New-York tribune., 1920-10-17
By Frederic Culver

Of Cu1ver &; Co., aUho has organized
and built $25 900, 900 north Of CO.
operative apartments IN New York
IN the last decade
During the last fifteen years there
have been erected in New York by an
established organization under a prac-
teal fixed plan, developed through cx-
perience based on sound judgment, many
millions of dollars of successful CO.
operative apartment buildings.
The owners of stock in these buildings
have had the benefits resulting from
efficient cooperative management, very
gratifying returns from their invest
ments and no difficulty at any time in
disposing Of their holdings at more than
ordinary profits.
In this same period there have been
other cooperative buildings produced
whore the results to the investor have
been more OF less unsatisfactory and in
most instances the causes for these
were quite apparent to those familiar
with the subject. When, owing to con-
ditlons due to the war, the production
of dwellings almost ceased and the
housing situation became acute, the
owners of many apartment properties
hastened to adopt for their properties
cooperative plan of ownership so as
to effect sales at enormous prices to
the existing tenantry or those desiring
to place themselves AS aids to this
movement the tenants were practically
forced into purchases, by fear of evic-
tor, inordinate raise of rent or of in
ability to find any alternative propo-
sition by reason of prevailing scarcity.
An investment made under such circum-
stances cannot be viewed in the same
light rs one based on belief in the
advantages to be derived after careful
consideration of the proposition en-
tirely free from any such baneful and
compelling influence But it can be
said that there would b. no objection
to capitalizing an existing building as
a cooperative enterprise If the owner
would accept reasonable price and the
organization features complied with
the prerequisites of rational opera
ton,
Cooperative Principles Violated
Under these circumstances it must
be concluded that IN a large measure
The cooperative apartment organiza-
tons whose stocks have been purchased
by frightened tenantry viii violate
every principle which should enter into
well conceived, balanced and exc
cuted operation. And, it must follow,
that when conditions again become
normal those who have thus made pur-
chases Of stock will very much regret
their investments, or will suffer losses.
1t may also follow that the cooperative
movement in this field will receive a
setback from which it will take many
years to recover, and evidence of this
reaction is in some measure now ap-
parent.
Depressing as this may be, it should
not Ceter the homeseeker from care
fully investigating any tried out form
Of tenant ownership whose devel lopment
is undertaken by experienced. reputa-
BILE concerns This kind OF plan, in
the opinion Of the writer, exceeds in
financial ADVANTAGES, safety and com
fort any other plan for efficiently and
economically solving the housing prob
lem in city and suburban districts.
Factors in Cooperative Structure
Let us briefly review some of the
fundamentals which Justify the crea-
tion of any cooperative apartment en-
terprise. The promotive constructor
of the enterprise should not ordinarily
own the land proposed to be improved.
Experienced judgment should be dis
played in procuring an attractive site
at not above market rates. with a rea-
aonable expectation of an appreciation
in value through surrounding Snnnort