The New York herald., 1921-03-31
Taxation Has Driven Capt.
tai to Seek Higher Rates
Of Interest, His View
at Hearing.
RECALLS THREE FACTORS
High Cost of Material, Labor
Exploitation and Capital
Situation Behind Lack of
Building Effort.
speo.a! Despotc. 10 THE New YORK HEsALp.
New York Herald Bureau,
Albany, March 30.

New York Herald Bureau,
Albany, March 80.
The building crisis in New York is
so bad that it cannot be helped by
tinkering with rent and ejectment
laws, in the opinion of Gov. Miller,
who to-day for the first time since he
took Office made known just how Sc
rious he believes the situation to be.
The Governor conferred in the Ex-
ecutive Chamber with representatives
of the Legislature and public commit
tees. on building, labor and civic as
sociations The subject considered was
I. the Cotillo bill. which provides for
esta blishing a. bureau of land loans in
the banking department to assist build
Ing.
Labor itself is responsible for con-
ditions which compel workmen with
big families to live in three rooms, the
Governor told the labor union men.
"The only practical thing that has
occurred to me and which l have con-
sidered recommending to the Legisla-
ture is raising the rate of interest on
mortgage loans to eight per cent. and
making the rate legal" the Governor
said.
suffer From Makeshifts.
"You cannot pull yourself out by the
bootstraps,' he continued. IF we do
those things which Interfere with the
operation OF economic laws we must
suffer--that is what we now arc suffer
So
sorting first to one makeshift and then
to another. II anybody can work out
some constructive thing that will do
some good I viii get behind 1t, do not
care where It comes from"
DR.. Royal S. Copeland, Health Com
missioner OF New York, began the argu-
ment for the bill by describing crowded
conditions IN New York, saying condi-
tons were worse there than in China.
II haven't any doubt about the condi-
tons" the Governor broke in. The
question Is, what is the scientific way to
deal with the situation and what win
be an effective remedy to remedy condi-
IONS
William +. kehoe, secretary of the
Greater New York Labor and Trades
! Council, said labor was calling for re-
lief and that the rent laws passed last
z year had given some relief.
mot any relief from lack of build
ings. only relief from eviction" the
Governor said. Others continued tack
ling the subject from one. angle and
another.
Nathan Hirsch. formerly chairman Of
the Mayors Housing Commission. gave
fourteen reasons why the Cotillo bill
should be passed. Other speakers said
loans and put up little house.
Money md Interest.
The Governor listened 10 the argu-
Tnents. Finally he broke in and said :
we can talk about this situation,
but merely talking is not going 10 get
anywhere. II is an assumption that
this bill would work. But | do not
think the bill would do much good /
think 1t Is wholly impractical. Would
the State credit be behind this bill
That would require submitting Il TO a
vote by the people. ! gather the inn
preston that the scheme is that the
credit OF the State banks would be back
Of these loan certificates to honor mort
SdHGS anu tldl llltSt lllOTtkdBtN
be the security against which the cer-
tlficates would be issued.
That won't work. We have a State
bank now which would be just as good
as your bureau in the office OF the
Superintendent OF Banks: better In fact.
because IL reaches out through different
parts In every section of the Safe. II
wouldn't have nearly the expense OF adj
ministration which this would have. We
have got now an instrumentality in the
State and Il has failed, absolutely failed.
Why? Because money brings a higher
rate Of interest than its bonds can and
you cannot compete with X. You will
4 find that in any bureau. unless II Is "A
state bank, you would have competition.
II don't think this plan would get any
where. You are simply setting UP
under another name. The truth is that
our taxation has driven capital to seek
a higher rate of interest and the situa-
ton enables capital TO get a higher rate
of interest; and you cannot. by creating
an agency of this kind, interfere with
the natural law OF supply and demand.
You have got In this whole building
situation three limiting factors. The
cost OF material was one. The expose
of improper and unlawful and criminal
practices of the material men by the
Lockwood committee is having it's ef-
feet. Economic conditions arc having
their effect 10 bring down the costs OF
material. am advised that materials
arc coming down.
Labor is another factor. Labor was
being criminally exploited, according to
disclosures. just precisely as the material
men were exploiting the public and, OF
course the difficulties there made II DIFF
ficult to build and labor has got to
Continued OF Seventh Page.