The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-05-17
WILL FINANCE
BUILDINGS TO
HOUSE 10000
Group of New Workers I'm
derwrite $5,000,O 900 for
New Apartments.
FOUR ROOMS FOR $32
Cheap Land Expected to Offset
High Material Costs-6
Per Cent. Return.
FOUR ROOMS FOR $32

rruction of apartment houses which
will mean homes for $500 family units
and employment for the jobless was
discussed and virtually decided upon
last night by group Of public spirited
men at an Informal dinner in the
Metropolitan Club, Fifth avenue and
Sixtieth street. The plan Is the
result of cooperation by the Gov.
ernor's Reconstruction Commission, the
advisory board of the commissions
housing committee and q group of cap
itslists, merchants, bankers, real estate
men and others who have agreed to
finance the building operations
The project calls for the expendi-
ture Of 100000. and with this
Ruarapteed by individuals, and with this
amount II is proposed to erect q new
type OF buildings. which will house APP
proximately $4,000 to 10000 people The
apartments-four rooms-will rent from
t32 to s35 per month or from IS to 80
per room.
It is believed by the hackers Of the
plan that the proposed buildings will re-
duce the city's shortage of apartments
at least one-fifth.
Per Cent. Return Assured.
Although the building materials to be
used will cost SO per cent. in excess Of
pre-war prices. 1t has been figured out
that those who are putting up their
money will receive return Of per
cent or more on their investment.
The plans as outlined last night pro-
vide for a housing and holding corpora
tion with a capitalization of approx
mately 100000. The big lending cor
porations. such as the insurance COM
panies which, in the past have advanced
large sums on first mortgage bonds. are
10 furnish 50 per cent. Of the funds
necessary. based upon the present cost
Of building. This cost Is estimated to be
80 per cent greater than before the war
The builders are to retain equities of
from Is to 20 per cent. and the holding
corporation is to provide the balance.
Among those who are interested in the
plans and who will actively participate,
are J. p. Morgan, Cleveland H. Dodge
and Frederick B. Pratt
Gov. Smith was applauded when he
said that, despite. the present urgent
need for housing facilities. there must
10 no lowering of building standards
and no backward step. as far as the
present tenement house law is con-
cer'ed.
Abram I. Elkus. chairman OF the Re-
construction Commission. pointed out in
his introductory address at the dinner
that somebody. not the State. has to
start things going In the establishment
of the confidence of the people in their
ability to carry on business. He said he
was sure the opening up Of the building
industry is going to complete the eco
nomic circulation by providing not only
homes but also the bringing about OF a
readjustment of the employment situa-
ton.
Several hours before the programme
10 build now" with the aid of private
capital was announced at the Metropoli-
tan Club the joint legislative committee
met iE the Mayors public reception room
IN the City Hall and tried to find out
what suggestions Mayor Hylan had In
the line OF legislation that might work
for the relief of the housing situation.
About all the Investigators were able
10 learn from his Honor was that he has
appointed a committee on rent proflteer-
Ing to look into the question and that
While he has talked over various phases
OF the inquiry with Nathan Hirsch, the
chairman, and others, the COMMITTEES
hasn't reported to him yet on a plan II
tas for the solution of the problem
However, the Mayor informed the COM
mittee that he undertook to settle the
haroor strike so that II would be possible
SCI ouIolnB materials into the city In
order that there could be building. He
also thought the housing problem was a
problem OF supply and demand. Every
body agreed.
Mrs. Henry Noskowitz, secretary OF
the Governors Reconstruction Commits
sion, attended the first public session o,
me joint legislative committee to invite
Mr.. Hirsch Of the Mayors committe,
and state Senator Lockwood. chairman
OF the State investigating committee, tc
De present at last evenings dinner in tn,
Metropolitan Club. Both gentlemen de
cllned
The conference at the Metropolitan
Club was called by Gov. Smith at tn,
suggestion of his Reconstruction Com
mission and he came down from Albany
10 welcome the group of men who wer,
putting their shoulder to the buildin,
wheel to start it whirling.
Chairman Elkus Presides.
chairman Elkus presided and speeches
were made by the Governor, Mr.. Elku
and Alfred e. Marling, president of tn,
NeW York Chamber OF Commerce, VIII,
member OF the commissions hous
ing committee
others at the conference included
John G. Agar. George Blumenthal, Pete
MA