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REAL ESTATE
AND
NEW YORK, MAY 29, 1915
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GOVERNMENTAL ATTITUDE TOWARD REALTY
As Observed at Albany and City Hall—No Strong Desire for Economy
— Public Opinion Must Be Changed — Views of Two Leaders
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HON. Cyrus C. Miller, chairman
of the executive committee of the
Advisory Council of Real Estate Inter¬
ests (formerly Borough President of the
Bronx and member of the Board of
Estimate}, when asked for an expres¬
sion of Opinion on the meaning and
effect of recent city and State legislation
and the apparent attitude of officialdom
toward business interests, dictated the
following:
Ex-President Miller*s Views.
"There seems to be an idea in the
minds of some real estate owners that
city and State officials have a settled
enmity towards real estate. I think this
is an error. To be sure, isolated cases
of indifference to real estate interests
may point to such a condition of mind,
l^ut I think it is far from general.
"The record of the last Legislature
towards real estate has been a mixed one.
In the first place, il passed a good many
bills, such as the Lockwood-Ellenbogen
hill, and others to ameliorate the condi¬
tion of real estate. On the other hand,
the percentage of waste in the bills mak¬
ing a direct State tax necessary was
prejudicial to real estate.
The People Were the Spenders,
"The spending record of the municipal
government for the past twenty years
has been the result of pressure by citi¬
zens themselves.
"We must not forget that one of the
functions of officials is to appropriate
and disburse the moneys necessary to
carry on the government, and that
eventually all taxes get back to bear
directly on real estate. Appropriations
therefore, be they little or big, must fall
eventually on rea! estate. The question
is not how to avoid such taxes, but how
to see that they are expended economi¬
cally. Here must arise a difference of
opinion.
"Social workers and persons who do
not own real estate naturally do not take
the same direct interest in limiting ex¬
penditures as the owners of real estate
do who pay the taxes in the first in¬
stance.
"Of course, everybody in a community
pays taxes directly or indirectly, but the
indirect payers are not so apt to realize
it. Large organized bodies in the com¬
munity, which are composed of indirect
payers, constantly press officials to make
expenditures which are designed to fur¬
ther plans for educational, charitable, re¬
ligious or social work, or to grant ex¬
emptions of taxes or assessments which
fall on the rest of the community; ac¬
companying such pressure with lauda¬
tory articles in the public prints which
tend to make the official popular and to
favor his political fortunes. Many of
these schemes are good, and in line with
our advance in civiHzation, but many are
bad.
"The real estate interests, on the other
hand, which are directly interested in
such expenditures, are individualistic and
unorganized. It must not be forgotten
t) at in the past many of the official ex¬
travagances have been urged by real
estate people themselves, and also that
every good reform for the betterment of
housing and working conditions in the
WHAT is the attitude and pur¬
pose of official and social
forces in New York City and State
toward real property interests, as
evidenced, for example, by the re¬
sults of the late session of the
Legislature and, for another ex¬
ample, by the record of the munic¬
ipal government?
The question was asked of two
gentlemen prominently identified
with real estate interests, in
order to obtain a definite expres¬
sion of opinion. Disappointment
over the unwillingness of the
Mayor to sanction the Lockwood-
Ellenbogen bill to reduce the over-
regulation of buildings, and resent¬
ment at the imposition of an
extraordinary direct State tax on
top of an increased city tax, have
been very marked in business
circles, and coupled with expres¬
sions of conviction that the law¬
making powers were either hostile
or indifferent to the general wel¬
fare.
city has been made despite the opposi¬
tion of some of the less intelligent real
estate interests. This is apt to create
in the minds of officials the impression
that all reforms will be opposed by real
estate, which is an unfortunate condition
for both parties.
Social Workers Skilfully Advised,
"While we see the forces for spending
money organized and exerting constant
pressure, the real estate interests are un¬
organized and do not bring their intel¬
ligence to bear on the subject in a con¬
certed way. The mercantile interests,
the banking interests and all other large
interests in the city are organized to pre¬
sent their best arguments to city. State
and National officials. They retain the
most talented men in their ranks to ad¬
vise them.
"Real estate should do likewise. It
should not maintain the attitude of op¬
position to progress, but should adopt
an enlightened policy to advance with
the progress of the city, and at the same
time to prevent waste.
"There are many questions of policy
in fields of expenditure which have not
been worked out in the best way. The
city has not had a settled financial
policy. Until recently not even a begin¬
ning had been made in this most neces¬
sary part of the municipal government.
Until this is done we must drift along
in the haphazard way of the past. Per¬
haps the'Constitutional Convention sup¬
plemented by the best thought of the
city expressed in the new charter will
give us the relief we need."
False Impressions, Says Pres. McGuire.
President Laurence M. D. McGuire
of the Real Estate Board, remarked:
"My experience with the city. Legis¬
lature and Governor has convinced me
that the most important work before the
real estate interests to-day is to efifect
a radical change in public opinion and in
official .opinion.
"Ihruu-h the zcduus ctturts of cer¬
tain types of social uplifters, unloriu-
nately given wide publicity in the news¬
papers and through extensive circulariza-
tion for mercenary purposes, there has
been created in the minds of the ordin¬
ary citizens a false idea of the property
owner and landlord.
"He is represented as a scheming,
heartless and avaricious man, careless of
the lives and comfort of his tenants and
seeking only to wring the last cent of
profit out of his investment.
"To the official the property owner is
a mere minority, whose vote is not worth
considering, when it is remembered that
there are eighty-six tenants to fourteen
landlords.
"There is also ;.n impression in of¬
ficial circles that the landlord is what
the tenant considers him, and that, in
addition, landlords as a class are ab¬
solutely without gratitude.
"The Lockwood-Ellenbogen bill, an
eminently meritorious measure, was ve¬
hemently opposed by the press and by a
large class of well meaning citizens who
believed the misrepresentations of in¬
terested office-holders and social up¬
lifters. This bill, which made for econ¬
omy and simplicity in building inspec¬
tion, should have received the unanimous
support of the community.
"It is for the reasons given above that
economy in city administration does not
receive the support it should.
Economy Measures Vetoed.
"None of the various measures intro¬
duced in the Legislature looking toward
economy received enthusiastic support,
and even when we succeeded in getting
them passed by the Legislature they
were vetoed either by the Governor or
the Mayor.
"The Sanders bill, introduced at my
suggestion, to do away with an entirely
unnecessary labor building bureau in
cities which have competent building
bureaus, would have saved the State sev¬
eral hundred thousands of dollars. But
it was vetoed by the Governor, and I
am not aware that there was any adverse
editorial comment in the daily press any¬
where in the State on this veto.
"The Department of Purchase bill,
which, it is estimated, would have saved
the city $2,500,000 a year, was vetoed by
the Mayor because it took some patron¬
age from him and gave it to the Board
of Estimate, and again there was no ad¬
verse editorial comment in the daily
press. City officials have indulged in
a great deal of talk regarding mandatory
legislation, yet the city gave no support
whatever to a bill giving the city ab¬
solute control over all city and county
salaries; and again there was no criticism
of their action.
The First Duty.
"In my opinion there is no strong de¬
sire, either among city or State officials,
or among people generally, for economy
in government administration. It should
be the first duty of the real estate in¬
terests to educate public opinion and
show that the tenant and landlord are
partners and that municipal misgovern¬
ment and all governmental waste affects
everyone in the community.