Evening star., 1932-06-22
Senator Also Aims Inquiry
at "Fictitious Values"
of Apartments.
subcommittee PROPOSED
TO ACT THIS SUMMER
Move Is Planned to Help q. 8.
Employees About to Receive Pay
Cuts-$5,000 Asked.

Senator Capper of Kansas, chairman
OF the Senate District Committee, has
paved the way for sweeping investiga-
tion into the entire rent situation in
Washington and also into what he
claims to be the fictitious values" on
many Of the large apartment buildings
The proposed investigation would be
conducted this Summer, If present plans
go through, by District subcommittee of
three members, who will be directed to
report their findings to Congress, with
recommendations as to what remedies
may be applied. The action of the full
committee in requesting the investiga-
tion followed preliminary inquiry last
week, when charges and denials were
made at hearing that a combination
OF real estate dealers exists here to keep
up the present high level Of rents.
Would Benefit U. S. Employees.
Senator Capper made it clear, as did
other members Of the committee, that
the inquiry Is in the interests of Gov
ernment employees who are about to re-
ceive pay cut.
The chairman has introduced a Sen
ate resolution for an authorization of
$4,000 with which to conduct the in
vestigation, which, he declared, will 20
to the root of the causes for excessive
rents. District residents, he maintains.
are paying higher rents than residents
OF any other large city.
The resolution directs that the COM
mittee upon discovering in the course
OF its inquiry evidence of any criminal
action shall promptly communicate
such evidence to the proper authorities
Tor prosecution" 1t further empowers
tp of
ices OF all Federal and District govern
ment agencies within the District and
If necessary to subpoena witnesses and
compel the production Of books, papers
and documents.
Inc committee was deeply impressed
by the conditions which have been
created here by the high financing in
connection with the big apartments. :"
Capper said. by these methods flcti-
tious values have been maintained and
promoters have reaped enormous profits
on second and third trusts. All of these
practices were severely condemned by
the committee members"
Rents Blamed on Methods.
Senator Capper said he believed these
methods Of financing, about which MANY
complaints have been heard, are prob
ably the chief reason for "exorbitant
rents in washington" Hundreds of Gov
eminent employees, tenants in many Of
the big apartments suffering from high
financing, are unfortunate victims, he
declared.
While the inquiry would be greatly
handicapped unless an authorization is
obtained to defray the necessary ex-
penses, it Is understood the committee
intends to hold hearings even if the
authorization is denied. Senator Cap
per intends to name the three Senators
during the present week.
The committee was largely actuated
into directing an inquiry, it was be-
lleved, by the charge made by oscar
Br1nkman, one Of its former investi-
gators, that he had proof of a real
estate combine to maintain the rent
level. Brtnkman, however, did not ap-
pear before the committee yesterday
Wnen 1t decided to extend its prelim-
mary inquiry into local conditions.