The sun., 1919-04-20

Governments barracks will have to be
built in New York next winter to house
the homeless. The Federal Department
OF Labor has a tentative bill extending
the farm loan law to cover the national
financing OF home building but action
on this cannot be taken until next winter
unless there is a special session OF
Congress-
There was a report in real estate
circles this week that two Of the largest
banks in the city were consid ering es-
Publishing building loan departments.
The lenders explain their attitude by
saying that they are unwilling TO take
the responsibility for speculative build
ing at present prices. They argue that
wages and costs OF materials are sure
to come down. and that when they do a
building boom may be started under
healthy conditions.
Two OF the big life insurance COM
Danies which provided money for build
ing nave withdrawn from that market
temporarily. The insurance companies
we're hit hard by the influenza epidemic
and are restricted by Liberty Loan
obligations.
Some builders are OF the opinion that
there will be no building to speak of
this summer; others are optimistic; a
Few are ready TO start operations.
II am going to take a chance" said
Jacob Axelrod. a man who has put up
many big apartment houses. IT en-
barked on 100000 proposition this
week. l am going to provide from two
to Ave room accommodations for sew
enty-two families and ] am going to
prove that buildings can be built and
apartments rented at but a slight adj
vance on the rate OF two years ago.
II will make lea SOS now for occupancy
| I a
free advertisement because everybody
knows that owners with something to
rent have not to look far for tenants.
Land Not Expensive.
81 bought the property at 1o5-11s
West Seventy-third street last week. !
got the land at a fairly reasonable fig
ure. Land can be bought cheaply In
New York to-day. There are some leases
on the existing brownstone fronts and /
shall not be able to begin TO raze the
buildings until June Is. shall start
construction immediately after that. I
will put up two nine-story apartment
houses, complete with conveniences. but
free from unnecessary decorations. |
shall save $4,000 by elimlpating the
ornaments heretofore considered neces-
sary for the facade.
ments at but little more than the rates
OF two years ago. ! am going to make
big fight to do it. figure that the IN
creased cost OF building is 25 per cent,
though the matter Is very uncertain.
New York must be built up to a
point where II can house its people by
cooperation among the builders the
lenders and the material manufacturers.
II Is as certain as can be that the labor
I'LL HI
Jgo up. / found II easy to secure Il
building loan on satisfactory terms but
the general attitude OF the lenders Is
not helpful. II this attitude is not
changed. many families in New York
will know what II means to camp on
the sidewalks"
Fred +. French, discussed the situa-
ton from the point OF view OF the con-
struction contractor, He pointed TO the
possibility of a shortage OF building ma
terials, particularly bricks. soon, but
was optimistic. lie said;
Rents TO Continue TO Go Up.
Builders who say they are not going
TO build are going to build. They don't
know It yet. In the face of the great
pressure. rents Will continue 10 60 up
and sooner or later real estate and the
construction man will be forced to recog-
nIze this fact. one by making higher
apprsisals for higher mortgages and
the other by paying higher prices for
material and labor
ut appears TO me that the trouble
with most builders, as well as other
business people. Is that while they de-
mand the highest rents and get them
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