New-York tribune., 1920-03-21
Hopeless to Attempt Any
Relief in Housing Pr OBJ
lem if Pending Legisla-
ton Passes, Is Declared
Hearing Tuesday
To Settle Program
Albany Plan Apparently
Is to Adopt Measure
Limiting Owners Profit

Leading real estate and investmen
interests in the city abandoned plans
to reenter the building field on any
important scale yesterday, following
the failure of an attempt to reach an
agreement with members of the Legis-
lature as to new laws affecting rent
ing.
The effort was made at secret con-
ference which lasted all Friday
night and till early yesteday morning.
The entire situation was gone over in
discussion which at times became
acrimonius, and left investors with
the conviction that such drastic legis-
latlon would be enacted as to make
building an improbable business until
there was a radical change in the stu
alton.
Ihls means, real estate men said yes
terday, that all plans now under way
TO relleve the housing situation by pro-
v1dlng. new buildings, including the
Mayors plan, have become hopeless.
May Limit Profits of Landlords
The discussion brought out the fact
talnly. pass bills imposing severe re-
strictions on landlords, though the
exact form which will be adopted has
not yet been decided, and will not be
TIL after the hearing at Albany before
the Lockwood committee on Tuesday.
The least that is expected, however. is
that the Donahue bill, which fixes at
~ per gent on the assessed valuation
the II profit landlord may derive from
ms property, will go through. 1t is
possible that law giving the municipal
tlons unless the tenant can get other
quarters, IN the same neighborhood and
at price less than that asked bv his
landlord, will be enacted.
On the other hand, the investment
ana realty men were assured that the
Legislature was anxious to do all that
1t could to encourage building, and
many instances of extorton on the
part OF Landlords were cited to show
the neeo OF severe measures. 1t was
almost promised that the bill removing
all taxes on mortgages under $4,000
would be adopted, as an incentive to
TINS form of investment. The legis-
lators, however, took little interest in
the Black bill to give tenants now
holding apartments under verbal leases,
a right to years occupancy without
further rent increases. This bill was
urged by the real estate men as the
best means of stabilizing the situation.
The meeting was held at the Hotel
those present from Albany were the
majority and minority leaders of both
houses Of the Legislature, though
Speaker Sweet, who had been invited,
was unable to come. The delegation
included Senators Lockwood, Walker,
Loring Black, Edward j. Dowling and
John j. Boylan, and Assemblymen
Donohue, Jesse, Simpson, Blakeley and
MgcWhinney. Municipal Court Justice
frederick Spiegelberg was also present,
as were William E. Russell, counsel to
the Lockwood committee; Colin Wood
ward and Elmer G. Sammis.
Real Estate Board Represented
Among the real estate and invest
ment men present were the following
from the governors of the Real Estate
Board: Charles G. Edwards, Walter
Wykoff, j. Irving Walker, William N.
E. Demorest and H. H. Murdock. Rob-
ert E. Bowling, chairman of the boards
legislative committee, was present. and
also most of the members Of the legis-
lative committee, which includes David
A. Clarkson, John P. Leo, Francis S.
Bangs, Henry R. Chittick, Julian T.
Davies. Stanley M. Isaacs, William D.
Fitzpatrick, Alfred R. Kirkens, w. ]. T.
Lynch, E. A. MacDougall, Alexander C.
MacNulty, Laurence Mcclure, Carlisle
Norwood. Franklin Petit, Robert E.
Simon, Louis D. Speir and Walter
Stabler.
1t was felt among real estate men
that this meeting was the crisis in the
housing campaign, because unless an
agreement was reached conditions
under expected legislation would be
such that no investor on any large
scale would dare go into the market.
The failure to reach an agreement has
resulted in complete encouragement
among the realty men, and they predict
that it will cause the failure of the
Mayors plan for getting building
started ard of any other plans that may
by killing the expected legislation.
Urge Law "With Teeth in 1t"
The legislators, in support of their
position in favor Of drastic repressiye
legislation, brought forward a small
number of cases where obviously ex-
tortionate rentals were being exacted,
and large number where increases
had run from 25 to $50 per cent. They
possible to encourage building, but
that conditions were such that a regu
latory law with teeth in it" would
have to be passed. They were willing
to remove not only the mortgage taxes,
but the state income tax from building
mortgages, but would go no further.
The real estate and investments men
admitted the charge Of extortion by a
few landlords, but did not believe the
situation justified such drastic meas
urcs, nor that such measures would
cure it. They argued that the onlv
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