The sun., 1919-05-28
NATION YEAR SHORT
} IN BUILDING HOUSES
Expert Miller Sees a Little En-
enlargement in Lower
Construction Costs.
CALDER TO BE WITNESS
Real Estate Hurt by Arbitrary
Action Of New York
City Officials.
CALDER TO BE WITNESS

The nation Is short about one years
supply of building construction. There
, ere Indications Of o little announcement
for the lower level OF prices IN building
materials or labor. Until the production
Of various commodities increases prices
will remain high. Building materials
have advanced less than other COM
modities, and because Of this fact they
offer no encouragement for production.
These deductions were made yesterday
BY Franklin T. Miller. president OF the
r. W. Dodge Company. publisher Of the
Record and Guide and other building
periodicals.. testifying before the Lock-
wood legislative committee which Is In
vestigating the housing situation. They
we're based on an intensive study Of the
economic conditions surrounding the
building industry during the reeonstruc-
ton period. made by the United States
Department OF Labor, Information ana
was connected. The conclusions will an
pear In tho divisions report, now in the
process Of revision ana publication.
Mr.. Miller said this report would show
that the methods OF making real estate
loans are not sufficiently standard ixed |:
that real estate loans dld not increase
In proportion to the growth Of the coun-
try from 1913 to 1918; that q general
amortization system for real estate loans
would DO beneficial and that improved
machinery for making and marketing
real estate loans IL needed. This ma
chinery would include q system OF real
estate mortgage bankeL
Mr. Miller explained that the proposed
Federal home loan act, which II to be
introduced in Congress, 10 based on the
New York land bank act, which got
under way Just before the war, It's
bonds were disposed OF rapidly, he said,
but when the war started their sale was
restricted by the Government
Tenement Expenses Doubled.
William D. Fitzpatrick, who has been
building and selling real estate for thir-
ty-hve years, told the committee that the
cost Of maintaining tenements IL about
100 per cent greater than In 1914. Near
iy every item. excepting labor and taxes,
is twice as high. he said. Mr.. Fitzpatrick
declared that builders are heartily sick
OF the so-called repetition of INSPECTIONS
by various departments and II would re-
lieve the doubt in the minds OF men con-
templating building II rigid inspections
Gre stopped and Capitalization Of inspec-
ton substituted.
In his recommendations as to what
should be done Mr.. Fitzpatrick said !:
The scandals OF the sprinkler system
and other things that occurred here dur
ing the last administration should be
eliminated. 1t 10 true the Fire Commits
sioner has unlimited power to do any.
thing he pieasee with q building You
can't sell real estate under such condi-
tons where the city officials have power
10 which no nan should be entitled. In
the hands of a fanatic Il n as bad az in
the hands Of q CRATER and I prefer a
CRATER to a fanatic. The iawlessness in
the last administration killed the sale OF
real estate. The man was drunk with
power and he issued hundreds Of illegal
orders. He went beyond his powers, and
took the authority Of the Building De-
partInent and every other department.
And such things, Of course, naturally kill
real estate"
Robert L. Moran. president Of the
Board Of Aldermen. said the lack Of ac-
uvity In the real estate market that
prevailed before this country went into
the war would have continued during
the war any way. There was no buy
Ing, he said. because real estate had
become "watered," and was not paying
on the costs Of property.
Mr.. Moran expressed the belief that
the Federal Government should help the
cities in an emergency Of this kind. the
same as II did In the various localities
where camps and ammunition factories
were located. by providing housing ac-
Communications for the workers