The New York herald., 1921-06-27
UNTERMYER'S PLANS
DIVIDE COMMITTEE
Lockwood Housing Probers
Not United on Wisdom
of Proposed Laws.
LOBBY SURE AT ALBANY
Even Members on Fence as
to Dispersal of Fire In
surance Profits.
uSURY REPEAL DOUBTFUL
May Rely on Meyer Inquiry to
Deal With Grating in
City Contracts.
uSURY REPEAL DOUBTFUL


legislative committee investigating
housing, only one day out on his voy-
age to Europe, rumblings of dissen-
ton among members of the committee
already were being heard yesterday.
These have not yet assumed definite
form, nor are they audible enough to
determine just how deep the rift may
be. Yet they are such as to indicate
aggerated in his own mind the degree
Of unanimity with which the commit
tee members will support his various
recommendations when they appear as
proposed legislation at Albany.
For instance, Mr.. Untermyer, in a
closing statement, strongly urged the
immediate repeal Of the usury laws, on
the ground that they were obsolete.
that money was a commodity and it's
value regulated by the law of supply
and demand. 1t is known that Senator
Lockwood and a majority Of the COM
mittee do not agree with his view.
They agree with him that the spirit of
the law is freely evaded by the simple
process of borrowers incorporating,
but hold that the repeal of the existing
laws would aggravate rather than re-
lieve conditions shown to exist in the
mortgage loan market.
Another point upon which Mr. INTER
myer was most emphatic was the urg-
ing Of legislation that would compel
the income derived from the enormous
surpluses which the State law requires
they shall keep for emergency pur-
poses to reduction of premiums. Mr..
Unternyer holds that this income. which
In the case of ten or a dozen of the
large companies doing business in New
York State amounts to $1.000.o0o a
year. actually belongs to the policy
holders-not the stockholders.
May Form Powerful Lobby.
This is one Of the points also upon
appointed by the insurance companies
unable to agree. On the contrary, they
announced their intention of fighting
such proposed legislation to the limit
Of their resources. They feel that such
legislation would be only a forerunner
of more which would have for its OBJ
ject the compulsory distribution at
periodic intervals of the reserve funds
themselves.
Representa- tive insurance men see in
Mr. Int v-s1
wedge for government control OF their
enterprises to a degree beyond any,
thing vet in force. THE NEW York
HERALD has been informed that this
legislation. IL introduced. will be op-
posed by the most active and power
full insurance lobby Albany has seen
In a long time. And powerful lobby
will mean divided sentiment among
members of the committee. to say moth
ing OF a division on the floor of the
Legislature.
Mr.. Untermyer has also recommended
sweeping investigation into the whole
conduct of fire insurance companies,
their rates, investments, surpluses, &c,
along the lines of the Armstrong com
mittee's investigation OF the life insur-
ance companies that resulted In Charles
p. Hughes being elected Governor OF
New York. In the private sessions the
J.
absence the wisdom of recommending
such an investigation in the near future
will be debated. Ii has been discussed
already. but only In an informal way
and such views as members expressed
have been tentative merely.
II IL fact. however. that while some
OF the members are anxious to see such
an investigation undertaken others hold
that IL is beyond the function of a
housing committee to make any such
recommendation, even in the face of
evidence of stock gambling and security
juggling by the stock fire companies.
Divided on City Contracts.
Another subject upon which the com.
nlttee is not unanimous is Mr. Inter.
myers recommendation for a change of
the law regarding city contracts that
would permit the city to take over a de-
faulter's subcontracts Instead of auto
matically releasing the subcontra ctors
only to engage in new contracts at
greatly increased figure as was done I'm
the case of the Cumberland Street Hos
pital.
The matter OF city contracts Is one
which some of the members believe will
be gone into pretty thoroughly by Sen
ator Schuyler NJ. Meyers committee.
On this matter the political lines OF
TIC NtW Il oth CITY members OF the
Lockwood committee are more clearly
drawn than appearances at the public
hearings would indicate
On other points, such as legislation af-
fectfng the rate making organizations
In the fire insurance business; vesting
In the Superintendent of Insurance and
In the courts the power Of review of
rates. which the Insurance men have
agreed TO support, the committee ls In
general accord.
II Is unanimous also In It's desire 10
enact such legislation as will assure the
admission of mutual companies to the
New York field on an equal footing with
the stock companies for the establish
ment of minimum and maximum rates
between which competition must be free.
and for legislation governing the pro.
portion OF assets stock Are companies
must invest In mortgage loans.
During Mr.. Untcrmyer's absence many
Of the points open to argument will be
debated by the committee members in
private sessions. Mr. Untermyer will
write his full report during his stay
timent of individual members on the
debated points will not be expressed un-
I'll his report Is before them
Meantime. subcommittee will conduct
side Investigations into building condl-
tions in Rochester and Syracuse. about
which scores OF complaints have been re-
ceived, particularly since the commit
see's investigation of conditions In Buf-
falo.