The Washington herald., 1920-11-14
NEW YORK MORTGAGE MONEY
SEEKS HIGH-CLASS BUILDING

nounced s9.600,0o0 in not more than
Score of large loans, led by Metro
politan Life Insurance with $1,000
900. As rule the capital is seek
ing big business properties or apart
ment structures of the very highest
class. There is practically NO money
yet to build flats of moderate rents.
but a constant increase of residen-
tial projects throughout the metro
politan district shows that private
investment savings are flowing into
such operations more confidently.
In $50 new buildings and engi-
n2erinG projects calling for slS,-
100000 We're 205 residential at 81
100000. Among 235 contracts
awarded at 50. 500. 900 were 125 resi-
Dental at $500. 900. Investigations
completed by leading realty men
verify recent reports that the hous-
ing situation is improving steadily.
There is practically no hardship
anywhere from absolute lack OF
homes. although the high rents are
taking more than the average fam
lily can afford to set aside from
wages or income. Building surveys
show that suburban sections are
producing enough homes to take
care of an increase in population
and even to offer much substantial
relief to the overflow from congest-
ed city centers. Plans under way
promise that this suburban con-
struction will continue under the
expanding stimulus of building and
buying for homeseekers.
But city fats appear to have
taken a place. at least temporarily.
in the class of structures which cam
not be built profitably. President
Allan Robinson. OF the, City and
Suburban Homes Company. has
; demonstrated. as have other build
ers of such houses on a large scale,
that they cannot produce homes un-
der pi esent conditions to rent at
less than $50 to $5S a month for
three rooms and $71 to s73 for four
rooms. This is the least that would
carry the completed buildings at
! even a ) per cent interest return on
capital invested. And to borrow
capital on such low rates now for
extensive housing operations is i'm
| possible.
Robert E. Simon. until recently
| president of Henry Morgenthau
! Company and a representative of
large metropolitan interests, re-
10 lne -asSOCldIlOn OF
] Real Estate Boards that this kind of
/ housing relief could not be con-
/ sidered under current conditions.
! Mr.. Simon concludes that the
housing situation in the city can
! be righted only by the attraction
/ of enough private capital to restore
the normal investment equilibrium.
| First. he recommends the re-estab-
! lishment of the confidence of Cap
| ital in residential property as an
| investment: then a change in ma
| tional income tax laws. either SUBJ
! stituting a gross sales tax for the
| pernicious excess profits taxes or
the exemption Of mortgages from
| surtaxes; national and State laws
| to increase the facilities of building
loan associations: reduction of coal
prices and profits so the mills turn
/ ing out brick. cement and other ma
terials may supply builders at rea-
sonable figures: compel banks. in
surance companies and other insti-
tutions Handling the peoples mon
| ey to place a fair share in realty
loans: get prompt deliveries by the
railroads: stop planning State or
governmental housing operations,
because private business will not
compete with such public works;
establish permanent and compe-
tent State agency for study and reg
ulatton of housing; compel labor to
honor its contracts and contribute
Its fair share of work for its pay;
keep the rent laws equable for both
I landlord and tenant