INCREASE OF RENT AND MORTGAGE INTEREST (WAR

RESTRICTIONS).

[(a) England, p. 380. (b) Ireland. p. 400.]

(a) ENGLAND THE INCREASE OF RENT AND MORTGAGE INTEREST (WAR RESTRICTIONS) RULES, 1916, DATED JANUARY 29, 1916, MADE BY THE LORD CHANCELLOR UNDER THE INCREASE OF RENT AND MORTGAGE INTEREST (WAR RESTRICTIONS) ACT, 1915 (5 & 6 GEO. 5, c. 97).1 (1916, No. 63, L. 2.)

PRELIMINARY.

The following rules under the increase of rent and mortgage interest (war restrictions) act. 1915 (in these rules referred to as the act), shall apply to the county courts and to the city of London court, which shall for the purpose of these rules be deemed to be a county court.

Rule 3 of these rules, as to applications under the courts (emergency powers) act. 1914, shall apply also to the high court; and the rules made under that act shall have effect subject to that rule.

These rules may be cited as the increase of rent and mortgage interest (war resrtictions) rules, 1916, and shall come into operation on the 14th day of February, 1916.

APPLICATION UNDER SECTION 1, SUBSECTION 1, PROVISO (HI.); SECTION 1. SUBSECTION 4, PROVISO 2; OR SECTION 2, SUBSECTION 3.

1. An application to the county court under the act--(a) to determine any question as to the increase of rent of a dwelling house to which the act applies. pursuant to proviso (iii) to subsection 1 of section 1; or (b) to apportion the rent or ratable value of the property in which any dwelling house to which the act applies is comprised, pursuant to subsection 3 of section 2. may be made to the court in the district of which the dwelling house is situate.

2. (1) An application to the county court under the act for an order authorizing a mortgagee to call in and enforce a mortgage of a leasehold interest to which the act applies, pursuant to the second proviso to subsection 4 of section 1, may be made (a) to the court in the district of which the mortgaged property is situate; or (b) to the court in the district of which the mortgagor resides or carries on business; or (c) if the mortgagee resides or carries on business in the district of any court mentioned in section 84 of the county courts act, 1888, and the mortgagor resides or carries on business in the district of any other court mentioned in the said section, either to the court in the district of which the mortgagee resides or carries on business, or to the court in the district of which the mortgagor resides or carries on business.

3. (1) Subject to the provisions of this rule, the courts (emergency powers) rules, 1914, and the county courts (emergency powers) rules, 1914, as to applications to the high court or to the county court for leave to foreclose or realize any security to which the courts (emergency powers) act, 1914, applies, shall cease to apply to mortgages of leasehold interests to which the increase of rent and mortgage interest (war restrictions) act, 1915, applies; and this rule shall apply in lieu thereof.

(2) An application under the last preceding rule for an order authorizing a mortgagee to call in and enforce a mortgage of a leasehold interest shall if and so far as an application for leave to foreclose or realize the security is required under the courts (emergency powers) act, 1914, be deemed to be also an application for leave to foreclose or realize the security under that act, and no separate application under that act shall be necessary.

(3) If during the progress of the proceedings on any such application it shall be made to appear to the court that the mortgage is one to which the increase of rent and mortgage interest (war restrictions) act, 1915, does not apply, but that leave to realize or enforce the security is required under the courts (emergency powers) act, 1914, and that the amount of the principal sum secured by the mortgage does not exceed £500, the application may proceed in the county

1 As to applications for Orders authorizing grants of new leases under s. 2 of the Courts (Emergency Powers) (No. 2) Act, 1916. See Rules of June 26, 1916, printed at p. 396 below. 2 Printed St. R. & O., 1914, I., p. 431. 3 Printed St. R. & O., 1914, I., p. 437.

court as an application for leave to foreclose or realize the security under the last-mentioned act and the county courts (emergency powers) rules, 1914, and those rules shall apply accordingly; but if the amount of the principal sum secured by the mortgage exceeds £500 the application shall not proceed under the last-mentioned act, unless the respondent consents to the county court having jurisdiction in the matter, in which case the court shall have jurisdiction to deal with the application as an application for leave to foreclose or realize the security under the last-mentioned act and rules, and those rules shall apply accordingly.

(4) If it shall be made to appear to the court that the mortgage is one to which neither of the above-mentioned acts applies, the application shall be struck out.

4. An application under these rules shall be made by means of a summons according to such one of the forms in the Appendix as shall be applicable to the case, entitled "In the matter of the increase of rent and mortgage interest (war restrictions) act, 1915."

PREPARATION, FILING, ETC., OF SUMMONSES.

5. The summons shall be prepared by the applicant and filed with the registrar, with as many copies as there are parties to be served, provided that any summons, with the necessary copies, may, if the registrar so thinks fit, be prepared in his office, and the registrar shall examine, complete, seal, and sign the summons and copies, and return the copies to the applicant for service.

SERVICE AND SUBSTITUTED SERVICE.

6. (1) The summons shall be served on every person affected thereby four clear days at least before the day fixed for the hearing of the summons, unless the judge or registrar gives leave for shorter service.

(2) Service shall be effected in accordance with the provisions of Order LIV, rules 2 and 3, of the county court rules, as to service of notice of an interlocutory application.

(3) The practice of the courts as to substituted service of summonses and notices shall apply to summonses under these rules.

APPLICATIONS TO REGISTRAR.

7. Any application under these rules may be made to the registrar, subject to the following provisions: (a) The registrar may in any case, and shall on the application of either party, made on the hearing of the application, and before the registrar has given his decision, refer the matter to the judge; (b) the judge may vary or rescind any determination or order made by the registrar, and may make such determination or order as may be just; (c) an application for variation or rescission shall be made on notice in writing in accordance with the county court rules as to interlocutory applications; and the notice shall be filed within four clear days from the date of the determination or order of the registrar, and if it is not so filed no such application shall be allowed to be made without leave of the judge.

EVIDENCE IN SUPPORT OF APPLICATION.

8. No affidavit in support of the application shall be used, except by leave of the court, but the court shall hear oral evidence tendered by either party.

POWER TO HEAR CASES IN PRIVATE.

9. The court may at any stage of the proceedings on an application under the act order that the case shall thenceforward be heard in private.

TRANSFER OF PROCEEDINGS.

10. If during the progress of the proceedings on any application it shall be made to appear to the judge that the same could be more conveniently heard in

1 Printed S. R. & O. Rev., 1904, "County Court, E.," p. 301.

2 Printed St. R. & O., 1914, I., p. 361.

some other court, it shall be competent to the judge to transfer the same to such other court; and in any such case the provisions of section 85 of the county courts act, 1888, and of Order VIII, rule 9,' of the county court rules shall apply.

DETERMINATION OF QUESTIONS SUBMITTED,

11. On the hearing of the application or at any adjournment thereof, the court, on proof of the service of the summons, if the respondent does not appear, shall (a) determine the question as to the increase of rent of the dwelling house; or (b) apportion the rent or rateable value of the property in which the dwelling house is comprised; or (c) make or refuse an order authorizing the mortgagee to call in or enforce the mortgage; or (d) make such other determination or order in the matter as the court shall think fit.

POWER TO IMPOSE CONDITIONS.

12. On an application for an order authorizing a mortgagee to call in and enforce a mortgage, the court may, after considering all the circumstances of the case and the position of all the parties, make or refuse to make the order subject to such conditions as the court may think fit.

CERTIFICATES OR ORDERS ON APPLICATIONS.

13. When the court has given its decision on any application, a certificate of the determination of the court, or, in the case of an application for an order authorizing a mortgagee to call in and enforce a mortgage, an order in accordance with the decision of the court, shall be prepared and sealed and signed by the registrar, and duplicates thereof shall be delivered to the bailiff, who shall within 24 hours send the same, by post or otherwise, to the parties; but it shall not be necessary for the party in whose favor a certificate or order is made to prove, previously to taking proceedings thereon, that it was posted or reached the opposite party.

REVOCATION OR VARIATION OF ORDERS.

14. Any determination or order made under the act and these rules may, should subsequent circumstances render it just so to do, be suspended, discharged, or otherwise varied by the court in which the determination or order was made on application made on notice in writing in accordance with the county court rules as to interlocutory applications.

GENERAL PROVISIONS AS TO PROCEDURE ON APPLICATIONS.

15. Subject to the provisions of the act and these rules, the practice and procedure of the court in an action, and in particular the practice and procedure with respect to the summoning of witnesses, and on an application for the apportionment of rent or ratable value, or for an order authorizing a mortgagee to call in and enforce a mortgage, with respect to discovery and inspection of documents, shall, with the necessary modifications, apply to proceedings on an application under the act.

16. (1) The following fees shall be payable under Schedule B, Part I, of the treasury order regulating fees in the county courts on applications under the act and these rules in lieu of all other fees on such proceedings, viz:

On an application for the determination of a question as to the increase of rent of a dwelling house: Sixpence in the pound or part of a pound calculated on four weeks' standard rent of the dwelling house, but not exceeding 2s. 6d. On an application for the apportionment of rent or ratable value, 10s.

On an application for an order authorizing a mortgagee to call in and enforce a mortgage, 20s.

The foregoing fees shall include drawing, sealing, and issuing the certificate or order, and the fee prescribed by paragraph 12 of Part I of Schedule B of the fees order shall not be taken.

(2) On summonses to witnesses the fees prescribed by schedule A of the fees order shall be taken.

1 Printed St. R. & O. Rev., 1904, "County Court, E," p. 127.

(3) On applications for discovery or inspection of documents and on applications for variation of certificates or orders the fees prescribed by paragraphs 10 and 12 of Part I of schedule B of the fees order shall be taken.

(4) The court may remit or excuse in whole or in part any fee paid or payable under this rule.

COSTS.

17. (1) The costs of any application under the act and these rules shall be in the absolute discretion of the court.

(2) The court may either fix the amount of such costs or allow them on the scale applicable to an interlocutory application in an action for an amount equal to (a) in the case of a question as to the increase of rent the amount on which fees are payable under rule 16; or (b) in the case of an application to apportion rent or rateable value, one-half of the annual rent or rateable value apportioned to the dwelling house; or (c) in the case of an application for an order authorizing a mortgagee to call in and enforce the mortgage, the amount of the principal sum secured: Provided, That column B of the scale shall apply in all cases above £20, to the exclusion of column C.

(3) Where the amount does not exceed £10 there may be allowed for all work done by a solicitor in relation to the application—

If the amount exceeds £2 but does not exceed £5, 6s. 8d.

If the amount exceeds £5 but does not exceed £10, 10s.

(4) The court may direct that any costs allowed shall be payable by the opposite party, or, in the case of an application for an order authorizing a mortgagee to call in and enforce a mortgage, that they shall be included in the security; and any order directing payment of costs shall be included in the certificate or order and shall be enforceable in the same manner as an order for payment of costs made in an action.

FORMS.

18. (1) The forms in the appendix hereto, with such modifications as may be necessary, shall be used for summonses, certificates, and orders under the act and these rules.

(2) The registrar of any court may apply to the treasury for any of the said forms to be printed and supplied to him, and if the application is granted may obtain such forms and supply the same without charge for the use of parties requiring the same.

PROCEEDINGS FOR THE RECOVERY OF RENT OR MORTGAGE INTEREST OR FOR THE RECOVERY OF POSSESSION OF TENEMENTS OR EJECTMENT OF TENANTS.

19. Where proceedings are taken in the county court for the recovery of rent of any dwelling house to which the act applies, or of interest on a mortgage to which the act applies, or for the recovery of possession of any dwelling house to which the act applies, or for the ejectment of a tenant from any such dwelling house, the court shall, before making an order for the recovery of such rent or interest or for recovery of possession or ejectment, satisfy itself that such order may properly be made, regard being had to the provisions of section 1 of the act.

20. An application to the court for the rescission or variation, pursuant to subsection 3 of sectin 1 of the act, of an order for recovery of possession or ejectment made but not executed before the passing of the act, may be made on notice in writing in accordance with the county court rules as to interlocutory applications.

The 29th day of January, 1916.

BUCKMASTER, C.

We, the undersigned, two of the commissioners of His Majesty's Treasury, do hereby, with the consent of the Lord Chancellor, order that the several fees specified in rule 16 of the foregoing rules shall be taken on the proceedings therein mentioned in lieu of all other fees for the proceedings therein set forth.

I concur in the above order as to fees.

The 4th day of February, 1916.

GEO. H. ROBERTS.
GEOFFREY HOWARD.

BUCKMASTER, C.

STATEMENT OF HON. BEN JOHNSON, A REPRESENTATIVE FROM THE STATE OF KENTUCKY.

Senator POMERENE. As I understand, the special purpose of the meeting of the committee this morning-though I was not here the other day is to hear Congressman Johnson. We shall be glad to have you proceed.

Representative JOHNSON. Mr. Chairman, in the beginning I wish to say that I have no personal grievance at all concerning rents. The house which I have rented is at the same rate that I have rented it heretofore for several years, and my lease does not expire until next April, practically a year now.

In introducing the bill I was actuated from no personal motive, but simply for the welfare of the country. I felt that the obligation devolved upon me to introduce a bill because of my position as chairman of the House committee which has to do with legislative matters pertaining to the District of Columbia.

Neither have I any personal knowledge to the effect that profiteering is going on. I know it only from information, just as I believe that 435 Members of the House know it, and just as I believe that 96 Members of the Senate know it. That it is going on is undisputed, for the reason that those who may know it best-I refer to the Real Estate Brokers' Association-each and every one of them, an every other witness who has appeared before this committee, has admitted having either that knowledge or information.

After I had become satisfied that profiteering in rents was going on in the District of Columbia to an outrageous extent I set about to prepare a bill to prevent it. The first two or three drafts of that bill as undertaken by me were attempted along the line of a rent administrator. I take it for granted that my mind turned to that method of reaching the istuation because we already had a Fuel Administrator and a Food Administrator. As I have just said, my mind first turned to that method of meeting it. I was not able to draft a bill which, in my judgment, written along those lines, would cure the evil, and I believe that every bill that has been written along those lines must be a failure.

In the several bills which I first wrote and to which I have just referred, I also attempted to correct the situation by imposing fines upon those who may violate a law prohibiting profiteering in rents. As I wrote them, and after they were written as I studied them and reflected upon them, I became thoroughly satisfied that a fine would not correct the situation, and I think I can convince the committee of the soundness of that opinion.

Not having the printed copy of the bill, I will use the copy as printed in hearing No. 1 for comment.

I do not know that any part of the bill needs explanation to the committee; but since some people seem to have misundertood it, it may not be amiss to refer to it somewhat minutely.

It will be observed that I have endeavored, in drafting the bill, to deal with all property as one class, and then, after that, to subdivide it into minor classes. For instance, you will observe that the first part of section 2 deals with "furnished" property. Another part of that same section deals with property that was either unbuilt or