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tion work, and every other line of Government activity, we are compelled to increase our wages in order to hold our employees. Incidentally, we were recently obliged to increase our waiters' wages 41 per cent, and the negotiations in bringing this about were carried on through the Department of Labor. If we are compelled to increase our expenses in such ways as this and, on the other hand, are to be prevented from increasing our charges to meet such conditions, the result can be easily foreseen.

Furthermore, charges by hotels in Washington unquestionably compare favorably with hotels of similar character and expense of operation in other cities, and as we are compelled to pay similar prices as hotels in other cities for labor and materials, it certainly seems unfair that we should have our revenue regulated when similar regulations do not apply to these other hotels.

As you are undoubtedly aware, in the District of Columbia we lack a law limiting the liability of hotels for the loss of property belonging to guests, which they have in practically all of the other States and Territories of the Union. In other words, the hotels in the District of Columbia are practically compelled to insure to their guests, at face value, all jewelry or other valuables which they may bring into the hotel, regardless of any lack of care on the part of the guests in safeguarding such valuables. To perform this service, special police protection has to be furnished by the hotels, and even with this precaution large losses have to be met from time to time-not losses of a few dollars only, but sometimes running into thousands. This places a burden upon hotels which certainly does not apply to rented houses, furnished or unfurnished, and is an additional reason why hotels should not be included in this bill in the same regulations which apply to property above mentioned.

In conclusion, will say that if any mention were to be made of a percentage of increase over the rates of 1916, instead of 10 per cent an increase of not less than 33 per cent would be no more than reasonable, in view of the fact that expenses of operation have increased between 35 and 40 per cent or more.

We submit the above, feeling that we have shown ample reasons for eliminating hotels from the operation of this bill, and we are confident that your committee will recognize the justness of our

claim.

Senator HOLLIS. I am going to ask you these questions, not to probe into your hotel affairs, but to try to get the basis of a fair return on capital invested in large properties in Washington, and when you reach the point where you would rather not answer just

say so.

As I understand it, you rent the Willard Hotel property from the owners?

Mr. HIGHT. Yes.

Senator HOLLIS. And you pay them a certain rental per year?
Mr. HIGHT. Yes.

Senator HOLLIS. They pay the taxes, I assume.

Mr. HIGHT. No.

Senator HOLLIS. You pay the taxes?

Mr. HIGHT. Yes; and insurance and repairs. We pay them a net rental.

Senator HOLLIS. Are you able to tell what net returns the owners of the hotel building get on their investment?

Mr. HIGHT. I think a fairer proposition, Senator, is to say what the return on the complete investment is.

Senator HOLLIS. Do they own the furniture?

Mr. HIGHT. No.

Senator HOLLIS. You own that?

Mr. HIGHT. But there is a certain amount of money invested in that property. But in considering what the property should bring, I think it is fair to take into consideration the total value of the amount invested on that piece of property.

Senator HOLLIS. That is so, looking at it as a hotel proposition; but I am trying to get a fair basis for the return of the net investment, or rather, a net return on the actual investment.

Mr. HIGHT. Well, that is what I meant.

I do not

Senator HOLLIS. Now, I do not require you to answer. know that you want to answer; and I do not want to put you in an unfair position. I would like you, if you can give it to me, to state what net rental the owners of the building get on their investment. Mr. HIGHT. I would not feel justified in disclosing private matters of another person.

Senator HOLLIS. Well, that is all right. Of course, that leaves us to use our own judgment on it, but that is a thing I was interested in. Mr. HIGHT. There is a large investment on that piece of ground, running from Pennsylvania Avenue up to Fourteenth and F Streets. and that piece of property represents a large investment, and the return on it is not out of order for a going business, particularly a business operating 24 hours a day and 365 days in the year.

Senator HOLLIS. Yes; but, pardon me, you take the responsibility and the owners of the property have the property there, and they get a certain return on it, and it is not likely to be any less, and I do not see any reason why you should not tell us what their net return on that investment is. You say that it is not any more than it ought to be. Well, that is a matter of opinoin. If you could give us the facts we could form our own judgment as to whether it is a fair return or not, and from that we could form a judgment as to what would be a fair return on other properties in Washington; but I do

not

Mr. HIGHT. I will tell you, Senator, to tell you the truth, I do not remember exactly what the percentage is: I do not remember the exact per cent; but I am perfectly willing to put it up to the owners of the property to see if they care to have the facts disclosed. That is a fair proposition, is it not?

Senator HOLLIS. I wish you would, and if you can give it, I wish you would give it to the stenographer.

Mr. HIGHT. That is a fair proposition, is it?

Senator HOLLIS. Yes; that is all right. Do the other members of the committee want to ask any questions? If not, that is all. Mr. SHREVE. May I ask a question, Senator?

Senator HOLLIS. If Mr. Hight is willing. I do not want to put him under any compulsion here.

Mr. SHREVE. I suppose that you are willing to answer, are you not?

Mr. HIGHT. Oh, yes.

Mr. SHREVE. Would you mind telling me what is the net income that your company makes on your investment?

Mr. HIGHT. Do you expect that I would answer any such question to you as that?

Mr. SHREVE. I ask you the question.

Mr. HIGHT. Would you answer my questions about your private affairs? Would you expect me to answer questions about my private affairs?

Mr. SHREVE. All right.

Senator HOLLIS. We do not intend to put Mr. Hight under any compulsion. I do not believe that I would want to answer it, myself.

STATEMENT OF MR. CHARLES S. SHREVE.

Senator HOLLIS. Give your name.

Mr. SHREVE. Charles Š. Shreve.

Senator HOLLIS. Whom do you represent?

Mr. SHREVE. I represent the Federation of Citizens' Associations. That is a central body that is composed of the majority of the citizens' associations in the District of Columbia, 29, I think; and I think we have about 37 or 38 active associations. The others, over the 29, are not in the federation.

Senator HOLLIS. How many members do you represent, in all?

Mr. SHREVE. Well, that is a question that is pretty hard to answer. Senator HOLLIS. Approximately?

Mr. SHREVE. I have heard it stated that we represent about 7,500 members, but I do not believe it is that many, because that is counting members who have not paid up their dues, and I think if we said 5,000 members it would be a little nearer to the actual fact.

Senator HOLLIS. Has your association taken any action on this matter?

Mr. SHREVE. Our association has been over this matter very carefully. We act, of course, entirely through committees, and we act on resolutions that come up from member bodies. We very seldom take any action of our own. We pass on the resolutions of the member bodies. They pass them-adopt them-and then the federation acts on them.

In the case of the Johnson bill there have been several resolutions coming up from various bodies, all condemning the bill. The federation has taken it up and gone into it very thoroughly, and about the latter part of February the federation unanimously went on record as being against the Johnson bill. Not against the spirit of the bill, because we all were of the opinion that some legislation should be had in the District of Columbia, but we believed that the Johnson bill did not reach it in the best manner. After a full consideration of the matter we went on record as being in favor of the Tinkham bill—I think it is this second bill, H. R. 10202, which he introduced on February 23, 1918—with certain modifications, and I would like to leave this with the gentlemen with the modifications written in, so that you can see the attitude of the citizens of the District.

Senator HOLLIS. Is it in such shape that it would be useful in the record?

Mr. SHREVE. It is filled out so that it reads as it should read-I mean, as you would like to have it read.

Senator HOLLIS. Then you may file it in the record.

(The bill referred to is here printed in full in the record, as follows:)

Be it enacted, etc., That the President is authorized to make such regulations and to issue such orders as are essential effectively to carry out the provisions of this act.

SEC. 2. That in the interpretation and construction of this act the following rules shall be observed, namely:

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First. The term "real estate" as herein used shall be construed to include lands, buildings, parts of buildings, houses, dwellings, apartments, rooms, suites of rooms, and every improvement and structure whatsoever, and every portion and part thereof, situated and being in the District of Columbia, and any and all estates and rights therein or thereto. Second. The word party or person shall include individuals, legal representatives of individuals, partnerships, joint-stock companies, associations, corporations, societies, bodies corporate, the Government of the United States in all its branches, departments, bureaus, boards, councils, and other agencies and instrumentalities, and all representatives, agencies, bodies, and instrumentalities acting for or in behalf of or employed or used by any and all foreign Governments not at war with the United States, unless such construction would be unreasonable; and the reference to any officer shall include any person authorized by law, or by regulation made in accordance with this act, to perform the duties of his office.

Third. Words importing the singular number shall be held to include the plural, and vice versa, except where such construction would be unreasonable. Fourth. Words importing the masculine gender shall be held to include all genders, except where such construction would be unreasonable.

Fifth. The term "rent" or "rent from real estate" shall include any and all amounts received for the daily, weekly, monthly, yearly, or other periodical or term use or occupancy of real estate, or any part or multiple of any such periods of time.

SEC. 3. That the President is authorized, from time to time, to fix the amount of rent of real estate in the District of Columbia, so that the same shall be just and reasonable, which may now or hereafter be rented, leased, subleased, transferred by assignment of lease or rental contract, or of which a tenancy may be created by any new contract, or which may be used or occupied by any party or person.

SEC. 4. That the President is hereby authorized to appoint a rent administrator, who shall be a citizen of the United States and resident of the District of Columbia, who shall have full power and authority, under the direction of the President, to revise and change and (or) to fix, upon request of any party or person in interest, the amount of rent which can be lawfully charged and received for the use and occupation of any real estate in the District of Columbia which is now or may hereafter be rented, leased, subleased, transferred by assignment of lease or rental contract, or of which a tenancy may be created by any new contract, or which may be used or occupied by any party or person; and any and all orders of the rent administrator revising and changing rents shall take effect as of the date of the application to the rent administrtor: Provided, That any party in interest may prosecute an appeal from any order of the rent administrator to the board of rent appeals created by this act, under and in accordance with such rules and regulations as may be made respecting appeals; and until such appeal shall be decided by the board of rent appeals the order of the rent administrator shall be superseded by the appeal. SEC. 5. That from and after the date of promulgation of any order of the rent administrator fixing an amount of rent in any case, it shall be unlawful and be a violation of this act for any person to contract for or receive a greater rent than the amount so fixed: Provided, however, That in any case in which an appeal is taken to the board of rent appeals it shall be unlawful and be a violation of this act for any person to contract for or receive such greater rent only after the order of the board of rent appeals deciding the appeal.

SEC. 6. That the rent administrator is authorized, under the direction of the President, to make and promulgate rules and regulations not inconsistent with this act for carrying out the provisions hereof.

SEC. 7. That the President is hereby authorized to appoint a board of rent appeals consisting of three persons, who shall be citizens of the United States and at least two of whom shall be residents of the District of Columbia. Said board of rent appeals shall have the power to hear and determine any appeal from any order of the rent administrator authorized under section four of this act, and said board of rent appeals shall have power, upon consideration of such appeal, by its order, to affirm or reverse the order of the rent administrator, and in case of reversal thereof to increase or diminish the amount of rent fixed in the order of the rent administrator, and the amount so fixed in the order of the board of rent appeals shall be the amount of rent which can be lawfully charged and received for the use and occupation of the real estate affected thereby until the same shall be, upon new facts or other conditions, again changed and fixed by order of the rent administrator or the board of rent appeals, as the case may be: Provided, That no such further change shall be made within six months.

SEC. 8. That nothing in this act shall be construed to prevent the renting of real estate by the party or person entitled thereto at such price or prices and for such period of time and on such terms as the parties to the contract or agreement of renting shall agree upon: Provided, however, That the amount of rent agreed upon in any and all such leases, contracts, and agreements shall be subject to revision and change by the rent administrator, from time to time, upon the application of any party in interest.

SEC. 9. That the rent administrator and such agents as he may appoint for that purpose shall have power to summon witnesses and require the production of books and documents, and may administer oaths and affirmations to witnesses so summoned and take testimony respecting the matters covered by this act.

SEC. 10. That any person violating any of the provisions of this act shall be deemed guilty of a misdemeanor and shall be punished by a fine of not exceeding $500 for each offense, which said fine shall be fined and assessed by the rent administrator or, on appeal, by the board of rent appeals, and shall be collectible by the rent administrator in a suit to be brought in the name of the United States in either the Supreme Court or the Municipal Court of the District of Columbia, without regard to the amount involved.

SEC. 11. That if any clause, sentence, paragraph, or part of this act shall, for any reason, be adjudged by any court of competent jurisdiction to be invalid, such judgment shall not affect, impair, or invaiídate the remainder thereof, but shall be confined in its operation to the clause, sentence, paragraph, or part thereof directly involved in the controversy in which such judgment shall have been rendered.

SEC. 12. That this act shall remain in full force and effect until a treaty of peace between the Imperial German Government and the United States shall have been concluded and proclamation thereof shall have been made by the President of the United States.

Mr. SHREVE. Mr. Colladay is chairman of the legislative committee, and I received a telegram yesterday that he was in Atlantic City and that I should get his papers and come here, so that I am not as prepared to talk as he would be. I would like to state this in the beginning, so that the gentlemen will know my point of view in the

matter.

The federation has recently undertaken the task of canvassing the entire District of Columbia and ascertaining how many houses there are in the District wherein the occupants are willing to take roomers. That discussion is just in its infancy at present, and we have secured only a few hundred rooms. I have a war-work committee which has subdivided the District up into units and put women in charge of the units, and we are canvassing every unit.

We are putting women in charge of this work because we find out that they can get access more easily than the men and have a little more influence over the occupants. So far we have secured several hundred rooms, although this is only in its infancy; but the federation has come to the opinion and conclusion that no matter how

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