The New York herald., 1922-03-06

at a time when 1t IL difficult to secure
new tenant. IL has frequently hap
named that tenants of this class have
taken advantage of these laws to retain
possession until the commencement OF
/ the summer season and then to move
/ into the country. leaving the premises
vacant at a time when other tenants
ere not procurable for this character OF
property.
| HoId-Over Tenant
$50 long as the right is reserved to
the tenant. Notwithstanding an existing
or expired lease, to have the reasonable
rental value OF the premises determined
there is no hardship in requiring a hold
over tenant to retain and be responsible
for the rent for another year He
should not be placed In better position
than the tenant who renews his lease
| for a year or more.
g. It has been urged that where a
tenant has, since the enactment OF the
rent laws. voluntarily entered into a
new lease he should not be permitted TO
defend against the payment of the rent
reserved in that lease. The rent laws
are predicated on the theory that on ac-
count OF the famine In housing the ten
! ant is under duress and is bound to agree
to whatever terms OF payment are in
sisted upon by the landlord. The COM
mittee is opposed to such an amendment
or TO any change in the law in that re-
spect. 1t is against this situation that
the rent laws We're intended to grant re-
| lief
| a. We have been requested TO urge
| the repeal of the concluding sentence OF
Section which provides that
1.-The plaintiff shall be entitled in
\ rnrfc nnfv I'm tho p1ant that he racnvar
the fun amount demanded in the com
plaint'
I'VE do not approve OF this sugges-
tion. The landlord should not be en-
couraged TO demand increases of rent
that he cannot justify II the judg-
ment OF the court awards him less than
| the amount claimed by him he should
not be permitted to mulct the tenant in
| the costs OF the proceeding. In that
event neither party has won and the
tenant usually has to employ counsel
'5. The statute should define the
method of determining the value OF the
| investment as a basis for fixing the rea-
sonable rental value in SO far as this
can be lawfully done.
The present situation is unjust 10 the
tenant. In 1919 when the housing short
age was first felt landlords began to in
crease rents They continued to In
crease until the rent laws were passed
| in 1920 so that when these laws were
| put upon the statute book there had al
ready been large increases which the
| laws were unable to reach. however eX-
cessive they may have been. The laws
were properly made and could have
been made to apply only to tenants
whose rents were increased after they
| had been enacted
Vicious Circle Created.
In offering proof of the value Of the
property the landlord based that value
| largely upon the rental returns calcu-
| lated upon these increased rents. The
result has been to create vicious circle
based upon these increases. Every time
the rent increases. however justifiable,
| the value goes up proportionately.
Another. and what has become a
customary method, OF supporting ex-
orbitant rents among large class OF
sharks that has grown up as the result
of the housing famine is to increase the
| apparent value of the property by ficti-
| tious and colorado sales at excessive
prices and then make proof OF these
sales rs evidence of the value of the in
vestment. This practice of wash sales
| has reached the dimensions of recog-
nized industry and is in the hands OF
men who are not builders, who never
heretofore concerned themselves with
real estate and who have never con-
structed building"
Reviewing the testimony given by
scores of witnesses concerning the
operations of Robert T. Brindell, now in
Sing Sing. the committee says of him
and his work: -
"Ins the many piratical undertakings
csfceaRyEp4ell. all accomplished within
| less than one year, Brindell acted APP
Iparently without protest or hindrance
/ of the men around him connected with
the council. and as though the $4,000
men connected with the council were
mere pawns in his game. His despotic
power was complete and unchallenged
| ut is estimated that within this short
| period OF from 10 to ii months he ex-
torted in the ways above indicated over
| $1,000. 900. all of which was added to
the cost of building construction. And
yet his reign had Just about begun
| But for the exposures that resulted In
his downfall and punishment and that
of his lieutcnants the building industry
of New York city would doubtless have
been completely paralyzed.
| Although his operations were con-
| Quoted in crude, open and desperate
| ia shion readily open TO detection. and
he could easily have been trapped nc
| owner, builder or contractor seemed ia
have had the courage or the public spirit
to have made the slightest attempt to
check him in his career Of crime and
none of the officials in the Building
Trades Council were sufficiently SO
licitous OF the good name Of organized
labor to enter word Of protest. Truly,
the spectacle Is a huniliating one from
L r.f