REAL   ESTATE







AND







NEW YORK, SEPTEMBER 26, 1914





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LIVE   QUESTIONS   FOR  REAL   ESTATE   MEN |





What   Should   Be   Done  About the   City's   Fiscal   Condition—How Can
Municipal Extravagance Be Stopped—The Unification of City Departments





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A STRONG and urgent appeal for co¬
operation among all the taxpayers'
associations during the coming year has
been made to each association by the
Advisory Council of Real Estate Inter¬
ests, which has been formed for the
purpose of bringing about harmonious
action on the part of the various real
estate organizations of Greater New
York for the protection of real estate
interests.

The council will act as an advisory
body and constitute a medium through
which property owners' associations
can speak as a cohesive and co-ordinate
unit. By thus federating the various
associations, a consolidation of real es¬
tate interests will be consummated
which will undoubtedly be for the best
interests of every property owner.

It is not purposed in any way to su¬
persede any of the present real estate
associations, but on the contrary to
strengthen them in their respective fields
and to look to them to do the work and
accomplish the ends desired. However,
when it is found that the interests of
property owners are not being care¬
fully conserved, the council will act in
their behalf in every such instance.

The  Campaign for  Unification.

At the October meeting of the
council, the unification of the various
city departments and the State Depart¬
ment of Labor as proposed by the State
Factory Investigatine Commission with
reference to the inspection of buildings
in New York City will be considered.
The tentative plan of the State Factory
Investigation Commission is the first
concrete suggestion to be presented in
the nature of a solution of the inspec¬
tion problem. As to whether it is ad¬
visable to unite the various departments
now having jurisdiction over structural
changes in buildings into one central
department, or into several borough de¬
partments, has not been as yet deter¬
mined by the council.

It is understood that all the Borough
Presidents favor the latter plan, espe¬
cially since the central building depart¬
ment under the Charter of 1898 with a
directing board of three members ap¬
pointed by the Mayor with local offi¬
cers in the borough proved to be un¬
successful. On the other hand, the
Real Estate Board, the pioneer real es¬
tate organization, in endeavoring to
ameliorate the condition of the proper¬
ty owners in regard to oppressive reg¬
ulations, and which is represented upon
the council by its President, L. M. D.
McGuire, has appointed a committee to
confer with the members of the State
Factory Investigating Commission upon
the feasibility of one central department.

The various phases of this question
must be considered, as well as to what
departments should be included in the
central building department. In this re¬
snect the advice of the members of the
Advisory Staff of Experts will be of in¬
valuable assistance. This Staff of Ex¬
perts consists of Messrs. Louis Haro-
witz, Otto M. Eidlitz. Henry W. Hodge,
Amos L. Schaeffer. John P. Leo. Julius
Francke, James A. Henderson and Peter.





HON.   CYRUS   C.   MILLER.

J. McKeon, and to these gentlemen will
be referred for consideration the vari¬
ous plans that mav arise.

Stopping   Municipal   Extravagance.

A plan for eliminating unnecessary
and extravagant .expense items from the
proposed city budget is being carefully
worked out by a sub-committee of the
council. The preparation of a city bud¬
get is very technical, so that the prob¬
lem of eliminating unnecessary ex¬
penses is not one easy of solution. The
expenditure of public moneys can be
easily criticised in vague and glittering
generalities, but sane and sound sug¬
gestions for the economical conduct of
the city and state governments must be
grounded in fact. There is no doubt
that the city and State administrations
would welcome constructive criticisms
and probably would exclude items,
where the omission would not entail
sacrifice of departmental efficiency.
However, the council purposes to ex¬
amine the city budget as closely as pos¬
sible although progress in cutting ex¬
penses may be made but slowly, but
with the certainty that definite results
will ultimately be accomplished by
painstaking comprehensive examina¬
tion of the budgets aj they are an¬
nounced.

City's Fiscal Policy.

The final question for the considera¬
tion of the council will be the fiscal pol¬
ity of the city, as to under what condi¬
tions it would be advisable for the city
to issue corporate stock in the form of
fifty-year Jjonds and under what condi¬
tions it would be advisable for the city
to issue short term bonds. This is a
question of vital importance at the pres¬
ent moment, since it was a salient feature
in the recent loan of one hundred mil¬
lion dollars to the city by a local bank¬
ing syndicate. The fiscal policy of pay-
inp- city debts as they fall due insisted
upon by the banking syndicate as a con¬
dition  precedent  to  making the  loan  is





doubtless a good business proposition
and based upon good fiscal reasoning,
but on the other hand the weight of
taxation necessary to meet our obli¬
gations as they fall due will press heav¬
ily upon real estate taxpayers. Conse¬
quently the council believes that since
real estate must oay the largest share
of this tax levy, such a fiscal policy for
New York City should receive thorough
study, particularly when the present tax
levy is very burdensome.

The Bonded Debt.

The duration of improvements often¬
times makes it possible to extend the
bond issue to pay for the improvements
over a number of years, but this policy
in itself has made the bonded debt oi
the city rise by leaps and bonds. Under
these circumstances, a definite fiscal
policy must be carefully worked out
on the part of the real estate associa¬
tions and when finally decided upon as
just to the property owner and for the
best interests of the citv, then the ap-
proxiniately one hundred taxpayers* as¬
sociations will be requested to endorse
the policy and stand as a unit in its
defense.

At the October meeting of the Ad¬
visory Council, certain phases of the
Inheritance Tax Law, and the Secured
Debt Law will be examined, inasmuch
as it is understood that a plan for their
repeal is being initiated and the Council
is much interested in the proper con¬
servation of personal property. Also, at
this meeting a feasible policy for devel¬
oping our harbor and terminal facilities,
with an examination of the merits of the
free port, will be studied; also, the pro¬
posed distribution of local assessments
for benefit, the constitutional conven¬
tion, and certain phases of the Work¬
men's Compensation Law, which are
now burdensome to real estate, and in
many respects are so vague as to require
specific amendments to be made at the
next Legislature. Certain provisions of
the new war tax bill affecting financial
institutions and real estate will also be
thoroughly examined. From time to
time, announcements will be made of the
reports made by the various sub-com¬
mittees of the council, which it is be¬
lieved may be of interest and of value
to the property owner.

Efficiency  Recognized.

During the short existence of the
council, its work has received favorable
recognition as well as that of the asso¬
ciations which it represents, by the ap¬
pointment of members of the council to
the various city and state commissions
having to do with real estate, such as
the Committee on Taxation and Com¬
mittee on City Planniu'^ as well as the
State Factory Investigating Commis¬
sion. By being thus nlaced directly in
touch with administrative work, a just
recognition has been made of the ef¬
fective work done in behalf of the indi¬
vidual real estate owners by the coun¬
cil and the original constituent organ¬
izations of the council, the Real Estate
Board, the Allied Real Estate Interests
and the United Real Estate Owners'
Associations.