The evening world., 1920-11-13
SGOO,OOO,OOOOF
HOUSINGS BLOCKED
BY BANKERS GREED
Cut-Throat Rates, Not New
Rent Laws, Real Cause
of Squeeze.

Pronteering bankers with out
throat money rates are being revealed
as the fundamental cause OF the hous-
ing squeeEe.
All parts OF the country-in fact,
all parts Of the world-0rc suffering,
but New York is getting the worst OF
Il because the population here Is
largest and most congestcd. Eight
ser cut money on general loans, with
a stni higher rate for rcsidetial build
ers, presents a prOhbluve barrier
against much-needed housing opera
lions.
While New York wants at least
ta50.0OO,OoO within ySar to place lis
homes on u comfortable basis the
entire country is just as sorely in need
OF 5000, 900, 900. This is shown by
statistics OF building projects for the
year to date. The plans prepared call
for an estimated outlay above Si,500,-
900, 900, yet work put under contract
barely reaches &75O,OO0.Ooo. or t25,-
100000 less than for the same period
last year, according TO +. w. Dodge
Company reports. more than three
quarters OF this deferred construction
being residential To show further
the discrimi nation against home build
ers, not over 20 per cent, OF the $780,
100000 work put under contract is
residential, although the normal pro-
portion would call for 30 per cent,
New York realty leaders and build
ers are broadcnsting propaganda to
the effect that the new rent laws have
stopped home building here. But
very few other sections of the Coun-
try, or the world, have enacted SINH
lar rent laws and all are suffering in
similar manner from lack OF new
housings. From all quarters the main
cause assigned for this situation IL
the impossibility of getting loans at
anything save prohibitive rates.
PRoFITEERING BANKERS ETAcT
CUT THROAT INTEREST.
Investigations completed to-day
seem TO prove that this excessive rate
for loans on living necessities such RS
new homes In due practically entirely
TO the dictatorin mandate OF the
bankers.
Although builders hero say that the
nsw rent laws would prevent any
residential operations, they admit that
II there had been no new laws they
could not undertake such projects
without loans at reasonable rates, and
that current money rates on residen-
tial loans are absolutely prohibitiVe.
These rates in themselves would be
enough to shut out all such building
land the new rent laws surely had
nothing to do with establishing high
money rates
While money rates hold high, build
ers will try to lay the blame for
their inaction upon the rent laws In
order to impress Legislators with the
necessity for amendment. Realty in
tereHts have united for big fight Ia
nullify the laws. From many sources
come r-sDorts that they have raised a
fund variously estimated at $3.50, 900
to several millions for this purpose
Real Estate Investors and Apartment
House Association, two organizations
formed recently to act for leading
builders. owners and agents of apart.
ment properties are increasingly ac.
tive against the rent laws They say
the laws have killed apartment build
ing, that supply and demand mt st bt
allowed to govern, that Btoppage In
supply OF new apartments can have
no other effect than to force rent
higher. They call for constructiv,
legislation to encourage builders anC
lenders.
Paterno Bros. and Anthony Cam
pagna, who are members of the az
sociations and builders OF many bis
upper west side houses. announce,
this week that they refused to con
tinue any OF their projected struc
tures as at would be suicide unde
the new laws" Similar announce
ments from other important builder
and operators are expected when the
can best help along the propaganda.
In the meantime builders and oprr
Ators are watching the bankers close
~. knowing that with the money ing
rests the solution OF the enti~e huild
ing problem. So long as the tanker
stnnd together TO exact their trihut
Of per cent. or more from all form
OF business in which they do not hnt
pen to have strong interest--so lon
as they throw dust In tho eyes Of IN
public by Debating producers and di,
tTibuters while protecting middleme
profiteers-just 50 long will they reT
der the Hltnation Impossible for build
ers of city apartments. And sue
builders consider themselves primai
producers OF prime living neceBsit
also distributors, but not by an
meann middlanpn nrOfitaara