Evening star., 1932-12-20
Senator King Ayers Values
Raised Excessively at
Rent Hearing.
ASSESSOR BARES GAINS
OF NEARLY 30 PER CENT
Supreme Court Project Mentioned.
Assessment for Union Station
Area Reported Doubled.

The charge that the Government has
been robbed" by excessive condemna-
ticn valuations on land for public
buildings in Washington was made to-
day in hearings before the Senate Rent
Investigating Subcommittee by Senator
King, Democrat, of Utah, as the group
resumed work where it left off Satur
day. 1t adjourned again at pm.
until tomorrow at 1890 am.
Senator Kings charge followed testi-
mony by William p Richards, District
tax assessor. that a study by him OF
properties having assessed valuation OF
35OO0,O00 had been appraised at ap-
proXimately so per cent more when ac-
quired by the Government.
Specifically Richards pointed to the
site for the United States Supreme
Court. which he said was acquired by
the Government at cost apprCXi-
mately 80 per cent greater than the
value placed upon it by the tax as
SCISSORS office.
Union Station Cited.
ON that basis then" Senator King
said, the Government must have been
robbed Of millions Ct dollars in the
acquisition Of property for Federal
buildings in the Capital"
Richards also testified. on questioning
by Senator Kean, Republican. of New
Jersey, that the cost of the site fcr the
Union Station was twice its assessed
value.
Richards was called before the sub
committee BY Oscar H. Brinkman. its
-,
connection with Brinkman's charge that
the figures submitted by the Washing
ton Real Estate Board, showing low
rates of return to owners on apartment
house properties, are wholly unreliable
and do not actually reflect the actual
profits" Richards testimony, however,
| was confined to period from 1915 to
1929 and did not cover specific cases for
the last two years with which the sub
committee was dealing.
During the l4-year period the wit
ness told the subcommittee, there was a
81 per cent increase in rental rates in
| local apartment houses, while the cost
of construction over the same period
increased approximately 80 per cent.
He made the observation that IF an
apartment house owner could get of
with a clear profit Of S per cent on his
investment he was doing well"
Survey Result Given.
The result of survey of 24l apart
ment buildings, having an aggregate
valuation of 100000 was presented
to the committee by Rufus Lusk, statis-
tician for the real estate board, to de-
velop the ratio Of operation costs. Lusk
supplemented his testimony with a
chart entitled THE Rent Payers Dol
lar"
1t showed that of each dollar paid
by a tenant in rent. 66.2 cents went for
maintenance. according to figures ccm-
piled from the survey. This was di-
vided as follows: 125 cents for taxes,
Sc cents Tor fuel, 1913 cents for sal
aries. 81 cents for electricity IT cents
for repairs, IL cents for miscellaneous
expenses and 14.6 cents for deprecia-
tion.
OF the remainder, 1913 cents. left after
maintenance, Mr.. LuSk said his survey
revealed that 262 cents was paid in in
terest at per cent for mortgages.
which were 60 per cent of the assessed
value. After deducting the maintenance
and interest, the net to the owner was
rs cents on the dollar, but his actual
return on his investment was approx
mately cents on the dollar.
The committee also heard testimony
by Charles D. Sager. Washington build
er, tending to show rents in an apart
ment building constructed in 1928 had
not been decreased over the entire
period since. with the single exception
of the rental of a high-priced apart
ment, which dropped $3.50 per month.