El Paso herald. (El Paso, Tex.) 1901-1931, 1920-09-04
HOUSING PROBLEM BENG TACKLED
IN OTHER CITIES

I'll PASO and every other city AID town and village in
L the southwest have their acute housing problems In
general way may said that there enough houses
available for sale, but that rental houses apartments OF
enements be had any price when available
at ALL only at prices that excessive and are almost
prohbve It VIII not be contested that the general Level
Of excessive when all the factors taken into
consideration: high cost Of real estate and high cost OF
building high taxes high interest rates, ngn 1e Insurance.
rates high cost Of repairs and rspacements, high cost OF
service OF ali kinds high cost Of fuel and water
and everything else entering into the business Of living and
Of providing shelter suited to modern requirements But
while may admit that the owner Of rental property may
not be netting than he Is entitled TO- or even as mueh
nevertheless that fair minded and tolerant thought arising
from Of justice does not help one much to meet the
high rents that prevail
The shortage Of Houses rooms, apartments, shelter Of
any kind Is universal The shortage the United States
has been estimated all the way from 100000 TO 100000
homes Home building almost ceased during the war years
and has not been resumed since on account OF the IN
favorable conditions which rp investors from the rental
field The competition keen for low priced or medium
priced homes OF that not only the tendency OF
rents always upETd but IN many cities and towns there
Is house apartment to be had and scarcely roo
This condition affects unfavorably every line Of indus
try Employees viii not be eontented when they cannot
find decent places to live at prices within ther reaeh
Everybody and everything is blamed for the srngency
but that does good In many industrial Cities business
men been forced to cooperate to build homes On
wholesale scale for woren and their families IN order 70
keep force together at al
From the experience of other cities FL and the
southwest can learn useful lessons We have not quite
reached the sticking point yet but unless We take steps .
meet the situation and anticipate the deadlock there may
come upon Us such crisis in the industrial lines
as has caused serious unrest elsewhere
In many different places in every part Of the unon
business generally have had to tae The problem IN
hand, and devise ways to solve the problem on semi
phanthropic basis this eXtent that they forego pIt
Of the interest they could make By investing IN
other directions and go into the homeprovdng business
at an immediate sacrifice to themselves financially N oIeer
stabilize conditions and help restore community hea!ln
In ts long nm II pays them though for the time being
they contribute part of tr property to the public service
How long has Il been since you saw "FOr rent" sign
On house? They have been IN bad years IN the
distant past used to be regarded as sign OF stagna
ton and depression but such signs today would be hao
with delight
Industries are beginning to realize that to insure hOus
ing for workers is important as 10 provide machinery
and shop space Soma large corporations systematically
deTong part Of their capital to increasing the supply OF
for workers It is new Development IN industrial
economy but il is here to stay.
The fundamental fact in any study Of the problem is
that people Ike to homes and VIII them If they
can buy OF build them long enough credit 10 bring
the monthly payments within their ability meet out Of
wages Few workers have enough capital TO build for cash.
but large proportion win accept offers to provide them
selves homes out Of weekly earnings Thus the cooperative
building association has in many places proved successful
and profitable and permanent institution; thus building
loan associations and mortgage associations have grown up
Even the problem Of handing second ana taus
making II possible for worker to begin building with prae-
tcay no initial capital has been solved IN practical way
TIE best practice provides for gradually and regularly
reducing the principal Of the loan while paying interest
payments running long term Of years, seldom
than ten often much 20 The short term mort
st last left as charge on the family the death Of the
provder. But the long term gradually and steadily re-
ducbs loans rule taken care Of safely ano paa
out at maturity.
clever plan has been devised to handle second mort
cages separate organization handles these guarau
tees the building association the payment Of the excess
Of the mortgage loan the usual so 90 percent limit
The auxiliary organization deposits the excess cash with
the first mortgage association, but the initial payments are
credited back to the mortgage company until the
advance paid off and the total lien Is reduced to the
limit Of conservative first mortgage Under this Plan
bt one mortgage taken the property and there IS N
fact no second mortgage IN existence, but the two COM
panie divide the responsibility and the rk In way that
almost guarantees the lenders Of the against loss
IN spite Of the fact that as much percent Of the value
Of the property nay be loaned IN the beginning
It is strange that the building association idea has not
yet taken hold this part of the country They found
almost everywhere else, and Of long standing, sterling
soundness and sufficiently profitable to attract IN
vestoTs. One such association in Columbus, o. has