Evening star. [volume] (Washington, D.C.) 1854-1972, 1918-05-03
SEES MANY FLAWS
IN POMERENE BILL
Ben Johnson Says 1t Sanctions
Rent Profiteering, and He
EIucidates.
PENALTY A MISN0MER

The Pomerene ant-rent-profiteerin
bill does not suit Chairman Ben john
son of the House District committee at
all He believes it would be rather a
congressional license beyond the greed
He would rather see profiteering con-
tinue as now, without sanction in law.
Yes. l have read the Pomerene bill
relating to profiteering in rents in the
District of Columbia" said Mr.. Johnson
today when, asked for his opinion re-
garding prospects for it's passage in the
House.
by its provisions the most conscience
less of landlords is permitted to profiteer
dreams of extortion.
estate in the District of Columbia is
valued by the assessor for taxable pur-
pose at approximately its true Vaiue.
Yet the Pomerene bill would compel
the tenant to pay rent on 100 per cent
OF that value instead of on 100 per
cent Besides. the tenant would have
to pay the taxes, the insurance. the de-
probation and in some instances other
The bill guarantees the 1and1oard
net return of per cent. not on the
value of his property, but on that value
plus so per cent.
Supposititious Case.
For instance: If the landlord rents
house which is valued at $4,000 he
would be authorized by the Pomerene
bill to collect per cent net-net, II
you pease-on $500.
'1n order to arrive at per cent net
for the landlord the tenant would
have to pay the taxes. insurance. de-
probation and the charge made by the
real estate agent for collecting the
rent, besides other items incident to
the ownership
"If the leased property should be an
apartment the tenant would also have to
pay the cost of light and heat in the halls.
the janitor. elevator service. the telephone
girl and every other expense that the iand-
lord might impose. AS the landlord would
be guaranteed his per cent on the $50
per cent valuation 1t would not be OF IN
terest to him whether the other expense,
be much or little. as he would not llVe
to pay any part OF 1t.
Landlord a "Corporation.'
eff the Pomerene bill were to become
law every landlord in the District, by
spending only very few dollars, could
convert himself into corporation.
Then he could pay himself salary as
president Of the corporation, he could
pay another member of his family
salary as secretary Of the corporation,
another as treasurer, another as man
ager, and so on ad fnfinitum. In that
way he could double or treble the
amount he would receive from the
because the tenant would
have to pay all of such charges in or
der that the landlord might have Z per
cent net on $50 per cent on the value of
the property.
'Under the provisions of the Pomer-
enc bill any real estate in tine District
rental purposes by the rent administra-
tor on the application Of the owner,
and the value thus fixed shall there
after be the valuation upon which ia Yes
shall be paid. As the bill does not place
an annual limitation upon the word
thereafter it would mean that that
valuation would stanl fixed until one
year after the war is over.
Low Valuation Made Easy.
Therefore. an owenr Of real estate
in the District OF Columbia, who never
intends to rent 1t. could have the rent
fix a very low valuation
upon his property, and that valuation
would have precedence over the value
fixed by the assessor for taxable pur-
poses. In this way a low Valuation
could be secured, and it would last not
for one year. but until one year after
the war shall be over.
Upon the other hand, If the owner
of the property could secure very
high valuation for rental purposes he
would be permitted to charge and re-
ceive I per cent net ON any excess
"Out of any such excess valuation,
under the terms of the bill, he would
pay l per cent to the District Of Co
lumbia in the way of taxes and retain
the other 6 per cent for himself.
rs there any landlord in the District
Of Columbia seeking to profiteer who
would not be willing to enter into an
agreement whereby the value Of his
property for taxable purposes would be
increased? The higher the value the
greater would become his opportuni-
ties to profiteer in the ratio OF per
cent for rents to l per cent for taxes.
Section seven's Provisions.
Under section of the Pomerene bill
difference in the rental of 'un-
furnished apartments and furnished
ones is made. II the lease be In ex-
istence' at the time the act takes effect
the landlord could charge as much
rental for the furniture in the house as
he is permitted to charge for the house
Upon the other hand. If the lease is
the rental charge for furniture would
be limited to one-half of the above
charge.
The penalty for violation Of the
provisions of the bill would be fine
not exceeding $1,000. We have several
concrete instances in the District of
Columbia where the United States is
the victim of the prof1teer, in each Of
which instances the profteering
amounts to many thousand dollars
Under the Pomerene bill the profiteer
could pay the maximum fine Of 81 900
and still have many thousand dollars
left as profit out of his profiteering
transaction.
THE bill provides for a rent admins
traitor who shall be a resident Of the Dis
trict Of Columbia II that rent admins
TRAITOR should be banker. fire insur-
ance agent, a building contractor, a seller
or manufacturer Of building materials, a
carpenter, brickmason, house painter,
n paperhanger. lawyer. doctor or mer-
chant. he would have to do the will Of
the landlord or go out of business forever
afterward in the District of Columbia