The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-08-15
HOUSE NETS HIRSCH
$256 In 80 MONTHS
Agent Shows Books That Re-
flute Charges Against Prof
iteer Crusader.
RENTS RAISED ,17.6 P. G.
Increase in Maintenance Cost
in Same Period Amounted
to 20.75 Per Cent.

Public charges having been made that
Nathan Hirsch. chairman Of the Mayor @
Committee on Rent Profiteering. has
himself been unduly raising rents in an
apartment house he owns at ~ East
Eighty-eighth street statement was
given out yesterday by Charles C. Hughes,
assistant to Mr.. Hlrsch. showing that the
increases have not kept pace with the
Increases In the cost of maintenance,
and that In the two and half years
ended July 1, 1919. Mr.. Hlrsch's profit
on his investment was but S256, or 7-l0
per cent. AS the Mayors committee
works on the basis that owners ought
to receive a margin Of 10 per cent. on
their investments. Mr.. Hughes said he
| felt that no one could begrudge Mr..
Hirsch his modest return.
The statement was drawn up by
Thomas F. Curran, private secretary to
Mr.. Hirsch, and Maurice Werthem.
agent for the owner, who brought the
books from which the figures we're taken
to the headquarters of the committee
and showed them to reporters.
The charges were. in brief, that rem
tails at AZ East Eighty eighth street in
the cases of some tenants had been
| raised as much as 81 per cent. In the
last two years. Two apartments on the
ground floor which year ago last May
| Melted $25 "a month each are now, ac-
cording to some of the tenants, bringing
1874 and s3S. Other tenants told an in
vestigator who visited the house that
they couldn't complain" because people
living Just across the street had been
raised from, $40 a month to $50 for
apartments similar to these.
Mr.. Hirsch is now on his vacation in
Canada. but directed by long distance
phone that the facts be made known.
The statement sets forth that the house
is five story building containing ten
apartments of six rooms and bath each.
| 1t has steam and hot water, and there
is no complaint Of lack of repairs. The
| house is valued at $4,000 and the mort
gage being $4,000. Mr.. Hirsch's equity
| is $4,000.
For several years prior to January /.
1917. the house was run at a loss" says
the statement. From that date until
July /, 1919, the total receipts were
S9,920.90, and the total expenditures
| 40, leaving a net profit of $256
for a period of thirty months. January
| l. 1917, the apartments rented at SIS
| to $35 a month and August 1. 1919. the
same apartments brought s34 to $42.5O
a month. an average increase per room
of IT 3-5 per cent. The advances
were made on March /, 1918. and
| May /. 1919, No apartments in
| the neighborhood. which Is a good one,
are rented cheaper and for some con-
| siderably more is charged. Since jan
uary /. 1917. the sum of s1.360.17 has
been spent on repairs in the house.
The average increase in the rent
| charged during the period mentioned
was II 3-5 per cent. The Increase in
the cost of maintenance in 1918 was
COX per cent. more than in 1917; 1919,
when complete. will undoubtedly show as
much II not more increase in cost of
heating, repairs etc"
The statement ends with what seems
almost a fairy story in the annals of
landlords. but since the hero Is head
of the committee that is hunting down
rent gougers 1t Is possible to credit the
| story. 1t appears that in one instance
MI Hirsch actually and voluntarily re-
duced a tenants rent. In proof thereof
| is attached to the statement a letter
| from Mr.. Wertheim to Mrs. p. Miehling
| telling her that the apartment she had
! engaged at $45 would cost her but
| S4250. Mr. Hirsch had decided that
| $45 was too much.