New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-03-01
TAX BILL AROUSES
MUCH OPPOSITION
Opinion OF Real Estate Man
on the Herrick-Schaap
Measure.
BY JOHN EINCk.

The Ucrrick- Schaap bill, now before the
Legislature. which proposes TO halve the
tax on buildings and TO put the burden
on vacant property, has gained such I'M
petus that. unless decisive action is taken
in opposition TO the measure, II may make
hcadway and bring us to the danger point
of rea lIZation Whether this or similar pills
which have threatened us for the last rev
wears are the creation Of wild theorists.
faddists. or worse. yet we must reaiiZe
that il is condition and not a theory
that confronts us.
Bills cxemptinG buildings from taAatioh
have been before the Legislature Tor
many years. and of late have gathered
strength sufficient 10 awaken the alert
into a realization Of impending danger
There can be no referendum 20 the people
for the reason that this is social ana
economic problem, difficult. and requiring
expert knowledge as 10 conditions. IL
referred TO the voters it would be treated
as a political question. and iniiamed dem
arogHcs would incite the people into a
belief that the increase in building opera
tions will tend to lower rents. and that
will prove a strong incentive to procure
siton is apparent to the student OF eco
nomics, yet the cry Of lower rents VIII
appeal amazingly TO the average toner
and secure his vote without much fur-
thor deiibcraton.
Tho present law Of taxation shcun
stand until we secure a more sausfactoiF
substitute. and in this connection II Wou'o
| he well for us TO consider some othcr
modes OF collecting revenues besioes
gathering o. per cent Of our taxes rom
real estate.
If vacant land is 10 bear the burden VI
taxes. il would be impracticable for OWL
ers TO permit land TO be vacant ana wait
for the natural growth Of value. AS a
result. there would be overbmldin6 anu
| many vacancies. In the course OF seFeI"l
wears. with vacant land plenthulIy l"-
proyed. building operations would cease
and the market become glutted with va
cant structures.
There can be no demand created Tor
| rentals. II is purely a question OF poPu-
| lation. and wherever the population IL
strongest. rentals will be largest. 1he
demand for houses is limited to popula-
| ton
| rf vacant land were to bear the burden
| NJ taxatiou il would lead to complicated
results. The owner who bought lana III
| cood faitb. only 20 find himself confronted
with <new laws. practically amounting 10
confiscation. might invoke tho ohl'eu
States Constitution and allege the I'M
pairjng Of the obligation OF contract
Owners of land would be confronted Viii
fine option either TO build or suffer d
ruinous taxation. The object OF taxation
should merely be to obtain revenue Tor
governmental purposes, and nothing mas
been suggested which would indicate mat
the. bin is framed for such purpose.
There are many properties that at the
present time are not capable of improve
ments being either too far from the linz
of transit or else being in sections TOO re
mote for immediate development.
| Again, there are few owners VINO nave
sufficient money TO build on their own
| initiative and with their own resources.
They must necessarily apply TO some
lending agency, and if an investigation
| is made and a neighborhood IS not rlpe
for Improvement. or If the section Is over
| built and Ito let" signs much I'm evidence,
| then will IL be difficult to obtain n bulc-
ing loan. Lenders will not loan on prop
critics that cannot find ready tenants, and
overproduction is sure to cause this
result. Every one acquainted with the
real estate situation knows that builders
and investors need no incentive for the
erection of buildings other than the
chance OF profit.
Even If the Improvement Of vacant
property will yield work 20 the many We
must. however, remember that this is only
temporary relief and when the boom
has reached it's utmost limit as 1t must
| in the course OF a few years, and finally
collapses, then will there be sudden ces-
sation of building, and owners Will be
embarrassed with a large number OF
houses and a still larger number OF va
cances.
There will necessarily he a large depre-
citation in values, and owners VINO have
| toiled for years TO secure their poses
/ sions will ind themselves unable 10 ar
range the mortgages necessary TO carry
their holdings and, as a result, will lose
their little all"