New-York tribune., 1920-03-30
Support Building,
And High Rentals
Will Take a Drop
Macmillan Zipkes Suggests
That Savings Banks and
Insurance Companies
Lend for Construction
BY Macmillan Zipkes

The speculative builder was the one
to show, aided by most admirable
tenement house law, the way to right
living, in clean, decent and healthy sur
roundings. He created great revenue
taxes. He made New York q city of
fine apartments and proper housing in
the country.
What has the average builder or
landlord derived from his efforts? 1t
may be best expressed by repeating a
saying OF an old time operator:
Wise men buy, fools build"
Why! Because, first, the builder in
order to get terms convenient to him
self many times overpaid for the &C
commodation, and the owner Of large
tracts of land norder to invite specu-
lators gave attractive buildings loans,
unfortunately so attractive that WREN
ne finished his building he found that
ne could not get enough permanent
mortgage to pay off the building loan,
so that he Immediately saddled himself
with a second mortgage, and in order
to carry on his operations he had to fill
MS houses at any price, giving all sorts
OF concessions, including in some cases
a piano and moving expenses.
MIR. Tenant Took Advantage Once
In the summer months he was con-
1ronted with the alternative to either
give additional concessions because Mr..
Tenant wanted to go to Che country, or
meet the threat: ''I will put my things
in storage and get new fiat in the
fall" So the landlord in most cases
was mere collector for the mortga-
gees, the insurance company, the coal
company, and the mechanics, and if you
ala not redecorate whole apartment
OUT went Mr.. Tenant to a new house.
Yet with all the trials and tribula-
tIons the builder is still ready and
willing to produce more houses, but he
must be financed.
Real estate, SO far as the landlord
IS concerned, has had a struggle for
many, many years, with but a meagre
re turn for labor and effort.
The time has now come because Of
the world war, shortage of men, lack
OF materials and the natural growth of
population, when we have reached a
point where the supply does not equal
the demand, and for the first time in
the history of real estate the landlord
has seen the opportunity of at least
reahzlng return not only fair, but
substantial one-on his investment.
d
legislation.
Suggested Solution
Don't agitate, aggravate and excite a
poor misguided mob into rebellious. un-
ruly activities but rather turn YOUR
power, position and influence into work
OF upbuilding and reconstruction, and
remedy the evil by removing the cause,
winch is shortage of the supply. l sug-
gest way which, with proper clabora-
tion and careful thought, can be
struction for the good Of all.
Plan cause a temporary measure
to be passed permitting the city to
issue $300,000,000 in bonds at 6 per
cent, to b. used for building apartment
houses. This would afford the best and
safest security in the country. and I
have no doubt would be MANY times
oversubscribed.
Plan 2-Let loose the billions of
wealth among those who have it in
vested at and 3 per cent and finance
building operations by loaning any re-
sponsible builder 100 per cent of the
cost, and arrange for monthly amorti-
zatlon payments for period of fifteen
years, in such installments that by the
end of fifteen years so per cent of the
invested, plus the interest,
shall have been paid off and the bal
ance left as standing mortgage for
five years at per cent.
Plan 3--You gentlemen of the Legis-
lature, who want to make laws for the
people and for their good, why not
pass law which would compel all Of
the savings banks which have your
money and the money Of other citizens,
and which invest it in foreign bonds
and other securities at 6, and per
cent, and give you 31s and per cert.
to invest in nothing but real estate for
the next ten years, and then you will be
doing something that will benefit the
public, because you will see how quick
ly the rentals will come down because Of
building. These same laws
should be made to apply to the large
insurance companies, which have mill
ions upon millions of the publics
money which should be made available
for building purposes.