Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1920-10-01

passed at that special session VIII ia abye
to show any results during the period Of
three months before our own PennsyI-
vania legislature will convene. II were
well IL this were possible (but IL does not
seem TO be SOY because IL wouiS he a
completed experiment on which our own
Legislature could act without danger of
making vital mistakes
II certainly will not be possible for the
law, exempting from local taxation until
January 1892, all new residences and
apartment houses completed since Aprii.
to show any effect at all. The building
season is practically at an end Tho RS !,
jority of new. projects will be held In
abeyance until spring. The consequence
thst unit, that time, at least, the
law cannot be noticed. There IA no do,bt
that they should be good, but there is
| also no doubt In my mind that the resuit
VIII not be known In time to benefit our
| own Legislature
Neither will the effect be known Of
municipalities to invest their funds % IN
the bonds of state land banks. The
enect OF this law should, in tho oninion
Of the Philadelphia Real Estate Board
be very good, but cannot see how the
results can be obtained in time to he he
noticed by our own Pennsylvania Leg.
islature.
The disastrous effect Of the law which
ends the summary eviction OF tenants''
and provides that disputes regarding
rent shall be settled in court, where the
Judge will act as arbitrator and Ak what
he hregards as reasonable rent" will
hardly be known in the three months
intervening before our own Legislature
~ meets IL Is easy to imagine them,
possible should be done to encourage
building and real estate DEVELOPMENT a
law such as this is certain to have Just
the opposite effect. Investors will not
by such laws 1t is too easy for them TO
obtain adequate returns on their in
vestments In other fields In which tbev
Will find far less trouble than they viii
IN the field OF real estate with such
laws on the statute books.
The Philadelphia Real Estate BOARD
believes firmly that wherever II Is found
necessary to place upon the statute
books laws intended to alleviate the
condition caused by the shortage of
houses , az acts pertaining to this SUBJ
This particular act is of a destructive 3.
character and will serve only to make a
bad housing condition worse, because IL
Will drive away the capital and energy
needed to solve this very vital problem.
piece of legislation noted in three
months before our Legislature meets
VIII be noted, however, when the
building season again openss md for
many years to come, that Gie effects
have been exactly the reverse of what
probably was intended by the Legisla-
ture of New York.
The great cry is for houses, and the
Philadelphia Real Estate Board would
like to know how the New York Leeis-
lature expects such a law as this to en-
courage the building Of houses. Through
this one law alone the legislators prob
ably nulllfed the effects of the other
laws mentioned by you, which undoubt-
edly would serve to encourage the build
ing of homes.
Even should there be considerable
pudding of houses ror sale there will
pc positively none for rental purposes
because investors In this class Of prop
erty Will not go into the field with such
p. law as that which throws disputes
about rent into court and allows Judge
20 act as arbitrator. Men will not risk
tDeir money In such a hazardous under
taking. nor can they be blamed for with
holding their funds from this field of
activity.
1t Is a well-known economic fact that
rent must be based on a capitalization
cntil this is done you will find ver,
few houses being built for rental pur-
poses 1t Is evident that unless the
cost OF reproduction Is recognized Wy
the public and by the Legislatures
men Will not put their money into real
estate OF this character.
Therefore, laws of this kind are
greater detriment than they are an aid
to tho solution of the shortage of
houses
1t would be fine II these facts could
DC realized by everybody In the three
months period before our Legislature
meets, SO that the results Of the dis