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REAL ESTATE
AND
%) BUILDERS
/v
NEW YORK, JULY 3, 191.5
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REALTY INTERESTS IN THE CONSTITUTION
A Large Delegation Asks for Limitation on the Dimensions and
Character of Buildings in Accordance with the New Zoning Principle
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SELDOM has Albany witnessed a
more representative delegation ap¬
pearing in behalf of economic principles
vital to real estate than that which advo¬
cated restrictions of buildings' heights
and zones for all incorporated munici¬
palities in New York State. So much
significance was attached to these par¬
ticular principles that a joint hearing
was called of both the Committee on
Cities and the Committee of Bill of
Ivights, of which Seth Low and Louis
Marshall. respectivpi>. are chairmen.
In addition to the amendments pro¬
posed to restrict buildings' heights and
to establish zones, there was a third
amendment to the Constitution proposed
which provides for the condemnation of
unsanitary blocks when public health de¬
mands that they be converted into pub¬
lic parks. In this connection the power
is also given to the city to condemn
excess land which, if not needed for the
public park, shall be no more than suffi¬
cient to form suitable building sites
abutting on the park. This land may be
sold or leased with or without restric¬
tions. Five ameadments in all, cover¬
ing all these phases of real estate im¬
provement were submitted to the Con¬
stitutional Convention.
Three were introduced by William
Bannister, president of the Brooklyn
Chapter of the American Institute of
Architects. These amendments were
drafted by the Advisory Council of Real
Estate interests and the Tenement
House Committees of the New York
Charities Urganization and the Brook¬
lyn Bureau of Charities.
Limit Building Dimensions.
They specifically provide that the
Legislature shall have the power to limit
the height and dimensions of buildings
in cities, towns and villages of the State
and likewise the use and character of
occupancy of these buildings.
According to these amendments this
power may be exercised directly by the
Legislature or by authorizing the vari¬
ous mnicipal corporations to exercise
the same in the manner that may be
provided by the Legislature.
The third amendment confers upon
the Legislature power to take real prop¬
erty which is dangerous to pulilic health
or safety and sell or lease the same,
subject to such restrictions as may be
deemed to be in the public interest.
These amendments are the first public
step taken by the Three-Family House
Committee of the Advisory Council upon
which the New York Charities Organi¬
zation Society and the Brooklyn Bureau
of Charities are represented by .\lfred
T. White and Darwin R. James, Jr., with
Paul D. Cravnth, ex-officio.
In order to encourage the construc¬
tion of small-family houses and, if pos-
sil)le, to decrease the construction of
50-ft. tenements and regulate height of
office buildings, it was deemed expedient
to impress upon the Constitutional Con¬
vention the wisdom of incorporating
these amendments into the Constitution.
The general sentiment among real es¬
tate men was said to be that restric¬
tions upon height and zoning would be
able to do much to stabilize property
values and simultaneously prevent val¬
ues from shifting. Experience had con¬
clusively demonstrated that the erec¬
tion of mammoth l)uildings caused ad¬
joining property to depreciate in value
and deprives smaller buildings of ten¬
ants, in many cases, the larger build¬
ings had taken over leases of tenants in
other buildings, at great expense, with
the result that unrestricted building has
been detrimental to l)Oth small and large
property owners. If real estate owners
would not conserve their own interests
by moderation, then it was necessary
that in the interests of the community
as a whole certain restrictions be estab¬
lished.
It was said that the large office build¬
ing was far from a paying investment,
wliile the avidity with which favorable
locations are seized upon, to the depreci¬
ation of the value of adjoining property,
had been one of the elements in depress¬
ing the real estate market. The his¬
tory of real estate development, in so far
as the invasion of residential blocks by
industrial and business enterprises was
concerned, had been able to illustrate
that the zoning principle should prove
to be of considerable benefit to a health}'
real estate growth.
Would Encourage Property Ownership.
One of the most discouraging features
in the real estate world was the decline
in the number of property owners. It
was estimated that the actual numlier of
owners, including corporations, is ap-
pro.ximately 125,000. New York to-day
liad less percentage of home ownership
tlian any other city in the country, while
Boston has a 10 per cent, increase over
that of New York. Chicago and Phila¬
delphia had twice as many property own¬
ers; Cleveland and Milwaukee, Buffalo.
Baltimore and San Francisco had three
times as many, while Seattle and Los
.'Vngeles had four times as many. It
was, of course, understood that there
are many families throughout the coun¬
try that are well able to own homes, but
prefer to rent apartments, and this was
especially true of New ^'ork City. It
had been estimated that there are in
New York City alone 200,000 families
financially able to own $10,000 homes
but prefer to rent apartments or live at
hotels. To encourage this class of peo¬
ple to purchase property and also to
augment the property owning class gen¬
erally were among the reasons for sub¬
mitting these amendments to the Con¬
stitutional Convention liy the .\dvisory
Council and the Charities Organization
Society of New York and the Brooklyn
Bureau of Charities.
That tlic sentiment for restriction of
buildings' heights and zoning of the
cily, likewise condemning of unsanitary
areas for park purposes, extended beyond
real estate circles, was evidenced by the
introduction of similar amendments by
other associations. The Fifth Avenue
Association, through Mr. Baycs, intro¬
duced an amendment giving to cities
directly instead of to the Legislature
power lo estal)lish regulations and re¬
strictions for heiglits and zones. The
Fine Arts Federation and the Citizens'
Union, through Mr. Parsons, introduced
an amendment purporting to elifect the
same results as contemplated by the
Bannister and Bayes amendments. In
support of all these various amendments
the real estate interests were repre¬
sented by Walter Stabler, of the Metro¬
politan Life Insurance Co.; F. G. Hobbs,
of the firm of Slawson and Hobbs, and
the Secretary of the Advisory Council
of Real Estate Interests. The Fifth Ave¬
nue .Association appeared through coun¬
sel, Bruce Falconer, while Albert Bard
spoke for the Fine .\rts Federation. The
Charities Organization Society and
Brooklyn Board of Charities were rep¬
resented by Charles Coleman Miller,
John C. Gebhart and Lawrence Veiller.
Lawson Purdy, president of the Tax
Board, discussed the legal aspects of
the various amendments, reinforcing the
position taken by Walter Lindner, in his
letter to Mr. Low. This letter to Mr.'
Low, read at the commencement of the
hearing, was as follows:
"The Advisory Council of Real Estate
Interests favors strengthening and in¬
creasing these public regulatory powers
wdiich are in the nature of an exten¬
sion of the police power of the State.
Arguments upon the social and economic
aspects of this subject will be presented
to you in such detail that it is unneces¬
sary in this place to add to the discus¬
sion. One aspect, however, of this sub¬
ject the Committee on Legislation of
the .\dvisory Council of Real Estate
Interests considers it proper to present.
So far as the exercise of tlie powers now
proposed to be specifically granted comes
within the recognized police power of
the State, it may be argued that it is
not necessary to add further expression
thereof to the Constitution. But, the
question is one which will come up for
decision not only in the State Courts,
but one upon which appeal may be made
to the Federal Courts on the ground
that rights guaranteed by the LL S. Con¬
stitution might be infringed by the exer¬
cise of the powers now sought to be
expressed. If it is wise that the State
and cities shall have this power, and it
is assumed that it is wise, "then the
solemn declaration of the People of the
State of New York contained in their
Constitution that they desire to exercise
these powers may have a great and even
a controlling influence to sustain such
action taken under them when the ques¬
tion is presented to the United States
.Supreme Court.
"It would seem, liowever, that in
framing such constitutional provisions
and the legislation to carry it out, care
niust be taken to remain within the
limits of the promotion of the general
physical and moral welfare of the peo¬
ple and not to overstep these bounds by
seeking to preserve mere property val¬
ues, as is contemplated in some of the
propositions which are before your Com¬
mittee."
.\t the conclusion of the hearing a
special committee, with Hon. Morgan J.
O'Brien as chairman, was appointed by
Mr. Low, to confer upon these amend¬
ments with the various interests rep-:
resented.