Evening star. [volume] (Washington, D.C.) 1854-1972, 1918-05-11
Chairman Johnson Urges
House to Give U. S. Control.
of Local Corporation.
BOARD TO FIX VALUE

y
yet to run.
The bill proposes that all Of the
ground and buildings, with all i'm
provements, shall be taken over by the
| United States after July l of this year,
| and that custody and control OF these
grounds, buildings and improvements
| shall be vested in the Secretary of the
| Interior. 1t proposes that the Sec
rotary shall first reserve as much OF
| the property as may be necessary for
the use of the United States. and then
rent any remaining portion to the pres
| ent tenant or other persons at just
rental, but in no event shall any part
of the premises be subleased by the
tenants nor shall the rental charge on
any booth or stall be greater than
at present, with the lease period limited
to three years. subject to cancellation
and annulment by Congress at any
time.
Commission to Direct.
The President is directed to appoint
commission composed of three disinter-
ested men to appraise the buildings and
improvements.
Only one member Of this commission
may be a resident of the District. and
no member may be member or ex-
member of Congress. an officer or en-
ploye of the United States government
ington Market Company or an omcer
or employe of any creditor OF the COM
pany.
This commission, after hearings, shall
fix the amount to be awarded as a 1alr
and just valuation of the property to
be paid the Washington Market Con.
pany. Right of appeal to the Court OF
Appeals of the District is. provided for
The bill provides that suff1cien sum
be appropriated to be disbursed by the
President in carrying out the purposes
Of this measure.
Charge Of 'Profteering."
This report charges that the Wash
ington Market Company has been prof
fteering in rent charged to government
for war-work Offices in part OF this
property, and that, "as result OF legls-
payment of 10 per cent Of the rental
fixed by Congress in the charter OF the
company, but has also utterly failed to
comply with many of the more impor-
tant charter provisions which induced
Congress to create the company and to
transfer to it a very profitable busi-
ness"
In reviewing the history of the Wash
ington Market Company. Chairman
johnson points out that the title to the
stand has been in the United States
since the location of the federal city.
Prior to the organization of the Wash
ington Market Company the site was
occupied by municipal market build
ings. The city government managed
and controlled the market and leased
the stalls to the various market mas
ters. The receipts. after paying ex-
penses. were treated as revenues of the
city. For some years preceding May 20.
xI,4 5afA hioh thaU oShi rf,y,
Market Company was created. the net
earnings of this municipal market
amounted to about $4,000 annually.
Rated as "Most Unusual Charter"
Chairman johnson claims that the
most unusual charter" to the Washing
ton Market Company was obtained as a
direct result Of political influence" He
mentions the names of those who were in
corporators. using the following language:
Henry D. Cook. subsequently Governor
of the District Of Columbia; NJ. G. Emery.
who was mayor Of the old city of Wash
ington; S. p. Brown, who was one of the
contracting parties for the District Of
Columbia in the remarkable contract.
which will be noticed presently: Alexander
r. Shepherd, also known as BOSS" Shep-
herd, who was vice president of the board
of public works Of the District of Column
bia, and also another Of the contracting
parties for the District of Columbia to the
contract just referred to. and others Of
less or greater note. Benjamin +. Butler
and William E. Chandler. Of national
prominence, were also conspicuous figures
in the enterprise"
Chairman Johnson points out that the
lease made in 1870 to the Washington
Market Company for ninety-nine years
was on 1S1 POI square feet of reservation
No. I. in the northwest section of the
old city OF Observation-Disclosures eth
street, b street, 9th street, Louisiana ave-
nue. and Pennsylvania avenue AT that
time, he said, this land was valued at
approximately $3.50 a square foot. The
annual rental fixed by the charter was
$25. 900 a year. to be used for the benefit
of the poor Of the District.
officials as Stockholders.
Mr.. johnson emphasizes the fact that
certain officials Of the city Of Washing
ton and the District Of Columbia were
stockholders in the Washington Market
Company. He says: shortly after the
assembly of the District of Columbia
authorized the reduction of the annual
rental from $4,000 to $4,000, and in
1877" sSthe same manner. the rental
was afurther reduced to $500 year"
He charges that in the period between
1871 and 1874 extravagances and ile-
gal methods of those in charge Of Dis
trict affairs imposed a debt SO large
| that the credit of the District was
seriously impaired. and that the Dis
trict and the United States have each
contributed approximately $4,000 900
to pay debts and interests resulting
| from this regime, "for which the Dis
trict of Columbia received little bene-
| fits and the United States none what
ever"
In regard to his charge that the
Washington Market Company has been
profiteering in rentals to the United
states government. the report filed by
Chairman Johnson says:
For more than. twenty years the
| Iumbia rented as an armory portions
Of the second and third floors of the
| building of the Washington Mark ct
| Company at a rental of $4,000 a year
$500 year more than the entire
ground rent paid by the company
| Several times during the last FIVE or
six years this fact has been brought to
| the attention of the House of Repre-
! sentatives and has caused much un-
effort was made by the Washington
Market Company to increase the rental
| for the use of the armory, out this was
| not allowed and better arrangement
! was made for the District armory else
where.
Alleges Increase in Rent.
| "Following the removal of the
| armory. the Washington Market Com
pany rented portions of the second
| floor of the building to an alleged
| amusement company for $4,000 a year.
CONTINUED on Eighth Page.l