July 17, 1920





RECORD   AND   GUIDE





69







Co-operative Building Projects

Some interesting views as to the merits of co-operative
ownership of buildings are being brought out in the state¬
ments of realty leaders appearing in The Record and
Guide. It is apparent that, as changing conditions pave the
way for changing, methods, the exigencies of the present
day offer a good opportunity to test the co-operative idea.

Mr. George R. Read, a noteworthy pioneer in this field,
frankly confesses that he has overcome the prejudice
against the idea which his earlier experience caused him
to harbor. Mr. Read expresses the belief that the co¬
operative movement, in office buildings downtown as well
as in office buildings and apartment houses uptown, will
solve a great economic question when properly handled.
Mr. Read's qualifying words "when properly handled"
might be construed by some as covering a good deal of
mental reservation, but that construction hardly seems rea¬
sonable. What he means is that the co-operative plan, like
?ny other business proposition, must be properly financed
and intelligently managed if it is to succeed.

The same thought is expressed by Mr. Douglas L.
Elliman when he warns against the mistake of not dif¬
ferentiating between sound and unsound investments of this
character. He points out that millions of dollars have been
invested in co-operative building enterprises by some of
the cities most prominent bankers, attorneys, accountants
and other professional men, not one of whom would have
invested a single dollar in any sort of co-operative project
unless he had first assured himself of the absolute safety of
so investing, and of the advantage of purchasing on the
co-operative plan instead of renting.

Presumably there are some unscrupulous promoters
seeking through the present opportunity to reap a harvest
at the expense of gullibles who can be drawn into the co¬
operative project without proper investigation. But the
unscrupulous promoter and the guileless sucker we have
always with us.

The discussion of the co-operative plan brings out clearly
the fact that many advantages are to be gained through it
if intelligent investors act through reputable real estate
concerns in making their plunge into this new field.





To Prevent a Coal Famine

By concerted action of the Interstate Commerce Com¬
mission, the railroad officials, coal operators and distribu¬
ters at an earlier period of the year than is usual when
a coal shortage develops, it may reasonably be expected that
the next winter will find sufficient supplies on hand to
prevent shutdowns of factories and public utilities and the
rationing of private consumers. Reliable figures show that
the production of coal so far this year has been above the
average and that if mining operations continue at the
same rate for the balance of the year the total output will
aggregate the third largest in the history of the country,
the exceptional years being within the war period.





Transportation difficulties, chiefly the car shortage, are
responsible for the coal shortage. But like the car short¬
age, which is largely a matter of greater demand for open
and box cars than ever before existed, the coal shortage
is relative. There is need of more and more coal for
manufacturing, for lighting, for transportation purposes
and for the heating of the increasing number of houses
and offices. The mines, like the railroads, have not kept
equipment up to the demands made upon them, to the
detriment of public interests. Increased rates for freight
and passenger service, and increased prices of coal to con¬
sumers have largely been eaten up by higher payments to
labor for shorter hours of service. This has left railroads
and mines without sufficient capital to work to advantage
for greater transportation facilities or greater production of
coal.

But there is beginning to exist a belief on the part of
those engaged in solving these difficulties of the hour that
the worst is over. Public utilities in this city have increased
their stocks of coal and the railroads are perfecting ar¬
rangements to get more coal to those firms most in need.
Having started early in the summer to effect a systematic
handling of coal it is reasonable to believe that New York
will have enough to supply all legitimate demands and at
such times as to prevent a repetition of the partial famine
of recent years.

!' i
Watched Half Century of City's Growth

By the death of Mr. Frederick Zittel the city loses one
of its oldest and most prominent men. Long identified
with the business of buying and selling real estate on a
strictly brokerage basis, Mr. Zittel had rare opportunity
for watching the growth of New York and the rapid rise
in realty values as the city expanded northward. He was
one of the first to recognize the possibilities of the section
west of Central Park for residential purposes and was a
pioneer in the development of the district which was the
scene of most of his activities during a long and useful
life.

Mr. Zittel entered the realty business on November 1,
1868. At that time New York City, as now constituted,
had a population of less than 1,500,000, and Manhattan of
less than a million. The effects of the War of the Rebellion
were still in evidence, and Gen. Grant was elected President
two days after Mr. Zittel became a real estate broker.
Tn the intervening years he saw the population quadrupled
in numbers, and the business and financial resources of the
metropolis of the Western Hemisphere grow so great that
today it is admittedly the most influential commercial and
money center in the world, and rapidly recovering from
the effects of a war infinitely more destructive than the
one of 1860.

In all the great movements which helped to make New
York the world's chief city Mr. Zittel took part actively or
gave them his cordial support. He was the oldest member
of the organization now known as the Real Estate Board