Evening star. [volume] (Washington, D.C.) 1854-1972, 1926-08-15
CHEAP APARTMENT
!. HELD SUCCESSFUL
Metropolitan Life Co. Official
Tells of SO Per Room
Plan in Gotham.

While the Metropolitan Life Insur
ance Go. of New York has not beer
associated in any way with the pro
posed construction Of apartment
homes for Government employees in
Washington, the home construction
projects sponsored by it in and near
New York have been entirely success
full, Walter Stabler, comptroller of the
company, told The Star in a letter
yesterday.
The operations of the company III
the cooperative apartment field, Mr.
Stabler said. have been satisfactory
on a rental basis of 50 per room per
month, without charge for bathroom
hot-water supply or janitor service.
The operation has been entirely
successful from the very beginning
MIR. Stabler said. For the year 1925
our properties earned us S.S per cent
net on our investment. OF this
amount, 6 per cent is allotted to in
come. ANY balance over per cent
is used 10 amortize the cost of the
buildings"
Mr.. StabIer denied any connection
with the scheme sponsored here by
Secretary Of Commerce Hoover.
1T has not been discussed with
Secretary Hoover in any way, SO far
as | know, with any of the officers of
his company" he said. Mr.. Stabler
explained that under the New York
housing law enacted at the last SEES
sion of the Legislature, corporations
under certain condition will be given
by the State the right of eminent
domain. The rental to be charged by
these corporations was limited, and
they cannot charge over 6 per cent
on their equity, which would be repre-
scented by stock.
Sought to Prove Point.
"Our entering into this operation
was intended solely as a. demonstra-
ton to show that houses could be
built 10 rent for this rentaI-S9 per
room per month--with a reasonable
profit /" the builder he added. I'VE
did not intend and do not intend to
do amy more work of this kind, as
our business is life insurance and not
building"
When the company took up the
matter nf building such apartments,
II obtained evidence from builders,
real estate operators and owners that
houses could not be built under pre-
VailinG prices for labor and material
to rent for lower rates than $40 a
room with any profit to the builder or
the purchaser from the builder. These
rents. the company found, were en-
tirelN prohihitiVe to a very large pro
portion OF city jewellers. with the re-
suit that croWding of many persons
into rooms intended for a few persons
became the rule.
Two or three families were obliged
10 live in an apartment meant for
one family The evil effect of such
crowding needs no argument" Mr..
Stahler wrote. but the remedy seem
ed remote"
With the assistance Of the Lock
wood committee in New York in 1922
The company sought to obtain some
housing relief for the overcroWded
tenement jewellers in New York City,
and a hill to this end was passed and
signed by Coy. Miller. In the mean
time. Andrew ]. Thomas and ID. Ever
eft Naid. prominent architects. drew
III plans for the suggested apart
meutS. and the company let the con
,truction contract under their plans
20 II. {. Irons 4 Sons of New York.
The work was begun on August 16.
49, in the Borough Of Queens, New
York and ont of il grew - houses
10 accommodate 1,125 families or 5000
persons.
Complete i'll t9Sl.
II WAS completed in June 1924, and
by August the company had three
so-call'd '~potteSs towns with all
tho 1.1@5 apartments rented and at
least ~ GOO disappointed families who
could not he accommodated.
Tn" Investment 10y the company
WIll approximate 81 500 900, while the
r"ntHl~ arc over 81 600. 900 THE les
son to j." derived from this expert
mont seems ohviouS. Mr. Stahler
wrote IT is doubtful if s per cent
net on cost could be realized without
ttN exemption at 4 rental of 50 per
room per month. but there is no doubt
month por room would ahundantlN
rroYid" FOR fun taxes tSecretarT
Ii"uNcr'& announcement mentioned
Tho figure of ST. 50 a room per
month If therefore, limited divi-
deud corporations. other life insur-
auee companies and employers of
labor desiring to produce apartment
homes ~ the lowest rent possible.
With a sure net return of per cent,
would use tn" same methods as the
Metropolitan has in this operation,
here seems to he no doubt that a
maximum rental of $40 TO Sll per
room nor month will produce s per
cent and pay fun taxes. but only if
be homes are built on low-priced
land. easily and cheaplv prepared for
huildiuG and with public utilities al
ready p1nNiGpi =