New-York tribune., 1920-03-10
Mortgage Tax
Repeal Urged in
High Rent w ar
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on broad scale, adding that it would
take away large sum OF money from
the state and localities in income taxes.
Mr.. Statler in reply declared that
the taxes from increased property as
sessments. He said that on the in
come from $1OO,oo0,OO0 of mortgages
the revenue would only be a couple Of
hundred thousand dollars, whereas if
the money was put into real estatc
improvements the total to the state
and localities from increased assess
ment rolls would be about $3,500,000.
J. Richard Davis, representing the
housing committee of the New York
City Merchants Association, contended
isolated cases and that in most cases
rent increases we're justified, because
OF increased costs Of construction and
maintenance. Another speaker said
that high rents have come to stay and
that the public soon will accustom
itself to the new living scale. He con-
tended that restrictive legislation fly
ing rentals will only hinder building
construction and not solve the housing
problem.
Rise in Building Costs
The production pace of labor was
brought UP in the discussion of build
ing costs. C. c. Miller, of the Bronx
Board of Trade, said that bricklayers
now at $40 a day only set 400 bricks
against daily average of 1900 few
years ago, when their pay was much
lower. He pointed out that building
costs naturally jump when it requires
three men to do the work of one and
for wages considerably higher.
State Tax Commissioner Miller ex-
NJ ho ~,
of tho housing situation lies in the
rural districts, where th4rc are plenty
Of houses and lots of work. He said
farmers are compelled to cut down pro-
duction because of the exodus from
the farm to the city, and that the time
is soon coming when the city dweller
will have to leave the city and go back
to the farm in order to live.
No action was taken on either of the
bills. Chairman Franklin Judson of
the Assembly Taxation Committee said
would save the mortgage holders
enough money to make any appreciable
difference in the amount of money in
vested in real estate.
The legislative committee of the
State Bar Association has condemned
the Lockwood bill, and has sent copies
Of its indictments of the proposed legis-
lation to members of both houses of
the Legislature.
Legislative leaders have decided on
three other methods of solving the rent
situation.
Assemblyman Judson announced to-
day that bills carrying out the ideas
of the Legislative leaders will be draft
ed within the next two weeks. These
measures will provide for:
SurtaN on the income from real
estate. Excessive profits from rents
will be heavily taxed under this provi-
sion.
The creation of rent commission
which would act as a court in deter
mining whether rental charge was fair
and reasonable.
The ending of the right of summary
proceedings. landlord must prove
that he is not getting a fair income
a tenant for refusing to pay increased
rent.
Many of the ffty-eight rent bills
now before the Legislature seek to
bring about these results. Assembly,
man Judson said they would be used
as basis in working out the measures
which viii eventually be passed.
I'VE have got to be very careful" he
said. 1--WE must give every impetus to
building activity and at the same time
we must enact legislation that will
solve the rent situation not only in
New York City, but in Rochester and
Buffalo The situation Is such that
something must be done immediately
Of the bills to encourage building,
Mr.. Judson thought the most feasible
suggestions were those to enable saw
ings banks to increase the amount of
money they can lend on mortgages as
we'll as tv require insurance compan-
les to invest certain amount of their
surplus in real estate loans and mort
cages. Banks can now lend up to 60
per cent of the value OF real property
in mortgages. Mr.. Judson thought this
could be increased to 70 or even 80
per cent
Other real estate measures now be-
fore the legislature provide:
That cities may acquire land on
which to erect dwelling houses.
That the business of lessees of real