New-York tribune., 1922-01-23
ncc of prompt payment for mcrchan-

ancc of prompt payment for morchan-
disc"
Mr. Untcrmyer here referred to the
Metropolitan Life Insurance Company
as the only one Of the various insurance
companies that has lent any aid in
rcmedying tho housing shortage, this
company "prefcrring mortgage loans to
tho moro speculative and unstable in
vestmcnts in Wall Street sccurities.'
He showed that 54,5l7,998.53 Of this
company's $500 .53 assets were
invested in mortgage loans last year.
Tho counsel continued: 81 accordingly
placed the above outlined plan before
the officers of the Metropolitan. 1t met
with immediate sympathetic interest st'd
on expressed desire for co-opcratipn
which had expected it would, condi
toned, Of course, always OH tho ability
of the company TO see its way to SC
curing an investment that would be
sound and just to its policyholders.
which must be tho first consideration Of
the officers who arc administering this
great trust.
"Thc plan has now reached the fol-
lowing encouraging stage: Architects
builders and other arc engaged in pre-
pairing figures Of cost on an expert
mental block Of these houses They
cd upon land within radius Of from
within fifteen to thirty minutes ride
from the Grand Central Station. If
tho figures show that this can be done
on Il basis Of 6 per cent re-
turn on the Investment, after allowing
literally for depreciation. and If the
Legislature will sanction the proposed
amendment, work will be lately
begun. Meantime preparations will be
made for further units, so that if the
results justify the figures there pccd
be no further delay in completing this
scheme. 1t il hoped and expected that
Metropolitan or follow it's lead.
"Thc plan also has met with tho
enthusiastic approval Of the officials
Of the Building Trades Council and
affiliated labor organizations. They
have, With Il fine sense OF public
spirit quite in line with what | have
found to be the attitude of organized
labor in the City Of New York in its
prompt correction of abuses within It's
ranks, that have been called to its
attention by our committee, cxpres sscd
their willingness to contribute ono days
work out Of each week. or in tic
alternative 81 day from ;he standard
scale Of wages toward the realization
of this venture.
"Ilf return for this spontaneous vol
untary offer Of cooperation have sug-
gested- and my suggestion has met
with approval that every mechanic
and laborcr working on these buildings
shall have a preferential right to rent
an apartment in them, so that tho mon
who arc doing the work will feel that
they arc building houses for their own
occupation, and VIC shall, am sure. in
hot Al \
cheney that could not otherwise be
had. think I am safe in figuring
added efficiency at 20 per cent of the
labor cost.
IL am about to negotiate with the
manufacturers and dealers in building
supplies. If they viii cooperate by
reduced prices for materials for this
particular venture the plan will go for
ward, but not otherwise. If the other
companies follow along with the Metro
politan. there will be no occasion for
compelling them to invest and keep in
vested a given percentage of their as
sets in first mortgages on uncncum-
bcred improved real property. 'Tha,
will then take care Of itself. If they
do not do their share in that way they
should be required to do it in the way
OF mortgage loans to the extent to
which the Metropoitan Life has safely
and brilliantly done its part in that
respect
Pending the fruition Of his plan, Mr..
Untermyer suggested two ways in
which the situation may be mltieatod
He said that the building and health
laws should be enforced by prosecu-
ton Of existing violations and pro-
posed the authorization by the Board
of Estimate OF the employment of 200
inspectors. He suggested also that the
building laws be so amended to permit
builders to convert residences into
apartment houses under reasonable
notifications. This would provide ac
commodations for about 10000
families, he said
In criticising the Federal authorities
for not more vigorously proceeding
against combines under the criminal
laws instead of injunction ard civil
suits, he said the fault lay with Con
gress in not appropriating more money
to permit the United States attorney
here to cope with tho situation.