Evening star. [volume] (Washington, D.C.) 1854-1972, 1925-01-08
RENT BILL CALLED
BUILDING OBSTACLE
Normal Housing Program I'M
possible Under 1t, Says
Randall H. Hagner.

Randall II. Hagner, realtor. today
| In statement given out for publica-
ton expressed his views regarding
the bill now pending before Congress
Great ting a rent commission for the
District of Columbia with larger
powers than those of the present
| commission. Mr. Hagner says:
This bill, l imagine. is sincerely
proposed by some as a remedy of the
rent situation. but nothing could be
more in opposition to this solution
than this bill, for the following rea-
| sons. For the last two or three years
there has been conducted a very large
building program here in Washington
| because ii was considered by all
financial institutions, as well as
builders, that each time the original
rent lease expired all rent legislation
would end, and with the demand for
housing accommodation the building
program has continued.
Foresees End of Building.
Gould a lender of money imagine
advancing funds for building opera
lions over which, after completion,
the owner would have absolutely no
control Of the returns or manag
beyond that which might be allowed
according to the intelligence or atti-
tude of a small committee? The
answer to this is 'no'-and the result
Of mo- is that the building program
of rental property here in Washington
will have to cease on account of the
inability, if nothing else, to finance
such propositions.
The bill is too long to go into in
detail There are, however. two or
three points I would like to bring to
attention:
First: In section 2, where It states
that the rent legislation does not ex-
clude % a garage or warehouse, CD
any building or part thereof or land
appurtenant thereto used by the ten
ant exclusively for business purposes
other than the subleasing or other
wise subcontracting for use for living
accommodation, or go any hotel used
exclusively for transient guests
Business Property Affected.
This item does involve a great
amount Of business property, although
il states that business property is ex-
cluded. There is a great deal of bust
ness property, even in the downtown
congested districts, where business is
carried on, on the first and second
floors, with apartments on the third
and fourth floors. What is going to
be the result of this section of the
business property of this type is go
ing to endeavor to convert these liv-
Ing quarters into business, or keep
them vacant, provided he has any
idea of selling the property, or any
wish to control 1t, because, under this
section, while 1t Is business property
in the business section, yet he would
have no control over his property.
IF all rent control were eliminated
nnnCyfnn M nj "a 4
would soon solve the difficulty. There
are today in Washington more apart
ments and houses than are neces-
sary to house the population here.
Effect of Rent Control.
"a survey of the new sections of
Washington, northeast, southeast, the
vicinity out Fourteenth street and
Petworth, would show that there are
literally hundreds and hundreds
of houses for sale which can
GOT be rented for the reason that
the owners of these houses, who are
builders, if they rent, absolutely lose
control of their property. Before
there was rent legislation builders
would build rows of houses to rent
and investors would buy them as an
investment; this form of real es-
tate has absolutely disappeared. be-
cause no one is going to make an
investment over which he has no con-
troll.
AT the rate of building operations
for the past two or three years here
In Washington, If there were no rent
legislation, it would be very short
time before any shortage in housing
conditions would be corrected. but it
will never be corrected with the con-
tinuation OF such legislation.
Building Costs CITED.
"The cost of building has increased
to a point which is only realized by
those who have had experience. The
result of this Is that rents have got
to be higher than they used to be
The only way to bring down rents
is to let the builders overproduce
the market, and It Will then go back
to the old question OF supply and
demand.
There has been a group here who
have pyramided values. This in part
has been taken up, I think, by the
Department of Justice and the dis
trict attorney. II there is any legal
basis on which this could be con-
trolled 1T should be pushed to its ut
most, and there is not legitimate
real estate office in Washington who
would not be glad to see 1t. The
publicity given to this fact has been
sufficient to prevent any further repe-
titfon, and the errors in this case
have in part been corrected, and will
be corrected as the different worth
less mortgages on these properties
become due.
THE Rent Commission to US has
been an asset, for the reason that the
majority of people who have houses
vacant will not rent them, the result
being that people who have got to
have housing accommodation are
forced to buy, which is more profit
able to a real estate broker than the
renting of houses. This is a fact in
practically every real estate office in
Washington"