New-York tribune., 1920-09-21

mum Der OF FAMILIES were constructed
but as an Offset to that new construc.
tion there were demolished or con:
verted for non-residential uses 3,s3s
apartments, leaving 271 less homes a.
the end Of that period, although the
question has been constantly before
the public for q year and q half.
THE housing shortage is felt not
alone in the City of New York, but all
cities in the state are passing through
the same difficulty. In New York City
at least $4,000 homes are Immediately
necessary. 1t should therefore be your
chief objective during the extraordi-
nary session to encourage so far az
that can be done by law the building
of houses. s
"The commercial and economic SUI
premacy Of the state is threatened by
this shortage. No community can ex-
pect to achieve an industrial growth
If it is unable to house its working
population properly. Labor shortage
can be frequently attributed to i'm
proper housing accommodations, 1t ie
only human for q man to want to live
where he can rear his family in de
cency and comfort. If some other state
offers him that opportunity it conner
into sharp competition with our own
state, and good housing is therefore a
merce and industry.
"The question Of stimulating build
ing growth becomes a very practical
one because Of the fact that the cost
of building operations has trebled
since 1915. Building at this time is
considered an Improbable field and
money will not enter it, nor can it be
forced into it by law, but we may be
able to offer an inducement to capital
to come back into the field and build
ing may be resumed in a natural way
if the state can find some way to off
set the increased costs.
Suspension of State Levy
"A very vital element in the carry
ing cost Of newly constructed build
ing is the taxation to which it is sub
ject. While l do not, as matter of
policy, favor tax exemptions, the
emergency is sucht at the present time
that it might be we'll to consider the
enactment of law exempting from
taxation fNr period of years, with
proper restrictions. buildings used for
dwelling purposes whose construction
is undertaken within such a period as
will assure an immediate increase in
housing accommo modations. believe
this will aid in putting new 'construc-
tion on fair competitive. basis with
buildings erected before tie war and
will assist in creating a market for
new buildings.
much has been said about the ex-
emption of mortgages from the pro-
visions Of the state income tax. The
states tax is very small and we can
give no guarantee Of Federal legisla-
tion along the same nne: I, therefore,
do not place much faith in this sug-
oI1,
However, your legislative committee is
in possession of more facts on this
subject than I can lay before you.s
"Loaning institutions apparently
have not kept in step with the times
and have spent their energy in secur-
ing investments bringing a larger re-
turn than real estate mortgages. For
instance, our savings banks ana mutual
insurance companies are organized not
for profit, but as depositaries for the
peoples money, and it would be en-
tirely in keeping with their purpose
if theiB funds were made available to
q greater extent to meet the peoples
needs, by investing a larger portion
of them in bond ard mortgage.
"In 1914 there was created by statute,
a state land bank having for it's -pur-
pose assistance to building and loan as
sociations. Inasmuch as The proceeds
from the sale Of TIE bonds of the land
bank are used for the building of
homes, the state should do everything
that it possibly can to make the bonds
e more desirable purchase. We have
already exempted them from the pro-
visions of the state income tax, but
abnormal yield at this time from other
securities is such as to make them an
undesirable investment. 1t might be
we'll that the state use its own moneys
or a portion thereof now in the vari-
Gus sinking funds Of the state to pur-
chase these bonds. 1t might also be
advisable to enable municipalities of
the state to invest in such bonds.
There is one avenue of possible di-
rect state aid in an emergency which