New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1919-04-20
By William E. Harmon

I he interest manifested in our por-
tional purchase plan is evidence that
1t contains something that fits into and
supplies a great economic need of mod
ern city life. This plan undertakes to
assist the man who is unable to own a
home, or who for some reason is I'M
willing to assume its responsibilities,
to become independent of the whims
and exactions of the landlord.
To paraphrase well-known quota
tion, "The plan by any other name
would work as WE'LL" provided always
that there are essentially the same at
tractive and protective features. IN
fortunately one cannot copyright an
idea, otherwise we might be tempted to
monopolize the portional purchase
plan. Az it is, we feel that we are en-
titled TO the right to set forth certain
sign posts that will point the way
toward broader vision and concep-
ton of the idea, and danger signals
that will warn the public against the
misuse or ahuse of a method Of ac-
quirng an ownership OF real estate
that has great social and economic pos
abilities.
Plan Applicable to Many Apartments
There arc thousands Of apartment
houses in New York City that would
lend themselves to subdivision and
ownership among the class now tied
down 20 tenancy. This division Of own.
ership would benefit the harassed land.
lord who, at the moment, is anath.
eme in the mouth Of the politician and
unthinking public 1t would be of fal
greater benefit to the public because
1T would stop further rental increases
u 70 M hCr Ont
would bring an increasing pressure tc
bear on the city and state government
TO practise economy, and see that real
estate was relieved Of it's abnormal pro
portion OF the cost of government. L
would provide field for profitable, ane
II fairly capitalized, conservative in
vestment. The president of one of oul
great New York savings banks said tt
me few lays ago, 81 want a supply O.
! your portional purchase literature O,
my desk. We are the advisers of hun
dreds Of small savers who have accu
nnuiated the maximum deposit we per
init. We consider ourselves in the ljph
OF trustees. To some I suggest tn
purchase of seasoned bonds, some I ad
wise to buy homes, third class will b
served by your system of apartment
home ownership" I replied: "Mr. S.,
appreciate your confidence, but prefe
you to wait until the experiments
estate department of one of the larg
daiiIes has stated that he believed til
securities represented by the portiona
ownership in apartment houses shout
supplement, if not cut into sale G
mortgage certificates.
These instances are recited to ca
attention to the impression that
being made on the intelligent publ
by carefully studied method of sci
ing the interests in apartment house
in small units.
Rules for Investors Guidance
There are a few "ear marks" tn
observance Of which will protect til
public against hazardous investment
in apartment houses, and conversel
there are a few rules which, If adhe re
10 by the owner Of an apartment hous
will indicate that he has striven t
develop the proposition aongl fair an
equitable lines.
The capitalization of a steam h cate
apartment should not exceed to II
times the actual annual rents received
The Durhazers Of small units shout
be protected through trustecshp cs
tablished with some trust company o
well known concern by which the prot
erty may be administered for the bene
ut Of aiI the shareholders.
The statement Of income and e.
penSes should be In complete deta:
and these details should be verified b
personal jnyestigation, or referred I
broker not interested in the gal.
They should cover interest on mort &