Evening star., 1932-06-23
CAPPER DEMANDS
RENT REDUCTIONS
IN RADIO ADDRESS
Tenants Here Should Not
Have to Pay for Wild In
fIation, Says Senator.
PROBE RESOLUTIONS
PASSAGE is FORECAST
Salary Conditions and Rates in
Other Cities Cited Over WRC
Forum Connection.

Rents in Washington must come
down, Senator Arthur Capper of Kan
sas, chairman of the Senate District
Committee, declared in an address over
Station WRC last night in connection
with the speech in the National Radio
Forum, arranged by The Evening Star
and broadcast over coast forecast net
work of the National Broadcasting Co.
1T is well known" Senator Capper
said, that large number of apart
ment houses here have been financed
to the roof, with first, second and third
mortgages. This false pyramiding of
fictitious values, high financing by pro-
moters, is one reason why many ten
ants are paying high rents today. They
should not be called upon to foot the
bill for this wild imitation of apartment
house values
Senator Capper expressed the con-
viction that the Senate would pass the
resolution he introduced upon instruc-
tion of the Senate District Committee.
calling for thorough investigation of
the local conditions affecting rents.
Big Job for Congress.
Senator Capper's speech follows:
1T is real privilege to have this
opportunity to talk over with you some
of the features of the big job that Con-
gress is now trying to complete.
But before I discuss some of the
national problems confronting this
tired and hard-worked Congress want
to say just few words to my Washing
ton friends about the rent situation.
One of your problems in which I am
deeply interested.
Il am convinced that rents in Wash
1ngton are too high. They must come
down.
This is not only my personal opin-
Ion. 1t is conviction which I feel is
shared by all the members CT the Senate
District Committee, so far as I have
been able to ascertain.
You have probably read that the
committee met yesterday afternoon and
instructed me to introduce a resolution
in the Senate calling for a thorough
investigation Of local conditions affect
ing rents.
Il think the Senate will approve this
resolution. The committee should have
the authority and the funds to conduct
a searching inquiry into the rent stu
alton.
Work Through Summer.
"It is not our intention to let this
vital matter rest until Congress again
meets in December. A special sub
committee will be at work through the
Summer, assisted by skilled investi-
gator.
The fact-fnding facilities of the Fed
eral and District governments will be
available to the subcommittee. 1t may
hold hearings, summon witnesses, de-
mand the production of records and do
everything that is necessary to get the
facts.
These facts will be essential to the
Senate if it should be decided that leg
lslation is needed to protect the people
of the District from the effects of high
rents.
L can frankly say that great deal
depends on the attitude of the land
lords of Washington. If they meet the
public demand and need for substan-
TALLY lowered rents, our task will be
lightened.
What impresses me, however, with
the urgency of getting at the facts is
statement made to the committee by
the president of the Washington Real
Estate Board at recent hearing.
This gentleman was being questioned
as to the policy in connection with re-
duction of rents. He stated very plain
ly that tenants in an apartment build
ing 100 per cent filled could hope for
no rent reduction.
His reasoning was that If the build
ing was filled, that was proof the rents
were not too high. If the tenants did
rot like the rents. regardless of chang
ing economic conditions. they could
move elsewhere.
I can understand how tenant can
be tied up with lease under which he
is paying certain rent Within the
life of the lease, his income may be
severely reduced That has been the
experience of thousands of Washington
people in the last year. 1t will be the
experience of thousands of Government
employees after July l.
Are the landlords going to hold the
people to those leases?
Leases and Salary Cuts.
What becomes of the argument of
the real estate men if tenants are held
by leases to occupy apartments when
those tenants have had their salaries
heavily cut during the period of the
lease?
Here is a fine opportunity to find
out just how the landlords of Washing
ton really feel toward the tenants. Our
District Committee has very frankly
challenged the real estate interests of
Washington to play fair with the public
or to prepare for trouble.
THE proposed investigation should
throw some interesting light on the
statements of real estate men that they
are not getting a fair return on in
vestments in apartment properties
1T is we'll known that large number
Of apartment houses here have been
financed to the roof, with first, second
and third mortgages. This false pyra-
miding Of fictious values, high financing
by promoters, is one reason why many
tenants are having HIGH rents to-day
They should not be called upon to foot
the bill for this wild initiation of apart
ment house values.
81 do not think the truth about the
high rents will be hard to find. I do
not think we will have much trouble IN