The New York herald., 1921-10-02
by WALTER KRAsLOw.

New York city this year if it had not
Leen for the so-called Speculative"
builders? With active construction at
It's lowest ebb early in the year and
very little new work in sight the out
look was admittedly dark for the pro-
dncers of building materials and sup
plies. sub-ccntractors and building la
Dor. the latter with months OF unemploy-
ment staring them in the face.
All optimistic statements regarding
the close proximity of a tremendous
building boom turned out TO be highly
colored bubbles. which burst without
helping the building industry. until
speculative builders, taking the chances
they always must assume. commenced
the operations that later In the sea-
son grew in number and developed into
the long expected building movement,
thus saving what only a few months be
fore appeared TO the organized building
interests of the city to be hopeless
situation.
Every one is familiar with the acute
housing situation that prevailed last
autumn Because of the high cost of
materials and other factors practically
nothing has been done since war times
TO alleviate the distress caused by the
lack of living accommodat tions. The
lew builders who made an attempt to
start operations were hndered in many
ways. principally by the scarcity OF
financial support and the fact that when
IT was possible TO obtain loans they
were for such a relatively small per-
centage of the building costs and at such
extortionate rates that prospective build
ers were unable to meet the terms
Proved Incentive TO Building.
Although there were many who de-
cried the passage of the tax exemption
ordinance, approved by the Board of Es-
innate and Apportionment last February
as being an unwiSe and discriminatory
measure, the response ON the part of
speculative builders was immediate and
the great progress made during the
summer has proved this ordinance to
be all its proponents claimed and the
greatest single factor in relieving the
housing famine. Speculative builders
lost no time in taking advantage OF
itS provisions and as q result the COM
ilunity has obtained real service
Through the additional housing facilities
provided and the building industry has
eained greatly through the construction
Involved.
The tremendous success of the tax
exemption measure and the extent to
which it has already relieved the acute
housing situation in New York city war
rant its extension for at least an
rther year. The city is still far be-
hind in It's. housing programme notwith-
standing the great forward strides made
this year. Thousands of homes must
yet be built hundreds of living units
in mult-farnily dwellings, must be pro-
vided II living conditions are to return
TO normal i'm this city within "a reason
able time. The great number of dwell
ings erected in Brooklyn, Queens and
The Bronx during the season now clos
ing will supply but a small percentage
OF the needed homes as they will not
much more than provide for the nat
ural annual growth Of the citys popu-
1ation. While the housing situation is
not the serious problem it was twelve
months ago, this city is still under
built SO far as dwelling requirements
are concerned, and, as the tax ex-
en1ption ordinance was the vital spark
that started the house building move
mept last spring, its beneficial pro-
visions certainly should be extended
over another year at least If the city
s. to return to normalcy so far as its
housing Is concerned.
Where the Credit Belongs.
Little doubt exists in the minds of
building material dealers as to. whom to
thank for the excellent business they
have enjoyed this year. Had 1t not been
for the speculative builders, who started
their operations In the face of seemingly
unsurmountable difficulties, the ma
terial dealers would have been almost
Idle, as very little other building was
active and there was practically no new
work In sight. Speculative builders,
however. just as soon as conditions were
made somewhat easier by the passage of
the tax exemption ordinance immedi-
stely matured their plans for a building
programme of large proportions. and, as
this plan developed, steadily increased
It's volume and scope. Early this year,
even after the passage of the exemp-
tion measure. none OF the leading spec
ulative builders I'm this city had any
idea that the building movement would
reach its later proportions and certainly
the dealers in materials and supplies
could not have anticipated that approx
imately 80 per cent. of their business for
the current year would originate from
sources that heretofore they were never
over anxious to serve.
That local material dealers have been
nole to do this great volume Of business
with such a low rate OF loss as is gen.
orally reported is a compliment of the
lUknts- ClldTdCIeT 10 Cle speculative
builders of the present day. There is
little doubt In the minds OF the profess
sional building public, the architects.
material dealers. supply manufacturers
and suh-contractors that the speculative
builders who have been most active
throughout the city during the past year
ire far different In type from the ma
jority Of those who formerly monopo-
lized this business.
Speculative Builders Honest.
The average speculative builder to-
day is a hand headed business man.
honest because he wants to be and not
because he is forced into adopting this
policy. Speculative builders as class
to-day enjoy not only the confidence OF
the building fraternity but Of the gen
.ral public as well, and they are looked
upon as group who have accomplished
much for the welfare of homeseelsers
end the advancement OF civic health and
prosperity
Much has been said about speculative
builders being profiteers. This state
,nent is far from being true. The aver
rye builder of this type--of course there
ere exceptions--is satisfied TO sell his
structure when finished at a reasonable
builders profit. When he cannot sell
because of flat market conditions and Is
forced Into the position OF renting and
managing his own properties. his rent
ais are almost uniformly fair and SO
related to his construction. operating