New-York tribune., 1920-12-05
By Jesse Sharp

y
Chairman Erecut;ce Committee. Real
Estate Inrcstors Of Neu York, Inc.
Interference with the economic laws
always has disastrous results There
could be no greater proof Of this fact
than the situation in greater New York
produced by thc rent laws passed at
the recent extraordinary session.
The building of apartment houses has
stopped. Only structures actually be
gun before the rent laws were enacted
are being completed. Operations on all
others are suspended the leading
builders declare to do otherwise would
result IN financial suicide.
This Is the direct result Of legislative
interference with the law Of supply and
demand. The few proponents OF the
rent laws still left declare { is the
high cost of building that has stopped
the erection oi apartment houses.
The cost of building material and
labor is high. abnormally high. The
fact Is admitted Building materials
have been advanced by leaps and
bounds, until at the present time their
prices are higher than ever before in
the history o. the country. The stu
atlon IN this regard has become so seri-
GUS that the national government, as
we'll as New York and other states. is
attempting TO relieve it through CON
rpehensiVe invest stigations to determine
to what extent e%tortion has been prac-
ticed 10y price fxcrs and other means.
Laborers are getting high wages.
rms is a result Of the high cost of
living Food, clothing, shoes and all
other necessities have advanced tro-
&
natural and an inevitable result Of
natural economic laws, just as in
creased rents we're natural and an
inevitable result Of higher costs Of on
Grating apartments houses But the
nigh cost of material and. the increased
wages Of labor are not the causes of
stagnation in building apartment
houses. II they were they would have
stopped the construction Of lofts. stores
and Office buildings
The cost of brick, cement, steel, lun
Der ana other materials is the same
whether it is to be used in CONSTRUCT
ing stores, lofts and office BUILDINGS or
whether it is to be used in constructjnp
apartment buildings.
Practically No Apartment Building
The cost of labor on apartment
build ngs is no different from the cost
OF labor on stores, lofts and Office
buil1t.gs
Look at the Official records Of tn.
building Department Of Manhattan for
the ten months Of 1920, from Janunrv
20 October, inclusive. The records uro
shown IN the SUBJ Joined table. Thev
show
Daring these ten months there
wero filed with the Building Dena1,-
meNt plans for 116 stores, loft, md
otficc buildings, having Il total value Of
$40, ,652,250 -
During those ten month. +hero
were filed with the Building Depnrt.
ment plans for only nineteen anart-
ment buildings, having n total value os
Sl2,225, 600. ~
This comparison shows thnt buildinc
vas brlsk In The field unhampercd hS
interference with the law Of supDlv
ana 'o, demand. stores, lofts and Office
Duild'ngs were not affected hv rnnt
laws or the agitation therefor V'hat
mas been She result
mo rentals of stores, lofts erd ofr,,
bulldlngs have already begun to reccdo
AT some points this rcduction bas
amounted to 90 cents foot Th;s
means diterencc OF possibly $500 to
"~'"oo or more per annum for loft
space. And managers Of stores 1ofts
"nd office buildings attribute the do
ore"S" IN rents 20 increased BUILDING
Increased building of business stiuc
lures was made possible and cnconr-
aged by the absence Of restrictive laws
such AS have wrecked tho market fo,
apartment houses. 1t is plain to nco-
pie VINO think that the question Of
question at MI. rcpca,. If II ,c(r'
the cos, o' building that s,opnad ,t,
building OF apartmcnt hoeecs 'ho 'an,a
-T--- Mnull MA.c Lnn1 -1--L-.