New-York tribune., 1921-01-26
Resolution on Housing In
quiry as Reported to Leg
islature Cripples Com
mittee, Senator Declares
Refused Right to \
Investigate Banks
Only Additional Authority
Provided Is Immunity to
Witness, Chairman Saws
From a stof Correspondent

ALBANY, Jan. 25.--The resolution
broadening the powers of the Lock
wood committee was reported out TO-
day by the Senate Finance Committee
and the Assembly Ways and Means
Committee with most of its teeth ex-
tracted.
Senator Charles G. Lockwood. chair
man of the committee, said that the ac-
ton of the Legislative finance bodies
crippled the committee. He declared
that the biggest work that the COM
mlttee intended to do could not be
done, because of the emasculation of
the resolution, and that as conse-
quence the housing situation in New
York City would grow worse.
Senator Lockwood said that it was
imperative that the committee be per-
mltted to make sweeping inquiry into
the affairs of insurance companies, saw
lngs banks and other financial institu-
tlons so as to prepare legislation for
the creation of an easier market for
mortgage money.
The amended resolution reported
to-day by the Senate Finance Commit
tee, by vote Of seven to six" said
Senator Lockwood, "cripplcs the work
of the joint legislative committee on
housing.
Going to Continue Fight
LAS l have said, we are badly GRIN
pied, but we are going to continue the
fight. The only additional power given
US is the immunity clause.
"The committee sought to do three
things:
"first, to meet the crisis existing in
April and September, 1920, it advocated
the so-called rent laws, the passage Of
which prevented thousands of evictions
and curtailed rent protiteering.
second, to expose the unlawful
combinations which were preying upon
capital and. labor alike, thus addinn
from 20 to 200 per cent to the legiti.
mate cost of building materials. This
work is well under way and has re-
suited in many Indictments and some
pleas of guilt. 1t is hoped to complete
it within few weeks.
"Tnlld, to ind a loan market so that
mortgage money would be available at
reasonable rates. The housing crisis
can be solved only by the erection of
more houses. They cannot be built
without mortgage loans The Federal
and state income laws have made real
estate mortgages an undesirable in
vestment for individuals and estates
We hope to show that mortgage monev
could and should be obtained from the
corporations who are favored by the
state and Federal tax laws and in
whose hands interest on mortgage
loans is exempt from taxation. The
amended resolution in a large measure
prevents the committee from pursuing
TINS line of inquiry which, after ali
Is the most important of the three"
Immunity For Witnesses
The amended resolution, however
empowers the committee to grant i'm
munity to witnesses. With this new
weapon at his disposal, the committee
expects , to get to The bottom of the
building graft
Senator Lockwood has no intention
OF letting down on his demands for
the full quota of powers his committee
asks. He is determined to make a bit
ter night for permission to investigate
insurance companies, savings banks
and other financial institutions.
Senator Lockwood regards as the sad
dest blow dealt the committee the
elimination of the seemingly innocuous
phrase ain it's judgment" The. quail
! fication occurred in clause permit
ting the committee to inquire into any
thing which in its judgment affected
building in New York City. The elimi-
nation of the phrase will mean, accord
ing to Senator Lockwood, that those
who are trying to keep the committee
from exposing conditions can go into
the courts until they have buried the
committee under a mass of litigation
The amended resolution strikes out
the proposal that the housing COM
mittcc may requ sit on the records OF
the State Banking and State Insurance
| departments to aid it in it's investiga-
tion of financial and insurance cor
! no ro tionS