New-York tribune., 1919-05-28
Witnesses Before Legislative
Committee Say Investors
in Buildings Are Keep
ing Out of the Market
Mayor Is Blamed for Veto
Robert E. Bowling Says the
Real Estate Rate Limit
Bill Was Killed as Threat

| WcIcs
The failure of investors to back
speculative builders.
The want of standardized methods of
making building loans.
The lack of interest in owning low
rent tenements, because of the neces-
sity of dispossessing tenants.
The large number of inspection
agencies.
The high cost of labor and building
materials.
They recommended the following
means of relieving the situations:
The establishment of a system of
Federal home loans
A campaign to stimulate building.
drive to interest workingmen in
"own-your-ownhome" projects.
Little Faith in Legislation
They did not place much faith in
Legislative action. Most of them ex-
pressed the belief that the wide sweep
of protiteering exists more in talk than
IN fact. The witnesses presented the
view of the builders chiefly. They in
cluded: Franklin D. Miller, director of
the Division of Public Works and Con-
struction Development of the Depart
ment of Labor; William D. Fitzpatrick,
veteran builder; Robert l.. Moran,
president of the Board of Aldermen;
Robert E. Bowling, president of the
City Investing Company; Edward Rie-
gelmann, Borough President of Brook
lyn; Henry Bruckner, Borough Pres
ident of The Bronx; L. D. Woodwork,
secretary of the Advisory Council of
Real Estate Interests, and Albert H.
Mathews, Brooklyn and Queens
builder.
Year Behind in Building
Mr.. Miller said the nation is about
one year behind in its construction. He
counseled against waiting for an era
OF lower prices, declaring that with la
Dor at its present scale little hope
should be entertained for the return to
pre-war prices. Building materials have
advanced less than other commodities.
he showed by statistics. These revealed
an advance of 102 per cent in food
prices, 73 per cent in the general cost
of living. Wages have been advanced
only 2S12 per cent in the corresponding
period, he said
Stringent laws against proiteering
landlords would tend to discourage
rather than stimulate building, he de-
clared.
Mr.. Fitzpatrick said there are three
and four room fats with hot water sun
piled, renting at 81 and So month.
now vacant The drawback to renting
them, he said, is the fact that thew
arc IN foreign settlements. He men
toned one house at 406 East 101st
Street where fifteen fairly comfortable
flats, with rentals of from 81 to $40.
arc unoccupied. Rents in most of the
houSes in the poorer districts are
lower than they were in 1909, he said
No Money or Mortgages.
Mr.. Fitzpatrick said he has been in
the building business for thirty-fve
years, but in 1913 he discontinued con-
struction because money practically
ceased to exist for mortgage purposes"
There is a disheartening dearth of
investors in real estate, President
Moran told the committee. AS a re-
suit, he said, speculative builders have
oeen unable to pursue operations. He
paid tribute to speculative builders.
declaring they practically built the
city. After making money on their
speculative operations, he said, thew
usually became substantial investors
themselves. The real crux of the
housing shortage has not been reached
yet, he said, but must be faced in the
fall
lie is an ardent supporter of Federal
nome loans. The city, he said, is
financially unable to advance the
money, while legislative restrictions
prevent the state from taking the need
ed step Money should be loaned to
speculative builders constructing one
and two family houses. Mr.. Moran was
IN the building business for ten wears.
Mr.. bowling declared that Mavor
hylan, by vetoing the bill limiting the
tax rate on real estate, retarded the
growth of building operations. and
prevented solution of the housing
problem.
Threat Against Real Estate
Il cannot see anything in the Mayor's
statement refusing to accept the bin
except threat against real estate"
said Mr.. Bowling. "He said the raa.
son was that there was going to he
largely increased expenditure by the
pay-as-you-go plan, large increases in
salaries, etc, then wound up with the
statement that this was an ATTEMPT to
swindle somebody by the land
sharks"
I'VE considered it a general insult
to the people who interested themselves
IN getting the legislation" Mr.. Dow
ling added.
Every one favored the bill, except
few Socialists"
Borough President Reigelmann. of
brooklyn, said the lifting of certain
restrictions on one-family houses in
Brooklyn would provide housing for
$4,000 additional families. The build
ing plans filed in Brooklyn this wear
established new high record, he said.
Borough President Bruckner. of The
Bronx, testified that 1000 apartments
are needed in The Bronx. To meet
this only 1900 are in course of con-
struction, he said.
Mr.. Mathews said it is possible to