New-York tribune., 1922-02-20
Enemies TO State Measure
Declare Money Would Go
10 Western States and
Bonds Are Not Secured
10 Fight Cheaper Housing
Lobby of Protitccring Land
lords and Building Material
Men Combine Against 1t
By Denis Tilden Lynch

companies to invest in Federal Farm
Loan bonds at the hearing on the
measure on Wednesday.
powerful opposition to tho bill
has developed since its Introduction
and the opponents of the legislation
declare that the Knight bill is the big
Rest gold brick that was ever offered
10 gulliblc countryman
NOT only will the money OF the farm
s ers and other inhabitants of New York
state invested in these bonds 20 large
~ to Middle Western states. but thc
ponds are to a large extent secured
pE 1aIm implements and other perish
able chattels
inc opponents of the bill also point
out that the state farm land act on
acted IN 1918, limits the loans to real
property and is adequate for this
state or can be made adequate with
slight amendment
Another charge Of the opposition TO
the Knight bill is that, despite the pop
ular belief, the Federal Farm Loan
ponds arc not guaranteed by the Fed
eral government.
Machold to Oppose Bill
Still another charge is that the ad
ministration of the Federal farm
loans Is in the hands, for the most
part, of political sppointees, with lit
tie knowledge of bonds and mortgages.
ana that grave abuses have resulted
because of this
The Knight bill was prepared bv Ed
ward H. Thompson, president Of The
Federal Farm Loan Bank Of Spring
field, Mass, who has succeeded in haV-
ing the date of the original hearing.
set for last week, adjourned to We'd
nesday. so as to avoid "any untoward
| publicity which might occur THROUGH
some enemy of the Farm Loan svstcm
being present at said hearing"
The representatives from the cities
are Inning up solidly against the knight
6il'. Unexpected support developed to
day when it became known that
Speaker Fl. Edmund Machold, of the
Assembly, would oppose the bill
Senator Charles G.. Lockwood. chair
man of the housing committee which
bears his name, is marshaling the
legislators from the city who are prac-
tcally united against the measure
Senator Lockwood declares that f the
knight bill becomes law it VIII seri-
ously handicap the efforts being made
! by builders to relieve the statewide
housing shortage lie insists that its
enactment viii knock the bottom out
one big avenue of capital for builders.
In this he is upheld by those immedi-
ately interested in tho building indus
try.
Senator Lockwood and other mem
bers of his committee will try to open
up another source OF money for con
structing homes by permitting life in
surance companies to build apartment
houses which will rent for SO room.
| h@ M<tx.
pany is willing TO start building these
apartments in New York City if the
Legislature passes the enabling act in
troduced on January 80, and the Gov
erncr signs it. 1t has been found on
investigation that apartments renting
Tor $9 a room can be built and main
tanned at a profit in New York City
and elsewhere.
But the same underground sources,
comprised chiefly of profiteering land
lords and repres entatives of certain
fire and casualty insurance companies
whose rates are being probed by the
Lockwood committee who are using
their power here to destroy the Lock
wood committee, are now doubling their
endeavors to kill the bill permitting
life insurance companies to invest up
to 10 per cent of their assets in apart
ments to be let at low rentals.
1t is no cXaggeration to say that the
opposition to the Lockwood committee
and its legislation is the most power
full that Albany has seen in years. Real
estate spectators, gouging landlords
crooked contractors, building supply
lobbyists have pooled their interests,
and, while not working openly, are
nevertheless, making continuous and
persistent drive against the Lockwood
committee and its legislation
The profteering landlords who have
been renting rooms at eXorbitant
prices fear that the erection of apart
ments renting for 50 month a
room would result in public opinion
demanding that more stringent laws be
enacted to lower rents. The rent
gougers, whose statistical exports have
bewai}ed that the Lockwood committee
prevented them from eXacting at least
1882 900, 900 in further tribute from un-
fortunate tenants in New York City
alone are being ably seconded by the
rings Of contractors whose collusive
contracts have been rejected by public
authorities after exposure by the
housing Investigators.
Crime Wave Bills Coming Up
Not only have some of these con-
tractors and building supply men been
forced to disgorge illegal profits, but
some Of them have been sent to jail on
evidence disclosed before the Lockwood
probers.
Senator Lockwood and his associates
are preparing to move to discharge the
two fiscal committees of the Legislature
from further consideration of the reso-
luton extending the life Of the hous-
ing Investigators to March /, 1928, if
the resolutions are not reported out
en- Tuesday,
The coming week, which is the be-
ginning of the last four weeks of the
Legislature, will also witness the eff
forts of Senator Charles W. Walton, of
Kingston, to pass the anticrime wave
bills which the Assembly Codes Com
mttee killed. These bills, which in
crease the maximum sentences for
burglary, robbery and murder in the
second degree-making the latter a lat
life term--were indorsed by the State
Association of Attorneys, which is made
up of all the district attorneys of the
state and the Federal and state at
torneys.
"The opposition to the so-called anti
crime wave bills" said Senator Walton.
'is based on a Misunderstanding of
the needs of New York City and other
cities of the state. The courts should
be given power to nfict heavier
sentences on professional criminals. No
false hopes will be reused by the en-
actment of these bills, as their oppo-
nents charge. But their enactment
would strike additional terror to the