Evening star. [volume] (Washington, D.C.) 1854-1972, 1922-03-14
INTERFERING WITH BUSINESS
CHARGED TO BALL RENT ACT
Randall H. Hagner Declares Law Is Draw
back to Development of Property-Cites
Examples to Show Injustice Inflicted.

Operation of the Ball rent act Is In
terfering indirectly with the de-
yelopment ,of a number OF bushes:
building enterprises in Washington
despite the fact that the rent commits
sion is supposed to exercise no con
troll over business property. according
to a statement issued today by Ran
dali H. Hagner. local real estate,
broker.
~ Washington is the only city in the
i,country where business property val
! ues in certain instances are not per-
mitted to respond to the natural laws
Of supply and demand, but are con-
trolled by rent legislation, Mr.. Hag-
ner declared, in calling attention To
several examples of injustice in this
connection.
Pointing out some of the "inconsist-
encies" of the present rent law, Mr.
Hagner took occasion to emphasize
the undesirability of legislative con-
troll of rents of any kind from the
standpoint of the man on the street.
Held No Congressional Question.
If Congress, itself, should be in the
position today to take over entire
production and control of houses In
, Washington, carrying out the project
as business proposition, 1t WoulG
not erect one dwelling for rental pur-
poses, the broker stated. 1t is not a
congressional question, he said, blu,
one of production of rental houses
| Private initiative cannot produce
rental properties when they are to DC
controlled by law. Is Congress going
to produce them. or are the citizens OF
| Washington? Some one must, it was
pointed out.
/ Il read with interest the speech OF
Senator King at the hearing Friday
in the District building. and also the
, statement of William f. Shannon
war director in the United States
Star. 1t seems impossible that such
unfounded remarks can be made by
a member of Congress as are con-
tanned in Senator Kings address.
! UnscIfsh Attitude Asked.
IF there were more members of
Congress who would take an UNI
selfish attitude in advocating elimi-
patton of all rent legislation for the
reasons SO ably stated by Mr.. Shan
non in his published article, the in
terests of the District of Columbia
and the welfare of the man of mod
crate means would be on a more
4, equitable basis.
MIR. Shannon, in addition to his
official duties with the housing cor
| poTdtion during the war, Is mead OIL
i'the firm of MiddauEh & Shannon. Inc
whose business is totally that of
building houses for sale. | think
am correct in saying that Nr. Shan
non does not collect single rent sor
own single rented property. Con-
| sequently, his attitude can be but
| unselfish. =
MY above statements are made
| with the following observations of
| the impracticability of rent Iegisla-
ton:
Matter Of Supply and Demand.
ut must be obvious to thoughtful
| men and women that fundamental
! values of real estate in a community
are controlled directly and absolutely
!; by the laws of supply and demand.
| 1t is obvious that real estate values
! in any American city respond to the
J increase in the population of tina t
| city. and sto the increasingly insistent
demands for desirable locations and
| accommoda lions.
! what is true of the average Amer
lean city is equally true, in the Ma
! tional Capital of the United States.
| Ten years ago the population of
! Washington. including suburbs. was
| approximately three hundred thou
! sand. Today it is more than half Il
! million. AS a direct consequence. val
I ues of business properties have mate
l
''Whild the necessity for rent legis-
| lation in residential sections was
i deemed essential by the Senate and
| House because of the emergency of
| war, these considerations. now long
| since passed. should not today be APP
| piled to business properties. More
! over. admitting that rent Legislation
| for living accommodations was to a
certain extent during that emergency
beneficial, we contend. and believe
! the facts fully substantiate our con-
| tention. that the continuance of this
| Legislation has retarded what other
! wise would have been an active de-
| velopment in the erection of dwelling
properties for investment.
Uncertainty of Return.
| at is today exceedingly difficult to
| finance building propositions for resi-
dence use in the District. because Of
! the uncertainty of return regulated
by the rent commission. together with
! the inability of the owner to control
| his own property.
"There are any number of vacant
houses in Washington today which
! display For Sale signs. These houses
houses could be rented on either
agreements or leases subject to
| sale clause. which would not in
| terfere with the efforts of the owner
| to dispose of the property. But, due
! to the inability to dispossess tenants
and the long delay necessary in get
! ting a case before the rent commits
sion, it is more practical for an own
er to have a house idle than to rent
| it and run the risk of not being able
| to get possession in the event of a
| sale.
! "There is great difference of opin-
| ion as to the advantages and dis
advantages of rent legislation applied
| to residence property. In the case of
| residence property there is, of course,
| the human side. People who are dis
possessed may find it impossible to
obtain other Accommodations. None of
these considerations, however, apply
| to business property. If a merchant
| Is unable to keep abreast with the
| increase of rents and legitimate in
creased valuations. it is obvious that
he should surrender such a location
and seek one that is less expensive.
Business Property Leases Long.
! Dwelling properties are usually
rented on monthly agreements or an
nual leases; one or two years being
| considered a long lease for home.
Business property, on the other hand,
| Ill.,, n.