New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1922-06-16
1850 Families
To Get Homes
h AT 50 a Room
"A Housing Apartments Are
planned in Long Island
\ CITY. Metropolitan Comp.
+ roller Tells Committee
Evans Admits Big Profits
Fire Insurance Official Tells
Of Selling Undcrwriiien
. Stock TO His Companies

-, Metropolitan Life Insurance
,-,,,y', plans for solving The hous-
,-obler and the transactions O.
,,,ursnco company officials where
,s,v derive great profit from par
...,,ire IN underwriting syndicates
.,,,oeks IN which their companies in
~ - bot Lost heavily were subjects
.,-s before the Lockwood legis.
80, oamittee yesterday.
- Evans, president Of the Coz
=. Fire Insurance Company, an
,s..,-,n Of the boards OF directors o.
~. ydelity and Phoenix and tho
,.,,,sn Eagle FIRE insurance com
..i,,. vss the leading witness Of the
az .o.
- ,,ser FIRE insurance company lead
-, lad collected Fat sums for under
...,i,r stock syndicstes, large bundles
:, ,,,sritiss Of which had been dis
- Of 70 the insurance companies
~ vs,eh these men had been asso-
80 but which the companies later
80 sell al great loss. With regard
-. ~, such operation. where 1t was
100 tha. Mr. Evans had prohtcd
...ss-9 4 developed that the three com.
- which he virtually controls mad
=. 200 on the securities. This
~. s-,i,,ed by Nr. Evans on the wit
a. ,sircle instance, however, the evil
.,-,s showed that stock purchased by
-, rsrpsrics under similar circum-
.r,-,es proved profitable.
- lorsing data were given 20 the
...~,,.se hv Walter Stabler, comp
,,,isr OF the Metropolitan Life com
80 He told the committee that
80 from the housing shortage would
g, .gbt by next fall and not later
s..a wear. basing his opinion on the
.,~,ls.ed plans Of his company Tor
.,.5,rr $4,000. 1000 70 $1,0O0,00O 20
I.,.-rs. fftv model tenement houses
..ogsers and Astoria. These houses are
i rrov.de quarters for 1850 families
= mental Of not more than 81 a
- The contracts for the houses
ne u, last Monday, II was said, but
's-s,rue,ion Will not be begun until
es rr.,e Of materials, particularly
Ir,s. has come down.
NOOOOO,oOO To BE Spent
Tie .foiect which il believed 70 be
re as, move Of the company in pro-
rrsm Of building calling for the eX-
wrdjturs Of SiOO.O00.O00 as authorized
r-Sera recent enactment Of the Legs
i,sfe. includes tho erection OF thirty
81 houses on three full city blocks IN
is.e Island City. seven minutes from
Gu,s Central Station, and fourteen
~, on q block in Astoria, about a
rr-.minutc ride from Times Square.
" house will contain thirty-nine
r-ner's.
Ren Mr. Stabler said that the
ra.est concern is being felt for the
IN Of brick Mr. Untermyer said ne
v's,d arrange for the company 10 get
r brck for Sl4 thousand before ne
kt TO- Europe tomorrow. The pres
~ operation, said Mr.. Stabler. would
require 100000 bricks. In connection
With rs other housing interests, MI
stab'er said that his company had lent
1881 $50 20 stimulate housing IN TINS
tty since February, 1920. and more
Han slOO0OO,000 all over the country.
Don't you think that in one year
he housing problem IN this city ougnl
% be fairly well solved 90 asked Samue
'ntermyer. the examining counsel fol
hc committee
Perhaps il might be solved by this
all. Mr. Stablcr Observed.
Won't increased interest in the KING
4 building you propose solve the pioh
en- In q year under existing circum
tsnccs?" asked the counsel.
NO" said the witness, because
here arc too many high-priced apart
rents being constructed.
Predicts Lower Rents
NJ. Ultermyer inquired If the cree
,on Of this type Of apartments would
70. tend 20 bring down the rents IN
ether kinds and Mr. Stabler said II
would
In statement made public by .he
architects of the building operation,
Andrew J Thomas and d. Everett Wa.d,
the contracts for the initial operation
have been let 20 Henry c Irons & Sons,
l0l Park Avenue.
M Untermyer explained he was tax
ing Up the fire insurance deals because
be wanted 20 show the necessity for
placing the same restrictions upon the
took operations Of the fire insurance
companies as those that exist with re-
ipect 20 the life companies.
H. . N.sN k~N rHar
Eloduced az the last session and
kied 20 pass from lack Of time or
t1sr causes" said Mr.. Untermyer. re
Es,ing the investments OF fire insur-
i,;e companies 70 the character OF IN
,s,ments now held by life insurance
tSpsries and for the purpose OF
nvng the evils thereof 10 the next
~siature ] desire 10 introduce this
tisnee.
What we are proposing 20 show in
-. connection is substantially TINS:
s'f these fire insurance companies
" securities that their own ofneeIs
r.sswrtc in syndicate; that the ON =
rs get writing commissions, and tnat
e Insurance companies get the secur-
s' upon which there have been large
knts.'
Tells of Stock Disposal
,lltton P. Olcoit, in charge OF the
fteisate department Of Dillon, Reed
Co., offered the first testimony on
V POINT In connection with the syn
ysa,rg Of Si7.5OO,O00 worth Of stock
~ tie Steel and Tube Company OF
As'ea in 1918, he said, Of which Mr..
seas was one Of the underwriters,
q TIE lstter's companies took 1000
sr'.' another 1900 shares and the
~ Uhtermyer offered data showing
81 t-5O,00O Of the stock held by the
-.hental Fire Insurance Company
Desember 81. 1921, had decreased
S~9i On market value. The Fidelity
=. Phoenix had s25O.O00 Of the same
- On December 81, 1921, which de-
Go s536s2 in market value. The
r..,ean Eagle Compsny's 100000
49, Of stock had decreased on the
~ cafe fZf 1t7 N 80 iuo