The New York herald., 1921-07-03
SAYS HOUSE FAMINE
SET IN BEFORE WAR
J. w. Ballet Writes That Rent Laws
Were Climax---Some Judges Poor
Mathematicians, He Adds

To rMs RrAl EsrArE EDGroR OF THE
NEW Yoax HKnALp \ great deal has
been written on the su6Ject Of the hous-
ing situation IN New York. and although
the writers have had access TO the facts
they have not always brought home the
truths OF the situation by complete Illus
trations IL IL my object 20 try 20 do
lust that thing and for the purposes Of a
logical treatment OF the subject / will
divide my discussion into the following
topical divisions.
What caused the housing shortage?
Real estate and building financing.
Were the rent laws a remedy
The courts.
viii the investor build multifamily
houses or Is tax exemption a remedy?
The housing shortage Is generally at
tributed 20 the war and high prices. but
II is a fact that even before the war the
slack I'm the building OF tenements made
itself evident This was brought about
by years OF determination against the
real estate owner. There are many well
meaning and honest men who can only
see one side OF the question. the better
ment OF the tenants. and In pursuing this
policy OF bettc rment they advocate all
kinds of supervision and improvements
to accomplish their purpose. But they
improvements cost money. and that I'm
the final analysis MONEY invested for
such improvements cannot be had unless
they yield an adequate return.
Some EXCELLENT men were chosen as
heads OF tho various departments created
by the system of regulation and super
vision adopted by city and State. They
pursued a wise policy OF Improvement.
and instru ,ted subordinates accordingly.
1t took these men years, however, be-
fore they realized that there is an in
tense hatred felt by the masses for tho
landlord. Their subordinates. sharing
in this feeling, were not slow in chang
ing a system of Improvement into sys-
tenn Of tyranny and persecution.
one Cause of High Rentals.
Then improvements cost money and
meant higher rents or stagnation Of en-
terprise
By the time these men saw tn,
harmful results of their rigid policy 4
was too late to undo the evil which haC
been done. l had occasion TO discuss
these two phases with department heads
and two years experience. as rule
changed their views completely.
Finances-As n natural consequence
| Oh tno foregoing evil tue HiOncy ithucl
became less liberal. as the returns OF
the investment became less secure. TX
give this The color OF protection for theil
clients q system OF amortization wa:
| introduced, and often a demand made
for the principal This developed mos
abnormal condition: The rea estate
owners expenses increased alarmingly
his returns turned into losses and ther
amortization and demand, piled ca tor
of this, left him a bankrupt. Thousands
lost their all. No man was willing to in
vest his money in the building of flats
the population kept on increasing and
the shortage began TO manifest itself
The war with its high prices aggravated
this condition.
This combination of circumstances
and accumulation of past mistakes final
ly led to an emergency which reached
it's climax last year.
Were the rent laws a remedy? Many
owners took advantage of this emer-
gency to make unreasonable demands.
But it should be remembered that they
were few in number as compared with
those who, like good patriotic citizens.
bore their burden and acted reasonably
and cautiously in increasing their re-
turns. But of course the good have to suf-
fer for the deeds of the bad and drastic
laws were enacted.
We now have the decision of the high
est courts on these laws. which says
practically that the police powers OF the