The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-11-28
REAL ESTATE NOW
HAS NATIONAL EYE
Bureau Established at WASH
ington for Scrutinizing
Harmful Legislation.

Real estate interests have at last es-
tablished legislative coming tower at
WASHINGTON. b. c., for the purpose OF
scanning all embryo laws that bid fair
to affect the ownership of real property
throughout the country. This strategic
move was made In conformity with the
plan discussed at the recent convention
Of the National Association of Real Es-
tate Boards held at Kansas City last
June 1t was agreed at the convention
that lack of cohesion and vigilance on
the part of the nations real estate in
terests had been responsible for the pas
sage of detrimental laws, both State AMI
national. and it was decided that the cs-
adjustment Of watching post at tho
national capital was the first step neces-
sary in any effective scheme OF protec-
ton.
Accordingly the national associations
legislative committee met at Washing
ton last week and created the national
legislative bureau. with Robert 3. Arm
strong Of Washington as its head. Mr..
Armstrong will have an associate to help
lin in his work, which will not only con-
SlSl OF pIOIoSfu ia pNh
will also call for the gathering OF in
formation and opinions from the various
real estate boards of the country for
combating the laws. The legislative
committee which attended the Washing
son conference was composed OF A. j.
Kelly. Jr., Plttsburg, Pa. chairman
Walter Stabler. comptroller Of the Met
ropolitan Life Insurance Company: Ed
ward p. Doyle and Richard o. Chlttick.
representing the Real Estate Board 0c
New York: Thomas Shallcross. Jr.. Phil
adelphia. Pa: VI. A. Divine. Atlantic
city; Bruce Bowe Richmond. Va, l.. I.
Palmer Aliddletown. o.: William Z. Fer
guson, Baltimore Md. and Robert u.
Armstrong. Washington, y. c.
Mortgages Must he Tax Free.
The matter Of chief interest discussed
at the conference after the esta olish-
ment of the bureau was the exemption
OF the interest on real estate mortgages
from the Federal income tax, and res
olution was passed placing the legisla-
tive committee on record as indorsing
the exemption plan as the most ef-
fective measure for the alienation OF the
housing shortage. Speaking in behalf
Of this resolution. Mr.. Stabler declared
that plenty OF capital was available for
other enterprises. but that II had been
taxed out OF the mortgage market into
other channels "iu which the chances or
profit are greater or the income taxes
less or where securities are tax ex-
cmpt"
when gross interest rate Of per
cent il reduced by income taxes TO
net Of ? to 3 per cent" said Mr. stsbler
"the non-taNohlc municipal or state or
county or school or even road bonds
having a. 20 = per cent are naturally
nreCcrred. and as q result untold mill
IONS are being removed trom the real
estate mortgage market
In the past. Mr.. Stabler said. mort
eapo money has come very largely from
individuals and estates but this source
& being damned up by the income levy.
The life insurance companies. he added.
rot being subject to taxation IN the same
,,av as individuals. are lending TO tnS
limit Of their ability. but the best they
can do he SAID. is hut a drop IN ms
bucket" This was also true he said
concerning rawlings banks.
In the final analysis. Mr.. StaOier
,ointed ou'. the chief sufferers from
ais situation are The g. ants. who go
H. matc up 'hn vest opori'on 81 me
ropulsrou In the t,co and towns OF the
tinted states FOR lhc consequent stag
nation u 54It. has forced up th.lr