New-York tribune., 1921-09-29
ALI Rent
Raises toCourt.
Tenants Told
Members of Lockwood and
Mayors Committee and
the Federation Counsel
Concur i'll This Advice
100000 Suits Expected
Ontermyer Proposes Test
Case ON 10 P. G.. Ruling
Given in Brooklyn Court

FROM three important sources YES
terday came advice to tenants who are
raced with October 1 rent problems
these were the Lockwood legislative
committee on housing, which is now
ready to take up measures for the i'm
medlate relief of rent payers; the
bureau known as the Mayors rent
committee, with headquarters in the
Municipal Building, and from Charles
Marks, an attorney who is active in
the Federated Tenants Association
with $4,000 members in Manhattan and
the Bronx.
On one point all are unanimous
That is that no tenant should pay an
! increased rental without first havine
the landlord's demand passed upon bv
| a court There can be no eviction un.
der the emergency laws.
Test Case Proposed
In letter to Senator Charles c.
| Lockwood, chairman, Samuel Inter
myer, chief counsel to the legislative
committee. suggests, first, that test
case, under agreement as to the facts.
be brought by the committee and the
Real Estate Board of Brokers to de-
termlne whether landlord is entitled d
to 10 per cent return upon his equity
; or 10 per cent upon valuation of q
property; and, second, that until this
question is settled, tenants demand q
bill of particulars when asked for in
creased rentals, taking the matter into
court if it appears that the landlord
would receive more than 10 per cent
on his equity.
MI. Untermyers opinion was pre-
pared at the request of the comm ttee,
and dealt with an opinion of the Ap-
pellate Term in Brooklyn, that upheld
landlords right to 10 per cent
profit on valuation, regardless of how
much actual cash he might have in
/ vested.
Junius Pendleton Wilson, chief coun-
sci of the Mayors rent committee. ad
vlsed tenants to become parties to hold
over proceedings, if necessary, and to
ask for jury trial on the question of
whether OF not their rents or increases
demanded are reasonable or unreason-
able.
Mr. Marks declared that there must
be an extension of the present emer-
gency rent legislation Tor not less than
three years and that this demand
! would be laid before the Legislature as
soon as it convenes.
Tenants Are Heard
The Lockwood committee met at Mr..
untermyer's Office at 2:30 O'Clock yes
| terday afternoon. Present with Sena-
tor Lockwood were Committeeman Nc
Whitney. Caulield, Leininger,s Carson,
Tolbert and Hamill. The committee e
heard number of volunteer witnesses,
all tenants, and then canvassed the
rent situation and discussed measures
of relief.
In his letter to the committee, Mr.
! untermyer recommends that no appeal
be taken in the Hirsch VS.. Wener
case. in which the Appellate Term in
Brooklyn made the 10 per cent return
ruling, suggesting the special test
case instead. AS to the general appli-
cation of the 10 per cent ruling, how
, ever, he says:
II do not believe that the statute
contemplated that the rental should
be to any extent regulated by the sum
that the landlord happened to pay for
the property. The only reasonable
basis of rental is the value of his
investment at the time the rental in
question is fixed.
II agree also that return of 10 per
cent on the actual investment of the
Continued paGe four)