The New York herald., 1921-06-25
UNTERMYER URGES
LAWS TO REMEDY
HOUSING SHORTAGE.
Prison Sentences for Price
Fixing, Regulation Of Fire
Insurance Rates and
Usury Laws Repeal.
PENAL CODE REVISION
Life Insurance Companies
to Be Compelled to Invest
in Mortgage Loans on
Real Estate.
REFORM CITY CONTRACTS
Lockwood Committee Counsel
Reviews Evidence-Receives
Daugherty's Pledge of
Cooperation.
REFORM CITY CONTRACTS

In a comprehensive survey of the
testimony before the Lockwood legis-
lative committee on housing since 1t
reconvened last spring Samuel Inter
myer yesterday outlined the 'legisla-
ton that he believes necessary to
remedy existing conditions. Mr.. In
termyer made his statement just be-
fore the committee adjourned for the
summer and after he again had
Charles A. Peabody, president Of the
Mutual Life Insurance Company, on
the witness stand for two hours.
Mr.. Untermyer sails for Europe to-
day aboard the Olympic. and while
abroad will write the committees for
NAL report to the Legislature.
Late last night Mr.. Untermyer re-
ceived a telegram from Attorney Gen.
eral Daugherty which led him to be-
leve that the original programme of
criminal prosecutions, possibly in addi-
tion to many civil actions, will be car
ried out by the Federal Government.
said:
Just received your letter OF the 23d.
We are conferring with Col Hayward.
who Is here to-day, fully regarding
the matter and are undertaking to Sc
cure the assistance necessary for him
to proceed on behalf of the Govern
ment.
I'VE do not Intend 10 limit our ac-
uvities to civil procedure. notwith-
standing the rumors you have referred
to in your letter.
"I am wiring you instead of writing
In order that 1t may reach you before
you sail"
Mr.. Untermyer said last night that
he was greatly pleased to know that re-
ports which he had heard. that the Gov
ernment would not undertake criminal
prosecutions. was untrue. He said that
the Attorney General. as long as he ad-
heres to his intention Of prosecuting the
cases criminally. would have his full
cooperation and assistance. In his rec
concentrations Of needed legislation Mr.
Untermyer had vigorously assailed Mr..
Daugherty for the latter's reported in
tention Of proceeding only in civil courts.
and said that II the Attorney General
did that he would soon have his house
"alI about his ears"
Outline Of Reforms.
Mr.. Untermyer's outline of reforms he
believes necessary to meet existing condi-
tions includes notifications of the laws
regulating the activities of fire insur-
ance companies and putting the power
Of rate review In the hands Of the
Superintendent OF Insurance and the
courts. In addition, It includes sug-
gested changes in the penal code in the
ordinances governing city contracts. in
the Investments of life insurance compa-
MES. savings banks and other financial
institutions and In usury laws
The testimony OF President Peabody
OF the Mutual Life yesterday was in
tended to amplify what he gave on
Thursday. Mr.. Untermyer stressed the
failure of the Mutual Life to rid itself
of the remaining 1000 shares of stock
Of the New Haven Railroad still on
hand while the price was far and away
above what the stock calls for now. Mr.
Peabody replied merely that had he
been a prophet he might have done bet
ter.
The Mutuars president and the COM
mittees lawyer continued the oral spar
ring they began on Thursday. Once Mr
Peabody, after being admonished by As
semblyman Thomas Mcwhinney. prom.
ised to ''be good" and said to Mr.. Unter.
II will go on when I get ready to &c
on" Mr.. Untermyer retorted with some
heat.
"oh. very WELL" replied Mr.. Peabody
but II 10 getting late and the steamer
goes tomorrow"
Mr. Untermyer confronted Mr.. Pea,
body. who several times had challenged
the pertinence of his examination 10 the
housing inquiry, with an accountants
statement showing that while the Mu.
tuai Life Insurance company's assets
had increased approximately 800. .000..
900 since 1906. the amount OF its invest.
ments In mortgage loans for the same
period had decreased. Mr.. Peabody said
he had no explanation to make, and thai
the situation required none.
Peabody Blame Legislatton.
Mr.. Peabody gave the committee the
benefit Of some of his own views. He
thought he knew what was the matter
with the housing situation and suggest.
ed that much Of the trouble lay In the
legislation that was passed and resulted
In driving money from real estate in
vestments.
Mr.. Peabody was not sure whether tho
surtax on large incomes had the effec,
Of inducing wealthy men to invest theii
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