Columbia University Libraries Digital Collections: The Real Estate Record

Real estate record and builders' guide: [v. 95, no. 2448: Articles]: February 13, 1915

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REAL ESTATE AND NEW YORK, FEBRUARY 13, 1915 ■giMIMIIH^^^^^^ IlilllilllliilllH .....Illilllillillli.....■Illllilillll.....Ililll.....lilllll 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 iniiiiiiB!!!:' iiliiii!iii;iiiPi?i!i;ii!i;ii!'!:i;ii||iiH :i:iiiiaiiiii!!;iiiiiiiiiiiliiliil^ 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-