The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-05-30
BUILDERS SCARED
BY RENT AGITATION
Landlord at Inquiry Says Gen.
eral Protest Is to Blame
for House Shortage.
CAN'T SEE PROFITEERING
Bronx Man Tells Of How His
Apartment Now Is S57 When
Once 1t Was $50.


testified yesterday in Bronx Borough
Hall before the Lockwood legislative COM
mittee, which " investigating housing
conditions here, that his rent had been
raised nearly 100 per cent since Novem-
Der, 1917, Jacob Leitner, who owns forty
apartment houses there and is agent for
100 others. asserted that charges Of
profteering were unjust.
George Dosher, who lives at 2405
Grand avenue. said he had paid $50 a
month for his six room apartment up to
year ago last November, when his
rent was jumped 81. October 1, 1918, he
was required to sign lease for $50, he
testified. The agent of the building
notified him last June that. beginning
October ! next, his rent would be raised
sis. making $57 monthly. Nothing has
been done for the betterment OF the
building, according to Mr.. Dosher, who
said that although he had at first been
charged nothing for his telephone ex-
tension he now had to give 90 cents a
month for It.
The Chemical Realty Company is
lessee Of the building, the witness tesu-
ned. Chairman Lockwood announced
that. although the company had been
hearing no one had appeared. 80 we
will compel them to appear under sub
pnna at the next meeting" he added.
Mr.. Leitner of 435 West 18th street,
who said he had been in the real estate
business in The Bronx for twenty-seven
years, figures the present cost of build
ing at so per cent more than before
1914.
Tells of Changed Conditions.
The trouble with this rental PROPOSE
tion," said he, sis that at one time we
had three apartments for one tenant.
Later We had two apartments for each
tenant and then one. Now we have two
fenarts for each apartment"
Mr.. Leitner declared that almost all
the increases in rents had been justified.
There were some unjustifable in
creases?' asked Senator Lockwood.
mo. I say this The raises in every
instance were justified. but In some of
them they exceeded the justification. Is
that making 1t clear? They all had to
be raised"
Asked II he thought the agitation
against high rentals was justified, Mr..
Leitner said:
mo. 1t might have been II the spe-
cihc cases could have been taken up,
but by going around and shouting all
over the city and saying every landlord
is profteer, and this and that--!t is
that which Affects the market"
Now Mr.. Leitner, is 1t not a fact
that lack OF building is due not really
to the agitation. but because real es-
tate men have been holding back because
of the increased taxes and cost OF
building Senator Lockwood asked
NO. The agitation as to rent has as
much to do with II as the cost OF
building"
At present. the witness asserted.
apartments renting for IS month
would have 10 bring sle II the ven
ture were TO be profitable. He doubted.
he said, II he was realizing four per
cent. upon his investments Mr.. Lett
ner agreed to show his books to the
committee. He testified that he
thought ten per cent would be a fair
return.
I'VE are not figuring on what the
traffic will bear" the witness protested.
We are trying 10 get a fair. legitimate
return on the money invested and ] be-
lieve that Is the sentiment of every
real estate owner. People are going to
janitors to-day and saying. II yau can
give me an apartment in this house I
will give you 500 Now we are not TAX
will not. People are willing TO give $50
for four rooms. but we rent to-day
for $sS"
]. Clarence Davies. a real estate oper-
ator. thought that the best method Of
remedying present conditions was to
have building conducted by strong
corporations which will build on more
than shoestrng," He said that he
was against either the State or city en-
tering the building field. but that the
"crux OF the situation" was to have the
Federal Government aid builders by
making loans on advantageous terms
Court Judges. he thought.
were inclined" to favor the tenant
more than the landlord
The reason for funds not flowing more
freely into the mortgage money mar
kets. according to Dr. c. Albert Becker
president of the Bronx Borough Bank. is
because investors can buy railroad
bonds and other securities and get
larger income with less trouble" He de-
clared that he was against the PROPOSE
ton TO exempt from taxation the income
on mortgages up 10 $4,000.
The committee will meet again to-day
at 10 o'clock.
Is a Helm to Tenants,
Justice Robitzek in the Bronx Munic-
ipal District Court dismissed yesterday
the dispossess proceedings against Har-
ry Vieling and thirteen other tenants
OF the house at 207S Arthur avenue,
ruling that he had no Jurisdiction, as
the ownership OF the property was a
question involved In the proceedings
The tenants have refused since May /
TO pay the increased rentals demanded.
II was announced by Nathan Hirsch,
chairman OF the Mayors Committee on
Rent Profiteering, that survey of va
cant apartments In the city, made by
the Police Department, disclosed that
only $3.50 of the 9S3.744 listed were
tenantless.
Attorney-General Newton suggested
hat the charters OF real estate leasing
corporations be revoked upon conviction
Of proiteering. He blamed the specu- !
ative tendencies OF some OF these agen- |
cies for much of the present trouble. |
adding that many concerns had not
fled reports. as required by law.
A patrolman had to be called to the |
office of the Mayors Committee on Rent
in the Municipal Building
yesterday because Joseph Polstein,
president OF the Hennessy Realty Com
pany at 20 Broadway. became excited
when Walter s. Kennedy, Assistant Cor
poration Counsel, attempted to question
him regarding complaints Of an undue !
raise in rentals made by a committee
Of tenants. One tenant asserted he had
been raised $205 in year. Mr.. Pol |
stein denied Mr.. Kennedy's right to
question him. 1t was announced that
the real estate man would be subpnnaed
10 appear before David Hirshield, Com
missioner of