
Mr. Mortimer was put through severe
grilling on the stand, the committees
counsel charging that in failing to re-
ply to the committees questionnaires
the Equitable Building Office Corpora
ton was the only institution that had
defed the committee.
Hates to Beard Landlord
Il hate to quarrel with my land
lord" remarked Mr., Untermyer, at
the close of the examination, "but l
can't have the committee embarrassed. ;"
Before going into the new phase of
the inquiry Mr.. Untermyer announced
there would be special inquiry into
Ike affairs of the Prudential Life In
sarance Company, with particular ref
erence to the "so-called mutualiza-
tions Of the concern and the holdings
0f Forrest F. Dryden, its president, in
.he various banks and trust companies
in which the Prudential has its vast
deposits"
Despite the fact that the Prudential
+ New Jersey corporation, Mr.. I'm
sailnJsr said it was important to see
aat q more substantial part of It's
money was invested in mortgage on
eTeai property in this state, in view of
he TACT that the company conducts
sne-fcureh OF its entire business in
he state of New York, wherein it has
more than 100000 policy holders. Mr..
ntermyer was instructed by the com
alttee to request the Superintendent
q Insurance for the authority to look
into the Prudential's accounts.
81. >. rails to prosecute
Referring to the transfer of the COM
mittee's activities to Buffalo, where a
weeks inquiry is to be held beginning
Tuesday, and the cooperation desired d
from both the local and Federal au-
thorities, Mr.. Untermyer attacked the
united States Attorney Generals office
for failure to prosecute the numerous
national building material combines ex-
pesed by the committee.
I'VE have been unfortunate in our
experiences with the Federal authcrj-
hes," said Mr.. Untermyer. "There
we're more than twenty nation wide
criminal conspiraeies uncovered by the
sommmittee upon which no action vet
mas been taken by the Federal au-
tnorities."
AFTER referring to the cases of the
cement manufacturers, the iron erec-
'ofS, steel companies and white lead
Spgmpahles, and the apparent lack of
seuefal attorneys to prosecute these
ssses, ne declared the situation was
not tne fault of the present Admins
tration."
in this connection dispatches from
Washington announced that Attorney
usherai Daugherty had instructed Dis
Wict Attorney Hayward here to offer
me Lockwood committee the closest
cooperation. These instructions are
Ssid 10 have been issued as the result
a. conference at Washington between
iua.sorney General Daugherty and Mr..
s~ard on Wednesday night.
Brindelps Aid Appears
n refer Stadtmuller. the aid of Robert
to,t;aa tI;alhdeil, awaiting sentence for ex-
M MSsaon, appeared at the hearing in the
pe;sssody OF Special District Attorney
@. @.sa'er and two deputy sheriffs. He
H.. b"tea TO make some disclosures about
m,. "e former labor czar, but Mr.. Inter
a;y ayer declared the committee had de-
uoed not to call him.
II "sny an OF the bank presidents called
,;.. he stand yesterday frankly ad-
aros sseo their unloading of undesirable
.opsrues as part OF loans on bor~
SsS. ssers: William E. Knox, vice-presi-
tIsaa sns q the Bowery Savings Bank, JUS
sM sIeu ms action, on the ground that
~ ae main idea was to get rid of the
yoperty and not to stimulate build :
w. Is, and that it "made no difference
ae.ner the borrower was a church or
N individual" ~
B.nomas Austin, president of the
tbis,s savings Bank of Albany, didn't
eIn eIa nuch OF the usury laws, saving,
may s Judgment money is commodity;
sny ~, Is Just as much commodity as
and osaer article, and it is for sale,
mari depends upon supply and de-
sba,1, bad. think the rate Of interest
capa;d oald be advanced to proper amount
sasiaering the market"
=, Tilt With Mortimer
n. Mhs tlit between Mr.. Untermyer and
nmoftimer came about after Louis
;sa,iey' the renting man" for the
Dis building, appeared on the
Continued en- page three)