Evening star. [volume] (Washington, D.C.) 1854-1972, 1932-12-03
TRUST LAW BREACH
CHARGED IN PROBE
OF RENT SITUATION
Oscar n. Brinkman, Counsel
for Committee, to Submit
Written Report.
AGENT OF BOARD ASKS
REDUCTION OF TAXES
Investigation to Reconvene Some
Time Next Weekend Is
Believed Near.

The Senate subcommittee inquiring
into rents In Washington has adjourned
until some time next week, following
an all-day session yesterday, at the
close of which Oscar H. Brinkman,
subcommittee counsel, charged that, in
his opinion, some Of the records of the
Washington Real Estate Board show "a
combination in violation of the Sher-
man antitrust law"
During the afternoon session commit
tee members suggested the possibility
Of reviving a rent commission. such as
existed here during the World War.
Arguments in opposition to such a step
were presented.
Throughout the day Senators Capper
and Copeland argued that there should
be further rent reductions, in view OF
the reduced income of Government en-
ployes. Rufus S. Lusk, who prepared a
report for the real estate board on the
earnings and expenses of apartment
house operation under present condi-
tions, told the committee the remedy
lies in reduction OF taxation. which
he said Is the second largest item OF
expense.
viii Correct Self.
J. r. M. Bowie, a former president
Of the real estate board, told the COM
mittee the rental situation will have
corrected itself through competition,
due to the number of apartment vacan-
cies, before any legislation could be
passed and put into effect.
Asked by Senator Copeland what OBJ
lection there would be to a rent COM
mission, Mr.. Bowie said such a step
would place an added expense on own
ers OF preparing cases in answer to
complaints. He said If a commission
existed the courts undoubtedly would
hold owners would be entitled to q
return of 6 per cent He argued that
the average apartment house return is
much less than that now.
It was just before adjournment that
MIR. Brinkman asked permission to in
sert IN the record certain excerpts from
the minutes of the Washington Real
Estate Board showing. in my opinion,
a combination in violation of the Sher-
man antitrust law"
The permission was granted. 1t was
indicated at adjournment yesterday
that the hearings are nearing an end.
1t was arranged to have Mr. Brinkman
submit a written report to the sub
committee, probably next week, follow
ing which there will be another meet
ing TO discuss whatever Is presented.
Inquiries About Houses.
Chairman Capper inquired yesterday
"a -
duction in the rent of dwellings, SAYING
his information is there has been prac-
tically no reduction in houses. Mr..
Lusk said his survey dealt with the
apartment house situation. Brinkman
said he had looked into the dwelling
situation and that, generally, houses for
the middle class have not come down
much.
Mr.. Lusk, in discussing apartment
house expenses, expressed the belief
that II taxes are reduced rentals would
go downward. Brinkman took issue
with Lusk that there is Justification for
reduction of these taxes. There fol-
lowed discussion Of relative tax bur-
dens Of different cities.
Randall Hagner, real estate dealer.
referring to earlier testimony as to
whether there Is such a thing as a
BLACKLIST which prevents tenants from
renting an apartment If they have an
diminished lease on another place, main
tanned that there is no blacklist. He
said that there used to be an ordinary
business courtesy practice in this re-
gard, but that during the last two years
conditions have been such that the
breaking Of a lease with some other
agent Is not considered il 1t appears
mat the tenant is going to be able to
pay his rent
Recognize Leases.
At prior hearing testimony was in
PRODUCED to the effect that a prospec-
tive tenant had received a letter from
the B. F. Saul Co. informing him that
ne could not lease an apartment unless
ne obtained a release from q lease he
had made with the Thomas j. Fisher
co. The letter referred to the fact that
the Fisher company was a member of
the Real Estate Board. George Schultz,
the employe who wrote the letter for the
saul company, was questioned yesterday
by Brtnkman and committee members
as to why membership in the Real Es-
tate Board was mentioned In the letter.
Schultz said he had not received in
structions from his superiors regarding
the writing of the letter. Schultz testi-
tACd II OtklCI dBeIlLS IGCOSulZS OUT
leases, we recognize theirs, whether they
are members Of the Real Estate Board
or not"
Before yesterdays session ended Mr..
Bowie, q former head of the Real Estate
Board, replying to criticisms of the Or
ganization, declared the board exists to
serve the public of Washington as well
as its members, and that it is the first
place many persons 60 for advice on
real estate matters.
Mr.. Bowie told the committee that,
In the last analysis. it is the owners
Of property who must decide on rent
changes and that 1t Is difficult for
rental agents to ask owners to reduce
rents when they are not earning q
fair return. Senator Copeland took the
view that If property owners get SUI
f1cient to meet operating expenses un-
der present economic conditions they
are lucky"
Senators Capper and Copeland both
said at yesterdays meeting they wanted
data as to whether rent reductions
which are being made by apartment
houses are applying to holders of ex-
isting leases, or only to new tenants.
PAYS 500