Evening star., 1923-03-05
RENT Commission
RULING IS UPHELD.
D. C. Court of Appeals A.
firms Finding on Value of
Meridian Mansions.
RENTAL HELD TOO LOW
Court Says Allowance Should Be
Made for Risks of
Business.

The District Court OF Appeals, in an
opinion by Judge James F. Smith of
the United States Court of Customs
Appeals, sitting as a member OF the
local appellate tribunal, today af-
firmed the finding of the District Rent
Commission as to the value OF Mer1d-
ian Mansions. The court disregarded
all the objections made by counsel
for Kennedy Bros. and Harry L.
Rust, owners of the property, with
the exception of their claim that the
value placed by the commission was
confiscatory. The court found that
while the commission did not over
step the bounds Of confiscation 1t
barely avoided" it.
The commission placed a valuation
and fixed the rentals of the apart
ments so that the return amounts to
about 3-5 per cent.
Takes Risks Into Account.
The court points out that since Con-
gress has committed to the Rent Com
mission the regulation of rents the
judiciary should not interfere with
the decisions unless they are at odds
with applicable laws or 80 plainly
and palpably unreasonable as to make
their enforcement equivalent to con-
fiscation. AS long as the return does
not drop below per cent, the court
finds. it cannot be held confiscatory.
Taking into account" says Judge
Smith. the risks of the business. the
unremitting supervision which is re-
quired of the owners and considering
that there may have been loss of rents
collect. an annual income of 3-5 per
cent on the value of the property
must be regarded as very low-so
low, in fact, that it leaves the un-
pleasant impression that it was the
purpose of the commission to cut
the income as close as possible to the
line of confiscation without crossing
it,
"If that was the purpose of the COM
mission we do not hesitate to say that,
should the very great power vested in
that tribunal continue to be exercised
in such a way as to reduce the income
from buildings to a point that barely
avoids conflscation, investment in that
class OF property will inevitably cease
to be desirable, and the second condi-
ton Of the tenants will become more
burdensome than the first
Other Decisions Announced.
The decision of the Rent Commission
was confirmed in the case of Elina P.
Campbell against Ethel E. Helm. The
opinion was rendered by Judge George
E. Martin of the United States Court
of Customs Appeals. 1t upheld the
ruling of the commission in the matter
of service of a notice to quit, which
the commission had held to be good.
Justice Van Orsdel rendered the de-
cision of the appellate court in the
case of Harry L. Rust against George
w. Tucker and r. f. Pilkington, in
which the decision of the Rent Com
mission was reversed The cases
were remanded for further proceed
ings.
!! The testimony showed the Lamont
apartments to be worth between $780,
600 and $4,000 and the commission
piaced vaiuaeiom ot onIy soz,o ooo
tenants If this reduction were car
ried out throughout the whole build
ing, the court finds, the return to the
owner would not exceed per cent.
Tho decision was reached. the court
determined, through false method
of computation.