Evening star., 1925-01-06
COOLIDGE PROPOSES
BANKS AID REALTY
PROBLEM SOLUTION
With Housing Owners, They
Could Give Renters Relief,
Executive Holds.
FAILING TO ACT, LEGAL
PRESSURE HELD LIKELY
Hoover Asserts $5O,00o,00O Public
Buildings Bill Would Ease Short
age of Apartments.

Reiterating his stand in favor of
rent legislation of some sort for the
District of Columbia, President Cool
idge was represented at the White
House today as suggesting that the
best way for local real estate in
terests to preclude the necessity for
rent legislation in Washington is for
them, with the aid of the banks, to
unite in remedying the abuses of the
few whose actions would make neces-
sary such legislation
Certain abuses have been called to
the attention of the White House,
and these deal with high rent result
ing from the piling up of trusts on
property and making the return far
beyond the original investment 1t
was indicated today that the White
House has been deluged with com
plants of this kind and they were
responsible for the formation of the
law which has been sent to the House
and Senate for consideration.
Abuses Compel Action.
While the White House had no gen
eral criticism of the real estate men
dent was represented as believing
that where abuses have occurred and
the group of real estate men gener-
ally do not take steps to correct them.
then some one must step in and ap-
ply general rule for correction
where the innocent will have TO suffer
along with the guilty.
1t is no more pleasant for the
President to have TO tell Congress of
the existence of so-called rental abuses
here than it is for the real estate
men to go to those who are practic-
ing the matters complained of and
tell them to desist, it was pointed
out at the White House.
1t was emphasized that what the
President is trying to do is to protect
the Government employees here, especial
ly from charges for rent not warranted
by the investment in the property. The
President himself did not know if this
could be adequately done, and for that
reason summoned Chairman Whaley Of
the Rent Commission to the White
House and directed him to prepare a
bill to be sent to Congress for con-
sideration. 1t was indicated that the
President does not know whether this
bill will adequately meet the situation.
Expects Hearing Soon.
The Chief Executive was represented
as feeling that the congressional COM
mittees would hold hearings soon on the
bill to develop evidence and make such
! recommendations for law as its con-
clusions would warrant
The President is understood to have
recommended this particular Iegisla :
| tion with a great deal of hesitancy,
| feeling that there should be greater
! freedom of action among the business
| interests without regulatory laws
from the Government.
However, when it is obvious that
such freedom of action is being
abused, as seems apparent to the
White House from the preliminary
review of the local situation, some
one must come along and curb this
freedom.
The President feels, according to
White House officials, that this can
not be avoided, and many times it will
be necessary to injure innocent per-
sons The local situation is Iikened
by the President, it is said, in this
regard to the railroads when it be-
| came necessary to legislate for them
1t is felt at the White House, 1t is
said, that there probably are many
holders of real estate in the Capital
! City especially those built for rental
purposes, who have conducted their
business in legitimate way. and
while such legislation may be a hard
ship on them, the White House feels
they will have to suffer unless they
| band together and force those who
tare alleged to be practicing abuses
to mend their ways.
Believes Banks Can Help.
At the White House it was pointed
fn ha Tpn
edy at this time. in the face of the
facts at hand. The Chief Executive
feels, it was said, that a great deal
can be done by the banks and real
estate men to correct the conditions
! here if they will firmly take hold OF
the matter and apply themselves to
making corrections which legislation
might compel them to make.
The President, it was said by White
House attache, has only one desire re
garding the rental situation here
| namely, to find out what the abuses
are and apply a real remedy. In re-
gard to the bill that the Presiden nj
sent to Congress it was indicated he
| feels that it may be a good one and
| it may not. To determine the condi-
tions here he is having survey made
Results Not Now Evident.
I
| at this time just what results that
would bring 1t has been represented
| to him, it was said. that many people
want to live in particular locality
and do not want to show disposition
| to move into localities where the rent
might be cheaper This he is said to
believe may aggravate the situation
! here, but he is understood to have a
/ firm hope that something may be
done to remedy the evils.
i A declaration by Secretary Hoover
! today that passage by Congress OF
| the Smoot Building bill, providing
} for the expenditure of s50.000,000 foI
| Government buildings in Washington,
! would do much to relieve the rent
! situation here and the release of a
! statement by the National Associa-
tion of Real Estate Boards calling
| the attention OF its membership OF
| 10000 real estate men throughout the
| country to the proposed rent legisla-
| tion pending in Congress were two
/ other outstanding developments in
| Washington's rent controversy.
Citing the use of the departments
j of Commerce, Justice, Labor and the
! Railroad Administration of large
| buildings primarily intended for
| apartment use, Secretary Hoover said
! today that if Senator Shoots $780,
| 0OG 0O0 building program were car
ried through as proposed the housing
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