Evening star., 1948-03-21

permitted to offer your property for
rent only at level controlled by the
Government.
In the light of decontrol of other
prices, this argument is a telling
one and, presumably, was given
great weight by members of the
House who favor turning over rent
controls to local boards.
Many of those who firmly believe
rent controls are needed admit that
the rent-control law has the effect
of discriminating against the owners
OF rental property.
Variety of Arguments
Yet they maintain that, however
discriminatory, the law is still need
ed owing to the acute shortage Of
housing.
They point out that provisions Of
the Rent Act were designed to pre-
vent hardship on landlords and to
afford them reasonable profit; that
weakened rent law would result
in widespread evictions and prob
ably endanger the entire economy.
They contend that, owing to the
shortage of housing, families unable
to pay higher rents would have no
place else to 60 If rents were raised
beyond ability to pay. Whereas,
they say, if cars are too expensive,
the family can refuse to buy; If
steak is too expensive, cheaper cut
can be substituted, or if clothes are
too high the old suit can be made
to do. But, they ask, where do you
60 if your rent is raised from $50
to $75 a month?
Besides charging that they are
victims of discrimination, real estate
owners have attacked rent control
from q variety of other angles.
For example, the industry con-
tends that many single persons now
living in apartments would be forced
out by higher rents II controls were
removed.
In reply, rent control proponents
insist that single persons probably
would be able to pay higher rents
with less difficulty than families.
They also point to Census Bureau
studies which show that tenant
occupied dwellings decreased by
about 100000 between 1910 and
1947, while owner-occupied units in
creased by about 100000 in the
same period, and claim there is
relatively little "overconsumption'
of space by tenants.
Freeze Called Unfair
The real estate industry main
tains that 1t is unfair for landlords
profits to be frozen on the basis o1
prewar levels, in view of higher
maintenance costs, taxes, etc.
Replying to this, rent control ad-
vocates say the vacancy rate has
been reduced in the period of thu
housing shortage to practically zero
and that as a result landlords are
better off than they were before
: This reply, of course, does not light
en- the fact that the real estate in.
; dustry is the only industry which
| remains under controls.
The industry contends that wher
times are good, real estate shoule
be permitted higher profit in the
same way as other business, so thai
backlog against bad times may be
provided.
To this, rent control supporter.
answer that real estates relatively
stable value and income offer the
same protection for the real estate
industry that additional profits pro.
vide for other businesses.
Real estate spokesmen frequently
express the opinion that there /.
danger to the free enterprise system
in rent controls and see the threar
Of socialism in their continuance
Rent control advocates deny this
maintaining that responsible per
sons favor continued rent contro
only until the supply of housing
comes more nearly into balance witt
demand.
Other Disbursements
In the past real estate spokesmer
also have strongly supported pro-
t poSals to turn over rent-control pow
ers to local boards, much as is pro-
= vided In the House measure, con
E tending that local boards woult
know local conditions better thar
Federal officials.
4 Those favoring Federal controls
e say local board administration wouls
= lead to inconsistent application o
4 the law, would make controls NOR
S difficult to enforce and probabl
= would mean breakdown of al
n controls.
Whatever the merits of these ar
n guments, and however much tn
real estate industry Is discriminate,
= against in relation to the rest O
= the economy land it most certainl
S seems to be the victim of discrimi
e nation. most observers hope tha
Y whatever decision Congress reache
j as to the future OF rent control
= will be reached in the light OF tn
5. calculated effect OF that decision o.
: the domestic economy as We prepar