The Washington times., 1932-12-02
HIGH TAXES BAR
RENT CUTS,SAY
REALTORS
Spokesman Refus Lusk Says
Owners Are Realizing
But 2.7 Per Cent

Real estate taxes claimed to be
exorbitant in the District prevent
a great reduction in rents al
though there has been an actual
decrease in rates, the Washing.
ton Real Estate Board, through
Rufus Lusk advised the Senate
District Committee investigating
rents. today.
Lusk denied that there had
been no appreciable decrease in
rents or that rents are based on
inflated and fictitious values. He
said that owners are earning only
an average of 2.7 per cent on
their equities.
Charge that apartment en-
ployes had suffered wage reduc-
tions whereas rents have been in
creased were denied by Lusk who
said that in 1882 apartment house
employees had had wage cuts of
but So per cent.
Claims Repairs Offset
The majority of buildings had
either reduced rents or had in.
stalled electric equipment and
made repairs that would CORE.
Spond to actual reductions, Lusk
said.
Expenses of operation remain
at such high level that, com
blned with tax costs, they pre-
clude any attempt to make size
able reductions and yet permit
operators to receive a slight re-
turn on their investment, Lusk
said. He pointed out that the
greater part of District revenues
are derived from real estate taxa.
ton and apartment owners are
forced to pay a large part of
this burden.
Until some adjustment can be
made in the tax schedule, there
can be no relief for owners or
tenants, Lusk said, and pointed
out that tenants shouldered taxa
ton in their rents.
LuSk'S survey was made after
a study of 272 buildings, cover
ing approximately 25 per cent
of all apartment units in the
city.
3-POint Burden
Maintenance costs, taxation
and losses through vacancies pre-
vent further reductions in rental
prices. Lusk said.
Further testimony was intro
duced today to show that an
agreement existed between real es-
tate operators of the Washington
Real Estate Board to blacklist"
tenants who attempted to break
their leases and move from one
apartment to another.
Mrs. Margaret Wrenn, of the
37OO block of Benton st. N. w.,
advised the committee that when
she attempted to move from prem
ises operated by the j. C. Weldon
Company to an establishment
operated by Thomas j. Fisher be-
fore her lease had expired in the
former building she met with re-
fusal until she threatened to go
to the committee. The Fisher
company also figured in testimony
yesterday.
Blacklist Denied
Despite her testimony and the
statements of three other wit
nesses given yesterday, Charles j.
Rush, secretary of the real estate
board, declared:
"Claims that a blacklist exists
are false and are misState-
mentS."
He admitted there might be a
credit arrangement, which would
permit one operator to determine
the credit of a tenant from an
other operator, but said that it
did not constitute blacklist.
Henry Woodhouse, chairman Of
the National Recovery Council.
appeared before the committee
and warned that there are suffi-
cient housing facilities for hunger
marChers scheduled to arrive Sun
day, and asked that arrangements
be made to care for them outside
of the District.
Senator Royal S. Copeland CD
of New York said that such a
proposition would encourage
marchers to come to the District,
and that, therefore, he did not ap
prove of establishing a camp IN
territory adjacent to Washington
for fear it would constitute a
health menace and create an un.
due burden on the people of Wash
ington.
How will get there?" Where will
we go over the week endc" These are