New-York tribune., 1921-01-20

strophe, either at this or any other
time"
Mr.. Untermyer then explained the
four differences between the resolution
under which the committee is now act
ing and the resolution to which he was
speaking.
Points Out Handicaps
"The first" said Mr.. Untermyer, "is
to make it clear that the powers of
the committee embrace not only resi-
Dental housing but all manner of
building construction, because we
found in our investigation that some
of the legislation on the books stimu-
lated Office building, which was subject
to no restriction, at the expense of
residential building.
1.-THE second amendment we ask con-
Germs the immunity to be granted in
the discretion of the committee to
witnesses. That was also in the reso-
luton in September, and its need was
made very apparent as the investiga-
ton proceeded. We were unable to
get the evidence that we needed in
some cases because Of the absence of
that immunity provision.
I'VE were met by witnesses who
availed themselves Of their constitu-
tional privilege. Of course they had
that privilege. We could not take it
from them except through this resolu-
tion containing immunity power.
"This is a rather unusual form of
resolution and an unusual form Of in
| quiry, because you notice we are to
inquire into the existence of illegal
combinations; and on the fact of it
witness who appears connected with
one of those combinations is before q
legislative committee specifically direct
ed to inquire into illegal combinations,
and unless we can offer him immunity
we are very greatly handicapped in
exposing this illegal combination as
basis for the constructive legislation
that we are hoping to be able to sub
NIT to the Legislature.
NOW, before come to the main pro-
visions of the resolution there is one
call the fourth. which calls upon
the superintendent of ins Arance and
banks to give US such data as are in
his possession and the use of his staff
within reason. They are giving us the
use OF parts of their staff and they
are giving US certain data.
"The Superintendent of Banks, who
has been a great aid to us and has
been most cheerful and diligent in
! his assistance to the committee. appre-
bends that it is his duty to withhold
j. certain information. In me informa-
tion we have asked for is that of SAL
aries of certain presidents of financial
institutions. He says ne is not allowed
to give us that, yet we will want it.
Outlines Housing Situation
"Now I take it that if there is any
thing here that is Of substance or sup
posed to be of substance, it relates to
the. provision permitting the committee
to inquire into the organization affairs.
business and investments Of the finan-
cial institutions. The resolution as it
now stands enables US to inquire only
into the investments, and think
shall show you that you cannot in
quire into the investments without
power to go further, because that is a
subject that cannot be cut off and
properly investigated without reference
to the standing and conditions of the
financial institutions in question.
at is important to know something
about housing questions, and if I can
have your patient consideration for a
little while, l would just like to briefly
outline our present situation.
"It is desperate beyond description
1t is growing more desperate all the
time We are fast approaching not
only crisis, but a cataclysm that is
going to affect not only the morals, but
the commercial supremacy Of our com.
munity.
"Until the income tax law was passed
a large part of the money that was
needed in connection with the loan mar
ket was furnished by individuals and
estates as we'll. That source Of supply
is cut off by the income tax law, be.
cause the estates engaged in that sort
oe investment are calling in their mort
cages by the millions.
eve are confronted with not only th'
probability, but the possibility, o.
wholesale foreclosures. The effect O
that comes along gradually. You dom
see it at once. 1t is quite natural tha
these estates should withdraw thei
money from the loan market, because i
they have to pay from 40 per cent to 6,
per cent, by way of income tax, i
leaves from 2.60 per cent to $40 pc
cent. net return, when they 60 into tn
market and get tax-exempt city an
county bonds that yield from per cen
to 5 u per cent.
! Mr.. Untermyer then launched into