Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1918-06-25
A Real Estate Dealer Belittles the Housing
Shortage
To the Editor Of the Evening Public Led

To the Editor Of the Evening Public Ledger:
Sr--I have read with interest Mr.. W. r.
Ncholson's. letter in your issue of the 18th
and your editorial referring to the commune
cation Mr. Nicholson's letter is correct to
a certain extent, or. probably should say,
from the standpoint Of the material man.
However, neither his letter nor your editorial
covers the question, nor do expect to fully
in this letter.
1t is partly true that trust companies will
not make collateral loans under present con-
dtions and that material houses will not give
bonds to carry out their contracts. However,
neither the trust companies nor the material
houses run any proportion of risk such as Is
assumed by responsible builder who puts
anywhere from 10000 to $4,000 Of real cash
into an operation. Many operations are not
financed outlined in Mr.. Nichoson's letter
nor do the supply houses assume a great risk
in quite proportion of building operations.
The position of the responsible builder is
this: Labor and materials are at an alb
normal figure today; more than either is
worth. A builder erecting under this years
prices Is gambling with fate and has staring
him in the face the fact that he has no
guarantee when he could complete any opera
ton. In addition. Government officials are
liable to requistion and seize en- route any
material in shipment to builder or supply
house. (The writer financed one operation
last year which was held up for three months
because the Government seized a large part
of the lumber en- route) When you consider
in addition to money invested obligations
often equal to his wealth when he under
takes large operation, 1t can be readily
perceived that few builders Of responsibility
are liable to engage in building houses by
private enterprise" under the deals handed
out to them at present.
l might add that the proportion of rent
protiteering has been small. The increases in
many cases do not equal the increase in taxes
and cost of repairs, but 1t would take
separate communication to cover this point
to. any extent. l will be glad to present the
case of the North Philadelphia brokers on
this matter to you separately
The attitude of the public and some news
papers appears to be that food. material and
wage increases are to be expected and justi-
fed. but that real estate and rents should
remain at the figure Of two years ago
The cost-plus plan of building dwellings
to house Government employees would un-
doubtedy create similar conditions of waste
and graft as were predicted when tine Ad-
ministration made its 1917 contracts. If
houses are really needed for Government
employees have no doubt that. If the Govern
ment guaranteed prompt delivery of mate
rails and an adequate supply of labor at
fixed wages, number of responsible builders
would undertake to build. Without such
guarantees few builders would even consider
the idea
AS broker familiar with conditions in
many parts of the city / am not convinced
that large number of new houses are of
paramount necessity at this time. In the
recent campaign to secure housing facilities
for Emergency Fleet employees the real es-
tate brokers furnished the corporation with
the location of several thousand desirable
rooms and apartments available. large
proportion of these were not taken prin-
cipally because there were not sufficient
Government employees to fill them. A few
days ago the United Business Mems Assoca-
ton advised the food and fuel administrators
that in the event of their removal to this
furnished