New-York tribune., 1921-03-31
Miller Against
Bill for State
Building Loans
Tells Delegation He Opposes
Cotillo Plan; Is Willing
to Try Amy Practicable
Means to Aid Situation
Sees Capital Driven Away
Cites Factors Which Cause
Limited Operations; Three
Walker Measures Argued
f'rom a StafY Correspondsnt

urge his support Of the Cotillo bill
which aims at relieving the housing
shortage by extending the states credi,
to home builders, that he would get be-
hind any plan that was practicable
but that be did not so consider this
measure.
He said that he had been unable to
find one himself, Nnd that was why he
had not sent in special message to the
Legislature. He had thought of in
creasing the legal rate of interest on
mortgages from 6 to per cent, but
feared that this, while bringing new
money into the building industry, might
result in the wholesale calling in OF
mortgages now out at per cent and
less.
Improved economic conditions, he
said, and not artificial stimulation
would afford relief. Labor. he said
must cooperate to Its fullest.
The Governor discussed the housing
question from various angles and de-
clared that there were three factors
which had limited building. He de-
SS1lucQ tHSIH &Ss
/. The criminal conspiracy of build
ing supply mo-, which resulted in ex-
orbitant prices for materials.
| 2. The criminal exploitation of labor
and the artificial restriction Of produc-
| tion.
| g.. Taxation which drove capital. from
the mortgage market.
The Governor added that the rent
laws, which were admittedly emergency
regulations, had served as a deterrent
to building by discouraging invest
ments in bond and mortgage.
The Cotillo bill, which gave rise to
the Governors observations, creates a
land loan bureau in the State Banking
Department which would lend the states
money for home building.
Calls CotilIo Bill Impracticable
The Governor said that the measure
was impracticable, and that the function
| it provided for now existed in the state
! land bank, which he characterized as.
| failure. AT the outset the Governor
! laid particular stress on labor's share
in the creation of the present situation.
! He referred to the york of the Lock-
wood committee, which disclosed Grim
| inal eXploitations of labor in building
trades, and regretted the tendency
toward restricting production. He
(. charged that workingmen, by their very
restriction of production, we're Great
+! ing the housing conditions from which
| they themselves were the greatest suf-
| ferers.
| Labor must cooperate in this thing
and stimulate production" said the
Governor. ut must give days work
for days pay SO that capital will be
| attracted You cannot get people to
| undertake any enterprise unless it is
profitable There is no doubt that in
the building trades the production of
labor has been artifcially restricted,
and by doing that the man who labors
with his hands forces himself to live in
these three and four room houses at
end what he thinks he is getting at the
other. 1T bears on him more heavily
than anybody else"
| William F. Kehoe, secretary to the
| Greater New York Labor and Trade
| Council, interrupted to say that the
American mechanic is willing to do his
utmost to bring conditions back to
| normal.
"While there has been some criti-
cism," he said, "the rank and file Of
organized labor is willing to try to
bring about relief. want to impress
upon your mind sincerely that during
!
rushing for the dollars, there might
| have been inefhciency in the labor
| forces"
Denounces Limiting Production
Don't misunderstood me-" inter
rupted the Governor, ~ think labor
was tremendously efficient during the
war and tremendously patriotic. In what
structures | made l was referring to
the conditions that were disclosed be-
| fore the Lockwood committee and the
! tendency which every one knows has
been going on and which has been
thought by many TO be good policy for
labor, to limit production. What | say
is that labor is destroying its own
capital when it limits it's production"
In speaking Of the cost of materials
Governor Miller did not stint his
praise Of the work of the Lockwood
downward trend in material prices was
noticeable and that the exposure by
the Lockwood committee of the elm
proper, unlawful and criminal prac-
tices of the material men" was having
| its effect.
"The material men," he said, "have
| got to be reasonable. and YOU cannot
by artificial means cure that situation" I"
The Governor said that building in
I fCoCiiiCAto WSiC lOC iuduC dtll ldCtlNc lux
capital. He said taxation and restric-
tive laws were responsible.
"The truth is" he declared, "that
our taxation has driven capital to seek
higher rates of interest, and the situa-
ton enables capital to get a higher
| rate of interest. You cannot inte erfere
with the natural law of supply and
! demand.'
Governor Miller in referring to the
rent laws said that while they had
curbed the rent prohteer, they had also
served to act as a check on building.
you have no doubt Of that. have
YOU" he asked his audience. "People
won't put their money into an enter
prise that is going to be subject to
the control of others. Now you have
got to restore the operation Of eco
nomic laws and, in my Judgment, the
interference by the state prevents their
operation more than it helps"
Seeks Remedy for Situation
"A few years ago, I can remember.
you could get a good mortgage at
or per cent. / haven't any doubt that
raising the legal rate would attract
capital to this field. But that has
ooJectlons too. and we might suffer
more \ In other directions than we would
cement by it. The thing has SO eluded
.he, 1 am frank to say, that | have
NV seen my way clear to make anv
recommendations. We do not get any,
wnere by simply talking about the
Snei seucy which exists Nobodv die