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Evening star. [volume] (Washington, D.C.) 1854-1972, January 01, 1938, Image 16

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Realtors See Bright Year
Demand for Homes Expected to Grow as
“Slump” Cycle Passes.
THE new year should bring a
period of great prosperity in
the real estate business, in the
opinion of a group of promi
nent Washington realtors interviewed
by The Star. Most of the realtors
were optimistic in their view of what
the future holds in store for real es
tate here.
Several expressed the opinion that
the current business recession is mere
ly temporary, a breathing spell and
forerunner of a period of very great
activity. One prominent builder, Wil
liam C. Miller, a past president of
the National Association of Real Es
tate Boards, declared that the people
have lost faith in the Federal Govern
ment, and that business will improve
when the Government maintains a
"hands-off" policy and servants of the
people stop “unwarranted attacks upon
business.”
The statements of the realtors fol
low:
Claud Livingston, president, William
H. Saunders Co.—We are preparing for
a good sound business year in real
estate. I believe the present unsettled
conditions will prove of short dura
tion. and that
many of the peo
ple who have
been hesitant to
buy real estate
will enter the
market in 1938.
There are a
large number of
people now living
in cramped quar
ters, renting quar
ters with which
they are not sat
isfied. These and
many others will
decide to pur
chase homes dur
Mr. Livingston.
ing the ensuing year. Taking all fac
tors into consideration, the year should
prove a prosperous one for business.
* * * *
Ben T. Webster of Boss & Phelps
and former president of the Washing
ton Real Estate Board.—Let as for
get, if we may, that the business of
this country is in a so-called "slump"
and that the real estate business here
is in somewhat
the same state of
unrest. Why not
look forward to
next year as being
& banner year,
and right now do
something to as
sist those with
whom we come in
contact to regain
In some measure
their oldtime con
fidence? So much
depends upon our
state of mind.
Of course, it is
difficult to have
Mr. Webster.
a cheerful outlook for the immediate
future without a satisfactory amount
of new business being put on our
books. However, this country is filled
with good American dollars waiting
to be put Into some form of real es
tate investment.
It may be hard to predict what
the future of any year has in store
for us. Nevertheless, let our keynote
for 1938 be courage, amplified by
cheerfulness confidence in our own
profession, co-operation with our fel
low realtors, and it may be the new
year will have many favorable sur
prises for us.
* * * *
W. C. Miller, former president Na
tional Association of Real Estate
Boards—When a child is arfaid of
the parent, it has a bad parent.
When the people fear its government,
it has a bad government. Being a
parent is a per
fectly natural
and desirable
thing, and gov
ernments are
formed because
men will them to
be formed; but
when a child dis
trusts its parent
or when a peo
ple distrust its
government, there
is something
radically wrong
in the relation
ship. When roy
alty can adopt
Mr. Miller.
the motto, “I Serve,” democracy or t
republican government should not at- '
tempt this motto in reverse. c
Unwarranted attacks on business by '
servants of the people, who because 1
they occupy an office of political fa- ‘
voritism no longer recognize the sov
ereign people as such, are unjustified
whether that attack be directed against 1
a pants presser in New Jersey, a chick- J
en butcher in New York or an in- *
dustrial giant of the proportions of 1
the late Andrew W. Mellon. The J
American people have created a
Frankenstein whom they fear and dis- 1
trust and until this Frankenstein '
learns that it can be destroyed by the 1
power which made it and acts accord- ’
ing to its destiny, fear will stalk in <
the land. Co-operation between Gov- '
emment, business and labor is es- '
sential to the continuance of our form <
of Government. Whether either two i
of these align themselves against the 1
other, the two are bound to prevail <
and the third will be destroyed. 1
Progress does not consist in tearing i
down, but in building up. Abuse of 1
the power of any one of these three I
should be corrected, and time and ]
evolution will correct these abuses. i
The power of the Government to :
tax unreasonably is the power to de
stroy. The power of capital to extract
exorbitant profits through monopoly
and by the destruction of free com
petition is the power to destroy. The
power of labor to extract higher prices
than Industry can afford to pay is the
power to destroy. The people who
have created a government must re
strain their government and their
government under which capital and
labor prosper must restrain these two.
If there be monoply in the land let the
proper authorities and the constituted
law proceed to break the monopoly
and not merely talk about it in the
newspapers, and if labor is abusing Its
power, let the Government restrain
labor and not encourage its lawless
ness in an attempt to make political
capital.
The year of 1938 should be a year
of prosperity, but this prosperity will
be measured largely by the effort of
Government to live within its budget
and be a proper protection of both
capital and labor. We should de
mand for the future that Government
remove itself from legitimate private
functions, that taxation be decreased
and that Government should proceed
under a balanced economy, with
proper regard for the rights of all its
citizenry. Only in this way can we
progress to the destiny which should
be America’s.
* * * *
Waverty Taylor, prominent heme
builder—In this period of political
and economic uncertainty, it is Im
possible for even the expert to fore
cast with accu
racy when the
economic trend
will again re
sume the upward
march that is as
inevitable as day
follows night.
In my judg
ment we are now
scraping the bot
tom of a minor
cycle downswing
in the upswing
of the major
business cycle
and I believe
that business in
Mr. Tarlor.
1938 will gradually Improve, gather
ing momentum as the year progresses
and will close with definitely higher
price levels.
The present local real estate mar
ket, with the rent index still 11.8 per
cent below the 1923-5 average, with
land and residential construction
costs still relatively close to the de
pression low and with the exceedingly
favorable financing terms now avail
able. should impel every Washington
tenant reasonably certain of con
tinued residence here, as well as
those who have outgrown their pres
ent homes, to purchase a new home
now and reap the great social and
ecnonomic advantages of home own
ership under conditions that may not
be as favorable again in a lifetime.
* * * *
A. C. Houghton, president E.
Quincy Smith, Inc.—Washington City
may look forward with confidence to
a new year of progress. We cannot
expect a boom
condition, nor
should we en
courage one, but
a gradual and
sound advance
may be antic
ipated with a
greater confi
dence in the sta
bility of future
planning.
It is reported
the Capital City
ranks fourth
among the larger
cities of the
country in vol
Mr. Biuhton
ume or construction over the past
year. In spite of this building activ
ity, there remains a very healthy de
mand for new homes, which will im
prove during the year 1938. Ample
funds are available and awaiting in
vestment on terms previously unheard
of and at low interest rates. Every
thing is being done to encourage
home ownership and stimulate the
building Industry. The passing of
the administration's housing bill by
Congress is a step toward this end.
It is essential, however, that the good
which may come from this bill be
preserved by those who have it in
their power by not encouraging what
might be termed "overselling the
public.’’
* * * *
Francis A. Murray, first vice presi
dent. Washington Real Estate Board.—
There are many reasons for an op
timistic outlook for the real estate
business during
1938. Washing
ton stood near
the top In volume
of private con
struction this
past year. That
the Census Bu
reau estimates
the population of
the District of
Columbia to be
627.000 is a factor
that should con
tribute to a natu
ral real estate
growth to keep
pace with this
Mr. Murray.
population increase.
Newspapers report that the ad
ministration is convinced that changes
should be made In the present Fed
eral revenue laws, and when this is
accomplished, business should rapidly
recover.
The flow of money from private
sources into local real estate continues
to increase, indicating the availability
of funds for sound investments. There
was more money placed in first trusts
during 1937 ($80,697,023) than in any
one year since 1929.
* * * *
Lewis T. Breuninger of L. E.
Breuninger & Sons, Inc.—Regardless
of the *t ->d of business elsewhere in
the cou try. Washington should move
forward in the
coming year.
With each pass
ing year the Na
tional Capital as
sumes a greater
i m p o r tance in
our national life.
People every
where are be
coming “Wash
ington conscious.”
In addition, the
Government has
begun to center
its attention on
housing construc
tion and is pre
Mr. Brennlnirr.
paring to aid with more liberal financ
ing, particularly in the field of lower
A Community of
Exclusive Homes
<&reentotcf)
Jforest
Each individual home has been
literally fitted like a Jewel into
its picturesque setting—enhanc
ing Nature’s beauties with archi
tectural genius It Is a sublime
picture.
Now Open for Inspection
Three Different Types:
Georgian Colonial
Williamsburg Colonial
and English Colonial
Furnished Exhibit Home
7210 Hampden Lane
Opart Daily Till 9 P.M.
To Inspect: At Bethesda Bank
turn into Old Georgetown Hoad.
Left on Wilson Lane to Greenwich
Forest.
*&> CAFJUT2 hm
Architects—Builders
Chart Shows Capital Building Trend
DOLLARS JAKI. FEB. MAR. APR.MAYJUN. JUL. AUG. SEP. OCT. NOV. DEC
4?00000 ___ I I _
3 800 000 _
3 600000 _!__'
3 400 000 __j, /_T~_
3 200000 _f\J_ _
3000000 _/\T~X _~A\~_
2 800000 _>__lS—JjL_J\l\_~
2 600 000 _7-_IZZaQ_l-~-¥ ' _y\ _
2400000___ / r~_/ "^1936
2 200000 _j I _l\\/_1
2000000_r—_7__^X / _
1800000_IZ_j__x7 y y~_
1600000 -ZI —f^—1_'3T_
I 400000 _/ \ |__
I 200000 _!_y935
1000 000 _JZ_1937
800000 __
600 0001 r I I I I I I I I I I 1 ~
How the month-by-month totals of private construction in Washington during 1937 compare
with the corresponding periods of 1935 and 1936 are shown in the above chart. Private building
in the city, as indicated by permits issued, reached a total valuation of $32,447,040 during the
past year. In 1936 private building here was valued at $31,598,035, which, in turn, was nearly 50
Ser cent over 1935. In the early part of 1937 building activity was great, but it dropped away in
te last half of the year.
priced homes. This is certain to
stimulate interest in home buying this
coming year and will be a large factor
in making for an active market.
The slowing down of real estate
business in Washington in the last
quarter of 1937 is but a temporary
condition and already is being over
come. I believe that as the year 1938
advances, the real estate market will
become progressively better with each
succeeding month.
Let me say in conclusion that Wash
ington is still a small city, compared
to other world capitals. Because of its
position as the capital of this Nation
and its importance in world affairs
Washington is certainly destined to
develop and expand rapidly in the
coming years.
* * * *
Charles J. Rush, executive secretary.
Washington Real Estate Board—Real
estate activities in Washington and
its metropolitan area during 1937 con
tinue to place this section among the
leaders. Figures compiled by Federal
agencies as wen
as private groups
all confirm the
fact that Wash
ington Is a bright
spot on the na
tional real estate
map.
A brief analysis
of the real estate
record in com
parison with 1936
shows that the
local market has
kept pace with
the good record
of the previous
year.
Mr. Rush.
me number of deeds recorded
j (11 >2 months of 1937) this year was
I 14.831. During 1936 there were 14,
; 763.
Deeds of trust recorded this year
j amounted to 12.456 and the amount
S secured by these instruments totaled
$81,565,657. For 1936 there were
12.687 with a total of $79,173,206.
Another item confirming the fact
that conditions are good locally and
that investors in local real estate have
been generally able to finance their
property purchases in a sensible way
through the local lending institutions
is the small number of foreclosures.
“RENOVIZING” IS TOPIC
Follin to Address Washington
Building Congress.
James W. Follin, chief of the home
building service section of the Federal
Home Loan Bank Board, will be guest
speaker at the luncheon meeting to
be held by the Washington Building
Congress on Monday at 12:30 in the
j Lafayette Hotel. The subject for
1 discussion at the meeting will be
j "Renovtzing.”
Mr. Follin was manager of the
renovize campaigns in Philadelphia
and Rhode Island and later was sec
retary of the Construction Code Au
thority. Members may invite guests
to the luncheon.
-•
Building Review
(Continued From Page B-l.)
The tendency to move to suburban
sections was again strong.
Rentals Approximately Same.
Apartment rentals at the end of the
year were approximately at the same
level as at the beginning of 1937.
There was a slight rise in the early
months which was offset by some
recent drops. However, rentals in the
Capital are considered high when
compared with other large cities of
the country.
Building and loan associations in
the District had a good year. These
institutions increased their assets by
approximately $7,000,000, according to
figures supplied by the District Build
ing and Loan League, which are not
complete. Almost all of the associa
tions were forced to turn away money.
Year-end figures show a total of 108,
000 investors in the Institutions, an
increase of 4,800 over 1936. They
made loans for home ownership dur
ing the year amounting to *31.000,000.
Their total assets at this time are
approximately *120,000,000.
Total Valuations.
Here are the total building valua
tions for each month in the District,
with the December figure estimated:
January, *2,460,615; February, *2,
For Sole
3122 0 St. N.W.
j Georgetown
This house successfully combines
the quaint charm and distinction of
the Eighteenth Century with the
most modern Holland air condi
tioning. oil heat, rock wool insula
tion of all roofs, etc.
There are four master bedrooms,
two baths; a maid's room and bath,
first floor lavatory and coat closet,
modern kitchen, fireplace In every
Broom. Original woodwork, large
^9 Southern Garden.
S/iown by Appointment
Gilliot fir Company
Agents
2827 Dumbarton Ave.
N.W.
Tel. Dee. 2770
MODERATELY PRICED, these Hew Homes
represent one of the best values ever
offered to discriminating Home buyers.
I ....■■■■■. . ii 11« m mi
SSETaSW —« Homilton St. N.W.
7 ROOMS—2 and 3 BATHS
DRIVE OUT NEW HAMPSHIRE AVE., TURN RIGHT AT HAMILTON ST.
Furnished by Hutchison's—Drapes by Ltgon.
D. J. DUNIGAN, INC
Ttwtr BuildingNAHonal 1265
988,985; March. $3,397,635; April,
*2,979,150; May, *3,573.385; June, *2,
541,370; July, *2,560,405; August, *3,
417,515; September, *2,175,990; Octo
ber, *1,969,765; November, *2,163,225,
and December (unofficial), *1.200,000.
The following table shows the year
by-year value of construction since
1910;
Estimated
Year. value.
1910 .*16.531.000
1911 . 14,700,000
1912 . 16,800,000 j
1913 . 10.200,000 I
1914 . 9,500,000 '
1915 ._... 8,500,000
1916 . 13,400,000
1917 . 15,600,000
1918 . 10,100,000 !
1919 . 20.300.000 1
1920 . 19,500,000
1921 . 24.400,000
1922 . 49,000,000
1923 . 50.500,000 !
1924 . 46,800,000
1925 . 64,610,513
1926 . 63,499,330
1927 . 36,321,450
1928 . 51,255,080
1929 . 36,129,765
1930 . 28.790,577
1931 . 30,821,649
1932 . 11,282.145
1933 .__. 6,636.590
1934 . 9,581,530
1935 ._. 21,389,348
1936 . 31,598,035
1937 . 32,447,040
GOVERNMENT LOSS
UNDER F.H. A. CITED
$6,527,367 Figure Represents
Only 1.164 Per Cent of Total
Amount Insured.
Out of (560,598,118 of moderniza
tion and repair loans insured by the
Federal Housing Administration, net
losses sustained by the Government
up to December 1 had reached a total
of only (6,527,387, according to an
announcement today by Administra
tor Stewart McDonald. '
This represented a loss ratio of
1.164 per cent. The total number of
loans Insured by the Federal Housing
Administration under the moderniza
tion and repair program was 1,450,
656. In addition, it is estimated that
the campaign sponsored by the Fed
eral Housing Administration gener
ated several times this amount of
modernization and repair work which
does not show In its own records.
It should be borne in mind that
the Federal Housing Administration
lends no money. The modernization
and repair loans were made by banks
and other private lending Institutions
and were insured by the Federal
Housing Administration.
BUILDING DRIVE ASKED
Asserting that home building on the
"community plan” by private enter
prise can supply the missing link in
national recovery. Don A. Loftus, pres
ident of the Home and Community
Builders’ National Association, today
Issued a final call to leaders In the in
dustry to join In launching a ”$2,000,
000,000 building campaign” at the as
sociation’s convention here January
11, 12 and 13.
extends best wishes
for a
prosperous
5untt fear
to its neighboring communities
and the following list of
Garden Home owners
AHERN, FRANCIS
BENTON, WADE T.
BIGGS, JOHN, JR.
BISHOP, HOWARD W.
BRIGHT, KEITH L.
BROUGHAM, NETTIE I.
CAMERON, ADELINE S.
COLEMAN, WILLIAM T.
DARBY, CHARLES A.
DODSON, EDWIN N.
DREITZLER, EARL E.
EMERY, MARY U.
FINERAN, EDWARD V.
HAYDEN, C. EDWIN
HORNE, H. B.
JONES, KAY
JONES, W. MILBURNE
KAFKA, JOSEPH W.
KENNINGS, GEORGE S.
LA QUAY, ROBERT R.
McCAFFERTY, MARIAN ST. MAUR
McCarthy, frank l
MILES, WALTER, JR.
MORRIS, STEWARD G.
NOLAN, GEORGE D.
OWENS, WILLIAM, JR.
PRENTISS, HARLEY W.
ROBINSON, RAYMOND B.
ROCCA, D. CARROLL
RUSH, GEORGE W.
SHARP, ALBERT D. -
SEHORN, HALE F.
SMITH, DONALD A.
STRAUGHN, JAMES B.
STUDEBAKER, GLENN W.
VOSE, OWSLEY
WILLIS, W. STANLEY
WISE, ROBERT D.
YOUNG, C. WALTER
JAMES WILSON
PretiAent
THOMAS E. CLARK
Vice President
WM. WALTER SMITH
Treasurer
*T5i«W$o^!o)d CemnianHy"
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R. ALBERT COMPANY, ATCHISON & KELLER, C. TAYLOR CO, W. R. WINSLOW CO,
Electric Light and Power Plumbing Installation Bricklaying Paints
Installation
1324 H St NE 1416 Irving St NW. Washington, D. C. 922 New York Ava.
RINALDI COAL CO, LASTIK PRODUCTS CO, SHRYOCK LUMBER CO, HERMAN POLONSKY,
Heating Installation Calking and Glasing Compound Lumber slag Roofing
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HIRES TURNER CO, HUDSON SUPPLY CO, GENERAL ELECTRIC SUPPLY CO, EDW. LEE HUFF,
Glass Building Material Electric Motors and Supplies Stucco and Cement Work
Rosslyn, Vo. 1727 Pa. Ava. N.W. 1330 New York Ava. N.W. 2602 Nichols Ave. S.E.
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