Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1919-08-30
COUNCIL RENT
HEARING IGNORED
BY MAYOR SMITH
AngeIus Apartment Agent Re.
fuses to Attend City Coun-
Gil Probe Until Po-
lice Appear.

(Continued from Page One.)
increased rents would yield only 6
per cent on the investment.
Cliff Calkins of Calkins & COM
pany, and Charles w. Craft. Cal
kins tenant at 500 South Twenty
sixth avenue, engaged in a polemic
Agent Gives Reasons.
Mr.. Calkins stated that he had or
dered an increase of rent from $50 to
SIS on each of eight flats, in one OF
which Mr.. Craft lives. He said that
the $50 rate had been in force for the
last eight years and that several OF
the tenants recently remarked that
during the last year the rent had
been so low that it seemed like
stealing it." He based his increased
rent on an income on the present
valuation
The former owner told me that
these fats would make money at SIS
a month" said Mr., Craft Il am
ready to go to the mat on this. Sim
liar nearby fats are being rented for
$50 and SIS and are earning money
for the owners.
Those are just his figures" re-
torted Mr.. Craft, after Mr.. Calkins
endeavored to justify his increase
from $50 to $50 per month for SIX
unfinished rooms without Janltor
service, the tenants paying for gas
and water and furnishing their own
heat.
Tenant Pays Twice.
The city attorneys view of Mr..
Calkins' figures was that the tenants
in this instance were expected to pay
for the appreciation of the land and
bear the depreciation of the build
ing.
Mr.. Donohue was called to testify
along toward II o'clock. He stated
that the rents at the Angelus had
been raised, effective October /.
These raises were $40 and SIS for
81 tenants. 81
"How do you base the new
rents?" Mr.. Mossman asked.
ITO make 6 per cent of a reason
able profit" the Angelus manager re-
piled. 1--WE were not making money
before"
Mr.. Donohue stated that he did
not know what the total income or
expenses had been during the last
year, nor was he able to give the
council the per cent of profit that
the new schedule of rents would
yield. He testified that his tenants
have the advantage of automatic ele-
vators and fre-proof building. He
added that he would disclose figures
to the commissioners privately, but
would not divulge them publicly.
Angelus Profits Advertised.
Mr.. Highly replied to Mr.. Dono-
hue in this manner:
II wish to state that I read in
the newspapers last spring an adj
vertisement, offering the Angelus
for sale, with a statement that it
was earning at that time IA per
/. cent? Mr.. Donohue told me HIM
self that he was holding the apart
nlents at 100000 and said that he
was making lot of money out of
them.
The place is not freproof, be-
cause can hear conversations
through the walls. The building is
four stories. and should have fire.
escapes. The walls are patched.
There have been no decorations
since have been there. l heard a
tenant say last night that she was
ashamed to have a visitor come on
account of the patches in the halls"
Mr.. Highly offered figures to show
that the net earnings on these apart
ments are $l6,500 per year. on a
valuation of approximately SIG, 500,
allowing for depreciation, coal and
other expenses.
Children Go, Dogs Stay
L. Hallam, speaking for the Coro-
nado apartments, said:
II have boy 8 years old. and re-
ceived notice to vacate because of
my child. l was told by Benson &
Meyers, agents, that they were re-
questing all tenants with children to
move. Others tenants in the build
ing had not complained because of
theHchlidren. They allowed two
dogs to remain in these apartments,
and yet ordered out, tenants with
children"
During the examination of Mr..
Calkins, Mr.. Mossman asked: "Do
you prohibit children in any of your
apartments"
"We do in the Dwight and the
Root"
what has that got to do with this
investigation" asked Chairman
Ringer.
Because" replied Mr.. Mossman,
I'VE have received many complaints
from tenants with children who say
they find it difficult to obtain
apartments because of their chill
dren."
Denies Increase Discussed.
Ernest Sweet, who demanded 81
witness fee before he would comply
with the summons issued by the city
legal department, testified that he
was a member of the association of
building owners and managers. but
that to the best of his knowledge
the organization had never formally
discussed the matter of raising
rents.
"There may have been some COM
parsons of rents by members, but
there has not been any agreement
among the members as to increased
rents he said.
Questioned on the Hamilton
apartments, he replied that his books
would show the income and sx-
penses.
Il will furnish the information to
the proper tribunal when the time
comes" he testified.
"Nill you give the information to
this council?" he was asked.
Base Rent on Values.
sSF