Evening star., 1924-05-24
BY WILLIAM j. WHEATLEY,

Trust money for loans on buildings
In the District of Columbia began to
loosen up and flow more freely during
The past week, and there is a prospect
that the city will see an increase in
the growth of building, particularly
homes. However, plans are being
made for several large structures,
both for business purposes and for
apartments.
The appearance of more money for
loans on trusts is attributed by real
rors TO the present status of the rent
avs in the courts. Issuance of the
InJunctionS in the Norment and War
rem cases, restraining the Rent Com
mission from proceeding with find
inSS on the theory that there is no
Emergency existing, and the conf
dence among realtors that the death
(nel of the rent board can be heard,
md, in fact, is being foreshadowed, is
bound to release more money for use
as loans on building of structures.
Realtors always have contended that
the difficulty has been in getting peo-
pie to invest in property for rent,
When there was a possibility always
hat tenants might appear before the
Kent Commission and obtain a rental
which would not bring a fair return
on the investment
SECOND ITu$IS discounted.
The Lake-Stubblefeld case in the
courts is being watched with no lit
tie interest in realty circles. This
IS the case in which Felix Lake filed
= suit in the Supreme Court of the
InSCr1ct, seeking to have that tribunal
declare certain loans which he OBJ
tained as being in violation OF the
loan shark law. On these loans Lake
says he signed notes far in excess
OF the amounts in cash that he OBJ
tanned. OF course, loans secured by
second trusts are discounted at higher
rates because of the priority of other
trusts and the chance that is taken.
Nevertheless, the decision becomes of
much interest because of its possible
effect on other loans which have been
negotiated at very high rates. 1t is
the many trusts and high rates of
commissions which the Senate COM
mittee has contended inflated the
values of a lot of property here. and
Is one of the main objects of the
grand jury investigation.
Rent Commission Acts.
The District Rent Commission is
going ahead considering the 500 or
more cases before it, and will not
mark time pending the decision in
the Norment and Warren cases. 1t
will keep on going unless or until
the litigants in the cases before the
commission take steps in the courts
TO restrain the commission. The re-
straining orders in the two cases be-
fore the courts relate only to them,
and these orders are not taken to
prohibit the commission from con-
sidering other cases. 1t is the con-
tention of members of the commits
sion that Congress in enacting the
extension resolution for the rent body
indicated that an emergency in hous-
ing still exists here, and that the
President has appointed the new
members and they have been con-
tirmed. They are bound to carry out
the law. The struggle in the cour IS
Is expected to be a long and hotly
contested one right up until it reaches
the Supreme Court of the United
States, where the cases eventually
will find their way.
There have been a number of large
sales, one of which was the fore
closure sale of the Roosevelt Hotel,
which went under the hammer to
satisfy trusts. 1t was sold under the
third trust, an auction sale under
the first trust having been postponed