New-York tribune., 1920-10-11
Rent Law Test
Suits Will Be
Filed at Once
Real Estate Board Counsel
VIII Begin Actions This
Week and Go to Highest
Court for Final Ruling
Litigation Will Be Fought
Building Fund To Be Raised
by Popular Subscription
Suggested by Realty Man

Legal action to test the constitu-
tionality Of the new rent laws will be
begun this week by the Real Estate
Board. The board expects to appoint
. to- day joint real estate law commit
tee, which, under the direction of
George L. Ingraham, special counsel.
will act as clearing house for all
legal questions brought to it by the
Apartment House Owners and Builders
Association, and all other real estate
interests which have decided to pool
their efforts.
Alexander McNulty, counsel for the
board, said yesterday that before the
end of the week several important
cases would be inaugurated, with a
view of carrying them to the highest
courts Neither Mr.. McNulty nor Mr..
Ingraham would indicate the specific
nature of the cases.
Suits Will Be Contested
Arthur ]. W. Hilly chairman Of the
Mayors Committee on Rent Profitcer
ing, asserted that those who sought
the new legislation in the interest of
tenants would contest the landloards'
suits. eve believe that not q single
one OF the laws can be contested on
the ground of constitutionality." he
said. "The leaders of the Legislature
which passed the laws last month were
clever enough not to invade constitu-
tional rights, and the courts, realizing
that dire emergency exists in the
shortage of homes, will deal rather
summarily, we believe, with those who
try to overthrow the relief measures" ="
Real estate interests take the view
that the housing problem never will be
solved until a building program Is be
gun. David f. McAvoy, of William d..
Bloodgood & Co., a realestate expert,
pointed out yesterday that Commits
sioner of Health Copeland. who already
Rad asserted that the housing shortage
was inviting epidemics and otherwise
injurng the health of the city. might
call a conference of prominent bust
ness men to open building fund by
public subscription.
Dr. Copeland has said that the city's
health is endangered by the shortage
of homes" said Mr.. McAvoy. "He de-
clares that overcrowding is creating
bad sanitary conditions and that years
hence tuberculosis Will be on the in
crease. even if an epidemic does not
attack the city earlier. The Health
Commissioner has more power than any
other authority to see that this danger
Is removed Private capital is not now
inclined to enter the building industry,
nor does it appear that private in
vestments will soon be directed along
that line
Suggests Subscribing Building Fund
What is moro logical than that the
Health Commissioner, knowing that an
emergency exists, should take cxtraor-
dinary precautions? BY emphasizing
the danger to public health he could
easily effect a conference of business
men, who would devise a scheme for
raising funds by subscription. These
funds, giving the investors 5 per cent
interest and freed from income tax
could be secured by bonds to the in
vestors. Every $5,000,00O so raised
would afford new homes for 5000 or
5000 families. The sight of so much
building would stimulate other build
ing The money would be repaid to
the investors within twenty years. The
buying of building materials in great
quantities would tend to reduce the
cost of construction. 1t would be found
that many Of the families would buy
the homes thus constructed. My idea
IS that the whole plan should be car
ried out independently of public Off
cials.
Every real estate man knows that
it is folly to talk about solving the
housing problem by enactng restric-
tive rent laws. Such laws only prevent
people from being put out on the street.
They do not lessen the congestion.
Most Of the profteers, and they do not
represent 25 per cent of the landlords,
have already got what they were after"
julius II. Ziescr, chairman OF the
legal committee of the Real Estates
Interests, Inc, said that the orxsnizs
tion would seek to induce tenants to
sign stipulations that the payment of
the old rent by d tenant would not
prejudice either party in a dispute,
and that both tenants and landlords,
through the organization, would at
tempt to conciliate their differences.
Mr.. Hilly declared this arrangement
was "hopelessly one-sided."