Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1919-04-17
Houses Are FelD
and Rents High
Continued from Pare One


lists. It is a national situation
here in America. but more pronounced
in Philadelphia then, elsewhere, because
of our tremendous war expansion.
''The English Government proposes
to build over 800, 900 houses. l believe
the constitution would prevent the same
thing being done here in Pennsylvania.
and aside from any legal difficulty l do
not believe public opinion would in
dorse any such movement on the part
Of the government.
'The only relief I can see is to hr-
ganize a big company TO build houses
and rent them. House building is being
held up not SO much by high building
costs as by the apprehension that these
costs may go down materially in few
years and cause a depreciation in the
value of houses built now.
Would Encourage Building
''If company were organized that
would agree to write off in the public
interest this emergency excess value.
building would then 60 ahead. It might
not be necessary in the long run TO
write off any excess depreciation. A
good many people believe that present
high prices will become fixture. 1t
would be necessary, however. to have
some such arrangement to cover what
might be called the margin of apprc-
hension. Housing must pay a fair re-
turn under ordinary conditions. It
should pay 6 per cent net. A company
such as | suggested should get out Of
ITS rents per cent on its capitalize
tion after it has written off emergency
depreciation.
Ten thousand houses would have 10
be built to relieve the present situation.
This would cost about $40 900 900. Ten
rcr cent for abnormal depreciation
would mean 5000 900. There would be
the possibiity-even the probability as
| see it-that this depreciation would
never occur.
England has written of the excess
war costs of housing. In some cases
the United States will have to write
of as much as one third or the cost OF
the houses it built during the wal
emergency.
I'm 1914 it was estimated that ther,
were 10000 vacant houses in philade
phia. Late in 1917 the police under
took vacant house canvass. The DO
lice reported a total of 5000 vacan,
houses. The housing commission took
thousand of the addresses reported by
the police and looked them up. 1t was
found that the police had reported
stores, churches. Office buildings and
ruins as vacant houses. On the basis
of this investigation the housing com
mission estimated that there were ac-
tually about 400 vacant dwellings in the
city instead of 6000.
Only 249 Houses Available
Tn December of 1917 we had the
real estate board canvass the city tc
find out how many habitable two story
dwellings there were vacant that rented
for $50 a month or less. The report
showed only 249.
"Thcre are in the city at present ar
indcterminate number of habitabl'
houses which are empty because theil
owners want to sell them and thinl
they can do so more easily if the houses
are tenantless. Perhaps these houses
total 1000.
"As for the rented houses who's
tenants are ordered to buy or get out
some houSeholders are buying unde
rrotest. others arc putting their good
in storage and going into rooms o
moving into the country for the sum
mer. These people hope, for better con
ditions in the fall I am afraid the,
will be disappointed.
"The Housing Association is looking
for trouble during the next ten year
because of the high selling price o
these houses. II prices go down tn
men who buy now and later want t
rent their houses to others will likcl
neglect to keep them in good condition
arguing they cannot afford to do so be
cause of the excessive purchase price.
GAS general proposition, hous
rents in Philadelphia are not excessive
II is entirely legitimate to ma ke som
increase to meet the higher cost level
Of the day. Yet there are some owner
who are taking advantage of presen
conditions to raise their rents unduly
Low Rents an Asset
'Taking the 1916 rents as norma
IL is quite fair to add to the years ren
10 per cent of the cost of all improve
ments; Is per cent of the cost of a
repairs and the full tax increase.
slight percentage over the total is per
missible, I think. But wherever tn