Columbia University Libraries Digital Collections: The Real Estate Record

Real estate record and builders' guide: [v. 97, no. 2496: Articles]: January 15, 1916

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Af/D NEW YORK, JANUARY 15, 1916 ■■ ■ I LIVE TOPICS DISCUSSED AT CONVENTION I I Tax Situation, Home Rule for Cities and Brokerage Regu¬ lation Among Subjects Chosen at Mid-Year Conference ilBIKIIllil AT the Mid-Vcar Conference of the Real Estate Association of the State of New York, held at the Hotel Mc¬ Alpin on January 7, many subjects of vital interest to those interested in realty came up for discussion. Charles E. Manierre, of the Committee on Taxa¬ tion, congratulated the members of the association on the fact that the tax situa¬ tion had reached a point where there was general agreement that effective re¬ vision was imperatively necessary. Mr. Manierre continued in part as fol¬ lows: "The trend of legislation is to¬ ward a continually increasing burden of taxation in proportion to the popula¬ tion. The source of special ta.x, such as, for example, the succession tax and the franchise tax, which, as a make-shift, have postponed the crisis, have reached about their limit, and the State is now faced with the necessity of constructing a suitable and comprehensive system of taxation under which all of the money necessary for the purposes of govern¬ ment may be secured without undue pressure upon any. The First Step. "It would seem that the first step would be the enactment of a law such as the bill submitted to the Legislature last winter, taxing secured debts at a rate not exceeding four mills annually, and including for that purpose a listing system and the collection of the tax by the State instead of by localities. "In this connection the people of the State are to be congratulated that the so-called Secured Debt Law, which was not so much a tax law as a tax exemp¬ tion law, was repealed by the Legislature last year. To permit, as this law did, a payment of ;< per cent, and an exemp¬ tion thereafter through many years, whatever the life of the bond, certainly could not be deemed a tax measure. It merely dried un the source of taxation. "Fortunately, one Legislature cannot bind a later Legislature and those who took advantage of this law cannot com¬ plain if subsequently the exemption so broadly granted is cut down to a com¬ paratively brief period of time." Home Rule for Cities. Laurence McGuire, president of the Real Estate Board of New York, speak¬ ing of Home Rule for Cities, said: "The Real Estate Board believes that the Board of Estimate and the Board of Aldermen, the City Legislative bodies, charged with the control and the ad¬ ministration of the city government and held responsible therefor by the peo¬ ple of the city, should have absolute control of the expenditure of all monies which must be provided for in the city budget for borough and city purposes. "As these boards are held responsible for the tax rate they cannot be subject to just criticism unless the ability to control the tax rate rests with them. In otlier words they cannot be held re¬ sponsible for the enormously increased expense of the Board of Education if a large part of such increase is the re¬ sult of mandatory legislation nor can they be held accountable for the expense necessary to carry out new functions of government if the duty of carrying on such functions is imposed upon them by an act of the legislature. "It was for these reasons that the Real Estate Board last winter support¬ ed the Cromwell bill, which sought to give control over the salaries and dis¬ bursements of city, borough and county officials. The board will again support legislation having as its object such financial control. Other Measures Supported. "It w-ill also support measures for transferring to the Board of Estimate the powers of the Court House Board, the Board of Water Supply and the powers of the Public Service Commis¬ sion as far as they relate to the con¬ struction of rapid transit lines and here¬ after will oppose the creation of any statutory commission to do any work for the City of New York which can be done by the city authorities. To this extent the Real Estate Board is com¬ mitted to Home Rule for the City of New York. "New York City is peculiarly locat¬ ed. It is at the entrance to the con¬ tinent and is the gateway through which the tremendous immigration has poured into this country. It has frenuently happened that while the stronger, sturdier and more self-reliant emigrants passed through to huild up great and flourishing communities throughout the L^nion, those who were not so fortunate or so strong and self-reliant, either from physical, mental or other causes remain¬ ed in New York Citv for their children to be educated, their feeble and incomne- tent to become a charge on the com¬ munity. "It is from these people and those who sympathize with them that the de-. mand for new soci.-nl activities arises and we have a condition today where millions of dollars are soent annually for functions of government not known in New York City a few years ago when its inhabitants were of a different tvne. The constitutional limit of 2 per cent, is a safeguard, yet it has been proposed to take this from us by those who en- couraee this element in nur community and the debt incurrine limit of 10 per cent, so wisely provided for in the con¬ stitution and so necessary to nrevent citv bankruptcy is also extremely of¬ fensive to a certain element in our city. A System of Checks. "You will, therefore, see that although there should be the largest measure of home rule for local control over city finances there must also, for the pro¬ tection of property rights, as essential in a free government as persona] rights, be some system of checks and balances in local government. "The desirable situation appears, therefore, to be a strong local govern¬ ment with full control over local af¬ fairs and local finances, and complete state legislative control not for tlie pur¬ pose of unnecessary interefence or to impose additional burdens bvt tO pre¬ vent excessive burdens and to aflford protection when necessary to threatened property or individual rights. "The subject of Districting Cities is of such great importance that one hesi¬ tates to dismiss it in a few words. That is, liowever, what must be done on this occasion. I will confine my remarks, first, to the broad general question oi districting and regulating, and second, to the difficulties that lie in the way of putting this principle into practice. Tremendous Problem. "The public has come to realize that the old haphazard fashion, good enough when New York was a small town, has left its mark and is not exactly the pro¬ cedure suitable to the New York City of today or of the future. Public senti¬ ment, in other words, has crystalized into a desire to regulate building, in so far as this is wise and practicable; and to say that a building must not be erect¬ ed to any heigh the owner may elect, if that procedure is going to injure his neighbor's building or perhaps a great many buildings in the vicinity. "From what I have said it may be gathered that I personally agree that the general proposition to district cities and create zones in which only certain types of buildings may be erected and only certain kinds of business carried on, is good. I think I may safely say that it has general approval. To the extent re¬ ferred to above it has the endorsement of the Real Estate Board of New York. "That, however, is not to say that the same endorsement will necessarily be given to any or all of the detailed recom¬ mendations that the committee may make. These recommendations, I need hardly say, are being awaited with thje keenest interest. The problem is a tre¬ mendous one. It requires thorough in¬ vestigation of all the factors entering into the life and growth of the greatest city in the world, a city where condi¬ tions are unusual and which presents greater problems than any city in the world. Real estate conditions, real es¬ tate history, the development of locali¬ ties, the influences that have brought about radical changes, the growth of population, the shiftin.g of residential and business centers, transportation, railroad and water front conditions, the relation between the several boroughs—these and many other factors must be studied in the minutest detail, and all in relation to the future growth of New York City." Views of President Marks. Borough President Marks said: "A great measure of home rule must be pre¬ served in the city of New York. When the population reaches beyond five mil¬ lions, with a prospect of growing to ei.ght or ten millions, it is a fair question whether the unit of government has not become too great. "The demand for borou.gh home rule is a healthy one. There is no desire to weaken the licensing function of the cen¬ tral authority; no thought of de-central¬ izing police, fire, education, or similar city functions. But, on the other hand, local physical works coming close to the daily lives of the people, such as paving.