Evening star., 1924-05-13
Attorney General Stone Wins
Plea to Intervene in In
junction Brought to Halt
Commission Probe.
RESTRAINING ORDER HELD
UP FOR HEARING MONDAY
F. H. Smith Company Named by
Senate Committee in Alleged
Pact to Increase Rents by In
fating Values, Defends Opera
tions Here-Cites Record.

The United States government,
TIN ough the Department of Justice.
joined hands with the Rent Commits
sion today in the court fight which
eventually will determine the right of
the commission to exist
Harlan F. Stone, Attorney General.
filed petition to be permitted to in
terVene in the Bates Warren suit for
temporary Injunction against the Rent
Commission to prevent that body
from proceeding with an inquiry into
certain rentals on the theory that the
housing emergency has passed Jus
tlce stafford granted the request o.
Mr.. Stone and deferred the signing
OF temporary decree of Injunction
and gave the government until next
Monday to present such additional af-
fdavits as might be desired to show
that an emergency still exists.
Argument will be presented Mondav
by H. l. Underwood, representing the
Attorney General
BIanton Halts Conference.
Preceding this new development today
in the Washington rent situation. the
Senate yesterday afternoon approved
the House resolution which extended the
life of the Rent Commission two years
but amended il TO make the extension
only one wear.
Representative Florian Lampert or
Wisconsin. who was in charge Of the
rent resolution in the House asked
unanimous consent today that the reSo-
luton be sent to conference, but Repre-
sentative Blanton of Texas objected
The rent resolution, when called IN
yesterday by Senator Ball. was accom-
panied by statements from Senator Bal
concerning the results of secret in
vestigatlon into the rent situation here
which, it was charged. showed COM
bination which placed fictitious values
and inflated prices on a number Of
apartment houses and hotels. The
charges involved the F. H. Smith Com
pany. eight subsidiary companies. eleven
officers and employees of the Smith com
pany and other individuals and concerns
both of Washington and out of town
District Attorney May Get Case.
Senator Ball indicated today tina,
all of the material gathered as a re-
suit of this investigation would b.
turned over to the district attorney
This will follow long conference
between Senator Ball and District At
torney Gordon. held in the formers
office last week, at which, it was
understood, the nature of the charge
were thoroughly discussed between
them.
Senator Balls charges were met to
,,E
those concerned.
That by the F. II. Smith Company.
follows in full:
The +. H. Smith Company is an
institution of Washington.
TT is composed of Washington men.
1T has conducted business here for
ffty-one years.
over this long period il has been
selling first mortgage investments 10
its customers on conservative valu-
alton. In all that time, these inves-
tors never lost a single dollar.
TT has been a great constructive
force in the upbuilding of our great
city.
'The F. H, Smith Company is proud
of its record"
Stafford Planned Injunction.
Justice Stafford last Friday an
nounced, in connection with his rul-
ing in the Bates Warren case, that
from the record as presented to him
there was sufficient probability that
the housing emergency had passed.
and such record justified the court in
granting temporary injunction
against further proceedings in the
Warren case before the Rent Comis-
sion. The signing of an order was
deferred. Counsel for Mr.. Warren
and for Harry Norment, who has a.
similar injunction proceeding pend
ing, consented today to permit the in
sought to limit such Intervention To
the taking of testimony as to a final
and permanent injunction, but not as
to the temporary injunction.
Allows United States to Act.
Justice Stafford in granting the re
quest of Mr.. Stone to intervene. de
clared that as long as counsel con
sented to the Intervention, the gov
ernment should be allowed to present
arguments and affidavits before !
temporary injunction was granted
On the assurance of Chaplin Brown.
attorney for the Rent Commission.
that the commission would take no
proceedings in the Warren and Nor
ment case pending decision of the
court, Justice Stafford deferred the
signing of a temporary decree of in
junction and gave the government
until next Monday to present such
additional affidavits as might be de
sired to show that the emergency
still exists. Argument will be pre-
sented Monday, by H. L. Underwood,
representing the Attorney General
The court also permitted the plant
ifs to file further af.idavits concern
ing the emergency, if desired
Chaplin Brown, for the Rent Com.
mission, objected to the form of the
injunction as presented. and con-
tended that it would be in effect
enjoining the commission under the
extension of the act, which has not
yet passed Congress. He suggested
that the Injunction would probably
be in excess of the power of the
court under the Ball rent act read in
conjunction with the Clayton act.
The petition of Attorney General
Stone reads: Comes now the At
torney General on behalf of the
Continued on page 3. column z,