Evening Star Newspaper, May 13, 1924, Page 3

Fictitious Values Boosting ' D. C. Rents, ‘Senators Charge dpartment Houses Mortgaged for Mil- lions in Excess of Worth, Committee Reports, Charging Combine. Charging that values have been in- flated in Washington by mortgaging Apartment houses to the extent of mil- Yions of doliars in excess of their sale L e Bull has submitted to he te the report of the Senate Dis- trict compittee investigation into local real cstate conditions Senator When the resolution to extend the life | of th ate Rent Commission came up in the his tio have olleagues & summary of the rev und then obtained permission to 'ave the entire report printed as a pub- lic. document. Asserts Combination Exists. rhe report starls with the infor exps cofl ,repor assertion t “it will be proven by records and rmation furnished that there does L such a combination attempting to trol prices and rénts for housing ac mmodations.” b Addressing the S o in the renc nvestigators, Senator Ball . I will state this, that we ted thirty-tw of the houses in Washington. On those thirty-two apartment Mouses e find trusts totaling $9,000,000 rgore than the apartment houses sold fof at their Jast selling. Many of them have trusts on them of more than a million dollars more than their cost. They have | had no improvements put on them since. 1t has been done by making fake sales, transferring the property to dummy in- dividuals or corporations under a real estate corporation. They will probably DUt two or three trusts on an apart- lent. house, amounting to a little more than’ the last nz price, then they Will make xnother transfer to a dummy for probably half a million more, then add additional tru then make anothe Trusts us to that. until more than a million Actual cost of the wases, N transfer and add it amounts to more than the building in many Ball Cites Admission, Referring in his speech to one par- ticular concern, Senator Ball contin- ued W uld like to state the Commonwealth Finance rigage Corporation of New the’ corporation which has anced much of this business. They e down on Saturday and made a omplete breast to me of the whole statement. They have lost. 1 judge from $15.000,000 to $18.000,000. ~ They told me they had just canceled $1434,000—it is in the evidence—aon buildin 1t have been sold on d fourth or fifth trusts, ould bLe gotten out of . M. Smith Company h. them a mortgage for $2,000,000 vovering one million four hundred #nd some thousand on a building which ady constructed here. Th hat mortgage im- mediateiy building. That has been within a few weeks, showing that this thing is still continuing.” Sen Utah asked Sen: tor. innocent purchasers York or elsewhere buy notes amounting to two or three or four hundred thousand dollars without making an _investization as to the chara of behind them. ator d i New [ 1 The York concern SPECIAT, NOTICES. NOTICE 1S 1he partnership Joseph H Westex agd Albert 1. Cas. ( Josepn T Martin & business of RT 1 CTIARLES Washington, 1 Dated of May 5 SPECIAL SI3IMER Geo. M. M. Walker, Col 5., formerly head tuner ter and Knabe Co A VAN LOAD OF FUR- Fhiladelphia, Betble. Wilmington, Del., o Ashing ruEs with Hoover's Cyolona. and resto: lons, $1.25. Vers reasongble: 608 F n.w. TO 10 Save agen our_rugs. LES €0 a1e NTTY. Real fiber broom mon_for_$2 PERS commission, 285 dust OPPOT: dcbis other . than_those rcontracte self. THOMAS WINDSOR, e FPECIAL d_hs my- 1501 Wisconsin RAT TO Na—Wash. to Boston—Wiikes-Darre. sh.—Wash. to Detroit—Wash. to D RED BALL TRANSIT (0. MATX o146 in Roofs—Slag Roofs Repaired and Painted. Call Maln 760, Grafton & Son, Inc. Roofinz experts for 35 vears. Washinzton Loan & Trost bid, Sings L YDOW SOREENS. ARl Kinds of remodeling sod repais E. K. SCOTT. Pot. 2426 5y Automobile Painting, ve your car painted like by ‘the ® ike new in 3 to g ‘Lyk Glass Auto Painting System And save money. 2018 12th St N.W. Thone Poomae 101, Free Plans and Estimates “;‘;’{EA‘?‘I"Q‘O\ ”\'{’“; . rAliXiTl’lfl. AT~ FOIDER. 1010 1 ST N0 P Sy ND FLOORS Laid. scraped and fnished, 0ld fioors made to look like hew, ACME FLOORING CO., Main 959 N + Satisfaction —the “kexnote" of this millio printing pixnt. ool The National Capital Press 12101212 D St. N.W. Consult Us —if in nmeed of high-grade printing. V HIGH GRADE, BUT NOT HIGH PRICED. BYRON S. ADAMS, FPRINTER, e NI 513 11 st a3 “ROOFING—by Koons The season of big rains is coming. our roof ready? “nuse” ruinons leaks? us NOW and feel sure. KOONS ROOFING. CoM \When You Think of Your 3t0s, O, 30 NW. 140 1s No breaks or holes to Better send for Call Main 933. 119 3rd st. 8w, ¥ _Phone Main 933. BED BEDELL BEDDING ars and are better than ever equipped A A SEW TLANT AND TP-TO DATE va You should think of We have been renovating ACHINERY. For bur sersice phone Main 3621, BEDELL'S FACTORY 610 E St. N.W Convincing More Motorists very day that McRey- s’ is the most econ- omical Auto Repair house. R. McReynolds & Son inting, Slip Covers and Tops. n ST. N.W. Main 7228, Roof Repairers _are here, ready to serve you. Call Main 74 and tell us your roof troubles. Roofing 1121 5th N.W. IRONCLAD fxtit, #58.5% PROPOSALS MOSSIONERS, D. C.. WASHINGTON, S Nealed propasals for construct. about 7,025 linear feet of sewer will be Mo ived at Room 508. District Building. until 2 o'elock p.m.. 20, 1924, . For detailed in- Fmation, apply at Room 427, Drstrict Bolld- myl2- g, L ate vesterday, Senator Ball gave | up to that amount, | to the Sen- | is concermed. the president and vice prosident of that concern were on very friendly terms. 1 will put it with the president and vice president | of the F. H. Smith Company. agreed upon the assessment | that would be appointed to | thase properties each time. | 1 would like to modify the term ‘innocent.’ I think the first people who took the notes were not inno- cent. but they sold them to other | people who were innocent. For in- stance, the bank would take over a | lot_of the notes and sell them to | their customers, hut they took the notest over at sount and would sell then That is the reasen why I say the emergency still | exists. Whether it exists in the num- | ber of houses or not, it exists be- cause the law of supply and demand no longer is regulating the situatic The supply m 1 right, but it is prohibitive as prices are concerned and s the demand being effect people cannot pay the prices that are charged people cannot pay the rental property and at the the interest on a million or tw lion dollars of watered stock. After outlining six general r {for high prices and rents, the |of the investigators then | following details Lists Part Phere are li jof individuals, tions which connected directly or |or form part of the vination in |an attempt to control 1 estate ituation in the District of Columbia: > Smith Compuny: J. Eris | president; (. Bryan Pitts, | vice president: Samuel J. Henry, vice t; William Ii. West, ' vice president; Edwin L. Feugel, general manager; G. Bdward Perry ant s ary; Bernard F. V manager mail departm Colliflower, salesman: Flora bookkedpe Francis N. value n the report gives the ed firms ned. the Cone: below names and corpora- will show are indfrectly with evidencs | Coblentz, president Fred- erick (Md.) ank ssex, tty Company, “Frederick (Md.) ommonweulth tion of New rk. “In addition to these there are | | minor operators, evidently employed | ‘dummies’ for the larger operators. is list includes: W. A, Mills, C. W, Company, W. Stubble- 5 A. Street. Felix Lake, E. Goss, David W. Burke Donaldson. he . H. |under min <ubsidiaries which b some of the combination or thei herewith are some of these subsidiaries: 7 Propert Corporation, Propertics Corporation, Apartment Corporation, Thierry Corporation, | Properties Corporation, the moreland Corporation, th Massu- chusetts Corporation the Hotel Ham ilton Corporation and ny others, “The officers. dircctors and stock- holders of these cofhorations are either officers or cle the H | Smith Company, or persons connected | directiy or indirectly with the F. Smith Company or connected some of the banks or porations lending money ations mentioned in this repor will be noted in the tramscripts of deeds and trusts taken from the land records of the District of Columbia. These transcriptions are attached to | the report and marked ‘exhibits.” Seex Smith Company in Control. The combination, as it exists, seems |largely controlled by the ¥. H. Smith Company, which either own or con- trol a large percentaze of t! apart- ment houses and office buildings, of the newer and larzer const ion, under its incorporated names. “Your attention is directed to the names of Felix Lake, Nannie E. Goss, David W. Burke and C. W. Donaldson. Ore or more of these names appear in nearly every transaction where the corporations of the H, Smith Com- pany have bought, soid or loaned money on the property. It id evident from inv igations that these four people, especilaly Felix Lake. operat ed in these deals as agent, or tool, for the F. H. Smith Company “With further r rence tempt to control the real e situ, tion by a ‘combination’ your atten- | tion is again directed to the name of | lix Lake It is a_conceded ton that Felix-Lak properties for h man of very lim evident, judging ved in th cting on one else. “During the ve purchased, or th name, millions of property. Of this evidence to the ext $6,000,000." “It will be noted by the records| that all of the property, with the exception of a few picces that were in the name of Felix Lake. has been transferred to the I H. Smith C or subsidiaries of the F. H. Sm Company. “Again, du co-own contr: it Co Finan \ pany rpora- t | e Listed s of | ropolitan the M th the the Chatenu- the I F to an at- G | t in Washing- did not huy these it is quite | mounts in- | ctions. that he | gent for some Felix Lake w ded in his doliars' worth of amount we have | of more than | ng the period while he was purchasing millions of dollars' worth of property judgments were being secured against him in the District courts for amounts of from $25 for groceries and merchandise to $10,000 on unpaid notes and service rendered, " Call “Tool” of Combinafion. “We contend that Felix Lake never was the owner of any of this property, hut was one of the members of the combination, or merely a tool of the combination “’As to the methods used, it is it evident that this t'nmhll’\d'.;tyon |:‘uaL? tempting to control prices and rents by creating inflated or fal prices without really affecting ti® real or| true value. as is indicated by sales of properties at public auction on which large sums of money have been borrowed or fictitious trusts have been placed. This inflation s created by loading property with fictitious trusts and then selling these trusts or the | Droperty to outside interests. The sound, comservative industrial, com- mercial, and residential growth of the community has been retarded by these inflated prices.” I The report then gives detailed illus- trations of how a number of apart- ments were inflated through repeated sales. The first illustration given in the report is that of the Pentilly apartments. which follow: = “In this instance, Frank B. Carroll (assistant manager of the F. H. Smith Company) purchased, on February 28, 1922, the property from E. G. Walker for $400,000. subject to a first deed of trust of $200,000. He gave as deferred {payment’a second deed of trust on the property amounting to $125,000, and ‘the balance, $75,000, was ev dently paid in cash. Carroll then borrowed. on February 2§, 1922, from Bernard . Vichmann (an employe of | the F. H. Smith Company), $224.500 under a third deed of trust. Carroll then deeded, on June 22, 1923, the property to David W. Burke (son of Nannie E. Goss, an emplove of Felix Lake). David W. Burke then deeded, on June 23, 1923, the property to the Westmoreland Corporation (one of the F. H. Smith Company's subsidiaries), for a consideration of $10, subject, however, to three deeds of trust ag- gregating $609,500. “This property was assessed in 1923 at $235502. The Westmoreland Cor- “I"paration then deeded on December 1. 1923, the property to the Massachu- setts Corporation, another F. H. Smith subsidiary, for a consideration of §10. The property was advertised and sold at public auction March 14, 1924, un- der foreclosure of the second deed of trust of $125,000, held by the Southern $342.250. Pitts, vice president of the F. H The | T Assessed valge. 5233, 502 1,419,557 Date Premises purchared. 2entilly 62322 astieton Wardman Courts Srunswick <t Mihiel Olympia \elrose i P : |22 N0 Avelll Catnedral and Klingle magsions & 5000 Conn. Ave Oresden savoy Alwyn Coronads, Aurota Ambassndor Jefterson Prosidentinl Nansemond .. North Hampton 17,500 2,800,000 513,081 18,000 6 ont ... Califoraia Forest Hill Gordon Hot Hamllton Hote Logan_ .. | Roosevelt | Smith 1 to 1923 on 33 apartments. o ¥, had sold the notes | under the third t of $284.500 to the monweaith Finance Corporation York for a reported price of §$200,000, and when the property was sold st »uction this company lost this arount on the deal. (This is a sec- ond loss of $200,000 reported by this company.) The Commonwealth Corporation stated that the mith Company, through G. Pitts, misrer ented the true | value of the property and the facts. regarding the tyusts when the notes were it the corporation. The misrepresentations made are in brief as follow 1 Misrepresentation Is Charged. “The F. H. Smith Company, through its vice president, G. Bryan Pitts, ne- gotiated with the Commonwealth Finance Corporation of New York to purc these trust notes. Pitts fur- nished appraisements and recommend- ed the purchuse as a good buy, stat- ing that the property was appraised by real estate experts on valuation and that the appraisers were men of reputable standing, and ded that the notes are well secured, as is in- dicated by the appraiscments, and that the property is well worth more n the loars on it “The Commonwealth ion believed the be a thoroushly on, and relying on th ord of its ice president, G. Bryan Pitts, and the appraisements submitted, bought the notes. By the time the property was to be sold at auction the Commonwealth Finance Corporation learned, much to its regret and cor- unreliabiiity the state- and the true value of A card in the files of assessor for the Dis- lumbia shows that a trust | on this property at March 2, 1922, yet | vice president of the who held the trust for ated that this $609,500 did ything. No doubt he was but it is quite evident smmonwealth Finance Cor- ion did not think the same way. s, and 39 per- to louns and adjustments by monwealth Finance Corpora- | tion on various properties.) | When an individual, firm, or cor- | po! ion b some of this worthless per and is then forced to buy the at auetion to protect what already put into it, it is per-) tural that he should want | to receive enough from the rents to | get some return on their worthless |investments, so up go the rents on inflated prices Finance Cor- . H. Smith Co. o reliable organi- | trict of for $600 the Mr, rtment house. After telling of thit case, the report makes this general ertion: that | Declares Values Inflated. srther investigations show a combination of real estate oper- ators, mortzage investment com- panies, builders and bankers by the use of fictitious trusts inflate values to bring property up to a new sales value. This new sales value would increase the rents in proportion to the amount of money loaned on fit, s0 that the new owners would re- celve a return on their investment to_justify the purch: “While the method PrODErty up to a new succeeded in some with the present rent law, it would becoma generally used should the present law £0 out of existence, and rents would be raised out of all pro- portion to what the average tenant could afford to pay.” Shows Concerns’ Operations. Continuing, the report reads as follows: “Your attention is further called to the fact that from 1920 there has been incorporated and doing business with- in the District of Columbia over thirty mortgage investment companies with a total capitalization of over $10,000,- 000. These companies specialize in the purchase of second and third trust notes at large discounts. The larger investment companies are officered by al bankers, builders and operators seeking to control the real estate sit- uation through the ‘money bag: “High rates are being demanded for money and loans are being made far in excess of a safe margin to in- vestors of stock in banks and loaning organizations. This is evidenced by the fact that within the last year sev- eral banks and investment companies have either closed their doors or gone into the hands of receivers, due di- rectly to making large unsecured loans—loans on inflated trusts. £ this method of financing is al- lowed to continue, it will only be a short time when all property will be inflated by the same method, and more banks and investment organi- zations will be forced to close their do “Very little data have been obtained regarding the construction of new houses. Only one case is submitted. but frem observations and inquiries many similar cases could be obtained. From estimates and other data it appears that profits of from 25 to 75 per cent of the building costs are being made. If this is true in some cases, others may be judged accord- ingly. Foroed Change in Estimate. “The one case submitted is that of a row of houses being built by Joseph Shapiro, builder and real estate op- erator. He is erecting thirty-two houses of six rooms and bath on Woodley place just east of Connecti- cut avenue, on filled-in_ land. The selling price of the inside houses is $12,950. The lots are 20 by 100 feet. The assessed value of each lot is $800. In Shapiro's application for a building permit (see Exhibit 36) he gave as the estimated cost of these thirty-two houses $650.000, or $20,000 a house. When this discrepancy was noticed by the investigator, the build- ing inspector’s attention was called to it and he had Shapiro come to the District building and change his esti- mate. It will be noted that the cor- rected estimate is $292,500, or about $9,200 a house. The land was bought in bulk: that is, about 100 lots were purchased on both sides of the street, and as this property is not excep- tionally valuable, except that it is close to Wardman Park Hotel (as Shapiro states in his advertisement), 4t is safe to say that the lets did not cost him over §800 each. “Allowing $500 for the lot and a cost,of $9,200 for the house. the total cost for each house would be $10,000. These houses, selling for 12,950 show a met profit of §2,950 each, or 291 per cent. As Shapiro claims that the $202,500 covers all financing and sell- ing costs, there is at least 10 per cent {of this amount that should be de- ducted for financing and 3 per cent for selling that should not be_in- cluded in the application for a build- ing permit, as the building inspector's office _has nothing whatever to do with financing, buying and selling' of | of bringing | ales value has instances, even Maryland Trust Company, and brought | real estate. By deducting this 13 per April 14, and s Tn the meantime G. Bryan [cent from the construction cost we Rum Row, off Montauk Point yester- find that the estimated.cost is about Price paid. Realty Financing as Revealed by Senator Ball ——Per cent of loans—— Of as- Over as-0f Over Amount sessed sessed price price Of trusts. value, value. paid. paid, $609.500 250 152 62 2,883,500 G a1 i a7 i 13 110,000 183,59 1,065,000 50,000 100,000 s EXHIBIT ¢ —Loans amounting to more than $9,000,000 in excess of the selling price were ‘made per house, and al- ch_lot the total ,75%. With a selling the profit would be or zbout 47': per 3800 for st would be §8, $4,197 cent. per house. Says Records Mean Little. “A great deal of data obtained from many records have meant very little as to true values and conditions. This is especially noticeable zs to some of the data obtained from the building inspector’s office and the as- SSOr’; *e of the District of Co- The regulitions and laws governing the methods used in these two offices and the records kept mean little in the way of obtaining true Values or conditions, as will be no- iced in the case of the applica for ‘the building permir, \eder e hibit 36 “In the course of the investiga- ions, complaints were received re- wrding the sale of lots, in Chevy Chase Grove, by Fulton R. Gordon, under misrepresentations. These mis representations include: Certain im- provements that were to be made or that were reported as having been made; as to the number of lots sold; as to the exact location of lots sold a8 to incumbrances on the ppoperty’ as to being able to resell within a specified time at an advance in price nd as to prices the lots were sel ling_ for. “Gordon purchased $99,000, $1,000 an acre lots at® 5043 a $18,730 an acre, 99 acres for and sold the square foot, or at a profit of $17,730 an ‘acre. Hundreds of war workers have been defranded out of their savings by the sale of these lots, as is evidence by complaints reccived “In conclusion we wish to state Generally speaking, ¢ fits are fairly earned receive them They tive which indust s to enterpri: to ind improve upon current production. but when operators take ady. norance or neces: low men, society a right to de- mand that these operators held to account for their insidious prac- tices. Then follow: figures concerning the transfers of more than apartments and hotels In closing the entire report and its exhibits the following summary of the local rent situation is given: Holds Congress Responsible. “Washington is intendad as the seat of our government. It is not a busi- ness city. " Ninety per cent, we should think, of the inhabitants of Wash- ington are dependent upon either the money received from the government, through its employes or from visitors whose only reason for coming to the city is to see the seat of government. It is entirely under the control, so far as its management is concerned, of Congress. Thercfore Congress, having power to govern, must assume the responsibility for the conditions of its citizens, “Every corporation employing large numbers of men and women are care- ful to see that those employes are well housed and well fed. Tt is hec- sary that they do this for effici service. Washington, as s city of government emple fore, it is just as e govérnment expects e that her employes be for. “As quoted from the decision of the Supreme Court, high rental would not necessarily make an emergency. If the high rentals were due to nat- ural causes this would be logical, but it will be clearly shown in the re- port of Mr. Schirmer to the commit- tee it i8 not the high cost of ma- terial nor the high cost of labor that is causing unusual rents, but it is the great increased interest on the fictitious trusts entered against the large apartment houses, resulting from the manner in which they have been financed. Congress is respon- sible for this condition. Therefore, Congress must provide reasonable living for its employes until this con- dition can be relieved. For this rea- son there seems to be mo doubt that the emergency still exists. Tt is not reasonable to suppose that employes whose average income is not more than $1,400 per year can pay from $50 to $75 a month for an apartment in which to live. Favors Adequate Rentals, “We do not believe in creating rehts that are'not ample for just returns on investment, but we do not think Congress has a right to permit rents made on inflated valuations resulting from fake sales and trusts. If after true valuations have been found and returns from thoss true values of these apartment buildings will not meet reasonable returns to the owner, rents which employes of the govern- ment can pay, then one of two actions must be taken by Congress—either to increase the salaries of its em- ployes or to go into the housing busi- ness themselves. I take it, Congress does not want to do the latter. “As will be seen by exhibit 3, loans amounting to $2.397,500 were secured on property costing $1,250,000; by ex- hibit 9, loans amounting to' $84.500 were secured on property costing $20,750, and by _exhibit 16, loans amounting to $157,000 were secured on property costing $65.000, “Unless the government is zealou: in the exercise of its control over this condition, great inequalities in income are sure to result without any benefit 1o the whole community. All that can be said is that if present practices are allowed to continuc to operate, it will be only a short time when all property, not only in the District of Columbia but elsewhere, will be financed by this unscrupulous method. “Supply and demand no longer con- trol the price. It is almost impossible for a contractor of moderate means to finance his proposition without paying unreasonable interest and with a big bonus. ““The rents demanded by those who furnish the supply are prohibitory to those who should furnish the demand; therefore the emergency still -exists, and it is the resuit of artificial means and not natural causes. “Until this is corrected, and renters shall be required to pay legitimate ex- penses and not a profit on fictitious trusts, as they are now paying, the rent control should continue—indeed, must continue, if our government is to Teceive proper service from its em- ployes.” —_—— Seize Alcohol "n Ship. NEW HAVEN, C{ . Police yesterday con 2d 1,800 gal- lons of alcohol _abeard the 'Wilkes- Barre, former United States subma- rine chaser, and arrested two of her crew of four. The Wilkes-Barre, according to one of her crew, cleared from Bridgeport took her cargo from by re th the who incen- ce to methods of unserupulous ntage of the iz- s of their fel- volume of real estat a score of a great properly FEEVRE S day. mpetitive pro- | HE EVENING STAR, WASHINGION, D. C. ‘the (osmopolitan U. S. JOINS IN FIGHT OF RENT BOARD TO STAY IN OPERATION (Continued from First Page.) United States’of America and re- spectfully petitions the court for leave to intervene in the above-en- titled cause and to be heard thereon, as well upon' the applicaticn for a temporary injunction as upon final hearing, and {o offer proof and make such showing in the cause as may appear to be proper, necessary and adyisable. “In support of the application, your petitioner respectfully shows that the housing situation in the District of Columbia has been declared by Congress to be @ matter of public concern and that the leasing of apartments in the District is affected with a public interest; that Congress in legislating for the District of Co- lumbia is vested with full and com- plete powers with respect to the wel- fare, health and environment of those persons resident in the said District. Furthermore, thacthere are employed in the service of the United States in the District of Columbia about 65,000 persons, great propor- tion of whom are lessees or renters of property affected by and_ subject to the so-called District of Columbia rents act; that the heaith, well-being contentment, happine: and proper ‘housing of these employes has a di- rect effect upon the efficiency of the operations of the government. “By reason of these considerations it is respectfully submitted that full and complete determination of issues presented in this cause suggests very forcibly the desirabil- ity of the participation of the United States, both in its own interest and on behalf of its employ - Objections by Mr. Brown. The objections of Mr. Brown follow “First, because the tenants or any of them in said premises are not made parties defendant and have not been served with any notice and be- cause the purpose and object of the bill of complaint is to enjoin them (ten¥dnts) as well as the Rent Com- mission, and because any tempoarry restraining order or injunction pen dente lite passed by the court in this case would be, in fact, operative upon them, and the tenants are neither the ‘officers, agents, servants em- ployes or attorneys under the provis- ions of the act of Congress of Octo- ber 15, 1814, chapter 323, sgction 19, 38 statutes, 738, 5 “Second, because submitted that the of Congress of May 22, 1922, known s the rent act, deprives this court, sitting as an equity court, of ju- risdiction to issue an _ injunction against the proccedings of the said Rent Commission. The prowision re- ferred to is i5 follow “‘Sec. 108 (e). No determination of the commission shall be affirmed, set aside, modified or otherwise re- viewed, or its enforcement in any manner stayed, except upon appeal from such determination as provided by this title.' it is respectfully amendatory act ¥orm Ix Opposed. “Third, these defendants object to | the form and effect of said proposed order in attempting to have this court declare at the present stage of this suit that the rent act no longer exists, the language referred to being as follows: ‘That the court of opinion and finds from the record in this case that the emergency d clared in _acts of Congress herein- after set forth and commonly known the Ball rent act, and the amend- ments thereto, and the re-cnactments thereof, which alone justi the law, no longer exists.’ Would Balk Future Law. “Fourth, because the proposed or- der to be signed by the court practi- cally enjoins the Rent Commission from acting under any future law, in reference to the rental and housing conditions in the District of Colum- bia which Congress, with the ap- proval of the President, may see fit to pass and enact, and which would be an infringement of the right of the legislative body of the govern- ment to exercise. “Fifth, becauss the proposed order was not served upon the attorney for the Rent Commission until kalf-past 4 (4:30) o'clock on Monday, and h. has not been able to confer with his client, the Rent Commission as a body, and he asks for a reasonable time ‘for this purpose. “Sixth, for other reasons that will ted orally to the court when e comes before the court.” Ball Foreed to Compromise. The Senate late vesterday after- noon voted to extend the local rent law for one year and the measure now goes back to the House. As passed by the House the resolution called for a two-year extension, but Senator Ball had to conmsent to an amendment as to the length of time in order to obtain unanimous con- sent to get the matter up in the Senate. The Senate also adopted an amend- ment by Senator Caraway of Arkan- sas requiring hotels to post their rates for rooms in a conspicuous place, and making it necessary for a hostelry to give thirty days’ notice of a change in rates. The senator explained the purpose of his amend- ment was to prevent a hotel from raising its rates temporarily during conventions or other occasions, when hotel accommodations are in demand. With only six working days re- maining before the expiration of the life of the Rent Commission, on May 23, the estension resolution is re- turning to the House for considera- tion of the Senate amendments. Ball Feared Delay. Senator Ball opposed the Caraway amendment, fearing that it would ne- cessitate sending the resolution to con- ference between the two houses, with the possibility of not getting final action betore the law expires. As soon as he had obtained considera- tion of the rent resolution, Senator Ball revealed the much discussed data gath- ered by investigators for the Senate Dis- trict committee, which dealt principally with_alleged overloading of apartment Rnd now PETER B._ KYNE’S new novel---a vig- orous, upstanding love story of the Southwest, “The Enchanted Hill,” begins in dJune | Now On Sale | WHEN YOU THINK —of Painting. Paperbanging and Decorate ing think of Taylor, && Estimates made oa requsst. HARRY W. TAYLCR CO. APERHANGING AND PAINTING fll’lfl 8t N.W. Tel. Cel. 10m7 TUESDAY, MAY 13, | high. and because | inelined to | King th | sire and hope had 1924. houses with mortgages their values. Senator Wadsworth of New York, in charge of the Army zppropriation bill, had agreed to permit Senator Ball to bring up the rent question in the aft- ernoon. When the time came, however, in excess of Senator Overman of North Carolina an- | nounced that he would object to its con- sideration unless the senator from De ware would agree Lo make it one year instead of two. Agreement Iv Reached. The ciairman of the District mittee insisted that, while he personall was willing, the Se ¢ alone would have to decide the point. Senator Overman wanted assurance his amendment would be considered, and, after a conference with Senator Ball, he withdrew objec- tion, and the Senate agreed to the one- year provision. For mnearly then discu: the housing situation in Washington from various angles before a final vote on the resolution was taken Senator King tension of the rent law, L ng the position that while there ar (‘\JIH,I: tions here to be corrected, he did not regard the rent act as the proper cure. “If the many honorable and upright real estate dealers, contractors and builders would organize to cure the il practices known to exist and would bring rents down to a fair and reasonable level, they would be serv- ing not only the public, but their own interests and there would be no de- mand for rent laws and rent com- misslons, un hour the Senate of Utah of d e Callx Law Unsound. “However, T feel compelled that I regard laws of this character as economically unsound and they de feat their own purpo When the Saulsbu olution was the Senate, I knew of a person who was in Washington ready to $1,000,000 in apartment houses and small’ r Upon learning of the passage of the measure he aban- doned his purpose. He and others who would have invested but for that and the Ball law, would not risk their mor in enterprises which would be Subject to the capricious control of a governmental bureau, its usual ineficiency, imperti- o and offensive officiousn ator Norris of Nebraska was mong those who supported Senator Ball. In the cours suggested removing some of the b reaus of the government to differ states. Senator Fess of Ohio, discussing the cxtension, said he did not like the idea of such legislation, but that there were some points that bothered him invest Fess In Perplexed. “In conversation with a very prom- inent builder of this city only a few weeks ago,” Senator Fess said, “he told me that he had 200 houses vacant. With that number of vacan- cies, which would indicate that build- ing had about reached the point of supplying the demand, T do not un- derstand why the rents stay up of that T am rather avor the continuation of this legislation.” Following Senator Fess, n made this comm Senator nt on the situat Of course, this mu we want to be fair the price of cement and brick and lime and lumber and hardware and all other commodities which enter into the construction of buildings. and the prices of labor. it will at once ‘become apparent that the cost of buildinz in the District of Colum- bia is perhaps 100.per cent more than it was in 1914 and 1913 Some build- ers have told me that prices are 15 per cent in excess of the pre-war pric and, of cou se higher prices’ of 'real e nd homes would reflected er r g Senator Simmons of North ( lina said he had been informed great many houses were being built here, but for sale. and not for rent The senator said his very few houses were being built for rent hecause of the laws regulating the rent rates. Senator Copeland of urged enactment of the resolution an the ground that there still over- crowding in Washington. t be said. and New The Library of Congress has re- ceived as a gift a collection of 1 ters and post cards written by Wa Whitman to his_friends, Dr. John Johnston and J. W. Wallace of Eng- nging through the years 18 There are one hundred and three autograph signed communica tions, which have been specially mounted and bound by Henry Saun- ders of Toronto, Canadaa, forming a valuable addition to the Whitman col- lection already in the library Johnston and Wallace were mutual friends and admirers of Whitman' writings, and the correspondence evolved in a perfectly natural man- ner, but in a way for which they were entirely unprepared. “Our only de- been to have the of showing him. Whitman, <o as we could, the profound ap. preciation, gratitude and personal af. fection which his books had aroused in us. his regard and attention, and we neither suggested nor looked for any response. 1t was therefore a con- tinual astonishment to us and in- describably affecting to find him writing, however briefly, to cither Dr. Johnston or myself-—sometimes to_both—by almost every mail." Whitman's letter, of general farewell to all friends, written February 6 and 7. 1892, with great pain and effort, was sent to his two privilege friends for facsimile and distribution | ,them. The original letter is in this gift 4th and H Sts. N.E. has just been added to the list of Star Branch Of- fices. If you live in this neighborhecod * don’t hesi- tate to make use of this service when you have Classified Ads for The Star. They will be handled promptly and efficiently— and at regular rates. The Star prints MORE Classified Ads every day than all the other papers here combined —be- cause of the results they bring to adver- tisers. “Around the Corner” is a Star Branch Office com- | Lola | of his speech he | 't | shake | | | | ro- | formation that | York | | We had no claim whatever on | It one examines | _ Service Charge Never Over $1.08 ¥ | Double Up! | Gem Blades are single- | edged and -double-iived. | They give twice-betterand | twice-more shaves than | any blade with twice as many edges. i" The Fun Shop H Conducted by * Maxson Foxhall Judell R.F. D. By George S. Chappell. Doctor Jones of Py Is little known to fame, Yes, sir—even your wire ‘round his native heath and hill ; whiskers are no match for He bears an honored name. Through summer rains and winter | Marvelous “e" GEM Double-Life Blades doc’ old, battered liz Use GEM Safety Razors cinsville But fret, The goes And gets there, 0o, you b Doe Jones it is whos First guides The ver land Consigned to Perkinsville We've got another medico, But Doc says, with a grin “He likes to help the old folks I let the young ones in.’ helping hand ss life's sill And kind—say, when poor Mrs. Smith Had twins, and she with five Young kids & to struggle with Old Doc « akes alive! Don’t worry, m'am, about my pay, I've got a rule, you see That when Wids come in way 1 mark them 'R MOTHERS Designing MAKI pattern eutt an. for Bookiet 2 the o Give portuni pairs that | Reel Life. hero in jail.” don't Know FAS, DRE milline sald the R ‘I have novelist, “and 1 to get him out’ “That's eusy director, “just my : I replied the movie let him fade out.” ROY A. GILES Professional and Home Coursces Positions for Graduates LIVINGSTONE h oSt ACADEMY AW Measure FOR LEASE 824 14th St. N.W. Suitable for Lunchroom or Any Retail Business Fven in s not supi a deck of cards the king i me, though he comes within s € of being The Cat and the Canary. Idielocks' infantile fa badly ted masterpiece; didn’t deter her sweetie osculating before they said night!” “Kiss and makeup,” observant cat was @ but it ardently = “Good- commented the Literature. Question has had the greatest i Answer— n s bank Contains About 2,500 Sq. Ft. Floor Space Cellar Under Entire Bldg. Hot-Water Heat Elecrtic Lights Paved Alley in Rear For Further Information See J. Dallas Grady 322 Maryland Bldg. 1419 H St. N.W. Main 727 Question—What great characters in re's plays are villains? —Villuins don't have silly. Answ char- acters, Question—When was book making invented? Answer—I_forget but it was the same horse race. date. first th time exact < the It Would. Editor: “I'm sorry, but I can't use joke. It t fanny.” ibutor: “My wife said it would 1f vou published it IDGAR th Conf be funn (Copyright, 1 FLAT TIRE? MAIN 500 LEETH BROTHERS Your dentist will tell you that an absolutely clean condition of the mouth, such as Zonite produces, is the best preven- tive and corrective forgumin- fections including pyorrhea. Zonite ks!ls the germs present in these cases, overcomes breath odors and makes the gums firmand sound. Itisthe ideal antiseptic for thorough yet safe mouth-cleansing. In bortlesatyourdruggist’s, fifty cents and one dollar. RUUD'S the Heart of the Home RUTD Please Let Facts —have something to do with the buying of a home with your money Over 200 Homes Sold BY US IN OUR LS GERS s Intown Suburb 14th Street Terrace —should be FACT ENOUGH to make vou IN- VESTIGATE. Now We Have Built a $15.500 Home —for families who thought thev would have to pay $18000 or $20,000 for a home. They represent a remarkable combination of Home, Location, Price and Terms. There has been nothing like them and can’t reproduge them at this price. They Are Worth Seeing Now Sample Home Open Every Day Until 9:30 .M. At 14th and Ingraham Sts. N.W DO IT NOW Suburban Life Right in the City TO INSPECT ‘Take any 14th street car (the best service in Wash- ington) to Ingraham street, or drive out 16th street and through Colorado avenue. Or phone Main 2345 for auto to call and take you out. HANNON : & LUCHS Realtors Owners and Builders