The New York herald., 1922-05-16
OWNERS OF REALTY
OPPOSE EXEMPTION
They Are Prepared to Test
Constitutionality Of the
Tax Law.
rs CLASS LEGISLATION
President Schwab Asserts 1T
Benefits the Speculative
Builder.
rs CLASS LEGISLATION

Joseph S. Schwab. president of the
Real Estate Owners Protective AS
scciation, in addressing. a meeting of
yhe association in Hotel Majestic last
night. said the organization is opposed
to the tax exemption law and declared
it's purpose to take steps this fall to
test it's constitutionality, in case a move
ment in that direction has not been
made before that time. He contends
the principal benefits Of the law will go
to speculative building operators. THERE'S
no doubt. he thinks. that the law Is
class legislation, unfair to the old
property owners in view of the fact
that real estate in New York city rep
resents SO per cent of all taxes paid in.
The law referred to by Mr.. Schwap o
exempts builders of homes from taxa
ton for certain period of years. 1t
was enacted following the first investi-
cation of the Lockwood Legislative
committee into housing conditions in
New York and was sponsored by Sam
uel Untermyer, counsel to the COM
mittee.- Mr.. Schwab said
1T Is the purpose of this organization
at its first fall meeting. In event steps
already have not been taken, to test the
coystitutionality of this law. This as
ISOLATION will instruct its board Of coun-
sci to take such steps as will bring the
question of the laws constitutionality
concretely before the courts.
Is Class Legislation.
'',rhere is no doubt that it is class leg
islat 1t is unfair to old property
owners. in view of the fact that real
estate in New York city represents SO
per cent. of all taxes paid in
1T Is now being contended that no
Ell in. no hat da of
Houses of the city, which fact can be
readily seen by the number of buildings
going up everywhere.
1T is true there are no 50 room
houses going up. despite the Murray OF
Mr.. Untermyer that the Metropolitan In
y surance Company is ready with $780,
100000 to build them.
That does not seem to materialize,
and in my judgment will not take place
in the Borough of Manhattan. 1 would
like to ask those people who have $780,
600 or 100000 lying idle if, under the
law at present they are ready or anx-
ious to put up houses that will bring but
50 a room.
''At one of the meetings of this asso-
citation several practical builders demon
strated that If such houses were built
they would hardly pay the operating
expenses and would surely not permit.
uuuer tne decision OF the First DEPART
ment of the Appellate Division, per
cent. on the investment
Emergency Is Ended.
"A foolhardy builder attempting the
erection of such houses would have to
act as a janitor himself for 365 days a
year. / say positively the emergency is
over and that people can and have been
finding dwellings about the city, except
the poorer class. Isn't it outrageous
that this exemption should operate
against the poorer class of property
owners?.
why should lawmakers, who are so
eager to play politics at the expense OF
the poorer class of property owners.
make laws against those people but per-
init profiteers in foodstuffs to make
100 per cent. on most OF their merchan-
disc, so sold against the decision Of the
Appellate Division permitting an per
cent profit. For the foodstuff men to
make such profits, while the real estate
men make almost nothing, doesn't seem
at all fair
THE exemption seems to be enacted
specially In favor of speculative build
ing operators. who will ceive the bene-
fits which discriminate against the
smaller property owners. who hold their
property strictly for investment"