into the hands of a board with judgment that was expected to get it right.

Senator HOLLIS. Then we will consider the hearing, so far as the remonstrants are concerned, closed, unless Senator Pomerene thinks that this gentleman Mr. Warner refers to should be heard.

Mr. WARNER. Particularly with respect to the viewpoint of bankers; and if I can have leave on his part to file a brief, I think that would answer.

Mr. WARDMAN. Just one other word, Mr. Chairman, to refer to this matter that Mr. Warren spoke of. That point bears very much on the proposition of whether I shall go ahead with the building that I spoke of or not. It is something that I overlooked in the bill. I have other buildings at the present time that cost me about $300,000 that I am getting probably $40,000 a year out of. Now, if it is true that on these buildings that cost me $300,000 and that I am getting $40,000 a year income from will only yield me $30,000 income, it will be impossible for me to go ahead with these building operations I have referred to.

Senator HOLLIS. The point is that with an apartment house such as you have mentioned 10 per cent gross is not enough to leave you any margin?

Mr. WARDMAN. No; it is not.

Senator HOLLIS. All right. We thank you gentlemen very much, and that will conclude the hearing.

(Thereupon, at 1 o'clock p. m., the committee adjourned, subject to the call of the chairman.)

ANTIPROFITEERING RENT BILL.

FRIDAY, APRIL 5, 1918.

UNITED STATES SENATE,

SUBCOMITTEE OF THE COMMITTEE ON THE DISTRICT OF COLUMBIA, Washington, D. C.

The subcommittee met at 10 o'clock a. m., pursuant to adjournment, in the committee room, Capitol, Senator Atlee Pomerene presiding. Present: Senators Pomerene (chairman), Hollis, Saulsbury, Dillingham, and Sherman.

Senator POMERENE. Before proceeding I will state that Capt. Peyser was before the committee the other day, and after he was here he sent me a statement bearing upon the subject of housing by Maj. Z. L. Potter. I think it should be incorporated in the record. Without objection, that will be done.

(The statement referred to is as follows:)

Hon. ATLEE POMERENE

United States Senate,

Washington, D. C.

WAR DEPARTMENT, HOUSING AND HEALTH DIVISION, Washington, D. C., March 26, 1918.

MY DEAR SENATOR: Inclosed find memorandum prepared by Maj. Potter relative to the Johnson antirent profiteering bill, to which I referred to-day in my testimony before the committee and which I asked you to kindly make a part of your record.

When I went to the committee room this morning I was under the impression that I had copies of this with me, but discovered after my arrival there that I had mislaid them.

Very truly, yours,

J. I. PEYSER,

Captain, Q. M. R. C., Housing and Health Division, War Department.

WAR DEPARTMENT, HOUSING AND HEALTH DIVISION, Washington, March 19, 1918.

Memorandum: For District Committee of the United States Senate.

From: Maj. Z. L. Potter, Housing and Health Division.

Subject: Rent-regulation bill.

This division of the War Department is charged with the duty of housing incoming Government clerks and officers. In fulfilling this duty we are concerned with two things:

1. With getting suitable quarters for these clerks and officers.

2. With getting such quarters at reasonable rates.

We have given careful consideration to House bill 9248 (known as the Johnson rent bill) in relation to these duties. In its purpose and in most of its provisions we indorse the bill heartily. We feel that legislation to curb profiteering in the District of Columbia is imperative. We wish, however, to make certain suggestions regarding the bill in so far as it relates to the rental of rooms, not of houses and apartments.

1. We believe the requirement is altogether satisfactory which provides. on property rented in the 12 months prior to September 30, 1916, for a rental not exceeding 10 per cent increase in the rental obtained during the 12-month period.

2. We believe the requirement is altogether satisfactory which permits the addition of 15 per cent of the value of furniture to the rental of rooms previously rented unfurnished.

3. We fear, however, that the provision regarding property not rented previous to September 30, 1916, which limits the rental to 10 per cent of the value of property and furniture plus a proportionate share of the cost of light and heat, in so far as it applies to the rental of rooms, will have the effect of restricting the number of rooms offered. This, we believe, is quite undesirable in light of the great need for additional housing facilities which exists at . present.

Take, as an example, a family occupying a 10-room house that wishes to rent a room. If the house is worth $7,000 and the room to be rented is worth one-tenth of that, or $700, and the furniture is worth $100, making a total value of $800, the rent allowed would be $80 a year, or $6.65 a month plus a proportionate share of the cost of light and heat.

When one considers that for this sum the family gives up a certain amount of family privacy and incurs the work and expense of keeping the place clean and supplied with linen, and when one considers wear and tear on house and furniture, we very greatly fear that many families having such rooms will not offer them, and others having rented their rooms will withdraw them from the market.

The bill also fixes the same rental for a room, whether occupied by one, two, or three persons. Inasmuch as the cost of towels, soap, linen, and service increases with each person, the natural tendency will be, so far as possible, to rent rooms to single parties, thus further reducing housing accommodations in the District.

After giving the matter careful consideration, we do not see how the roomrenting proposition, on account of the many and varied conditions under which rooms are rented, can be handled by specific enactment.

We would suggest, therefore, that in cases where it is desired to rent rooms not rented in the 12 months previous to September 30, 1916, the assessor or a rent administrator fix the rent to be charged upon the basis of what would have been a fair charge on September 30, 1916, plus a 10 per cent increase.

The bill might then provide that any lessor coming within the provisions of this part of the bill who fails to have rents fixed according to its provisions must return to the lessee the difference between the rental charged and that fixed for the period between the time the bill takes effect and the date when the rental is fixed according to the provisions of the law. If the lessor fails to pay the said amount within 10 days, the rent administrator might be authorized to establish a lien upon such of the personal property of the lessor as may be necessary to meet the obligations and to seize and sell it.

We believe that some such plan as this, which is offered purely in a tentative way, might effectively check rent profiteering, at the same time furnishing so flexible a system as not to interfere with the offering for rental of rooms that are very much needed for the housing of Government clerks.

Z. L. POTTER, Major, Ord. R. C.,

Chief Housing and Health Division, War Department, Senator POMERENE. Also, the Legislative Reference Bureau has sent to the committee some rules which were adopted by the British Government under the legislation which we introduced the other day. These rules are not in the record, and I think they should be. Senator SHERMAN. Supplemental to the act?

Senator POMERENE. Yes; supplemental to the act. They should be introduced in the record also.

(The matter referred to is as follows:)

GREAT BRITAIN-INCREASE OF RENT AND MORTGAGE (WAR RESTRICTIONS) ACT, 1915, WITH RULES.

DECEMBER 23, 1915.

AN ACT To restrict, in connection with the present war, the increase of the rent of small dwelling houses and the increase of the rate of interest on, and calling in of, securities on such dwelling houses.

Be it enacted, etc.

1. Restriction on raising rent or rate of mortgage interest-(1) Where the rent of a dwelling house to which this act applies, or the rate of interest on a mortgage to which this act applies, has been, since the commencement of the present war, or is hereafter during the continuance of this act, increased above the standard rent or the standard rate of interest, as hereinafter defined. the amount by which the rent or interest payable exceeds the amount which would have been payable had the increase not been made shall, notwithstanding any agreement to the contrary, be irrecoverable: Provided, That(i) This subsection shall not apply to any rent or mortgage interest which accrued due before the 25th day of November, 1915; and

(ii) Where the landloard has since the commencement of the present war incurred, or during the continuance of this act incurs, expenditure on the improvement or structural alteration of a dwelling house (not including expenditure on decoration or repairs), an increase of rent at a rate not exceeding 6 per cent per annum on the amount so expended shall not be deemed to be an increase for the purposes of this act; and

(iii) Any transfer to a tenant of any burden or liability previously borne by the landlord shall for the purposes of this act be treated as an alteration of rent, and where, as the result of such a transfer, the terms on which a dwelling house is held are on the whole less favorable to the tenant than the previous terms the rent shall be deemed to be increased, whether or not the sum periodically payable by way of rent is increased, and any increase of rent in respect of any transfer to a landlord of any burden or liability previously borne by the tenant where, as the result of such transfer, the terms on which a dwelling house is held are on the whole more favorable to the tenant than the previous terms shall be deemed not to be an increase of rent for the purposes of this act, and if any question arises under this proviso the question shall be determined by the county court, whose decision shall be final and conclusive; and

(iv) Where the landlord pays the rates chargeable on, or which but for the enactments relating to compounding would be chargeable on, the occupier of any dwelling house, an increase of the rent of the dwelling house shall not be deemed to be an increase for the purposes of this act if the amount of the increase does not exceed any increase in the amount for the time being payable by the landlord in respect of such rates over the corresponding amount paid in respect of the yearly, half-yearly or other period which included the 3d day of August, 1914, and for the purposes of this proviso the expression rates" includes water rents and charges; and

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(v) Where the rate of mortgage interest has been increased in compliance with, or in consequence of, a notice in writing demanding either repayment of the mortgage or an increased rate of interest given prior to the 4th day of August, 1914, such increase shall not be deemed to be an increase for the purposes of this act; and

(vi) Wherever an increase of rent is by this act permitted, no such increase shall be due or recoverable until the expiry of four clear weeks after the landlord has served upon the tenant a notice in writing of his intention to increase the rent, accompanied (a) where the increase of rent is on account of such expenditure as is mentioned in proviso (ii) to this subsection, by a statement of the improvements or alterations effected and of their cost; and (b) where the increase of rent is on account of an increase in rates, by a statement showing particulars of the increased amount charged in respect of rates on the dwelling house; and (c) where such a notice has been served on any tenant the increase may be continued without service of any fresh notice on any subsequent tenant.

(2) A person shall not in consideration of the grant, renewal, or continuance of a tenancy of any dwelling house to which this act applies require the payment of any fine, premium, or other like sum in addition to the rent, and where

any such payment has been made in respect of any such dwelling house after the 25th day of November, 1915, then the amount shall be recoverable by the tenant by whom it was made from the landlord and may without prejudice to any other method of recovery be deducted from any rent payable by him to the landlord; but this provision shall not apply to any payment under an agreement entered into before the 4th day of August, 1914.

(3) No order for the recovery of possession of a dwelling house to which this act applies or for the ejectment of a tenant therefrom shall be made so long as the tenant continues to pay rent at the agreed rate as modified by this act and performs the other conditions of the tenancy, except on the ground that the tenant has committed waste or has been guilty of conduct which is a nuisance or an annoyance to adjoining or neighboring occupiers, or that the premises are reasonably required by the landlord for the occupation of himself or some other person in his employ or in the employ of some tenant from him or on some other ground which may be deemed satisfactory by the court making such order, and where such order has been made but not executed before the passing of this act the court by which the order was made may, if it is of opinion that the order would not have been made if this act had been in operation at the date of the making of the order, rescind or vary the order in such manner as the court may think fit for the purpose of giving effect to this act.

(4) Where this act has become applicable to any dwelling house or any mortgage thereon it shall continue to apply thereto whether or not the dwelling house continues to be a dwelling house to which this act applies.

(5) Where the standard rent payable in respect of any tenancy of a dwelling house is less than two-thirds of the rateable value thereof this act shall not apply to that rent or tenancy nor to any mortgage by the landlord from whom the tenancy is held of his interest in the dwelling house.

2. Rules as to procedure.-The lord chancellor may make such rules and give such directions as he thinks fit for the purpose of giving effect to this act and may by those rules or directions provide for any proceedings for the purposes of this act being conducted so far as desirable in private and for the remission of any fees.

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3. Application to Scotland and Ireland.-(1) This act shall apply to Scotland, subject to the following modifications: " Mortgage and incumbrance" mean a heritable security; "fine" means grassum or consideration other than rent; mortgagor and mortgagee mean, respectively, the debtor and the creditor in a heritable security; covenant" means obligation; mortgaged property means the heritable subject or subjects included in a heritable security; "rateable value " means yearly value according to the valuation roll; "rateable value on the 3d day of August, 1914," means yearly value according to the valuation roll for the year ending 15th day of May, 1915; "assessed" means entered in the valuation roll; "committed waste means willfully destroyed the property "; "land means lands and heritages; "enactments relating to compounding clude the house-letting and rating (Scotland) act, 1911 (1 and 2 Geo. 5, c. 53); "rate" means assessment as defined in the last-mentioned act; "lord chancellor' means the court of session; "rules" means act of sederunt; and county court" means the sheriff.

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(2) This act shall apply to Ireland subject to the following modifications: (a) A reference to the Lord Chancellor of Ireland shall be substituted for, the reference to the lord chancellor; (b) the expression "mortgage" includes a charge by registered disposition under the local registration of title (Ireland) act, 1891 (54 and 55 Vict., c. 66); (c) The expression "rateable value" means the annual rateable value under the Irish valuation acts: Provided, That where part of a house let as a separate dwelling is not separately valued under those acts the commissioner of valuation and boundary surveyor may, on the application of the landlord or tenant make such apportionment of the rateable value of the whole house as seems just, and his decision as to the amount to be apportioned to the part of the house shall be final and conclusive, and that amount shall be taken to be the rateable value of the part of the house for the purposes of this act, but not further or otherwise.

4. Short title and duration.-(1) This act may be cited as the increase of rent and mortgage interest (war restrictions) act, 1915.

(2) This act shall continue in force during the continuance of the present war and for a period of six months thereafter and no longer, but the expiration of this act shall not render recoverable any rent or interest which during the continuance thereof was irrecoverable or affect the right of a tenant to recover any sum which during the continuance thereof was under this act recoverable by him.