Evening star. [volume] (Washington, D.C.) 1854-1972, 1925-05-02
RENTS WILL SOAR
WHEN BOARD DIES,
COOLIDGE IS TOLD
Chairman of Commission
Says Survey Shows Big
Increases Planned.
ASSERTS LOW-SALARIED
WORKERS WILL SUFFER
Instances of Threatened Raises of
100 Per Cent Are Laid Be-
fore President.

When the District Rent Commission
goes out of existence later in the
month there is going to be consider
dple rent boosting, according to in
formation given to President Coolidge
TO-DAY by Oliver Metzerott. chairman uf
the District Rent Commission.
Inc President was told by the com
mission chairman that a survey of
the houses and twofamily apartments
now being rented in Washington iusr
completed by the rent commission
shows that a fraction over one-third
OF the owners of these homes have
signihed their intention of raising
thelr rentals on June l and that
these increases will average at least
25 per cent
Mr. MetZerott was unable to furnish
information regarding apartment
houses, explaining that the commits
sion's survey is incomplete He ex-
poets to acquaint the President with
TINS latter situation regarding the rent
situation within the next 10 days
Wage Farmers May Suffer.
According to Chairman Metzerott.
the unfortunate feature brought out
by the survey regarding rented houses
ana tWo-famlly apartments is that the
IoW-salaried man and those in poorer
circumstances are to be the ones who
Will suffer the greatest when the life
OF the Rent Commission expires He
SAID the survey shows that houses
winch have been rented from S25 to
$40 a month are the ones which will
be more generally affected bv the
promised increases. In his opinion,
very few of these increases are war
ranted under the circumstances. and
ne Ventured the suggestion that boost
IN rentals would not have been made
II the Rent Commission had continued
in existence
Mr.. Metzerot brought with him to
the White House a score or more of
communications from tenants and
landlords. mostly from the former.
which dealt with the housing situation
here.
Large Increases Alleged
Most of these letters were from
Government employees who stated
thht they are now paying as much as
they possibly can for rent, and that
their salaries will not permit an in
crease. In several of these letters it
was shown that the increase to be
made will run over 100 per cent. Sew
eral of them were more than so per
cent, and in no case did the letters
show that the owners of property
promised any improvements which
would warrant raise in rentals.
Other than to say that President
Coolidge is deeply interested in the
housing problem of this city, particu-
larly as it affects those citizens Of
the city in the Federal service, MI.
Metzerott did not care to comment
after his conference with the Presi-
dent upon the latter's attitude or
comment regarding the report made
TO him today.
Has No Plan to Offer.
Mr.. Metzerott said that he had no
plan TO offer the President which
might serve to meet the situation
here when the Rent Commission goes
out of existence, and as for the
finance corporation to loan money
on second mortgages at low rates of
interest, as planned by former Sena-
tor Ball, a member of the Rent Com
mission, as a means of reducing the
building costs, and which met with
the approval of the President and
Secretary of Commerce Hoover, Mr.
Metzerott did not appear overenthusi-
astic.
1T is natural to suppose" Mr.
Metzerott said, that cheap money will
make it possible TO have lower-priced
buildings. but it is doubtful if there
are enough people charitably minded
who could be found to put money in
such a corporation.
Second mortgages are known to be
hazardous and even first mortgages
have an element of risk and the in
dividual who loans money for such
speculative purposes generally de
mandS a rate of interest commen-
surate with the risk involved.
Guarantees Needed
In the event that there are
enough public-spirited men and
women to make such a finance cor
poration possible, il will be necessary
to get a guarantee from the builders
and others borrowing from the cor
poration that the houses or apart
ments they build would be sold or
rented at figures in comparison with
the low interest charge"
Mr.. Metzerott thinks also that if
such a plan were put in effect, even
with the best intentions in the world.
there would be a likelihood of similar
companies being formed principally
for the purpose of swindling investors.