Evening star. [volume] (Washington, D.C.) 1854-1972, 1946-05-17
Ended
On Bill toContro|
Business Rent |
Trade Board Joined
By Landlords in
Opposing Measure

A House District subcommittee
today ended hearings on the Barry
Bill to place commercial property
here under rent control after "a
Board Of Trade spokesman and In
dividual landlords asserted that tho
proposed legislation might result IN
a black market in leases and would
discourage new commercial building
projects here.
Chairman Healy of the subcom-
mittee said his group probably
would meet within week to act on
the bill.
William H. Pross, executive secre-
tary Of the Board of Trade today
recorded the organizations disap-
proval of the Barry measure, joining
the stand taken yesterday by the
Washington Real Estate Board and
the Building Owners and Managers
Association.
Complaints in Minority.
Mr.. Press told the committee: II
do not believe it is necessary for me
to present statistics and figures to
back up our position. The witnesses
yesterday did good job on that
and I don't want to repeat what
they said"
During yesterdays session, the
committee was told that complaints
OF commercial rent gouging received
by them represented approximately
one quarter of per cent of the
businessmen in the District.
Mr.. Press asserted at would be
administratively impossible to han
die the rent control bill"
Would Block Building.
The witness added that if rents
were frozen at 1912 levels, this
would preclude the building of any
new structures since builders would
not take chance on erecting prop
critics that would bring but little
profit.
At this point, Representative
Healy asked whether the Board of
Trade would oppose a bill which
would be directed solely at building
owners and real estate dealers
guilty Of rent gouging.
Mr.. Press replied it would be moro
satisfactory to get a bill like that,
but stressed he was speaking for
himself and not officially for the
board.
Black Market Feared.
| A letter from the Fidelity Plan
Corp, engaged in the owning. Oh.
Grating and financing various BUSH
nesses IN the District, was read into
the record and charged that freez-
ing OF commercial rents might re.
suit in black market in leases.
Signed by Louis T. Lehman, presi.
] dent of the firm, the letter implied
THAT restricted rents, might result in
'fcompetition among business men for
fchoice locations If rent freezing was
put into effect. +ss.a
.tSsThe letter Said this would mean
THAT new business opportunities
would be closed to veterans and
younger men who could not afford
to pay high rent.
Cites Increase in Value.
Mr.. Lehman commended there has
been an average increase during the
past four years In the gross value
OF business of between $50 and
200 per cent.
Another witness, Walter K. Bach.
rach, a building owner of 1850 Uni.
versity terrace NV, developed this
point further. declaring that some
sections of the city have grown three
or four times in population over
what they were when present leases
were signed. Rent increases in
these cases were entirely justified.
he said.
Mr.. Bachrach said that enact.
ment of the Barry legislation would
force many builders to create new
commercial developments In nearby
virginia and Maryland where there
Is no such law.
Would Hit Small Owners,
Representing individual landlords
Mrs. Betty Schuman of 1929 Georgia
avenue NV, said the proposed
Dill would adversely affect "the
small property owner"
Illustrating her own case. Mrs.
Schuman said one of the stores
she rents has had lease for the
same rental for the past 10 years
even though the business there had
more than doubled Enactment Of
the Barry law would make it i'm
possible for her to determine a
new equitable lease for the tenant.
Another store owned bv Mrs
Schuman is liquor establishment
which has rented for a number of
years at 500 month. Mrs, Schu-
man said the stores business has
nourlshed during the past few years
and 1t would be unfair to her If
she were denied the right to get a
higher rent from the tenant.
MRS. Schuman said that when she
sought to raise the rent few wears
ago, the dealer told her ne couldn't
aHord to pay more because BUSH
ness was bad