The New York herald., 1921-01-13
LOCKWOOD LOSING
HIS CONTEST FOR
INCREASED POWER
Inquiry Unlikely Into In
surance Companies and
Savings Concerns.
UP TO COMMITTEES
Albany Resolution Expect
ed to Be Stingless When
Reported Out.
ALARM HERE SUBSIDIES
Revelations Over Loans and
Bond Transactions Said
to Be Feared.
ALARM HERE SUBSIDIES
Special Despatch to TIE NEW YonK HERALD.
New York Herald Bureau.
Alhany Inn 10


New York Herald Bureau.
Albany, Jan. lie.
With the announcement tonight
when the Legislature reconvened, of
the makeup of the Senate and Assem-
bly, finance committees the Lockwood
committee had another severe setback
in its fight for authority to extend its
investigation in New York to cover all
insurance companies and savings in
stitutions.
The lobbies representing the finan-
cial interests are boast,ng tonight
that the resolution presented by Sena-
tor Lockwood, seeking broader powers
Is in safe hands. Word was flashed
to New York that there was no cause
for alarm.
The resolution rests with the Finance
Committee In the Senate and the Ways
and Means Committee In the Assem-
bly,. They said the sting would be
pulled from the resolution before IT
was let out of committee.
Senator Charles J. Hewitt is chair
man Of the powerful Finance Committee
of the Senate. Other Republicans desig-
mated to this committee are Nessrs.
Thompson, Lockwood. Walton. Towner.
Davenport. knight. Gibbs. Carson
Eaumes. Robinson and Lrsk. The Demo
cratic members are Boylan. Twomey and
Walker At least ten members of the
committee are said to be dead se'
against the proposed investigation.
Lone Victory for Lockwood.
The only victory scored to-day by the
committee was the appointment OF SEN
ator Lockwood to the Finance Com
nlittee The interests made hard figh'
against him. but he demanded the desig-
nation as his right because of length OF
service. lie at least can wage his fight
on the inside. bot his friends say they
fear il Is hopeless from the start
Assemblyman McGlnnies won the
chairmanship Of the Ways and Means
Committee in the Assembly. Speaker
Machold Is understood to be opposed tc
turning the legislative committee out on
a Wholesale hunt for wrongdoing In the
financial world.
Fire insurance companies took the
lead to-day in the fight TO block the
Lockwood committee. Facing a stub.
born contest at every step. Sanue
Untermyer. and Senator Lockwood kept
up their struggle and made little head
way. The fight was all carried on under
cover.
l. 49, al lt,p
will be done by either House this week
Mr.. Untermyer urged that public hear
ings be held on Friday ty the Finance
and Ways and Means committees. Tn,
leaders decided against IL and agreed
to postpone all action until next week
Only few members Of the committees
will remain here after tomorrow. Mr.
Unterrnyer will be here on Friday 70
appear before the Court of Appeals IN
the Brindeli case, but will flnd none
OF the lawmakers ready to meet him.
Opposition to the proposed inquiry
backed by powerful financial interests.
Is making headway The threat that
a wholesale investigation OF financial in
stitutions might start serious trouble Is
having Its effect
Rumors Join with Opposition.
The Are Insurance companies never
have been subjected to a State inquiry.
When the Armstrong committee made
It's investigation only the life insurance
corporations were covered. 1t IL re-
ported that the FIRE companies have
been involved In heavy Wall Street
transactions OF late. One report Is that
a big company was factor In the
sugar cane corner recently and escaped
lust In time 70 save itself when the
market broke. This probably would be
brought out II the Lockwood commit
tee were allowed free action
A few OF the larger savings banks
are encouraging the investigation. others
are loud In their protests. The bond
transactions OF some OF the smaller saw
Ings institutions arc said to be ques-
tionable. According to one report. rela-
t,yes OF officials In at least one OF the
savings banks succeeded In unloading a
large pmount OF bonds for which he
was sales agent
Largo sums Of dcpositors' money In
savings banks and In reserve funds Of
insurance companies have been used TO
back certain construction companies In
New York. Il was stated. Only the
buildiux concerns thus favored with ac-
tual financial connections have been able
TO obtain loans on real estate. II was
said.
The investments have been restricted
mostly to Office buildings. The smaller
builders nave had no chance to get
money. This ls said by members OF the
Lockwood Committee TO explain the fig
ures which on their face show relatively
large investments in real estate mort
cages.
Senator Lusk issued the following
statement:
$50 FAR as have learned. In talking
With members Of The Legislature. there
ls a unanimous sentiment on their part
90 continue the Lockwood Committee
Continued on Fourteenth Page.
..IIAyANa SPE6IAL," Only Direct Throush
Inc