New-York tribune., 1920-10-14
New Rent Law
Decision Will
Be Made TODAY
Justice Finch Will Rule on
Constitutionality of Leg
islation Fought by the
Real Estate Interests
Another Test Is Begun
Cooperative Ownership
Section of Statute Is
Attacked in the Suit

Two important developments in the
fight to test the constitutionalty Of
the new rent laws came in the Su-
preme Court yesterday. The first was
an announcement by Supreme Court
Justice Edward R. Finch, in the Bronx.
that he probably would hand down a
decision to-day involving the constitu-
tionality of the laws. The second was
an announcement by Commissioner Of
Accounts David Hrshfield that the firm
Of Scott, Gerard G. Bowers had insti-
tuted a test case in the Supreme Court
under the cooperative ownership sec
ton of the laws, which the city will
aid in defending
The latter is apparently the first of
the series of cases under the plan made
public last Saturday by the Real Es-
been retained as counsel by the newly
formed Real Estate Interests, Inc,
which is cooperating with the Real Es-
tate Board in the fight upon the new
laws
Question of Court Rights
The action in which Justice Finch
will hand down decision is in the
case Of eviction proceedings brought
against Hyman Schat kin, a tenant in
Crctona Parkway, by Jacob L. Guttad,
owner. Schatxhins lease expired
October |, but he is remaining in
possession under the new laws.
Bernard s. Deutsch, counsel for
Guttad, argued that the new laws were
unconstitutional on the ground that
the Legislature exceeded its authority
in limiting the powers of the Supreme
Court in such actions until Novem be r
1922 He said that abrogation Of
court rights was ilLgal unless de-
creed by popular referendum.
Justice Finch, while saying that he
would reserve openmindedness until
final determination, made statement
that may prove significant. 1t was as
follows: ~ think the Legislature has
done no more than take away a sum-
mary remedy. 1t does not say a per-
son cannot recover his property until
1929, but merely states three ways
public by Commissioner Hirshtield is
brought by Katherine W. Sewall
against Jacob Lang 1t seeks an in
junction against the contin1ed occupa-
tion of an apartment in 10 East Nine
ty-hfth Street by Lang. The COM
plaint alleges the dwelling is now
owned by a cooperative ownership cor
poration, which recently acquired title
to the property. 1t also shows that
up to the present time only eleven
tenants, out of a total Of of twenty-six
had purchased stock and entered into
leases.
Commissioner Hirshfcld announced
that he would personally appear for the
defendant in conjunction with Arthur
J. w. Hilly. chairman of the Mayors
Committte on Rent Profiteering
Vigorous Fight Promised
81 was informed by the tenant" he
said, that the plaintiff in this action
telephoned him that he could stay in
the apartment if he paid 5000 a month
rent. | believe the apartment was
rented for $105 a month If this is
true it would cast reflection on the
good faith of the plaintiff in bringing
The action good faith is a necessary
condition to maintain the action.
"Then again the papers show that
the stock is not wholly held by tenants
III PoAstSS!oH, or VINO seek possession.
That is fatal to the action, as the law
says that possession can be secured
only in cases whore that condition
exists. 1t seems to me that this is Just
another attempt by the real estate
interests to circumvent the new rent
laws, and this and all others Of similar
nature will be vigorously opposed bv
us: Mayor Hylan has directed us to
afford tenants every aid possible in
these matters and we will follow his
Instructions"