The Washington times., 1920-04-02
TENANTSMUST
BEAR BURDEN
Realtors in Business District
Will Pass Along Boost In
Bitumin0us Prices.
CLAIM ADVANCE UNJUST
Plan Steps to Get Government
Observation-Disclosures
Jump Threatens.

A big jump in rentals io bust;
establishments in Washington was
forecast today as a result Of tire
mendou3 increases imposed by coal
operators on prices of bituminous
coal. Managers of office buildings
and other business establishments
throughout the city today received
notice from coal dealers that the
price of coal has been advanced from
$7.75 a ton to $975 a ton, effective
Immediately.
Burden Falls on Tenants.
This burden must be borne at once
by the tenants. as landlords claim
their margin of profit already is low.
Landlords were further astonished by
letters from wholesalers denying the
privilege OF making contracts for
future delivery even under the new
figure. Investigation disclosed that
the wholesalers are thus holding out
in anticipating Of further advance.
perhaps even higher figure than
the one announced today.
Manager r. s. Derrickson. Of the
Riggs building, In the financial and
busihess district, said the cost OF
operating that property alone would
be $4,000 more a year than in form
er years. Other office building man.
ayers said their overhead costs would
be as large in proportion, and the ad-
vance imposed on coal could hardly
stave off an advance in rentals in
office buildings and business estab-
lishments generally, in Washington.
Unprepared For Advance.
Owners and managers of business
properties today, while recognizing
the possible justice In a slight in
crease in bituminous coal were
totally unprepared for the advance
just made. The advance is excused
by the wholesalers on the ground of
increased wages. This, the business
men claim, Is preposterous. Under
the agreement approved by the Pres
ident the miners were given twenty
seven per cent increase, but this figure
absorbed ii per cent increase grant
ed some time ago. The next increase,
which only imposed on consumers in
any event, would be 13 per cent, even
after the new wage scales have been
perfected. The 81 increase per ton on
coal, realty men assert, Is more than
n 20 per cent increase, and cannot be
justified in any manner.
Realtors declared the advance con-
stitutes fragrant profiteering. and
they are preparing for joint confer
ence for possible action to bring to
the attention of Government officials
the necessity for Intervention by the
courts to stave Off further charges.
Wholesalers In coal had no "alibf' to
offer today, merely explaining that
their course had been dictated by the
latest quotations given them by the
coal operators. In view of the Presi-
dents warning that the coal operators
would not be permitted to take ad-
vantage of this wage increase, as
means of making the consumers load
unjustly heavy, IL is the belief gem
orally that Attorney General Palmer
will be given a definite proposal by
coal CONSUMERS not only in Wash
ington. but by property interests
throughout the country, asking for
immediate and drastic Federal action
to prevent a situation among both
landlords and tenants that threatens
to become menacing.
The immediate effect OF this coal
advance is to widen the vicious cir
Gle" of advancing prices, in which
the consumer is hit the hardest.