The New York herald., 1921-03-14
Case of One Landlord.
A Review of Twelve Years Expert
ence With Apartment Property.

TO THE NEW York HERALD: Now that
the Court OF Appeals has established the
rent legislation as an integral part OF
the laws of the State the time has ar
rived when every conscientious citizen
ought to contemplate what IS likely to
happen in the future. Ny own case may
furnish generally representative Illus
tration
For twelve years l have maintained a
substantial interest in apartment prop
erty. In reviewing the experience OF
these years I find that it is only by
omitting the important item of deprecia-
tion that / can calculate my return as
representing approximately the basis OF
savings bank interest, and no more. Dur
ing this long period of inadequate re-
ward for the REX taken and the service
rendered 1 recall no stampede to Albany
by my tenants to invite legislation for
my relief.
When conditions finally made it pos
sible for the decent landlords to raise
their rentals to living basis there sud
denly arose on the horizon the rent
legislation, which in my case has merely
had the effect of giving many tenants
the excuse of eXultantly hiding behind
many provisions of the law otherwise in
tended. In my opinion there is right at
this moment in the action OF many such
tenants far greater usurpation OF indl-
vidual rights and more emphatic illus
tration of proflteering than can ever
be charged to even the most shortsighted
of landlords.
/ am now in the anomalous position
of being unable to bring my rentals up
to a fair market basis: and In addition
to having lost the management and con-
troll of my own properties | have lost
even the distributing power Of many rem
tails covered by leases. These are paid
into court, and 1t viii be necessary for
me to resort to innumerable lawsuits to
obtain possession Of what Is lawfully due
me under inalienable contract rights.
Thus further inroads must be made
into the already inadequate returns on
my investment because of the increased
and unnecessary cost or collecting rents.
But for all the trouble and disap?oint-
ment, aggravated by the difficulty in rails
decent landlord still may console him
self with the conviction that no hasty
legislation and no impractical emer-
gency expedient can very long suspend
and make imperative the basic law OF
supply and demand.
From now on l expect to run my
property for the benefit of the tenants
and the financial institutions. am
resigned to the fact that / am only
playing the part of an intermediary for
whom any financial benefit is minor
and negligible consideration.
But venture to predict that the REM
edy as applied will not cure the evil.
AS things now stand the situation is
bound to grow worse. Surely no man
who has had the experience will ever
invest another dollar in apartment prop
erty; nor will any new investor have
the hardihood to proselyte in such
dangerous field.
Where then will the new homes come
from? 1t seems to me there is an
analogy between the situation relating
to apartment houses and that relating
to new subways. Capital will never
be invited to either unless fair re-
turn and the possibility OF profit are
guaranteed beforehand.
It Is unfortunate that way was not
found to discriminate between profiteer-
ing landlords and the decent ones. II
some expedient Of that sort is not soon
discovered there will ensue a condition
OF chaos and trouble that will make
everything that has occurred to date
look mild in comparison: and, more
over, those tenants who are now laugh
ing up their sleeves at the apparent
advantages they nave so easily gained
will be the very ones to suffer most
In the end. w. Or-rMAN.
BROOKLYN, March 12