The New York herald., 1921-01-12
FEAR UNTERMYER
WOULD GO TOOFAR
IN WALL st. QUEST
Albany Legislators Ready
to Curb Lockwood Power
in Airing Finances.
NIGHT HURT BUSINESS
Probers Not to Be Hobbled on
Housing, but Cannot Go on
Into Money Hunt.

Special Despatch 10 THE New yoaK HEn,rp.
Albany, Jan. III.
New York Herald Bureau,
The Legislature Is not going to turn
Samuel Untermyer loose on Wall Street
for any kind of an investigation he
wishes to make of the financial inter
ests.
The leaders have not determined
fully how far they will go in hobbling
the Lockwood committee. They con-
ferred tonight trying to find a way
out of an embarrassing situation. The
Legislature does not want, at the
very opening Of the session, to be
placed in the position of halting the
investigation in New York. Yet the
decision as it now stands is that the
committee cannot have the authority
it asks.
Protests are coming from the finan-
cial institutions which Mr.. Untermyer
insists must be investigated. The
State Bankers Association also opposes
broadening the committees powers to
inquire into fire and life insurance
companies and savings banks.
The organization leaders decided to-
day not to hold a public hearing. stat
ing that If they were to do so Mr..
Untermyer and his hackers probably
would appear in such force that they
might break down the resolution of'the
Legislature to limit the inquiry.
While only few moves have been
made in the open. ii is we'll known here
that behind the scenes there IL going
on one of the most terrific battles Al
bany has witnessed In years. as the
financial representatives fight to block
the committee.
Present Plans Of Leaders.
At present the programme is UNDER
stood to be as follows:
Amend the resolution presented by
the Lockwood committee so that 1t
applies only to an investigate of
financial institutions In their rela-
tion to the amount of money invest
ed in real estate mortgages.
Strike out all the general clauses
providing for a wholesale investiga-
tion of financial institutions. their
conditions and activities.
Eliminate the demand that the
committee shall have authority to
grant immunity TO all witnesses
summoned TO testify.
The leaders say that IL they should
pass the resolution as II stands the
Lockwood committee would have even
broader powers than did the Armstrong
committee. of which Charles E. Hughes
was counsel and whose investigation
turned the financial world upside down.
The members Of the Lockwood commit
tee declare that IL the resolution now
before the Legislature Is emasculated,
as is proposed. the investigation might
as we'll stop. They can get all of the
information available under the amend
cd resolution. they say. by simply APP
plying to the State superintendent OF
Banks and Insurance.
To turn Mr.. Untermyer loose for an
other Armstrong or money trust in
vestlgation at this time would be the
height of folly. conservative financiers
have warned the Legislature. They have
told the leaders that such an excursion
at this time might readily accentuate a
The financial interests protest that
the Lockwood committee is asking too
much. They admit that without doubt
some institutions have been caught
with securities which are away low and
which are not an good as real estate In
vestments In present market conditions.
Other institutions may have Withdrawn
from the mortgage. loan market. they
admit. and put out investments in call
money and fly by night building invest
ment offering quick returns.
See Damage I'm Furore.
But even allowing for some such i'm
proprieties the bankers say that the
general condition OF the institutions IL
wholesome and that TO start n great
furore over the relatively small irregu-
larities might be damaging to the whole
financial situation. The public would
suffer eventually and housing would
not be benefited. they insist.
Senate and Assembly leaders have
received numerous demands for public
hearing on tho Lockwood resolution.
mostly from individuals who. impressed
by the work of the committee insist
that nothing shall be done TO sidetrack
Il until It's work Is completed.
The sentiment OF the legislators Is
understood to be strongly In favor of
letting the committee and Mr. Inter
myer 20 AS far as they like in dealing
with every phase of the housing prob !
lem and take the position that they are
not blocking the inquiry or doing any
a. t., Inf ttrffb yl htffl