The evening world., 1920-07-27
"WORTH STUDYING"

5 the backing of the tenants, for until Mayor Hylan
practically forced Mr.. Hirsch out of Office, the Rent
Proftsehng Committee earned the confidence of
the tenants to greater degree than it has since.
In MS letter to the Joint Legislative Committee
7. on Housing, Mr.. Hrsch offers excellent advice.
+, He does not favor building by the city.
He does favor fund under non-parHsan super
vision and carefully restricted to encourage home
building
He does not favor a prohibition of other building,
but he does advise specific encouragement of home
building
He agrees that Gov. Smith should call special
session of the Legislature to cope with the housing
emergency.
The fault of the present housing laws is that they
are purely negative in character. They have been
helpful in preventing some Of the most serious
abuses arising from the situation, but they have not
served to remedy the situation itself
Some specific assistance from the State or munich
pality is necessary.
In these columns last March The Evening World
printed, under the title "W'orth Studying" digest
and explanation of the British housing practice as
suggestion to the Legislature. This was not
acted on
In view of the mminence Of a special session and
the proved effectiveness of the British provisions il
seems worth while TO reprint this explanation.
Tenants are urged to study this form of State aid.
and urge their legislators to give careful considera-
ton to sonic sch means Of stimulating building.
The following outline of the British plan is
taken directly from a report OF the Government
proposals issued by the British Local Government
Board
Under this British plan Public Utility Society
Is a society registered under the Industrial and
Provident Societies Act of 1891 which defines
how cooperative societies may be organized for
carrying on amy industries, businesses or trades
specified in or authorized by it's rules"
In order to qualify for registration under that
act a society must have not less than seven mem
bers and a Secretary and the share holding of
any individual member must not exceed 5000
though this limit does not apply TO holdings Of
loan stock
The society must by its rules prohibit the pay
ment either of interest of dividend at rate
exceeding the statutory limit. 1t must include the
provision of working-class houses as one of its
"industres. businesses or trades"
Once organized and duly registered, the Public
assistance of two kinds: ~ Loans OF money
and co Money subsides
~ LOANS: 1t is proposed TO allow Public
Utility Societies borrow up to three-quarters
" the cost their land and buildings. Their
former powers OF borrowing were limited 20 two
thirds value OF the land and the houses they
built. With labor and material at their present
prices three quarters OF total cost is considerably
more than two-thrds OF total value, for the
market value of a house built to-day is by no
means as high as the cost
In adj iOn IN ms NO
to Public Utility Societies. the State will provide
them also with subsidies These will be given
in half yearly payments and each socetys sub
sidy will be amount equal TO two-ffhs Of the
charges for interest and gradual repayment OF
principal the maximum amount which the
society Is entitled to borrow from the State.
illustration (Substftuting dOllars for pounds
st0rl4ng):
Surprising a society decided upon a building
scheme TO cost 100000 and borrowed from the
State three-quartors OF that amount namely,
$4,000. Supporting for the sake OF example.
that the rate OF interest was ~ cent. per
annum. Allowing for gradual repayment in
fifty yearly instruments, the yearly charges for
interest and repayment to be paid this
$4,000 loan would amount to. roughly $3.50.
The Government subsidy TO which the society
would be entitled would DO two-hfths OF this
$3.50. namely. 1880 every year during the
period Of repayment leaving the balance Of
$3.50 and the charges the $4,000 capital
privately subscribed together with cost of man
agement and upkeep u DO met out OF the rent
OF the houses built
Although such State assistance is designed ito
open TO many groups OF working and women
= road toward the possession OF homes Of their
own devising," the element OF self-help is by no
means eliminated:
Zach society must obtain from rs members or
from private sources in the shape OF loans loan
stocks or shares. a reasonable proportion OF It's
capital equal 10 at least one-third OF tho money
borrowed or borrowable from the State T. e. one
quarter of the total cost OF its housing scheme
Zach society must be prepared TO rank its debt
the STATE a q Hflrsl chnrnan ON lta nrnnartr