Evening star., 1944-07-15

Garfield Kuss. ReoIty
Firm Head, Promises
Stotement on Charges
Chairman Murray of the Senate
Small Business Committee indicated
today he would call Garfield Kass
Of the Kass Realty Co., 1851 Con-
necticut avenue NV, as a witness
when hearings on commercial rent
control are resumed next month.
Attorneys for group Of business
men In the TOO block of Fourteenth
street NV. claim their clients are
being asked to pay unreasonably
high rentals in . building owned
by Mr.. Kass.
Senator Murray, after hearing
testimony from Attorney Charles
Walker, who represents several busi-
nesses along Fourteenth street,
asked that the committee be sup
piled Mr.. Kass' address.
Meanwhile, the Washington Real
Estate Board, going On record that
''unjustified rent increases under
wartime conditions are unpatriotic
and inimicable to the best interests
Of the community" disclosed that
its was investigating charges leveled
against Mr.. Kass. According to Mr..
Walker, rental increases asked by
the real estate operator range as
high as $50 per cent.
Promises Full Statement.
Mr.. Kass promised full state
ment" on the allegations some time
today.
The Senate committee Yesterday
heard lengthy testimony from lep-
resentatives of small businesses
here and in New York, who told of
landlords demanding rental in
creases as high as 264 per cent.
Chairman Murray at the close
Of the hearing, which was marked
by frequent applause as visitors ex-
pressed approval of witnesses testi-
mony, commented that If the COM
mittee finds commercial rent goug-
ing is widespread then Il can't
see how Congress can do anything
but extend the authority of the
OPA" over rents.
Bad in New York.
Richard H. Field, general counsel
Of the OPA and first witness called,
admitted the situation was most
acute in New York and that the
agency had received complaints
from number OF other States. The
OPA, however, has no control over
commercial rents, he added.
Pressed by the committee on
whether the agency felt the control
should be extended, Mr.. Field de-
clared that "if the cost of living is
being affected, then it is wise to
do something--if feasible" He in
sisted that the agency's price di-
vision had received no applications
from businessmen for commodity
price increases based on higher
rentals
Harold M. Schwab, executive di-
rector of the American Business
Congress, informed the committee
that ranking official in OPA" in
formed his organization that "the
problem is, as you know, a very
complicated one, and we have at the
present time no adequate statistics
relative to the prevalence of rent in
creases in the commercial field To
this, Mr.. Schwab commented:
Two years after OPA is estab-
lished-with statistics on everything
from green peas to battleships-they
have no figures on commercial rents
We hope that after this hearing
OPA will be enlightened and awake
to the fact that the benefits of its
protective regulation are badly
needed by commercial tenants"
Bares New York Gouxe.
Joseph M. Platzker, housing and
buildings commissioner for New
York City, told of Mayor Fiorello
La Guardia receiving complaints of
rent gouging as high as 264 per cent
over rentals in 1912. Owners of one
New York building received $4,000
annual rental that year, he said,
and the price has been hiked to
$4,000 this year A demand has
since been made for a $6,6OO rental
IN l945 for the same structure.
After several witnesses had testi-
fed to failure at receiving any as
surance from the New York State
government that rent gouging would
be halted, Senator Murray observed
that Gov Thomas E. Dewey "ap-
pears to bS laboring under the i'm
preston that the State has no
jurisdiction" and that the matter
was up to the Federal Government.
The committee also heard Mabel
Benson Sakis, attorney for the Lotus
Restaurant. 727 Fourteenth street
NV, tell Of her client being asked
by the landlord to increase its an
nual rental from $4,000 to more
than $4,000.