New-York tribune., 1919-08-15
Rising Expenses Forced In.
crease, Says Chairman of
Mayors Committee in His
Statement Of the Facts
Profit Under ! Per Cent
Property Has Mortgage Of
$4,000 and His Equity
in 1t Is Only SIS, 200

Nathan Hirsch, chairman of the
Mayors Committee on Rent Profteer-
ing, replied yesterday to assertions by
tenants that rentals in his apartment
house at ~ East Eighty-eighth Street
had been boosted as high as "a and 81
per cent in a period of two years. Mr..
Hirsch telephoned from Canada. where
he is now on vacation, ins.ructing his
assistant, Charles C. Hughes, to issue
q statement for him.
Mr. Hirsch admits increasing the
rentals, but contends tha. the rising
expenses made it necessary and that
his percentage o. profit is only seven
tenths OF l per cent per year.
The statement reads:
"The property at Al East Eighty
eighth Street is a fivestory fat or
apartment house, in good repair.
Tenants are furnished with steam heat
and not and cold water. II Is valued
az $4,000. The mortgage is So. 200.
Therefore, Mr.. Hirsch's equity in the
property is $4,000
From January !. 1917. to July !.
1919. the total receipts were Ss.s20.9o
and the expenditures 1864. 90. leaving
q net profit of 1856. or / 7-i0 per cent
for the two and one-half years. Fig
ured by the year, the percentage would
be 1-l0 of l per cent on the $4,000
investment.
Sustained Loss, He Says
"For several years prior to January
I, 1917, the house was carried at a loss
"The apartment house comprises ten
apartments of six rooms and bath each.
January /, 1917, these rented at $25
to S35 per month. or an average OF
$3.50 per room. August /. 1919, these
same apartments rented at s34 10 s42.50
per month, or an average of 1924 per
room, an increase of II 3-5 per cent per
room. These advances have been made
on March !. 1918. and May l. 1919.
These prices are considerably less than
those charged in the neigh porhood fo-
many apartments. None is rented
cheaper.
"Since January l, 1917. there has
been spent on repairs in these apart
ments the sum of s1,360.17.
The average increase in me amount
of rent during the period mentioned
was II 3-5 per cent. The increase In
the cost of maintenance in 1918 was
2Oa> per cent more than the year 1917.
The year 1919 Is, of course, inconl-
plete, but il will undoubtedly show the
same proportion OF increase, if not
more.
Last May Mr.. Wertheim, as agent.
leased to one of the tenants an apart
ment at S45 month Mr. Tiirsch con
sidered this $3.50 more than proper
and instructed Mr. Werthei,n to 50
notify the tenant that her rent wouid
De $3.50.
Letter to One Tenant
Attached is a copy Of Mr.. Wer-
theim's letter to Mrs p MiahI;nO ra
ducing her rent
MRS. p. Miehling, care of DR.. Cherry,
1927 Madison Avenue, New York
City.
Dear Madam: In reference to re
second floor east apartment in AZ West
Elghty-eighth Street which you rented,
tins is to advise you that the rental
of same will be S4250 per month in
stead Of S45. This reduction is volun-
tarily made, but in consideration there
Of l shall expect you to limit as much
as possible the amount Of repairs which
you will ask for, owing to the heavy
cost of doing work at this particular
time
The Mayors Committee on REM
Prohteering works on the basis that
owners ought to receive a margin o.
10 per cent net on their investments.
The percentage Mr.. Hirsch has re-
ceived, viz. 7-10 of l per cent per
annum, is $40 per cent below the
percentage allowed by this committee"