New-York tribune., 1921-03-10
Realty Men
will Appeal
Rent Ruling
Plan Fight i'm U. S. Supreme
Court ON Ground Law
Fails to Specify What
Is a Reasonable Rate
Others Hail 1t as Boon
Landlords Protest Called
Last Wall at Loss of
Chance to Couge Tenants

""iie tenants generally and the
Mayors Committee on Rent Prof,teer-
ing IN particular expressed jubilation
yesterday over the decision of tie
Court of Appeals in upholding the
validity of the anti-rent gouging laws.
representatives Of real estate interests
perfected plans for an Immediate ap
peal OF the decision to the Supreme
Court of the United States.
The decision to take an appeal was
announced following a conference be-
tween the Real Estate Board of New
ork, the Real Estate Investors of New
York and the Apartment Owners AS
socIatlon. The appeal will be based on
the failure of the Court of Appeals to
take into consideration the question of
reasonable rent and the fact that the
Legislature in enacting the rent laws
cid not specify, but left to municipal
court justices or juries the determina-
tlon OF what constitutes reasonable
rent
The real estate interests opposition
to the decision of the Appellate Court
was characterized by Arthur J. Hilly,
chairman of the Mayors Rent Prof
teering Committee as "the last de-
spairing wall of those who have been
deprived of opportunity to gouge
long suffering public" On the other
hand, Victor NJ. Earle, member OF the
board of governors of the Real Estate
Investors, described the courts inter
probation "as victory in battle
where the public welfare, based on
Improved facts, was too strong for
logic and long establish ed customs and
laws, but nevertheless a short sighted
victory"
Calls 1t Boomerang
The Real Estate Board authorized
the statement that the feature of ad-
Indicating reasonableness OF rent Is
deterring and will probably continue to
deter investors from buying apart
ments and builders from erecting
them.
Mr.. Hilly said in his statement:
in answer TO the arguments of
these real estate men that rent laws
would stop building, l have stated be-
fore, and | reiterate, you cannot Kill
dead man. l feel certain that there
is another remedy to stimulate build
ing other than to permit unrestrained
gouging of tenants.
"The real need Of the moment, in ad-
dition to tax exemption, is to provide
source from which those who desire
to build may obtain money. A means
of providing this money was suggested
by the Mayors committee to the spe-
cial session of the Legislature in Sep
tember and measures have been again
introduced at this session.
THE plan is to authorize the use of
moneys now in the sinking fund of
the city, supplemented by additional
moneys to be raised by popular bond
subscription, and to lend this money
upon approved plans for dwelling
houses, the money to be paid back one
fifteenth each year, so that the entire
mortgage Will be paid back at the
end Of fifteen years
I'm this way we could create fund
of 500 900 900 and the building situa-
tion would be taken care Of"
The chairman of the rent committee
said he had abiding faith ain the JUS
tice OF the 1air-minded American bust
ness man" and that he did not feel
that she needs the stimulation Of IN
just and unreasonable profits before
he will invest his money"
with the right of eiectment estab-
lished for the landlord in the Appel
late Division and with partial tax eN-
emption passed by the city authori-
ties, said Mr. Earle, the nrst signs
of a building boom were in evidence.
This decision however, Will choke that
boom as no boom has ever been choked
before
Granting for argument that an
emergency did exist in the fall, have
these laws relieved or Will they re-
lieve it? VIII they not, as matter
Of fact, aggravate the shortage? Can
not it be seen that All absolutely IN
precedented stagnation OF dwelling
construction is the direct result Of
these laws?
These decisions in. the long run
are victory for the landlords. They
will restrict the supply OF available
living space for an extended period
and unless Immediately repealed or
amended will necessitate a doubling Up
of tenancy, dangerous to public health y
Mr.. Earle's reference TO the city's
future health drew this comment from