Evening star., 1943-08-08
Continued From Page CID

profits will be limited to per cent,
which will include not merely interest,
but amortization costs.
AS finally adopted the bill provided
that any three persons might form an
urban redevelopment company, and
specifically authorized insurance COM
panies to create such organizations and
use their resources for the purpose of
the act At the instance of the State
superintendent of banks, clause en-
powering savings banks to invest in this
type of housing was stricken out.
Stuyvesant Town will be financed,
owned and operated by the Metropolitan.
under constant financial supervision by
the municipality. All plans must be ap-
proved by the City Planning Commits
sion The arrangement offers a system
of public and private cooperation which
Is new in the field of housing. A partic-
ular point is made of private ownership
in that the residents will not be tenants
of the City of New York, and will thus
escape possible domination by political
machines.
Thus far, only one insurance company
IN addition to the Metropolitan has
taken advantage OF the New York laws.
For Navy Yard and war workers, and
their families, the Equitable Life Assur-
ance Society started a community in
Brooklyn called Clinton Hills Due to
lack OF materials, work was stopped when
three of its proposed II apartment build
ings were available for rental.
First Project in 1924.
That Metropolitan Life should have
taken the lead was no accident. since
this company is far from a novice in the
field Of housing. No less than so wears
ago its present board chairman, Fred
erick H. Ecker, became the head of a new
bond and mortgage division which ham
died all OF the companys real estate
transactions. For several decades he
was In charge of administering the re-
habllltation and profitable resale of in
dlvidual properties which came into his
hands through foreclosure.
There was long step between salvag-
ing single units of real estate and the
renovation of entire districts. Yet the
metropolitan took 1t as early as 1922,
long before public housing projects were
thought OF. Its pioneer experiment was
loW-rental community of 54 fve-storv
apartment buildings in the borough of
Queens, which were completed in 1924 at
cost of s7,5O0,0O0
This development embodied striking
new features which have been enhanced
in succeeding projects. and which will
probably be initiated in similar under
takings all over the country. Ecker con-
vinced himself that depreciation Of real
estate values was due chiefly to obso-
lescence, and that the principal causes
OF obsolescence were lack of sunlight and
air. In the Queens project, the buildings
covered only so per cent of the land.
Residence was made attractive by land
scaping and provision for child recrea-
ton.
The second of the Metropolitans hous-
ing enterprises was Parkchester. designed
for medium-income families. Work be-
gan in 1883, and the first buildings were
completed on March l, 1910 Three
other undertakings folloWed-Parkmer-
ced in San Francisco, Parklabrea in Los
Angeles and Parkfairfax in Alexandria.
Va near the Pentagon Building. Rentals
for occupancy on October l began at
Parkfalrfax last May. Early next year,
Parkmerced will be two-thirdS and Park
labrea one-half completed. The re-
mainder in each case will be finished
whenever materials become available.
Provide Yardstick.
The Queens project has been in opera
ton nearly 20 years and Parkchester for
three. They constitute yardsticks for the
successful administration of such prop
critics. Through the depression in the
case of Queens, and through large turn
overs in esidenCe, due to the war, in the
case of both, rentals have continued
near capacity.
AS financial experiments, according to
representative Of the company, the two
enterprises have met with satisfactory
results. 1t should be borne in mind that
insurance companies seek security for
their investments rather than high
profits. Prior to the war, the Metropoli-
tans average net earning on all invest