The Washington herald., 1921-04-28
CALDER PRAISES
new YORK'S TAX
EXEMPTION PLAN
To Relieve New Houses
For Term of Ten
Years.
NEEDED IN DISTRICT
Senator Tells City Club This
Would. Stimulate All
Business.

try foster house construction oy
private builders, the government IN
self defense will be forced to go
into the housing business, declared
senator William NJ. Calder, Of New
York, in an address before the
nambers of the City Club at their
weekly luncheon forum yesterday
senator calder predicted that
with a national shortage of more
than 100000 homes, immediate
measures must be taken to stem
the emergency. He urged that Con-
gress be awakened to the need oil
taking present penalties OF private
builders.
From a lifetime experience as
house builder, l would say that ma
terial and labor costs apparently
are as low as they are going to be-,
said. Senator Calder. BY passing
the proper laws to encourage pri-
vate building. the government.
which is really responsible for the
shortage through its wartime re-
strictions, can start an immediate
and extensive resumption of house
building"
haPs
Pointing to the danger that other
States would adopt the Massachu-
setts plan of house building by
municipalities, Senator Calder urg-
ed instead the adoption of the So
called New York plan, under which
new housing is exempted from local
taxation for 10 years, thus encour-
aging private builders.
In the six weeks that this plan
has been in effect now in New York
City" he said. 1T has proved q tre-
mendous stimulous- Already the
building permits issued show con-
templated increased expenditure Of
more than s10,0O0,0 900 over the same
period last year. There is going to
be q tremendous construction of
one and two-family houses in the
outlying boroughs of New York"
Citing the Washington situation
as fully as bad as New York's,
Senator Calder advised his audience
to organize and seek passage of a
similar law here.
Helps All Business. .'-------- "-i7'
You have got to organize to i'm
press this matter on Congress-" he
said, "as l hnd 1t very difficult TO
impress them of the same situation
nationally. You would find, how
ever, that such a law would bring
a great stimulus to business here
II would not only establish a proper
supply of homes, but IL would in
crease the sale of building mate
rials and all the furnishings that
go into home. as well as affordine
employment which would bring new
buyers here.
There would be little IL any in
crease in other taxes. as only the
improvements are exempted and
the land is taxed as usual, and
while IL may add a bit to your
school. police and fire protection
bills, the amount would be so small
that 1t would be absorbed in the
increased revenue coming from new
business.
Such an exemption would cut the
cost of building from 10 to Is per
cent. The builder is in business for
profit and that cut may be the diff
ference that means profit to him.
And remember that the builder has
to compete with buildings con-
structed as long as 100 years ago
and at much lower costs"
Other Relief Measures.
Other means Of stimulating hous-
ing construction, Senator Calder
said, were contained in bills he had
presented in Congress. These, he
explained, included lowering or re-
moving the present high tax on the
income from mortgages. the estab-
lishment of a Federal housing bu-
reau which would study standardiza-
uon of building codes: establishment
Of a home loan banking system, and
requiring national banks to lend so
per cent Of their savings departme Mt
deposits on real estate mortgages.
Reverting to the possibility that
lower labor costs and lower freight
rates might cut building costs, SEN
ator Calder said that labor couldn't
be asked to take a cut as long as the
cost Of living kept up, especially II
II made as much of Improvement in
delivering production in the next
six months as it had in the last six.
AS for freight rates" he con-
cluded, they must be lowered. II
don't want to believe we face gov
ernment ownership and operation.
but unless practical railroad men
get together-possibly by operating
the roads as one system-and reduce
costs, we can't tell what may hap
pen Something like this must be
done or We will face the prospect Of
having the government In the rail-
road business as we'll as the pros
pect Of having II in the housing