New-York tribune., 1922-07-30
Craig Says
MorleyShould
Be Cheap
Cannot Understand e Per
Cent Rate, When State
and Nation Pay Only 4;
Auction May Lower Ii

The intention Of Comptroller Craig
to allow rs per cent of the amount OF
the bids at the forthcoming auction
sale to remain on mortgage at per
cent is regarded in real estate circles
as step that will have far-reaching
influence in bringing about a lower
mortgage money rate. The ruling
price in the mortgage market is per
cent, with an occasional loan made Ct
5%a per cent.
an my opinion" said ComptrolleT
Craig yesterday in discussing the big
gest auction sale ever held by the city
government, "a per cent rate on real
! estate mortgage is in line with current
conditions.
at is a matte of record" said Mr.
Craig. that the City of New York is
able to borrow all the money it wants
at less than 4 per cent. ] know of no
good reason, therefore, why the citi-
zens of New York should pay more
than 5 per cent on these purchase
money mortgages.
There is also to be considered the
fact that government bonds a3e now
on less than 4 per cent basis, while
some state bonds yield only $50 per
cent at present prices"
Terms Give Little Fellow Chance
The Comptroller said that the firan4
cial arrangements pertaining to the
great auction sale had been determined
upon for several reasons. perhaps the
most important of which is that he
desires to give the same opportunity
{ in Sal 10 To "a ts.lo oil
limited, as the men will have with
greater means. The properties to be
! put on sale belong to all the people,
and 1T is the Comptroller's desire that
all the people shall have chance to
bid. for them.
For this reason he will require an
amount equaTto only 10 per cent of the
purchase price on the day of sale, plus
/ the auctioneer's fees Within a period
+ purchasers will be required to pay an
amount equal to only 10 per cent more
} OF the purchase price in order to get
deeds. In other words Comptroller
Craig is asking the citizens OF New
/ FORK to pay only oue-quarter of the
purchase price of the properties in or
/ der to gain possession OF them, the
remaining rs per cent he will leave on
mortgage for a period of five years at
/ per annun.
City Stands Back of Titles
Another interesting feature in this
sale viii be the full covenant and war
ranty deed which the citv will give 70
! all purchasers. Such q deed is backed
/ by the bond of the city itself It ear
ries with it the highest possible guar
antics, but the Comptroller has not
/ stopped there. II, by any possibility. a
| defect in the title conveyed should be
! found in any case, the city will return
j the purchase price with interest at
/ per cent and pay the costs of a reason
able counsel fee in addition.
1t is many years since New York has
been so interested in real estate as it
became following the announcement OF
the Comptroller that he intended TO
sell the city's surplus properties, for
f, Trey include realty in everv borough
which would nave been purchased and
improved long ago if the city had had
the, power to sell TO those VINO wished
to buy. SoEle Of the properties, iiks
old frehouses, police stations, school
/ buildings, lend themselves exception
1 ally we'll to alteration into industrial
and commercial structures. Others
occupy sites which should be improved
at once with modern buildings to keep
pace with surrounding developments.
Al the nrices which the city will ac-
cept for them they represent fine in
vestment opportunities. The Comp
trolle1 is not alone in the belief that
this sale will be followd By building
movement that will add to the available
supply of residential and business
buildings.
An illustrated catalogue containing
the terms .and coalitions of sale and
! full description of each parcel can be
had upon application to Augustus J.
Rim, department Of real estate, Room
1873. Department of Finance. Municlpar
Building, Manhattan, or the auction
GERS, who are Joseph P. Day, Inc, ST
Liberty Street, Manhattan Henry
Brady, 139 West Thirty-third Street.
/ Manhattan; Samuel Marx, lis, West
Twenty third Street, Manhattan;
Thomas A Hovenden, of the Chauncey
Real Estate Co, 1877 Montague Strest,
Brooklyn, and Theodore Archer, 20
New York Avenue, Jamaica.