Evening star. [volume] (Washington, D.C.) 1854-1972, 1918-03-26
SEES HIGHER Rents
| COMING IN OCTOBER
Bates Warren, Discussing D.
c. Anti Profiteering Measure,
Asks Fair Treatment.
OFFERS SUBSTITUTE BILL

~
Columbia when the rental season opens
in October, in order to meet the in
creases in wages; in the cost Of all ma
terials going into the upkeep and re-
pair of property; in the cost of furni-
ture, and everything that goes into a
dwelling, was made today by Bates War
rem to the Senate District subcommittee
in charge of the johnson bill to pre-
vent profteering in rents Mr.. Warren
was representing the Real Estate
Brokers' Association.
Chairman Pomerene Of the subcom-
mittee asked what increase in rent
should be allowed.
Mr.. Warren. replying that in this
matter he could give only his own opin-
ion, said that in property where serv-
ice was given, as in apartment houses
with elevators, Is per cent increase
would be fair. In property where no
service is given. 10 per cent was a fair
increase. he said.
List of Cost Increases.
Mr.. Warren presented to the commit
tee a long list of increases in the cost
The price of coal has doubled. he
said. Wages have almost doubled.
From bricks, which have Increased
some 100 per cent in cost, to brooms,
which have increased 500 per cent. Mr.
Warren told the committee all supplies
higher and higher, and no one now
knows how high they will go.
yet if. as in this johnson bill. rents
are fixed in the beginning OF the war.
how can we ever hope that Congress
will find time to change the law. no
matter what the conditions may be
later" said Mr.. Warren.
He strongly urged upon the commit
tee the substitution of a bill which he
had prepared. with other real estate
rents. It would fix no hard and fast
basis for rents, but provide for rent
administrator" who would pass on all
cases individually.
only fair way of handling the situation.
He told the committee that the real
estate brokers were very anxious to
aid in framing a law which would pre-
vent profiteering and at the same time
would do justice to the owners of prop
erty here.
Chairman Pomerene suggested that
such a rent administrator might be in
clined, through some bent Of his own.
to fix rents either too high or too low.
doing an injustice generally to ten
ants or landlords.
Mr.. Warren admitted this, hut urged
that it might be possible to fix a maxi
mum and minimum rate in the law
within which the administrator would
have to keep. -
reports Out Of Proportion"
Mr.. Warren insisted that the tales of
profiteering in rents IN Washington
had spread until they were out Of all
proportion to the actual facts.
He read a list Of real estate brokers.
Of standing, and said he had compiled
statistics from them w hfch showed that
out of rentals to $4,000 people .he in
crease in rents from September 80, 1916,
down to January i, 1915 had been on
an average less than l per cent
81 am convinced that not two thou
sand cases of excessive rents can be
found in Washington today" he said. {
MIR. Warren said that the owners of
real estate and the real estate dealers had
not been guilty of profiteering, but such
as existed was due almost
entirely to tenants who have sublet their
apartments and houses, He said that the
real estate dealers had done what they
could to prevent profiteering through sub
leases. lie Sd1u tlidl nc ftIIlSt1 hIkSW u
cases where the proflteering ran from 100
per cent to 400 per cent.
Senator Sherman Of Illinois said that he
knew of an apartment which rented for
$3.50 in 1916, and that it now rents for
$125, furnished, and that the furniture is
worth only $500.
cit is Just such cases as that we are
trying to help yod STOP" said Mr.. Warren.
To show that profiteering in rents
through subleases had existed to some
extent before the war, r.-Warren told
the committee that in 1915 a member
of Congress who rented an apartment
for $500 subjected at $500 a month. He
said that the name could be produced il
it was desired to investigate the matter.
Senator Dillingham; wanted to know
how much rent should be charged for
furniture. Mr.. Warren said that furni-
ture dealers were charging so per cent
on the value of the furniture, but that
he considered it high. He said that from
Is to 33 per cent should be the limit.
Mr.. Warren said that the average re-
turn in the District of Columbia today on
improved real estate was per cent and
yet this is the first time in history that
there are more tenants than buildings. Mr.
warned the committee that II the
Johnson bill were enacted into law it
would result in withdrawing from the
many rooms and houses now
rented. simply because the people
would not rent them at the ridiculously
low ana uTeS PROVIDED IN the
bill. He said the government would
be forced to spend millions of dollars
to erect dwellings to take the place of
these rooms and houses Withdrawn
from the market. He criticised many
details of the johnson bill, including
the fixing of an arbitrary date in 1915
as a basis for rent. He suggested that
April, 1917, when the war broke out,
might have been selected.
Mr.. Fairfax Makes Statement.
Charles W. Fairfax, president of the
Real Estate Brokers' Association, made
the opening statement to the committee
and expressed the thanks of the as
ISOLATION for the hearing granted.
I'VE wish to protest against the prin-
ciple involved in the provisions as out
lined in this johnson BILL" said Mr.
Fairfax Legislation providing for a
horizontal percentage of increase in
rentals is price fixing that is unfair
sither to tenants or landlords Private
capital will not seek employment for
building operations when the incomes liz
so limited as to make the investment
.aThis will retard the expansion of
FOUR National Capital and will force the
to build all the needed
space required for it's departments and
.mDIoyes.