New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1918-06-02
Suburban Homes
Co. Report Shows
Landlords Duties
-
What Once Was Called
Paternalism Now Factor
for Efficiency
Shows Way for Others
IL
Trust IT Land Ownership Must
Be Administered for =
Public's Benefit r
Shows Way for Others

ne duty OF the landlord to his ten
ant, especially in these days when the
increase in living expenses az we'll as
the cost of labor and material places
unusual burdens on both. is emphasized
in the annual report and statement of
earnings of the City and Suburban
Homes Company, issued yesterday by
Its president, Allan Robinson. X
The statement recites that for 4he
landlord as well as the tenant the war
closing in April last was one s,of
anxiety. The cost of the labor and ma
terial which go into the MAINTENANCE
and upkeep of the City and Suburban
model tenements rose to unprecedented
heights. Coal not only scared in price,
but was unobtainable in the coolest
weather, and taxes increased to she
point where land ownership became
liability rather than an asset. Rents
were raised throughout the city from
~ to 30 per cent, but in many cases
this represented what the landlords
could get rather than what they really
needed to meet their heavier expenses.
The City and Suburban Homes Com
pany increased its rent on an average
OF 4 per cent, but does not intend
to make any further increase.
TO supply its tenants with heat the
company used So tons OF coal a tfay.
With the exception of Only four days
It gave all its tenants heat throughout
the famine peuod. and during these
four days still maintained the hot VA
ter supply. To compensate them for
the lack of heat it allowed a rcbatelbf
ten cents day on rent to each Ten
ant fog each of the four days. -
Duties of Land Ownership
sit may be said" continues the
statement, that what we are doing7in
the way Of service for our tenants
amounts to paternalism, and perhaps
that characterization of it is correst
to-day. Fifteen years ago it would
have been paternalism 10 do what the
United States Steel Corporation is now
doing in welfare and safety work for its
employees. What was paternalism then is
now considered factor in efficiency
as well as duty imposed by society
The recognition of the duties of lind
ownership has not kept pace with the
recognition of duties Of ownership in
certain other fields of industry Gnd
If our service is paternalstic to-day
we are quite willing to pursue the even
tenor of our way, entirely confidant
that in the not far distant future she
path this company has blazed Will be
followed by landlords generally,
whether they want to follow it or not
at is inevitable that, with the awax-
ening of public consciousness to The
vital Importance of decent housi. =
accommodations, the trust, which go
| ciety permits the owners of land.
administer, will be continued in sccn
owners only so long as it is adnisn
istered for the public benefit at ress-
enable rates for the use of the capital
invested"
The company not only met it's diyi-
dend requirements and all other
charges. but increased the reserve For
reproduction of buildings to slz6,-
S49.27, This reserve has been accumu-
lated in the last two and half years
under an amortization plan which pro
vides for the reproduction of the com
pany's property when it is economi-
cally dead. 80
Provides for Reproduction -
If the reproduction cost of the
buildings is 100000 and the mort
gage debts $2,500,000, with interest at
per cent, there Is appropriated each
year for the reduction of the mott
gage debt 100000 out Of net earnings.
This is for period of forty-five years.
After the first year the amount of in
terest saved ON prior appropriations
is added. In thirty-six years the entire
mortgage debt of $4,000 900 is lieii-
dated and in that year sinking fend
of sS4,918.S9, which represents the
excess Of that years appropriations
over the amount needed to wipe cat
the last vestige of mortgage debt, ia
established.
The next year the sinking fund re
ceives from net earnings a basic pay
ment of $4,000, and also from net
earnings all the interest which has
been saved by the extingushment of
the mortgage debt 1t also receives
the interest which has accumulated on
the amount deposited in the sinking
fund the year before, so that the whole
amount available for appropriation. to
the sinking fund in its second year
is S146,32l.35. This process continased
for nine years will produce SINGING
fund securities to the extent of ST.
665, 1852 y
In the forty-ffth year the company
will have its land uneueumbered aud
cash in bank amounting to more than
$1.600000 with which to tear down the
economically dead buildings and start
new ones. AS each new buiidingsis
erected, a mortgage is placed thereon
until the sum total Of the mortgages
is $4,000, 900. This with the sinking
fund, $l,600,000, gives more than xhc
$4,000000 necessary to replace the
buildings originally valued al that sum.