Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-03-21
EXORB|TANT RENT
DEMANDS Barred
Commission Reveals High
Figures Asked on Some
u. S. Buildings.

Scoring some landlords IN Ndsn =
ington as having demanded eXorbl-
tant increases in rentals from the
Government for their buildings, the
Public Building Commission, in It's
annual report for the calendar year
1926, made public today, discloses the
figures paid for rentals here, and
figuratively breathes a big sigh OF
relief at the prospect that the Gov
ernment's great building program
soon will put an end to the revolt
ing idea" of the Government as a
tenant under such circumstances.
One of the instances of "eXorbi-
tance" was cited as the Department
of Labor Building. on which the land
lord asked an increase in rental from
$4,000 to $4,000. The commission
refused to pay more than $6S.000,
which was finally accepted, and a
new lease signed for five years. Some
increases, the commission said, were
justified.
The rentals of Government buildings
in the District Of Columbia have been
increasing steadily in the past three
years, the report showed. In 1924 the
total rentals were $S14,217.12; in 1925
they were $914,048.24 while in the
calendar year 1926 they rose to
1929. 52S.46.
LABOR department IHCIcdScu'
Elimination of this huge rent bill
by the new Government building pro,
gram, the commission characterized
as "one of the maj or items OF dement,
under the program.
The. DEPARTMENT Of Labor rent in
crease was cited in the commission $
complaint against landlords as one
instance of this item which shows
effectively the upward tendency IN
rental rates" The name of the de-
partment was not included specifically
in the paragraph of criticism. but as
all figures were given, it was easily
disclosed by figures in other parts OF
the report as the fragrant case picked
out for criticism by the commission.
Upon expiration of the Govern
ment's lease of one building" said the
report, referring to the Department OF
Labor, 1.-The previous annual rental be-
ing $4,000. the owners asked an IN
crease to $4,000. The rate of the
previous lease was admittedly too low
TO yield the owners a fair return on
their investment. The exorbitanct of
the increase demanded, although The
owners declared the amount of the 7
request comparable to the regular re-
turn on their building, found opposi-
ton with the commission. and af-
ter extensive negotiations the owners
agreed to accept $68,000 per year as
the maximum rate the commission
would approve"
increases were asked in most of
the cases where leases were renewed,
said the commission and 1t was
found such increases were justified
10 considerable extent by the great
increase in commercial rents since
the leases were originally inferred
into.
Argument for United States Program.
Few arguments for the new gov
eminent housing program could be
more effective" said the report than
the experience of the commission in
the matter of leasing space this year.
Landlords of the Government have,
in a ma jority of cases, sought in
creases in rental where renewals had
to be made, and in the cases where
new premises had 10 be acquired the
matter of high rents was impressed
forcibly.
1.-The commission has been under
the necessity of making four new
leases during 1926, and has been able
10 release one building. OF the new
leases, one provided for a building to
house files that had been in buildings
now torn down for one of the new
building sites.
There were 46 renewals approved
for premises previously used by Gov
eminent departments. OF these, AZ
were made at the same rates as pre-
viously existed and increased rates
were necessary to secure the remain
: ing four. The fact that in some
buildings heat, light and janitor serv-
ice are supplied by the owners,
I, lie.
10 furnish these items, as well as the
material variation of property values
according to location, will account for
what may be observed in the rental
tables accompanying the report as a
wide variance in space rates"
Three of the leases which were re-
newed at increases are shown to be
as follows: Department of Labor
from $4,000 to $4,000: Interstate
Commerce Commission, from $72.-
058.04 to $13s.954.90. and the United
States Railroad Administration Build
ing, known as Hurley. Wright, from
SIS .000 to SIS 900.
Summarizing the reasons why the
Government building program was
needed, the commission concluded its
series of complaints. both past and
present, in one part of the report
with shot a the landlords Briefly
stated, the unsatisfactory state Of
matters was said to involve "jeopa rdy
of life and health In fiimsy. poorly
lighted and poorly ventilated firetrap
buildings, many OF which also contain
important and valuable records: i'm.
possibility of the desired administra.
tive functioning, due TO wide scatter.
ing OF offices, often several miles
apart; huge rental bill for the Gov.
eminent; inability to provide for in.
evitable expansion of activities, and
the revolving idea that in it's own Cap
'tal the Government is 10 a great ex.
tent merely tenant and actua llv
often subjected TO abuse Of sort by
its landlords I"
The commission report also goes OK.
tensiVeIy into the new public building
program. outlining progress made.
ana tells Of the moving which had
been accomplished during the pa ST
calendar year. in the interests of Of.
hciency. The four ma jor parts Of the
commission work were also covered
In detail with pictures. maps and
pages Of statistics on legislation. moy.