The New York herald., 1922-01-23
To Amend Law to Let In
sulrance Company Invest
Funds in Project. !.
HALF CURE FOR SHORTAGE
Mechanics and Similar Wage
carners to Be Beneficiaries
Of Big Housing Project.

4 definite plan for the construction
Of enough apartment houses to meet
the existing shortage-with apart
ments suitable for the average me-
chanic and wageearner and to rent
at not more than 50 a room-was out
lined yesterday by Samuel Untermyer,
counsel to the Lockwood legislative
committee on housing, before TIE
Forum Of the Free Synagogue. st.
Nicholas avenue and 163d street.
The plan involves an amendment to
the insurance law that will permit in
vestment by any life insurance COM
pany doing business in New York
State of an amount not to exceed 10
per cent. of it's. admitted assets in
tenement house property adapted to
the use or mechanics and workmen.
The committees plans call for the
construction of such apartment build
ings in large units. probably in the
borough OF Queens.
According to Mr.. Untermyer all that
IS necessary to put the plan into inime-
diatc operation and begin construction
are:
The discovery sof financial
agency or sufficient wealth. power
and enthusiasm for public service TO
make the necessary investment on
the basis OF. a 8 per cent. return.
The hearty cooperation of organ
ized labor and substantial concessions
IN the wage scale. limited. however.
to this particular project. 49,.
The procuring OF substantial price
concessions from manufacturers Of
and dealers In builders materials,
having regard to tho assurance OF
prompt Payment.
Expects Conditions to BE Met.
The first two conditions. Mr.. Inter
n1yer believes. have been or will be met.
Only the need for the cooperation OF the
dealers in builders supplies. he thinks.
stands in the way of beginning work on
All experimental block Of the proposed
five story. walkup senements OF thirty
four room apartments each.
The apartment shortage as It has been
estimated In the latest statistics OF the
Lockwood committee Is 10000. Accord
Ing 20 the plan Mr.. Untcrmyer unfol6ed
yesterday an investment of 100000. 900
will pay for the necessary land and
construction OF $500 tenement houses
of the type described. each with a 'front.'
age Of forty feet. These would house
$4,000 families, or on the average Of five
10 a family 225.000 persons, and provide
moro than half the shortage.
Mr.. Untermyer announced yesterday
that the Metropolitan Life Insurance
Company, the assets of which as OF De-
cember 81, 1921. we're $1.1t5.5S3, ,024. had
reviewed the plan and expressed de-
sire 60 cooperate as soon as the neccs-
sary legislation could be enacted. Organ
ICED labor. he said. had come out un-
conditionally for the plan and through
the Building Trade Council. with fine
sense of public spirit" had expressed
Willingness TO contribute one days
work out of each week. or 81 q day from
the standard scale. toward q realization
OF the venture. In return for this the
suggestion is mide that every mechanic
and laborer working on the proposed
new buildings should have a preferential
right to rent an apartment in them.
"In this way" Mr.. Untermyer told the
forum. the men who are doing the
work will feel that they are building
houses for their own occupation, and
we shall. am sure. gee an amount OF
added efficiency that could not other
uring this added efficiency at 20 per
cent. OF the labor COST
wouId Amend Insurance Law.
The proposed amendment 70 the in
surance law to make possible the in
vestment OF assets In such properties IS
pcrmssive rather than mandatory. Fur
tnermore. II would remain In force only
during the housing emergency In cities
of the first class, MS determined by the
Legislature. and In no event longer than
two years. The suggested amendment
reads:
Provided however. that 80 long rs
tic existing emergency in housing ac-
commoda tions Tor the workers In cities
Of tile FIRST class. as found by tho Legis-
lature. shall continue, but In no event
tcycnd two years from the passage OF
this act. Il shall be lawful fer any lie
insurance company organized under the
laws OF this state or transacting bust
ness therein. to nvest not exceedng
10 per cent. Of It's total admitted asscts
as OF December al, 1921. IN the con-
struction Of tenement houses and In the
purchase OF the land necessary there
for and TO sell such properties from
time 20 time. or to own. hold and man
yce the same and receive and collect
the income thereof: but. provided, how
ever that such investments shall be
limited to the construction OF houses
adapted to the use OF mechanics and
woikmen that are estimated 10 yield q
fair net return on rentals not 60 ex-
ceed an average Of 50 a month per
roofn."
The construction OF apartment horses
of The higher ciass--elevator apartments
renting at from $25 n month per room
and upward---Mr. Untermyer said. had
reached stage where no further slim
uistion was necessary except the. OK
tension OF the emergency rent laws.
Continued on Page Nine.