New-York tribune., 1922-03-06


The report continues;
The same point Of view seems to
ercva.l with the Federal judges. There
ia no hope OF compelling obedience TO
these laws or ef enforcing them so
long as the courts adopt this sttitude.
State Attorney General Newton ard
United States Attorney General
Daugherty are praised goT their efforts
II aiding the committee IN the proseeu
.'on OF v;oiators Of the antitrust laws,
nut the report points out that unless
Congress apcrcrristes the mcney asked
~ the Depart INT OF Justice TO carry
CT the prosecution Of She building in
3ustry men who coRsplre in restraint
Of trade, the committees efforts to
solve the housing problem will be great
y hampercd.
The state lawmakers are further in
formed that the legislation compelling
insurance companies to invest UP to
30 per cent Of their investshlc funds
10 first mortgages will not only stirau-
,ste building, but will protect the tire,
casualty. 'ideli,y, surety, public liaoi'~
ty and plate glass insurance com
panies from their own directors, who
now invest their funds without any
supervision by tire state. This. how
aver, Is net true OF the life INSURANCE
companies, whose funds are carefully
Sa!cgusfGed by law.
Some OF these unreguluted insurance
companies, all OF whom derive large
source of their incomes from dwellings
and business buildings, directly or M
directly are putting their money into
speculative stocks,
Cite Losses of Tno Risk Companies
I've FIRE insurance companies ere
cited as typical OF this class Of insur-
snce companies, the Home Fire lnsnr-
ance Company which nust not be con-
fused with the Iion'c Life Insurance
Company, which is not mentioned in
.he repart3 and the Continental fire
Insurance Company. The former n
fvs-year period. the Lockwood COM
Inittee charges. lost over and above
Profits on its stock holdings S1,l6o,-
SCI. which consisted OF gross losses OF
s2.ls7.555, less profits of sl.o9l,7Ss. 7 he
skrinaage during the fTe-year period
ended December 81 1920, showed net
nook loss OF sl.753,5 54e. making grand
net loss end net decrease for the period
Of S2,s1a5f2 psst OF this shrinSage,
Of course. has been recovered by IN
Yesses IN prices, but no part Of the
estimated net loss or sales has been
or car be recovered
Respecting the withdrawal OF the
re insurance Attilo'A4NSs "'S'' We -
ception or so, from the mortgage mar
ket. the report finds that while It vas
osrtly due to the large amount THESE
concerns invested during the war IN
subscribing to the vsrious Liberty and
Victory loans, these concerns were also
Influenced in great part by induce
rents ard temptations brought about
BY the high rate OF interest obtain
sble on railroad and industrial bonds
ant y
Somc of the life insurance companies,
the Yeport charges. were found to
nave called in their mortgage loans,
thus adding TO the decentralization and
d;scouracement of the real estate mort
gage r,afAet
Savings Banks Investments
The same vas found to be tfuc of
sorie OF the banks. While il is pointed
out that savings banks on an average
invest 70 per cent Of their deposits in
mortgage loans, some Of them indl-
vidualiy average SIS low as 20 per cent
Of their deposits in this class OF Sc
curitjes, which, the committee declares,
IS rot only gilt edged, but one OF the
pest ebtainabe.
The committee reports that the
housing famine in New York City, with
lts shortage Of upward Of $4,000
apartments Oh ti4G CiicGptt tAl4tt Wi44tC
more acute in the metropolis than else
where, is fairly typical of conditions
n all the cities of the state ard nation.
This condition, made possible by the
criminal combinations spoken OF, has
been taken advantage Of by organized
gangs of professional rent protiteers-
sharks the committee characterized
1hem-who have succeeded in thou
sands of cases in evad!ng the rent
.nws by selling apartment houses to
one another, each sale being for a
higher paper value than the preceding,
for the purpose of establishing ic
titious values.
These wash sales of apartment
housee. so that rents may be boosted
20 unjust and cxorbitant heights, have
assumed the proportions OF Yecog-
nised industry, the report adds.
The tenants are at the mercy OF
these sharks, the committee finds, be-
cause experts called by the proiteer-
ing landlords TO prove the fictitious
vs1ues set upon the apartment houses
a,e necessarily owners, agents or hrok-
srs OF real estate, most OF whom are
ranged on the side OF the rent gouger.
Bill to Thwart Rent pro6teers
For this situation the committee pro-
poses bill making the assessed value
of the property the value OF the invest
ment.
Several chapters O: the report, which
IS volume ef 257 printed psges, are
devoted to the criminal consp.,acies IN
the building industry disclosed by the
committee, which had engaged for years,
unmolested, in prohteoring restriction
Of competition, price liking aud similur
abuses,
The report charges that there is a
perfect monopoly of the chief items EN-
terng into building construeti ion--lime,
brick, plaster, sand and cement.
The most fragrant Of these mcnopo-
lies, the report holds, is the cement
trust, or. as il is officially known. the
Cement Manufacturers Association.
The committee charges that this organ
l4ation maintains famine market for
cement By refusing dealers more than
fifteen days supply on hand at one
time, and forcing builders 20 return
al cement not used on the work for
~hich it was bought, thus preventing
surreptitious accumulation of cement.
There are nineteen firms in this
group, whose aggregate business is 5o,-
100000 barrels year.
/ Lead Manufacturers Combire
According to the report another big
Ecembinstion is the American Institute
Of lead Manufacturers. which was or
gained four years age, ard whose
members contyol go per cent OF the
int F., II