New-York tribune., 1920-10-10
By E. l.. Brown

Of Rickert, Bro1cn Realty Company
Out Of the conglomeration Of sug-
gestiong and enacted laws proposing to
relieve the housing shortage in New
York we are now where we started,
with no tangible solution in sight Po-
iitical expediency rather than construc-
tive action on the part OF our lawmak-
ers seems to have been the dominant
influence. In the main the advice and
counsel of trained minds were ignored.
and, seemingly, primary and funda-
mental facts were either willfuliy or
ignorantly overlooked.
For months committees have given
time and thought to the solution of this
problem and recommendation with and
without merit have been freely dis
cussed. In the mean time the families
Of New York have been led to expect
that the state and city governments,
one or both, had the power, the inten-
tion and the ability not only to imme-
diately construct new housing. regard
less of the elements Of time and money
involved, but to place them in the hands
of the people at prices and on terms
which precluded the basic consideru-
tions of present cost Of production.
Laws have been enacted which, in eff
feet. temporarily, at least, place in the
hands of the courts the management
and control Of privately owned prop
erty, subjecting the owners investment
return to that amount which the tenant
and the trial Judge, from their view
point, deem sufficient The result Of
this action means, of course, that for
q time tenants can retain and occupy
their present apartments over the help
less protest of the owner. regardless of
his interest and his right to safeguard
and protect investments.
Will Stop Construction
If these laws are sustained by the
higher courts it is manifestly clear
chat fiat and apartment house con-
struction will practically cease, for,
Notwithstanding the fact that new con-
struction is now exempt from the
operation of these laws, no assurance
mas been or can be given that future
legislatures will not include all con-
struction, new and old, under their pro-
visions, and land owners, builders and
lenders cannot in fairness be expected
to place capital in a business where
even possibility exists that the value
Of their property can be disturbed, if
not destroyed, by the arbitrary action
of trial judges whose tenure of office
largely depends on the votes of those
whose personal interests are directly
involved in their judicial decisions.
We cannot materially change human
nature, and there is as yet no indica-
tiou that owners of real or other prop
erty will expand or extend their hold
ings when, from their standpoint a
threat of future conhscation, judicial
or otherwise, stands uncovered before
them.
One of the distressing results al
ready apparent. attributable to recent
discussions and laws, is that thou
sands of families who intended, and
were amply able, to build or buy apart
ments and homes have elected tempo
rarily to take advantage of their pres
ont rental autocracy by continuing to
occupy apartments which are desper-
ately needed by those who are unable
to buy and are forced permanently to
occupy rented quarters.
Forced by circumstances over which
they have no control, victims of laws
which punish rather than help. they
are denied better and more sanitary
haoitation largely because the present
rent laws have been taken advantapc
OF by prospective buyers and pur-
chases have been po stponed to more
convenient season.
Home building and home-owning on
by these laws have been seriously re-
tarded. and SO long as they remain in
force this condition will doubtless con-
tinue to exist
Unable to Obtain Mortgages
Builders and owners of vacant land
no matter how willing or anxious to
hulld, are. except in exceptional eases
stopped on account Of inability to Sc
cure mortgage loans. In the past
individuals and estates, rather than
savings banks, insurance and loan com
panies, have furnished the bulk of
mortgage money for home and apart
inent house construction. They have
done this because, heretofore. real
estate mortgages returned as high
interest yield as other safe securities
and were preferred because of their
stable value. Under present conditions,
however, they cannot compete with high
class income tax exempt securities.
and for this reason alone new indi
vlduai and estate investments are not
being made in real estate and buildino
loans and those already in existence
are being called when maturcd. Our
itie and loan companies, which, in the
past. have financed the larger part of |,