Evening journal., 1919-07-19
WON'T CUT rent OF
GOVERNMENT HOUSES
Suggestion Unfair, Fleet
Corporation Head Informs
Councilman Abrahams
DECLARES TENANTS
WILL BE. OBTAINED


tion has no intentions OF reducing th'
rental charged for the government
built houses at Union Park Gardens Is
nade apparent by II. +. Schmaltz, STAFF
assistant, Property Bureau OF the Fleet
Corporation, in a letter to City Coun-
Gilman Abrahams, Of the Fifth ward.
Councilman Abrahams had written a
letter TO Secretary Daniels Of the Navy
Department relative 10 the high rents
charged for the houses at the Union
Park Gardens, and enclosed newspaper
clippings stating that many Of the
dwellings were vacant because OF the
high rents. Mr.. Schmaltz in his letter
sets forth that II would not be fair TO
ask the government to lose money on
the property unless other property
owners here were asked 10 do likewise.
The letter receivd by Councilman Alb
June %, 1919.
"Alr. Alex. R. Abrahams, z. l. dupont
de Nemours & Company.
"Dear Sir:
Il. Your letter OF the nth instant,
with enclosures, directed TO Honorable
Josephus Daniels, Secretary Of the
Navy, and his response thereto, dated
June 20th. have been referred to the
writer for attention.
-. The newspaper clippings attached
70 your letter had previously come 10
thu attention Of this ONCE, and It Is
quite evident that the writers Of these
articles did not fully familiarize them
selves with all Of the facts. so that as
a whole, both Of these articles are very
misleading. While 10 is true that al
the time the articles were written ap-
proximately 300 houses in the project
were vacant, yet the greater portion
of these 300 were not available for
renting. due to the incomplete state
OF the utilities, such as streets Side
walks. etc As a matter Of fact these
houses were practically inaccessible and
the alleged high rents did not prevent
their being rented AS fast as houses
in this project become accessible no
difleulty Is experienced in securing ten
ants.
3. Il Is noted that your letter refers
20 the high cost Of the houses owing
90 conditions existing during the war,
implying no doubi that the rents fixed
are haseG Oh cost. Il may interest you
20 know that II all Of the houses were
rented upon the present schedule mere
would be a gross yield based on cost
OF only a trine more than 5h per cent.
This gross WELD is hardly adequate 10
pay the ordinary carrying charges OF
these properties, such as taxes, insur-
ance. repairs. etc, so that the pros
meets Of the Emergency Fleet Corpora
fion realizing on the interest due 10 al the
rate of , per cent. per annum TOT tns
money advanced IN building the houses
are rather remote. There is no DOUBT
that similar houses could not pc con-
structed today at present costs TO rent
for same rentals, and still show q rea-
nahic return upon the investment. IL
suggested in your letter that the gov
unmcnt should be willing TO stand a
loss on these houses, and froOl what
r~s b-en stated above, YOU may readily
lsp that there is every prospect OF
this being the case 10 quite an appre-
ciabls extent. but 70 would hardly be
fair to expect the government TO con-
tribute toward the carrying charges,
when ms matter OF fact II IS entitled
n interest on the loan made.
a In vic,v Of the way IN which the
houses have been renting recently, your
statement that two-thirds Of the houses
,yiu remain vacant does not seem to he
iusti0ed. as almost half Of the houses
are rented. -,
And now at the present rental
sr5,ed,Ile and without doubt the re-
mainder Of the houses viii also De
taken as fast as they become Whol,y
accessible. Until therefore Il Is clearly
shown that a large proportion OF lle
houses will remain vacant on account
of iho alleged high rents, it would
l,ardlv he fair 10 expect a reduction 10
he made. The rents in this, as well as
IN au other projects, have been given
most careful consideration and nave
been nxsd only IN accordance win
sound business judgment. A..
- While IL is 10 be regretted that
there is such q scarcity OF houses IN
Wilmington. vet 70 Is no more witnlh
tho hounds OF reason 10 expect tle
Liberty Land Company TO reduce lls
rents fo supply the demand for houses
within a particular range OF rentai
values than 10 ask other property own
crs IN NlInluktuH ~ w -. a.
is absolutely impossible TO ncor
in the village Of Union PARK Daruens
houses OF such varying types as "
come within the range OF all classes uI
incomes. and therefore, In view OF tlis
oralitv of the houses constructed. Dotn
ne 10 design and modern conveniences
furnished. IL is assumed that they VIII
he rented only 10 those whose incomes
warrant the payment Of rentals asked
"6. II YOU desire to become familiar
with This housing project II Is sug-
gested that YOU confer with Mr.. Charles
G. Kurt. who is president Of the Lib
erty Land Company. and who will glad
lv show YOU any Of the houses and IN
fact all through the project.
Very truly yours.
II. F. sCHNiALTZ,
"Staf Assistant Property Bureau |