The Washington times., 1917-05-02
REALTY MEN GASP
AT BONE DRY THREAT
Estimate $S,OOO,O0O in N. Y. HO-
tel Property Would Suffer.


movement in the National Capital
within the past two or three days has
gained momentum and has recruited
powerful governmental forces in its
support, the situation is making Ssw
York interests take notice.
Naturally, the distilers, brewers,
and the retail liquor dealers were the
first to grasp the full threat OF the
movement. Now real estate men have
started to take out their pencils and
paper and have done some figuring.
They estimated yesterday that in tax
able hotel and restaurant real estate
alone in New York city more than
$500, ,OOO, 900 worth OF property would
be directly affected by any drastic pro-
hibition measures.
Real estate men say that millions of
dollars would be lost through the clos
ing of saloons throughout the city
and in decreased rentals from hotel
and restaurant property. Not even
residence property would escape, for
nearly 10000 wage earners who oc-
cupy flats and dwellings hroughout
the five boroughs would feel the effect
of having their incomes cut OF.
Eject On Tax Rate.
Back of the thought of all this loss,
however, is another which seems to
impress the average real estate man
even more. Prohibition would cut off
nearly $4,000, 900 in excise taxes
which go far toward paying a good
many city debts. without this income
and no suggestions for any new
sources to draw from real estate own
ers can only look forward to a tax
rate which will be ruinous to good
many. With assessments reduced on
every property in which liquors are
made or handled, the AK rate would
have to be doubly increased to supply
the money necessary for city pur-
poses.
Real estate men have been talking
for a long time of the possible effect
Of prohibition because they expected
IL sometime in the future, but they
felt reasonably confident that the
brewing and distilling interests would
shut down gradually and their proper
ties would be absorbed by other in
dustries. Under such conditions they
expected no great upheaval in the
real estate world.
Now they face the prospect OF nav
ing nearly $3.50, 100000 Of real estate
thrown on the market for sale ana
rent without any great demand Tor IL
Nearly 1000 stores, most of them
corners. would be for rent and prices
would drop to such an extent that
store values everywhere would be
shaken.
Total Not Guessed.
That would mean loss Of rental val
ue and corresponding loss OF fee value.
What the total would be nobody dares
estimate, but every one in the real
estate world is convinced that 1t
would make such a hole in the assess
ed value of city property that the
city would be left with debt Tar
and above its legal limit
Representative of some of the large
brewing interests estimated yester-
/ day the average rental OF corner sa-
/ looms at 5000 a month. For other pur-
poses they said, the same stores would
/ average about $3.50 a month, but that
il would take ten years to fill with
other businesses those buildings now
occupied by liquor dealers. In most
cases. too. liquor dealers occupy
apartments above their places OF ousi-
ness which would be vacated with the
/ stores.
That 35 per cent of the value of
property comes from a saloon on the
ground floor was the estimate OF one
/ man who has made a specially Tor
wears in handling that grade OF prop
erty.
Losses on Breweries.
What the loss would be on the nifty
breweries and distilleries Of Greater
New York is difficult to estimate.
The buildings themselves are con-
vertible to other uses and probably
would be taken without great loss
by other manufacturing interests.
/ The extensive and valuable machinery
IN them would be a total loss. Few
/ OF the breweries occupy land OF great
value and in some sections the re-
/ movaI of such structures or their re-
placement with better class struc-
lures would cause an appreciation in
surrounding districts which would
about offset any loss TO the city.
Surprising as II may seem, most OF
/ the real estate men with whom the
/ subject was discussed yesterday
! thought that the contemplated action
/ Of the Washington authorities would
| be a splendid thing, but they hoped
/ that the ST. te and municipal authori-
! ties would find some means OF trans
| ferring the tax burden Of the liquor
people to some other than REAL estate
! owners.
Many Of the best Informed res
/ taurateurs on Broadway predict that
more than so per cent OF the res
/ taurants will go out OF business i'm
mediately il Congress decides the
country shall be dry. Hotel pro-
/ prietors, while little more optimistic
! about their own business, feel that
their profits will be greatly reduced
and as a consequence the values Of
their property prOportionately af-
fected.
Proper restrictive measures, they
say, can purge the liquor business OF
its most Objectionable features and
| give to the whole industry a new lease
| OF life. Leading in this movement
are the New Lork Hotel Mems AS
/ sociation, which has come out
/ strongly in support Of the Emerson
/ Brown bill that will probably be con-
/ sidered at Albany tomorrow.