New-York tribune., 1919-05-26
MAYORS Committee, After
Investigating 10000 Com.
plants, Reports Profiteer.
ing Actually Exists
Building Plan Launched
CITY and Suburban Homes
Company to Sell Stock for
Erection of New Homes

Gambling in leases by combinations
of spectators is agg1avating the nous
ing crisis, according to Walter S. Ken
nedy, Assistant Corporation Council,
in report on the activities Of the
Mayors Committee on Rent Profteer-
ing. forwarded yesterday to Senator
Charles c. Lockwood, chairman of the
Joint legislative committee investi-
eating ice and housing conditions here.
1.-THE rapid changes in ownership"
Mr.. Kennedy reports, "based upon ar
bitrary valuations, with constant in
creases of the purchase price of real
estate, involving sales and transfers on
fictitious values. cause every changing
speculator to choke the last dollar out
Of the tenant. When no other method
is left these swindlers conspire by
means of fraudulent conveyances to a
lessee who is used simply as tool to
lay on the straw that breaks the
camel's back"
In discussing the work of the COM
mittee, Mr.. Kennedy says that 10000
cases of alleged profiteering have come
under it's notice, Is per cent of which
have been arbitrateu through its me-
dation. A majority of the other cases,
he reports, are pending.
Police to Report on Survey
The police survey of housing or
dered by Commissioner Enright at the
suggestion of Chairman Hirsch of the
Mayors Committee will be completed
and the returns reported by to-day,
Mr.. Kennedy announces. The returns
will deal with the number of vacant
apartments and dwellings and the fla
grant instances or rent prohteering.
In summarizing his report Mr.. Ken
nedy declares that he is inclined to
agree with others who have made a
study of the situation that the lack
of buildings is the primary cause Of
the critical situation. The creates.
number of complaints received by the
board are from month to month ten
ants. truce being effective between
most of the tenants on lease and the
property owners. He assures the COM
mittee that prohteering actually ex-
lists, despite statements to the con-
trary.
The City and Suburban Homes Com
pany, which builds and rents model
tenements. is the first corporation to
respond to the appeal of the Recon-
struction Commission for the prompt
construction of homes. In preparation
for the development of an extensive
building programme which includes
Manhattan, Brooklyn. The Bronx and
Queens, the company is to start stock
selling campaign this week which will
give conservative investors an oppor
tunity advantageous to themselves.
their neighbors and their city.
City Must Supply Cash
Allan Robinson, former head of the
bureau of housing, in Washington, who
has been cooperating with Governor
Smiths Reconstruction Commission, is
president of the company. It's plans
were made. he said yesterday, and
building would start as soon as capital
was obtained. To this extent, he point
ed out, the salvation of the New York
public was dependent upon its own ef-
forts; it must supply the cash.
The corporations plans are elastic.
The scope of the building project is
dependent solely upon the amount sub
scrlbed. The plans are rigid, however,
as to the quality of construction and
the prevention of profiteering. The
standard has been set in the comps ny's
seven blocks of model tenements on
the East Side, in which $4,000 per-
sons are housed, and it's working
girls hotel at Seventy eighth Street
and the East River.
The new buildings in the four
boroughs, however many types may
be permitted by the capital obtained,
also are to be models. The rents are
TO be kept at the same low average
which prevails in the buildings now in
use The tenants there pay an average
weekly rental of sl.55 room for their
homes. The corporation itself is to be
the landlord and, in order to insure
itself against the taint of speculation
or profteering, has limited it's divi-
csnds to per cent on the capital in
vested.