The Washington times., 1919-09-03
Senators Start Work
On Rent Law Tomorrow

I antee just and fair valuation Of ali
property without partiality to owner
or tenant E
| tee that q net return on real estate
varying from z to 10 per cent would
be considered fair by local real es-
tate men.
But why should the per cent OF
profit be placed higher than the pre-
Yailing interest Tate?" Senator Bali
asked
Because rent Is Fixed for A year a
. time, and many unforeseen repairs
are required" replied Mr. Warren.
There Is no means OF estimating
accurately what contingencies may
arise" II only the prevailing rate
OF interest on money 10 allowed IS
proft. he declared, people would hesI-
tate to invest money in real estate,
unless a better return was guaran-
teed.
There will be no relief in the local
building situation until building ia
! stimulated" said Mr. Warren. Leg
| islation will not increase building
space. IL you are going to regulate
rents you must have q rent admins
traitor. You cannot deal with all Of
these questions through an absolute
law. You must have q man who can
deal with every piece OF property
separately when he is called upon to
do IL. II such a law had been pro
vided in the past we should be 80 per
cent better on today.
Il said at the time that the SauIs-
bury law would not stop profiteering.
It did not stop prohteering nor did It
stop eviction. Prohteering went on
In the sale OF houses at exorbitant
prices. The Salisbury law legalized
II. The owners were crippled. It
simply held things where there were
no provisions for the future. The
salisbury law doesn't reach the ho-
tells and never did. It has been the
greatest handicap We could have had"
Threatens Building.
Mr.. Warren said that he believed
the law Of supply and demand must
be recognized in meeting the rent
situation. Pending legislation. he
warned, is threatening business and
halting building operations.
Mr.. Warren informed the committee
that the Real Estate Brokers' Asso-
clattion had indorsed a bill last year,
providing for the creation of a rent
administration and that the associa-
tton still is heartily in support Of
such a plan.
The question OF Government salaries
was brought up at the hearings, when
1t was pointed out by Mr. Warren that
while the wages of tradesmen and la
borers had about doubled since the
pre-war period. the Government en-
ploye is compelled to, meet higher
costs of living out Of his pre-war sal
airy. great deal OF the suffering
q -
placed at the door OF the Government
for its refusal to pay its employees an
increase in partial accordance with
the advance in prices.
Adnits so Raise
Percy H. Russell, owner Of the New
port apartment house, whom Congress
man Howard of Oklahoma charged in
the House. with being a "prohteer,"
was given a hearing before the COM
mittee. Mr.. Russell admitted that
when one OF the apartments in his
house became vacant, he increased the
rent from see to $T5.
1t was this instance that Congress-
man Howard singled out. He>denied.
however. that he evicted the former
occupant OF that apartment Ques-
toned by the committee, Mr.. Russell
said that he had advanced some rents
10 per cent over the pre-war prices,
and that other tenants are paying no
increases. He admitted that some Of
his tenants have characterized their |
rents as "extortionate."
The fact that his net profits from
the Newport apartment house were
only 1923 during the last seventeen !
months, Mr.. Russell declared. is suf- !
hctent proof that he is not a prohteer |