Evening star., 1932-12-27
dc. CONTROL URGED
AS RENTS SOLUTION
Creation of Strict Housing
Regulation Favored in
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rent due and COT bsts of not more
than ST.
THAT the exemp, and lien laws
be modified. so that household goods.
clothing, ETC., Of reasonable value, shall
not be subject to detention or seizure
by landlords despite any agreement to
the contrary.
That other Unfair and unjust pro-
visions of leases De declared invalid as
to contracts maCa after the passage of
the remedial acts
That the usury statutes applying to
the District Of Columbia be broadened
clarified and strengthened with heavy
mandatory penalties Of imprisonment. "
Wants Utility Status.
That the laws prohibiting restraints
Of trade and commerce. applying to the
District Of Columbia, be strengthened,
such restraints to be declared felonies
instead Of misdemeanors and manda-
tory prison sentences be imposed on
violators.
That Congress declare that a con-
ditlon of emergency as to housing eX-
lists in the District of Columbia, and
further declare that housing is pub
lie utility. vesting authority in a hous-
ing division of the Public Utilities Com
mission to regulate rents during a pc
iiCd Of two years, and to regulate other
matters relating to housing in the Dis
trict"
In closing his report. Mr.. Brinkman
stated he realized that the committee
may be wholly disinclined to recon-
mend to the Senate such broad and
even radical program of corrective and
remedial action, but it Is hoped that
the committee may find in the above
list OF suggestions some that merit
consideration and adoption"
1t is expected that the next meeting
Of the subcommittee will be devoted
questions raised by Brinkman in his
report. The Washington Real Estate
Board has been represented at the
hearings by Attorney Roger j. White
ford
Meanwhile. the meeting for landlords
apartment owners and property man.
agement agents with members of the
Senate Rent Investigating Committee
scheduled to be held Thursday night at
the United States Chamber Of Com
merce, was postponed until some time
next week
The meeting was postponed by the
Washington Real Estate Board, acting
st the suggestion of Senator Capper
head Of the investigating body. who
pointed out the difficulties of obtaining
a good attendance during the holiday
Seek Exchange Of Ideas.
The purpose of the meeting is to OBJ
tain an exchange of ideas between the
Senate body and the owners of apart
ment properties and their agents, over
the matter of reducing rents.
Testimony to show that building
material costs have dropped 30 per cent
since 1926 was presented earlier today
by Brinkman.
Another contention made by Brink
man at today's hearing was that in a
number of cases apartment buildings
here have been mortgaged for more
than the assessed values.
Regarding building costs. Brinkmar
Labor Statistics, which he said placed
the building materials at 70.5 in Sep.
tember. 1892, using 100 per cent base
in 1926, or decline Of 80 per cent in
that time Brinkman said another bull
letin Of that bureau shows that building
materials represent about IS per cent
of the cost Of buildings in various cities
Criticizes Estimates.
Brinkman read to the subcommittee
financial statements presented at ar
earlier hearing showing the rates oi
return on q number of apartment
houses based on the assessed values
This method of figuring the return or
the basis of assessed value was followed
by Rufus Lusk, who made a survey fol
the washington Real Estate Board
Brinkman argued that If the returns
were figured on the reduced building
costs. the rate Of return would be
higher.
When Mr.. Brinkman was testifyine
regarding cases where encumbrance,
amounted to more than the assessments
Chairman Capper inquired how it wa.
possible to borrow more than the
assessed value.
j. F. NJ. Bowie. former president Of
the Washington Real Estate Board. saic
that those conditions developed mum.
Der Of years ago, but are not possible
todaS
In the course of the hearing today
Roger j. Whiteford. counsel for the
Real Estate Board. declared that rents
should be based on fair return on the
fair value of a building and not on the
amount of the trusts. pointing out that
the size Of the trusts might vary con-
siderably as between different buildings
Points to Competition.
Chairman Capper asked when tenant.
are justified In expecting reduction
of rentals. Mr.. Whiteford replied
whenever competition in rents bring:
about q reduction"
Eenator Capper responded that ir
some cases here there dosen't seem te
have been much competition, even with
| q high percentage of vacancies"
Mr. Whiteford recalled the estimate
made by Senator Capper about a month
ago that rents here have probably beer
reduced to q total Of $l,500,000 In the
last year. Senator Capper said he
pointed out at that time that he die
not believe that amount Of reduction
Is In line with the present price trend.
Mr.. Bowie expressed the belief that
II rents were cut so per cent It would
not make IN appreciable dent IN the
percentage Of vacancies because Of thu
number Of people out Of work and un.
I ahae 70 payAny rent.