The New York herald., 1922-01-27
Story Of Charles Klein's
Deal With Flats Unfolded
by Untermyer.
HOUSING BILL UP MONDAY
Casualty Insurance Methods to
Stifle Competition Re-
vealed at Hearing.


Lockwood legislative committee on
hodsing, concluded his inquiry into the
methods of gouging landlords yester-
day by drawing out the details of an
attempt by St. Nicholas avenue
lessee to colonize negroes in what was
an exclusively white section as retalia-
ton for the refusal Of tenants to ac-
cept staggering rent increases.
The housing committees lawyer
then went on the trail OF the latest
monopoly which, he charges, has op-
Grated to boost rents and building
costs-that Of the casualty insurance
companies, or those writing liability,
automobile, compensation and surety
policies.
between times Mr.. Untermyer an
nornced that the proposed amendment
TO the insurance law. by which it Is
hoped to get the $10O,OO0,O 900 building
plan for cheap tenements under way
at once. will be introduced jim the Leg
islsture on Monday night. In addi-
ton he found time to summarize the
onenses the committee feels have been
pe.petrated against the public by the
General Electric Company as they
have been disclosed by the committee,
and to recommend that the record be
sent to the Attorney General at Wash
ington.
TO round out the day Mr. Un.ermyer
gave to John p. Burns, Chief Clerk of
the Seventh District Court. what virtu-
ally amounts to a clean bill Of health in
connection with his collection and dis
bursement Of rent moneys He then
urged the immediate passage of enabling
legislation to permit the State to take
an appeal in case certain indictments
found against dealers In building SUD-
plies in Buffalo by the Erie County
Grand Jury. as result Of the commit
tees work there. are dismissed.
| Negro ColOnizer Accused.
Charles Klein. lessee of a group of
nine houses In ST. Nicholas avenue. be-
| tween 11Sth and 119th streets, and near
the church and parochial school of 81.
Thomas the Apostle. was the landlord
who, 1t was charged, attempted to or
ganize negro colony because his ten
ants repeatedly took him to court on
rent increase cases and won their cases.
Klein had an opportunity to explain but
would not sign an immunity waiver and
was not questioned
The case against Klein was presented
by Harry Goodstein. a realty operator
| and builder and president Of the Wes.
Harlem Property Owners Association.
According to his story, the block OF
houses. about thirty years old and worth
approximately $450,0oO, was purchased
at an advantageous figure involving a
cash payment Of only $50, 900 In 1919 by
IL. w. Browning. one of the largest
realty operators in the city.
| According to Goodstein, Browning
made some minor improvements such as
painting the fronts and Railways of the
houses. and raised the rents from an
! average Of $40 to $50 and S65 There
| was not much objection to this said
| Goldstein, because rents were going I'D
! all over But a short time later, after
Browning leased the block to Klein, the
new landlord demanded an additional
| increase to 800. and In some cases
more. The tenants refused 70 pay and
were sustained by the courts.
Goodstein's story was that Klein told
him he was paying a tremendous rent to
Browning for the block. amounting 70 at
least 100000 year, and that the rent
| rolls only aggregated $4,000. When
| asked why he undertook such bad bar
| gain. Goldstein said Klein explained
that Browning assured him he could
double the rents and make good money
on the proposition. Goodstein continued :
when he found he couldn't. he
wanted us to take his lease over as a
community proposition. and said II we
didn't do II he would bring In negro ten
ants and ruin the neighborhood.