New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1916-12-31
Rising Tax Rate and Fund
ed Debt of City Are
Two Of Them
VIEWS OF PRESIDENT
OF REAL ESTATE BOARD
Adds That Sound and
Broad Trading Cannot
Now Be Long Sustained
By LAURENCE INQUIRE

president Of the Real Estate Board
10 may be fairly said that during the
last two years the country has been en-
joying the greatest era Of prosperity IN
its history. Throughout the recent po-
ltcal campaign many arguments were
advanced in an endeavor to show the
causes Of this national wellbeing. It is
true that the dominant political parties
and their standard bearers were far
from agreeing az TO these causes, yet
an agreed that the country has been,
and is now, prosperous Beyond expec-
tation.
TO what extent has New York City
real estate shared in this unprecedent-
Cd prosperity? It may be that the
present is an unfortunate time TO at
tempt an answer. Real estate, 10 IS
conceded, is the last form of wealth TO
feel depression. and likewise the last
% recover The question naturally
arises as 10 whether or not we have
entirely recovered from the conditions
Of three years ago. | would say that
the recovery has been only partial and
~ no wise proportionate TO other
branches Of investing and speculative
business. There is now and has been
abundant mortgage money. Soon there
must be even more TO be invested. This
would ordinarily mean an active specu-
lative market. But until such time as
appraisers generally are willing 70
take a more optimistic view Of New
York's real estate future there can be
no pronounced activity.
Renting Conditions Never Better
Renting conditions throughout the
whole city have never been better than
this fall. There has been, and there is
now. great demand for Office space.
There never has been greater demand
for living apartments. Thus one is JUS
titled in saying that renting conditions
have been and are all that could pos
sibly be desired.
With ample mortgage money and
with most properties well tenanted,
what is the obstacle TO a sound and
active market? Is IL because Of the
ever increasing tax and the many con-
ficting and burdensome demands made
upon owners by the various municipal
and state departments? There is no
doubt that the conservative investor Is
more frequently concerned with the
future than with the present. 1t is
wiser 10 portray even an unpleasant
future than TO continue 10 abide in a
FOOLS paradise.
The funded debt Of the city has
reached the enormous total Of 81 $780,
l39,9s61l, exclusive Of revenue bonds,
an increase Of S7S0,OOO,000 in the past
ten years and greater than the ma
tional debt by S400,000,O00. This debt
is constantly increasing. The increase
in the cost Of city government may,
perhaps, be best understood by going
back ten years. At that time the total
budget for the greater city was Sis
650552.0S. In 1917 the debt service
alone reaches the alarming total OF
S56,5522 $50 all Of which is for inter
ost-and the total budget without
direct state tax. for which last year the
city paid approximately $4,000 900, is
S2l1 900 600. Realizing that the tax
burden on real estate has more than
doubled I'm approximately ten years, is
it possible that investors are looking
ten years into the future and seeing a
tax rate Of per cent or even higher?
This is a reasonable expectation if it