RENT RACKET PROBE ORDERED IN LONDON

Press, Volume CII, Issue 30191, 24 July 1963, Page 15

RENT RACKET PROBE ORDERED IN LONDON

Stormy Debate Over Rachman’s Empire (N Z.P.A.-Reuter—Copyright) _ LONDON, July 23. The British Housing Minister (Sir Keith Joseph) announced in the House of Commons last night during a stormy debate on property profiteering that a committee had been set up to investigate rent rackets in London. The chairman of the committee is Sir Milner Holland, Q.C., who was a member of the Vassall spy tribunal. A Labour censure motion blaming the 1951 Rent Act for the racketeering was defeated by 329 votes to 232. The House heard how the dead property racketeer, Peter Rachman, used a “heavy glove gang” to amass “many millions.”

The Leader of the Opposition (Mr Wilson) told of fear, extortion, exploitation and bashings in London’s slum areas. He said there was evidence Rachman was “only one of the front men of a much bigger organisation.”

"There is no doubt that the conspiracy is continuing and still using the same methods."

Sir Keith Joseph said Rachman was not punished because no pecple who knew of any crimes i committed or condoned had come forward to give sufficient evidence.

A number of allegations of intimidation in connexion •with property allegedly owned by Rachman had come to police notice in 1959. The persons concerned had been closely questioned but

few persons reported victimised were prepared to say that they had been imtimidated

Ten instances had been referred to the Director of Public Prosecutions, but he had considered the evidence insufficient to justify prosecution. Several cases of brothel keeping had been discovered and successfully prosecuted

In no case was there any evidence, beyond supposition that Rachman was knowingly conniving at intimidation or brothel keeping. Sir Keith J oseph said Police were still watching the situation at these and similar premise? but no recent complaints of intimidation had been received. Compulsory Purchase Sir Keith Joseph said he was having consultations with local authorities, and quicker and easier compulsory purchase by the authorities of exploited property was being considered. The essence of Rachman's offence was that he appeared to have been a racketeer, battening on the London housing shortage since before the 1957 Rent Act. He had not been hindered because at the time he was in full activity the law was no’ effective to prevent gross mismanagement and abuse of property ownership. Sir Keith Joseph said. Mr Wilson said “Polish Peter” Rachman had not paid a penny income tax to the day he died last November.

Mr Wilson said it was only a chance reference to Rachman in the case against Stephen Ward which had brought "this record of extortion and fraud" to light. Mr Wilson defined the "disease of Rachman ism' as buying controlled property • where the rent is controlled often at low levels, by law) at low prices and using every means, legal or illegal, black-

mail or physical violence, to bring about eviction. Under the 1957 Rent Act this had the effect of decontrolling the property. It could then be sold to business associates or independent property ' speculators or let at high rents to people in acute housing need. It could also be let to prostitutes—“because the Rachman empire was a vice empire, too." Mr Wilson attacked the Rent Act. which he said favoured the landlord against the tenant by decontrolling thousands of houses. Mr Wilson said honoured places would surely be found at the Rachman headquarters for certain Ministers He then named Messrs Harold Macmillan, Duncan Sandys, Henry Brooke, Charles Hill—all former Ministers of Housing—and Sir Keith Joseph. If the Ministers had done their job there would long ago have been a ruthless and searching inquiry into Rachmanism, he said. Mr Wilson quoted a former member of the staff of the Rachman “slum empire” known as the “Heavy Glove Gang." ‘Gang Still Working’ This man had said: "We were the men employed to clear unwanted tenants out of houses in the Rachman empire. The gang is still working for its successors." Telling how they dealt with a girl who had been giving trouble, the gang member had said: “A few of the boys called on her, but she locked them out. so they smashed the door down. When they found her sick baby they decided not to throw her out, but they cut off the gas, water, and electricity.” The man had said: “We were paid up to £250 to clear tenants.” Another member of the “Heavy Glove Gang” had said: “This organisation is real big. They can get anything done. They have big money behind them. I am hiding from them now. If they catch me now, they will string me up." Mr Wilson said the happenings he had described, the beatings and the use af Alsatian dogs were also to be found in the overcrowded districts of other big cities as well as London. Mr Wilson said he hoped no words of his would be

twisted by the “Fascist scum that infests parts of London, for purposes of either antiSemitism or other racial hatred.” He hoped there would be no attempt in the debate to set black against white. “Let us follow the honourable example of the courageous men and woman who formed the Tenants Protection Association in Paddington and who have, as their badge, a coloured hand grasping a white one,” he said. Old Sisters Beaten Black and white tenants had equally been terrorised and exploited by evil men seeking monetary gain, Mr Wilson said. “Black hooligans” had been used against peaceful law-abiding white citizens, and thugs with white skins had been used to procure the eviction of peaceful and law-abiding coloured citizens.

“Of course we know there are black landlords who exploit ttieir fellow countrymen and white landlords who do the same,” he said. Mr Wilson gave details of sqme of the methods used to evict tenants and extort money. A defective drain, kept defective for months, had driven one family out by its intolerable stench. Two old sisters had been forced under duress by landlords to pay two months’ rent in advance. Later they had been told the property they had lived in for many years was sold The new

owners had accepted no responsibility for the money the sisters had paid—which was in cash, without receipt or rent book. The old ladies had been asked for more rent. When they hesitated they had been brutally beaten up. Now they lived in permanent terror and would not give evidence. “They fear that knock on the door, a fear which members might think is reserved for Fascist countries,” he said.

Mr Wilson said the Companies Act had been used for tax avoidance or tax evasion. “The House cannot ignore the clear, and in this case, insolent record of tax evasion,” he said

Mr Wilson urged a fulldress inquiry and asked for a frank statement on the “curiously passive role of the police in this shabby record of gangsterism.” A Labour member, Mr Ben Parkin, described South Paddington as “the biggest brothel in Europe." He asked if the Minister did not know a house in Orme Court w’here the cast of a recent West End play was “available." “And you don’t need to have much introduction,” he said. Parkin’s Claims Mr Parkin said people had submitted a mountain of documents to him o n Sunday. The first one he took was one he had been looking for for months. It was headed Alexander March and Company, estate and property managers. 91 to 93 Westbourne Grove. London—the same address as Peter Rachman, Ltd. “Don’t the police know who he is? Doesn’t the Minister know?” Mr Parkin asked. “They are the middle names of Julian Peter Alexander March Phillips de Lisle, who was the gossip writer friend of Anthony Sykes, friend and fellow officer in the Royal Scots Greys, of the Duke of Kent.” At this point, Mr William Rees-Davies (Conservative) challenged Mr Parkin to “repeat these allegations outside" Parliament. Mr Rees-Davies said the House of Commons was being used by a number of people, journalists and others, to bring out ’ certain matters Certain known Communists had set the wheels in motion and had used Mr Parkin as their dupe. The purpose was to try to defame the Government and certain men who had hitherto borne a perfectly good character. Mr Rees-Davies said that Mr de Lisle had told him he was starting a libel action in respect of statements made about him in the London "Sunday Mirror.” Protection Money Mr Rees-Davies said there was a Communist, coloured organisation. called the “Rostofarians," which sought protection money to help tenants against eviction by the "Heavy Glove Gang." Mr Michael Stewart, winding up the debate for the Opposition. said: "We have had several highly respectable people, whose names we associate with famous regiments. famous clubs and famous schools say it is true that they lent money to Rachman on mortgage but that they had no idea of the methods he employed or the way he ran his property. "There is one thing that has always puzzled me—bow people fortunate in possessing wealth education, capacity and facilities to find things out and their wav about the world—people shrewd and sophisticated enough to invest money properly—can still be so ignorant, so naive about something they could have found out by walking down 'the street”