Evening star., 1918-04-11
War Fixing of Fair Rentals.

tpirtt aal basic principles of the Con
bfitusioit are needed the Senate and
anally Congress will adopt fair-rentals
law for the District, or for the United
Etates including the District. which
shall be simple, direct and effective. 1T
will follow more closely the terms of the
Now South Wales statute than those of
sGreas Britain or New Zealand. since
fthe application of the latter is limited
Do the protection from any rent increase
f&uring the war of very poor renters OF
skery small dwellings, whose annual rate
sbwen in London shall not exceed s175.
What shape, then, will our fair-rents
Aw wisely take? Its purpose is to com
Del the lessons of dwelling houses or of
stooms or parts of dwelling houses to
charge non excessive rents to lessees, es-
hpecially to the new civilian army Of war
time government employees. This end
- accomplished ~ by enacting rules
Tor the determination by an impartial
eIfbunaI of reasonable rental rates, (2)
~ forbidding hereafter any charge. di-
: .Tectly or indirectly, in excess of these
mites and (3) by enforcing obedience
~ the law by imposing penalties for its
Violation.
Since this legislation involves the i'm
,Hairment of the obligation of every ex-
Iating leasing contract to which the act
tspplies, the law will carefully limit to
meet urgent necessity the kind and
jAnmber Of leases affected by it. In void
ing and remaking leases it will impair
fthe obligation of an absolute minimum
l1f leasing contracts, disturbing for the
imost part only the leases Of those
dwellings or parts of dwellings which
ttnnst have to house a part Of its new
thxmy Of civilian wartime employees, es-
SeciAlly those of slender means.
The standard of fair rentals will be a
itDssonable percentage return on the
;n<tnal present value of the leased prop
city, calculated under equitable rules,
'sniformly applied by an impartial court,
tD,which either lessee or lessor may ap-
Epasl. The hint of the New South Wales
tsv on this point is helpful. Our fair
1sa6ts courts might be either the rents
administrator and special court of ap-
lDeals, proposed by the Tinkham bill, or
t0ane other special court, or the existing
f3adicial machinery of the District could
- utilized.
The penalties for enforcing obedience
- the law will be specific fines imposed
k1lreetly on lessons convicted of its
h1lslstion. Lessons collecting excess
lQsntals may be compelled to restore such
kcess doubly to the lessees who have
t1aid it, and to pay dne to the govern
lent measured by the amount of the
xcess rental unlawfully e1acted. The
Hall penalties suggested by the House
1f1 may thus be imposed without the
eOundabout, clumsy, complicated and ca
eoufaging procedure proposed by that
I'LL which first fines by imposing an ex-
}ess profits tax, then nullifes and stulti-
es the tax concept by declaring the
U-ereating transaction contrary to pub
y policy and unlawful, and ends by
unishtng the act as usurious with q
ssble forfeiture. Surely Congress can
aD0Dsl obedience to 4 fair-rents law by
npesing direct penalties, without drag
f&1Ae into the calculation national and
NEal tax laws; without violating the
lTit Of the Constitution; without throw.
~ belts into the delicate machinery of
- Districts tax system; without SUBJ
Gneting to hostile, fnquisitorial ransack.
ADg every lease Of District real estate
to-day and Of 1915-16; without rem.
sEfns every house or room rente. in
b District liable to the assessors
Asath1y inquisition under oath concern
~ the details of his or her business
lthsut imposing upon the assessors Of
-. already overburdened with lexiti-
&hAts duties, the functions of rentals In.
fsitor and fair rents court; without
nnseessarily and wantonly impairins
- obligation of a multitude of leasing
ABSTRACTS with which both parties are
6ntixsly satisfied, and without attack.
ees and depreciating eauselessly and in.
Aauifably the rentals and sales value oi
FeIy piece of real estate in the District
These and other kindred suggestion,
1nre elaborated editorially elsewhere IL