Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1917-05-06
REALTORS DISCUSS
LOWERING OF RENTS
Willing to Sacrifice Commits
sions, But Want Other Bust
ness Men to Do Same.
PROBLEM BEGUN WRONG

When the city council called on
the Omaha Real Estate board to re-
duce rents in order that poor people
and working men might get along
cheaper during the war, the council
learned something about rentals in
Omaha. They were pertinent facts,
for the Omaha Real Estate board
sent to the council chamber a COM
mittee of realtors who we're well post
ed on things the council knew little
about
President E. M. Slater of the Oma-
ha Real Estate board told the council
the board would be glad to cooperate
in the great movement to reduce ex-
penses to the working men and to
everyone If the council would show
itself to be indeed sincere in attack
ing the problem on large scale. He
suggested, however, that the council
had begun at the wrong end of the
problem, since, he said, exceptionally
small profits were made on invest
'ments in houses to rent.
Mayor Wanted to Know.
"But the rental is big part Of the
cost OF living" said Mayor Dahlman,
"and we are attacking this as part
of the whole problem. Suppose you
don't make any profit, or just few
per cent on your investment during
extraordinary times like these"
That would be a fine idea" re-
ni;ed President Slater. "if YOU will
assure US that you will get the cloth
ing merchant and the shoe man to
sell their clothing and shoes at cost.
That will be fine If you will assure
us that,you will make the baker bake
bread at cost, and make the coal man
sell coal at cost. These things are
necessities, and they have all gone up
to enormous figures. Rentals on the
working mans house have not gone
up. In fact, they are lower, IL any
thing, than they were. You have be-
gun at the wrong end of the prob
lem"
Butler Talks Up.
Commissioner Butler was instru-
mental in getting the council to assail
the real estate men on this problem.
The realtors we're prepared for him
Harry A. Turkey, chairman of the
committee Of realtors who appeared
before the council, said:
In order to make concrete case,
we will take the house in which Com
missioner Butler lives. The lot cost
$1,000 and the house cost $4,000, max
ing a total investment Of $1,000. Mr..
Butler pays $40 month rental for
his side OF the house. The woman
who owns the house made a triAe
over per cent net on her invest
ment during the year.
Here Commissioner Butler aroused
himself.
III that's all she made, I'd like to
know how you figure it, for she never
spent d-n cent on repairs and
upkcep."
Il beg your pardon said Turkey,
automatically. "Shc spent $3.50 for
repairs and upkeep.'
"I'd like to know for whati" snorted
Butler.
Il can show you the vouchers, if
you like" Turkey offered.
Commissioner Butler did not insist
that the vouchers be brought into the
council chamber. He turned to Turkey
and assured him it was not the inten-
ton Of the council to Jump onto
the real estate men,"
Appreciates Councils Action,
Chairman Turkey Of the committee
said after the meeting;
Il appreciate the spirit Of the city
council in taking this matter up, but
they started from the wrong end. The
only commodity which has not risen
in price in the last few years Is rent
OF the workingmen's houses. On the
other hand as the houses grow older
rents decrease. This is true except
where old houses are remodeled at a
considerable expense and modernized,
when rents of course go up, as this
takes the house out OF the clubhouse
class and puts it into the class Of
modern houses.
IF the council is sincere in this
matter it should take into considera-
ton that the working man pays two
months rent every year just to meet
the taxes on the house in which he
lives. By starting in on the reduction
Of taxes the council could accomplish
much.
Buy More Autos.
However, at the same council
meeting at which this matter was dis
cussed the councilmen voted to buy
two more automobiles. While | feel
that autos for the city officials are
perhaps necessary and may be a saw
ing in the end, do not see why it is
not possible for each official to own
his own flivver and drive it himself
thus effecting an immense saving in
city auto bills"
George G. Wallace, secretary Of the
Omaha Real Estate board. said:
There is not the profit in renting
detached frame houses that the tenant
often thinks. A house costing 3,50(
on a lot costing $1,000 to Sl.500 sci
dom rents for over $50 or $35. 1t i.
arule accepted by every rental agen
that it takes two months at whatever
the cost Of the property and whatever
the rental to pay the taxes. Insur
ance, upkeep and other charges OF thi
nature will take from the income from
one to three months additional. TIL,
older houses that are not modern an,
up-to-date which rent for $i2 TO So
per month in most cases show even
less net rent. Tits generally consid
cred that apartment houses and ney
up-to-date fat houses properly locat
ed pay a fair income. These. how
ever, are no. the, class Of rentals tina
are under the searchlight.
rs it true that there has been a