New-York tribune., 1920-04-25


Who shouted eve want all we can getv
when they went to Albany recently to
oppose the passage of the anti-rent
legislation to know that they will be
regarded as'profiteers if the net return
from their property is more than 10
per cent. The courts and the Mayor's
Committee on Rent Profiteering have
studied the question of fair and eoui-
table income from property for long
time before deciding what would be
the demarcation between a fair return
and an unfair one. Study of every
field of investment was made by A. J.
w. Hilly, chairman of the Mayors COM
mlttee, and his associates. 1t was
learned what was a good return, and
also it was determined whether the
earning of that money required great
RISKS or great effort. From this in
formation the deduction was reached
that no property owner should COM
plain at 10 per cent net return on
his or her investment.
The stand taken recently by the
courts and the Mayors committee
shows that the f1aunted declaration
to 20 per cent at least interest in realty
would be destroyed has not impressed
the court, except unfavorably.
Profit Is Figured on Equity
Net profit is not figured or the value
of the property from which this return
is derived, but on the equity, the money
invested in the realty. Mr.. Hilly said
that owners have tried to justify large
in nfo1
their property to-day, which is con-
trary to the principle of the anti
profiteering legislation. The increase
which the court will permit above the
rent paid last April if it is a month-to-
month tenantry, and last October if it
Is year-to-year tenantry, is determined
by what per cent of the money placed
IN that property two or three years ago
is the net return of to-day The net
return is the difference between gross
rental and maintenance charges. Cost
OF decorating and repairing an apart
ment must be apportioned over several
years; the court will not allow the
entire cost to be charged in one year.
Falsifying expenses in the hope of JUS
tifying higher rental demands is dan
gerous because the court and Mr..
Hilly's committee are alive to the temp
tation and will detect the padding, as
books and papers to substantiate con-
ditions must be produced
What Is Per Cent Increase Means
Mr.. Hilly said that 25 per cent in
crease over last years rental is not
generally understood. He explained
that it a property owner asks for %
per cent above the rental paid last
April or October the increase may be
oppressive and the owner
must prove that what he asks is feir.
A rental increase demand may be as
much as 100 per cent, Mr. Hilly said.
and II the owner can prove that with
his advance his net income will be
10 per cent on his in
vestment, the increase will be per-
nitted.
Ii an owner asks an increase Of 20
Der cent, it is UP to the tenant to prove
hat the owner is asking too much and
this can be shown the tenant wins.
Specifying the amount of the in
'rease IN the measure was to establish
tenant might be enabled to recognize
protiteering as understood by the law
Bills Can Help All Tenants
Mr.. Hilly said that the rent bills
we're made for the benefit of the tenants
VI -iic great ana expensive houses of
the city as well as for those who oc-
,upy the poorer accommodations. The
charge of profiteer is not aimed at the
owner OF any particular class Of resi-
ential property, but at all. He said
that folks who occupy the better grade
apartment suites are asking the
Mayors committee to interest itself in
their cases and that he was very
pleased that they were asking the com
mlttee to do SO because it was its aim
to destroy this great evil and not
merely to restrict its operations.
Do Not Be inundated
His advice to tenants is DO not
be lntimidated by the landlord" If
your rent has been increased 25 per
cent or more over last years, notify
the Mayors committee in the Munici-
pal Building, preferably by letter. or
see the committees attorney in the
local district court and explain the
case to him. IF tenant has been
asked to move and search Of the
nousing accommodations Of the section
shows there is no place to move to.
write to the owner that you have not
been able to find new home and
therefore, must remain in your present
at thA. bal