Untermyer, Back from Rest, Will Go Direct to Washington

Samuel Untermyer, noted New York attorney and president of the Non-Sectarian Anti-Nazi League, who yesterday returned from a lengthy vacation in California on the S.S. Santa Rosa of the Grace line, will leave today for Washington, where he is to appear before a Senatorial Committee on the pending Stock Exchange bill and in order to acquaint himself with the situation in regard to the rumored trade pact between the United States and the Nazi government of Germany.

In a pungent statement issued to ship news reporters who met him at Quarantine, Untermyer sharply criticized the state legislature for not passing the economy bill proposed by Mayor LaGuardia; attacked the state superintendent of insurance for his handling of the Mortgage Guarantee legislation, and assailed former city officials for their incompetence and extravagence in dealing with the rapid transit situation.

“I regret to find that the City’s urgent financial problems, the most threatening of which was postponed when I arranged the agreement with the bankers that averted default upon its obligations, remain unsolved,” Untermyer declared. “I had assumed that the Legislature would do its part toward permitting the economies set forth in my report to the Board of Estimate and allowing new forms of taxation there suggested. I am 100 per cent in accord with the mayor and the enactment of his economy bill.

“The dog in the manger attitude of the Legislature is simply unbelievable. Every concession forced from him is at the expense of the city credit. He must have the power asked by him. The men in the Legislature who are hypocritically arguing for home rule and are responsible for this political bedevilment and for playing ducks and drakes with the solvency and progress of our city should be called to a rigid account.

“I don’t care to which party they belong. If our memories were not so short and our citizenship were more reliable, our public servants would not dare betray us after this fashion. The Mayor is a brave fighter and a tireless, intelligent worker. I am against surrender or compromise.”

DISCUSSES MORTGAGES

Answering questions as to what he proposes to do about the Mortgage Guaranty litigation and legislation in which he is concerned as council for bondholders and certificate holders, Mr. Untermyer said; “I have, of course, kept in close touch with that unfortunate situation that has been so hopelessly bungled and worse by our thoroughly honest, well-meaning but incompetent superintendent of insurance, and am satisfied that the sooner he and his influence are eliminated from the picture the sooner the problem will be solved.

“I am as much as ever opposed to the Alger plan and legislation. It is high-handed and ignores the rights of certificate holders. They should be allowed to manage their own affairs. All they need is to be let alone to work out their problems with the aid of the courts.

“If there must be legislation, the Desmond bill comes nearer a solution. When we reflect upon the hundreds of complicated railroad and industrial reorganizations that have been put through without appeals to legislation involving in all millions of holders. thousands of millions in money, without turning our backs upon the courts that are constituted to deal with just such problems, The Alger plan looks like a gratuitous impertinence.

TO CONTINUE FIGHT

“From time immemorial the function of appointing trustees has rested with the courts. Now it is proposed to be taken from them for some undisclosed reason, and at the same time the owners of the properties concerned are to be deprived of their legal rights and put in swaddling clothes under cover of that dangerously abused word “emergency.” Not without a fight to the United States Supreme Court, so far as I am concerned, if the security holders take my advice–I want to find out whether there is a constitution or are any property rights left in this country. Between the courts and the security holders I think the latter can take care of themselves without foreign interference. I shall also advise appealing the Schakno decision to the United States Supreme Court.”

Asked about the transit situation and the prospects of unification, Mr. Untermyer said: “I have repeatedly said that there can be no unification at this time and have given my reasons. When the Interborough was plunged into receivership without rhyme or reason I said it was solely in order to get out of the Manhattan lease.

“If the City or the Transit Commission had then intervened and fought the receivership as I then advised, the present situation would not have arisen.

“I am relieved to learn that at last, and let us hope not too late, Judge Seabury has given and the present Board of Estimate has adopted the advice and warning I repeatedly gave the former Board of Estimate and the Transit Commission to intervene in the Interborough receivership case in the Federal Court and to bring suit in the State Court to prevent the disaffirmance of the Manhattan lease. “It was high time. I had the papers in both those proceedings actually prepared for service over six months ago, but could get no action, due mainly to the influence and had advice of the then Corporation Counsel.

“I hope Judge Seabury will have better luck. The action should have been, and I am told, has at last been taken by the Transit Commission. That is the logical body under the contract. It was only when it could not he induced to act that I appealed as a last resort to the Board of Estimate. If the City’s a fraction of the skill and ingenuity as those of the private litigants opposing it, our taxes would be many percent less than they are. The extent to which we have been crucified in the past by incompetence, extravagance and worse, if known would make the angels weep.”