New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-06-25
Unter1nyer
Urges Probe
OF Insurance
tcosslnued from pasc scs,

tcosttnssd from page ese,
legislation should be enacted requiring
certain financial institutions to invest
proportion of their assets in rea.
estate loans. Future investments of
these companies in other securities, he
thought, should be limited.
With respect 60 the suppression of
the criminal combinations infesting
every department of the building in
dustry, Mr.. Untermyer decried the
handling of these offenders with kid
gloves, insisting that "the antitrust
laws are criminal statutes and should
be enforced as such by prison SEN
tences.''
He recommended at the same time
that there should be laws enacted by
the Federal and state governments
permitting competitors to enter into
associations and agreements for CO.
operation, but only under the most
rigid supervision. Every such associa-
ton, he suggested, SHOULD require
governmental sanction for its exist
ence, and any person or corporation
that is connected with an association
or becomes party to any arrangement
that has not received such approval
should be subject to criminal action
and punishment.
He RECOMMENDED further that both
The state and Federal laws should be
amended so that on conviction the
court will be compelled to impose
prison sentences and shall not have
the power to suspend sentences.
There should be legislation, too, he
lection in the matter of contracts
The penal code should be amended,
he said, SO that to the people might
be given the same right of appeal in
criminal cases as is possessed by de-
PENDANTS.
Usury Law Repeal Sought
In view of the large field of gilt
edge securities paying and 8 per
cent, and in many cases free of govern
nent taxation. he advocated the re-
peal Of the usury laws as to loans OF
and upwards, in the same way as col
lateral loans are now exempted.
Mr. Peabody said on the witness
stand that he thought the housing sit
uafion was becoming less acute, and
that he made this observation on the
basis Of "the powers of observation
that the Almighty has given me-" He
said he did not know that DR.. Royal
S. Copeland, Commissioner Of Health.
had scid that the increase in the death
rate here was due to the crowded con-
ditions in the tenements-
He admitted the increase in popula-
ton and that the housing construction
had not kept pace with this Increase
MIR. Peabody explained that he
thought the housing situation was the
! s'result of legislation which has been
adopted, which had driven capital from
real estate to great extent, ! call it
legislation which confiscates part of
she value Of the property"
Mortgage Loans By Mutual
He insisted that since the housing
situation arose the Mutual had in
creased its mortgage loans. AS against
this Mr.. Untermyer pointed to the re-
duction by the company Of it's mort
gage loans, $50, 00O, 900 between 1911
and 1919, while its assets increased
$97, 000, 900, and the purchase in this
period of $63,00o,000 worth OF bonds,
and asked if that was helping to stimu-
late housing.
Mr.. Peabody did not believe that life
Insurance companies should be CON-
PEELED to keep portion of their assets
invested in real estate mortgages, hold
ing that investments made undar com
pulsion tend to affect the investment
market adversely to the interests of the
investor.
~You mean," inquired Mr.. Inter
myer that the competition would re-
ducs the rate of INTEREST,""
To which Mr.. Peabody replied, "Yes.
Mr. Peabody then admitted the trans
action wherein Ephraim Levy had to
take seventeen parcels of property from
the Mutual as part Of q loan of $1,400,-
coo. The Mutual head said that he
didn't think Levy could have got the
loan 1t he had not taken the property.
Are you willing to extend loans at
per cent, asked Mir. Untermyer, with
out requiring borrowers to take cafs
and dogs off your hands?"
When money is worth per cent "a
replied Mr.. Peabody, az am not willing
TO make loans at per cent. 1t is D
commodity, like anything eise.n
Witness Opposes Questions
From the very beginning of the ex-
animation Mr.. Peabody took exception
to certain of Mr. Untermyers ques-
tions.
"What has that to do with housing %,
he inquired, time and again. When the
question of the Illinois Central stock
possessed by the Mutual came up, and
Mr. Peabody again asked the question,
Mr. Untermyer replied:
LAC 4AiiAOiS oeutIdl SECURITIES &IG
held in vast amounts by the Mutual
Life Insurance Company. There are
losses on Illinois securities that might
and should have been sold and the
money put into mortgage on real
estate. It is the purpose Of the com
mlttee to show some Of these prac-
tices and the way they came about as
. basis for recommendation to the
Legislature"
Repeated arguments followed, with
Mr. Untermyer insisting that the wit
ness answer questions "instead of max
ing speeches and criticisms"
All right, go on" finally came from
MIR. Peabody, an be good"
do not think it is possible" re-
marked Mr.. Untermyer.
Don't be satirical" and "this is not
the place for frivolity" were other adj
monitons to the witness when the
latter became humorous.
Mr.. Peabody insisted that he had
some understanding with Mr.. Inter
myer IN the matter of the submission
OF q statement, which Untermyer de-
MED, but said the witness could make
any statement pertinent to the test
mony. Mr.. Peabody appealed to the
CHAIRMAN for hearing, and finally
MIR. unterrnyer suggested that he 30
led from the stand by the xerpeant-at-
arms.