The New York herald., 1921-06-10
.UNTERMYER BLAMES
HIGH OFFICE RENTS
in House SHORTAGE
Says Money Is Attracted to
Business Buildings, In
cluding Lofts, Instead
Of to Dwellings.
WILL RECALL DRYDEN
Lockwood Counsel Wants to
Know More of Prudential's
Investments and Split
ting of $18,000,0O
BANKERS UNDER FIRE
More Facts on Coercion of
BorrOwers-Albany Institu-
ton Charges 6 p. C. Up
State, but Not Here.
BANKERS UNDER FIRE

A steady advance in rents for Offices
and loft buildings all over New York
city, in some cases as much as 400 per
cent. since 1915, was put forward yes
terday by Samuel Untermyer. chief
counsel for the Lockwood legislative
committee, as still another contributing
factor in the housing shortage.
1t was Mr.. Untermyer's contention
that the fancy rents obtained by land
lords for this class Of property diverted
money that otherwise might go into
housing investments. The lawyer put
into the record series Of tabulations,
prepared by committee accountants.
showing the trend of increases in
several hundred leases in buildings
taken indiscriminately all over the
city.
This was the first occasion upon
which the committee has gone into
this phase of the building situation,
and incidentally Mr.. Untermyer, whose
law offices are in the Equitable Build
ing, 120 Broadway, gave his own land
lord, George T. Mortimer. president of
the Equitable Office Building Corpora
ton, a bad half hour on the stand
when he accused him Of attempting to
defy the committee and Of being one
Of the few real estate concerns which
declined 70 reply to the committee's
QUESTIONABLE. Mr.. Mortimer did not
have an adequate statement showing
the increases charged for Office space
in that building since 1916. and Mr.
mittee's accountants would be at the
building Offices this morning to assist
in the preparation OF one.
Hearing Is Full of Life.
The exchanges between Mr.. Unternyer
and Mr.. Mortimer. which were marked
with no little acrimony at times. made
one NJ several features crowded into
yesterdays session.
Another was the decision arrived At
after a study OF thestestimony given or
Wednesday by Forrest F. Dryden, pres
ident of the Prudential Life TO delve
GNtil utfptf lillO llc dilfHE VI Alifl III
stitution. and also OF Mr.. Dryden's per-
sonal holdings In various financial In
stitutions, which Mr.. Unterrnyer holds
are profiting handsomely through act
ing as repositories of the PridenualA
funds.
In this connection Mr.. Unternyer got
the committees authority to request the
State Superintendent OF Insurance act
ing under the power vested In him by
the Legislature, 10 cooperate with the
committee In an independent investiga-
ton OF the Prudentials activities In
New York State. Mr.. Untermyer let II
be known that he was not finished with
his examination of the president OF the
| Prudential and that he would 90 further
to prove his belief that the mutualiza
ton OF the company In 1915 was In
reality no naturalization at all. but In
reality move by which the stockhold-
ers tapped the company's treasury for
SIS 900 000 which they could not have
received through dividends and at the
same time have retained control OF the
company.
uutermycr Tells of Plans.
on this point Mr.. Untermyer said
"In connection with the preliminary
examination. Stlll unInlsneus cL MI
Dryden. I want 20 say that have gone
over the data I'm the hands OF the COM
mittee especially as TO the holdings Of
Mr. DRYDEN and those connected with
him in various banks and trust COM
panies that have the deposits OF the
Prudential Life Insurance Company
and I'm connection with the scheme OF So
called naturalization. and II will be
necessary before resuning the taking OK
Mr. Dryden's testimony TO have some
further investigation. and / will ask the
committee to request the superintendent
OF Insurance to exercise the powers
vested in him under the law 10 permit us
to participate in examining into certain
OF the transactions OF the Prudential
Life Insurance Company, which IL con-
ducting one-fourth OF its entire bus-
ness in the state OF New York. having
now upward of one million policy holders
ia this state. whose fortunes are vitally
concerned in the affairs OF the Prudential
Life.
you will observe that although the
scheme OF naturalization contemplated
ma king this mutual company IL ap
paars between the lines Of Mr.. Drydsn's
testimony that there Is q small amount
OF stock outstanding. and that he
qualities these directors by stock hold
ings to become directors, apparently on
the contention that since there Is out
standing stock. which Mr.. Dryden is
holding out. the stockholders of the COM
pany have q voice In the affairs Of the
corporation. and Il seems to my mind
that II nullifes the naturalization scheme
except 70 the extent that s1S.o0o,ooe
have been taken out OF the funds OF the
Prudential Life. What the policy holders
have thus far gained by that Is little
difficult 20 understand.
The housing problem is very closely
tied up with the affairs of these great
life insurance companies especially in
the relation to their investments. And
as this company now has something
! over 500. 900. 900 Of assets and has
about one-fourth of its policy holders