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REAL ESTATE
AND
NEW YORK, FEBRUARY 13, 1915
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REAL ESTATE BOARD'S ANNUAL BANQUET
Past CoiKditions Reviewed and Future Dwelt Upon by the Mayor
and Other Speakers—Largest Gathering in Organization's History
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REAL estate was "king" at the -nine¬
teenth annual banquet of the Real
Estate Board of New York, held at the
Waldorf-Astoria on the evening of Feb¬
ruary 6. Fully 950 people, prominently
identified with real estate, were present,
but the casual observer could not detect
a trace of pessimism in their attitudes.
To be sure, most of them had felt the
recent period of depression, but on all
sides expressions of optimism were
lieard.
Mayor Mitchel was the principal
speaker, and he was followed by Comp¬
troller Prendergast, Dudley Field Ma¬
lone, Collector of the Port of New York;
Robert E. Dowling, chairman of the
Workmen's Compensation Commission;
Haley Fiske, second vice-president of the
Metropolitan Life Insurance Company;
James Y. Barry, Dr. John Huston Fin-
ley and Laurence M. D. McGuire, pres¬
ident of the board.
Budget of 1916.
Utmost importance was given the ut¬
terances of the Mayor, because many
felt that their welfare hung on the atti¬
tude of the present administration. "The
great problem that confronts the Board
of Estimate in preparing the budget for
1916," said Mayor Mitchel, "is the pro¬
posed State tax, which the city could
only meet by levying additional taxes on
the already overburdened real estate.
The budget for 1916 will have to be in¬
creased, and in order that this will not
be excessive, we will have to practice
the utmost economy and efficiency, as
we pledged ourselves to do before we
came into office.
"Some of the enormous expenditures
that have kept the budget as large as it
is are as follows: The Board of Educa¬
tion requires $41,000,000, but if we can
get the Legislature to give us control of
the education in this city we will have
done away with one of the .principal
expenses.
"If the city were left to itself we
would not need a higher budget. The
direct State tax is variously estimated
from $15,000,000 to $22,000,000. of which
New York will have to pay about 70
per cent. In this lies the real problem
of the next year's budget, and for this
reason the taxpayers and people of the
city should take more interest in the
State budget.
$59,000,000 Written In.
"I want to tell you that we have writ¬
ten into our budget $59,000,000, which
represents the present municipal debt,
and which we have inherited from past
administrations. I believe in absolute
home rule. If the Board of Estimate
had the same control over the county
offices as it has over municipal offices, it
would be able to make a marked reduc¬
tion in the city's expenses.
"We must either increase the tax rate
or develop some new sources of reve¬
nue, or reduce in amount or character
the service the city government is now
rendering. The first alternative I am
loath to'do. for I fear that real estate
is carrying all the burden possible.
"In regard to the proposed taxing of
incomes over $2,000. nothing definite has
been accomplished, but something must
MAYOR MITCHEL.
Principal Speaker at the Real Estate Banquet.
be done, without increasing the present
tax on real estate."
Comptroller Prendergast followed the
Mayor, and said that the people of the
city need not become unduly disturbed
about the State tax. that n6 reliable fig¬
ures were obtainable, and that its only
justification lay in the fact that the
State found out that it cannot finish the
barge canal under the appropriation al¬
ready made.
'T can see no good and proper reason
why the City of New York should be
asked so abruptly to make up $15,000,000
or so, deficit in the State debt. If all
the former appropriations for the canal
were made on fifty-year bonds, why
should those at Albany now turn to a
direct State tax? United action must
be taken to prevent this act being sanc¬
tioned bv the Legislature."
Interesting Figures Given.
Mr. Fiske gave some interesting fig¬
ures about the amount of money that
the' Metropolitan Life Insurance Com¬
pany had out on mortgage in the city,
and also stated that his company had
not called a single loan for the purpose
of increasing the mortgage rate. On
the other hand, he stated that in several
instances the interest rate had been re¬
duced. "New York City will find itself
again." said Mr. Fiske. "and when that
time comes we will enter into the great¬
est era of prosperity that we have ever
known. Tt is a law of economics that
real estate is the last to feel the benefits
from the turn of the tide. Tt is very
like a valley lying to the west of a
mountain which does not get the early
morning sun. but receives its warmth
and benefits long after its neighbors on
the other side of the mountain are in
darkness.
"The Metropolitan Life Insurance
Company has about $208,000,000 of its
funds invested in real estate mortgages
all over the countrv. but of tliat sum
between $170,000,000 and $175,000,000 is
placed upon realty in New York City.
This shows our confidence in the local
market."
Mr. McGuire said, in part:
"It is estimated that the City of New
York boasts 150,000 property owners,
whose holdings are assessed at more
than $8,000,000,000, yet it is a lamentable
fact tliat until the present time these
interests never have been organized sat¬
isfactorily. Labor and civic organiza¬
tions and various societies have gained
recognition from the city and State au¬
thorities, but legislation has been en¬
acted at times without due regard and
consideration for this vast army, repre¬
senting the best type of citizenship in
the nation.
"Only during the last year have the
various real estate organizations, realiz¬
ing not only their duty to themselves
but, further, their importance to the
community and the tremendous value of
the interests entrusted to their care,
given to public matters the consideration
and attention which should have been
given at all times. In this short period,
for the first time in the history of the
city, so far as I can discover, every im¬
portant public meeting of the Board of
Estimate and its committees, the Board
of Aldermen and its committees, has
had present a representative to watch
and care for the real estate interests as
a whole.
"In the past the meetings of the vari¬
ous official bodies were, as a rule, at¬
tended only by clamoring representa¬
tives of various self-interested district
organizations, ever ready to commit the
city to extravagant expenditures, or else
by unorganized property owners, oppos¬
ing specific measures affecting them per¬
sonally.
"But there has come a change. To¬
day the real estate interests are aroused
and thoroughly organized, and I believe
we can discriminate as between our ene¬
mies and our friends; we are determined
to fight the one and to aid the other.
"We realize fully that the $8,000,000,-
000 invested in one form of wealth, while
sufficiently tempting to invite attack, is
also sufficiently valuable to be vigorously
defended.
Politics Not Factor.
"In our relations during the last year
with the city officials, as a whole, our
recommendations and suggestions have
been given the atten'tion and considera¬
tion to which they were entitled. With
all my strength, and with many mem¬
bers of the administration present, I
wish to deny, in the most positive terms,
that there has ever been a single act of
the Real Estate Board inspired by polit¬
ical motive.
"Real property in the City of New
York is still the best asset, conserva¬
tively purchased and conservatively man-
aced, that a man can have, and is en¬
titled to the same consf-leration that is
given other forms of wealtl by the com¬
munity.
"The consensus of the board is that the
situation as to real estate and to busi¬
ness generally has greatly changed: that
the government of the city. State and the
nation is about to shake off the influ-