New-York tribune., 1920-09-27
Hylan Accused
OF Discrediting!7!
New Rent Laws
Aron Asserts Legislature
Acted Wisely i'm Reject
ing Measures Found To
Be Unsound Economically
Takes Issue With Mayor
Beaten Bills Might Have
Destroyed Credit of City
and of Banks, He Holds


Criticisns made by Mayor Hylan
and John P. OBrien, Corporation Coun-
sci, that the new rent laws passed by
the Legislature last week are made
auate to relieve the housing crisis were
attacked as poisonous propaganda" to
diseredit the new laws in statement
issued yesterday by Harold G. Aron,
50 Pine Street. Mr. Aron, who was in
charge of $70,000,000 worth of govern
ment dwellings erected by the United
States Shipping Board during the war,
has Just, yeturned from Albany. where
he was called to consult with Assembly
leaders on the housing bills.
Mr.. Aron cited arguments presented
by the Mayor in letter. to Governor
Smith, in which the Mayor, in support
of his stand that the city ought to be
empowered to build houses, declared:
"The people have the right to spend
money TO buAd houses and heat them
for monkeys and other animals in the
park. Why should the courts and the
Legislature stand in the way of the
people spending money to house human
beings?"
Terms Principle Unsound
The reason that the Legislature did
rot follow this logic, according to
Mr.. Aron, is that it found the principle
unsound. 1.-THE city does not build
houses for monkeys to live in, because
the monkeys have no other place to live
any more than it builds asylums and
jails, because the inmates of those
places have no other place to live"
said Mr. Aron. "Ih my opinion. the
people ought to have an opportunity to
see. the merits Of the new laws before
toe. much poisonous propaganda is cir
'fon The matter of providing new
houses, the Legislature showed dis
elimination by passing the one measure
proposed which was economically sound,
legally right in principle and really
effectual. This is the measure which
exempts new dwelling house construc-
tion from local taxation for a period
of ten years. The effect of this is to
write off substantial part of the pres
ent abnormal cost of construction with
out appreciable loss to either the city
or the state and the certainty of an
eventual gain. l predict that the per-
sons who are now condemning the Leg
islature most will be the quickest to
take advantage of this act. 1t will not be
great and practical result from this
Discusses Income Tax Plan
"Ths same legislative discrimination
was shown In not exempting mortgage
interest from the state income tax, for
even the advocates Of this bill admit
that, while 1t would result in a loss
OF millions of dollars income to the
state and Its cities. it would do no
appFeelable good in increasing mort
gage money unless and until similar
action were taken by Congress under
the Federal income tax.
Fer the municipality to build houses
wleh any such organization as could be
hurried together would have meant the
loss OF millions of dollars. To permit
the sinking funds Of the city to be in
vested IN mortgages I'D to so per cent
OF what the Board Of Estimate MIGHT
guess their value to be when built
would have been financial suicide FOR
the city, and to 60 further and to per
init the sinking fund trustees to issue
bonds OF $50 and upward to be sold to
tne pubic and again invested on the
same basis IN 80 per cent mortgages
would have proved the most vicious
:rnsasure ever enacted at Albany, and
.slther OF these measures would have
completely destroyed the credit Of the
s"It was openly charged that the bus
blu was advanced with the intention
OF using bus lines to bankrupt The
street railways 50 that these might be
bought cheap and turned over 20 rnu-
NAc!pal ownership and the members OF
the Legislature realized that a vote
FOR the bus franchise bill was a vote
for municipal ownership.
Flaws In Bank Plan
~~The defeat Of the scheme to force
savings banks and insurance companies
to invest to the limit in mortgages by
putting on q surtax was fully justified
when 1t became apparent that the net
result OF the bill would be to force
only ths immediate purchase of exist
ing mortgages and provide practically
no money for new mortgages.
'The bill was absolutely wrong ir
principle unless The state was ready
to guarantees all savings bank deposits
and all policy holders against loss, fo,
is attempted to force the hurried judg
rnene OK the Legislature on the trustees
OF these great institutions. It's intro
duetion, Yor whatever motive, will, how
ever. serve good purpose in calling
public attention. to the fact that saw,
IT, can help, and we shall undoubtedly fint
. more liberal policy revealing itself
A similar benefit will come from the
resolution authorizing an inquiry intt
the causes Of the high cost Of building
materials
ION the whole. the work Of the spe
eisi' session was eminer&ly creditable
1t met great problem with intelli
Rence and discrimination, it faced ,
strong lobby Of selfish interest
with resolution and independence ant
ahowed great courage in not permitting
itself 70 be driven headlong Into fanci
f1l and radical schemes by an almos