Evening Star Newspaper, October 27, 1923, Page 17

Babson Is Opposed to Purchase Of Iron and Steel Stocks Now Econoniist Reviews Recent Decline in Great Industry—Neither PricesNor Pro- duction at Low Point Yet, He Asserts. ' BY ROGER W. BABS Bpecial Dispateh to The Star. WELLESLEY MILLS, Mass., October 27.—The steel industry gives us both a barometer and a thermometer of business. Steel prices tend to follow general business—to act as a thermometer in | measuring roughly prosperity or de- pression. During the early months of this year business was active and the price of steel billets advanced 30 per cent from January to April. It was evident that the improvement had been overdone and business took to caution and conservatism—a con- dition still prevalent. Sees Prices Going Lower. Iron and steel prices very natu- rally followed. For the past six months production has dropped and prices have been steadily declinin Despite: the readjustment to date, I do not feel that steel prices or pro- duction have reached the low point. 1t should be borne in mind that dur- ing the war period our producing capacity was greatly stimulated. The actual output of steel in 1913 was about 31,600,009 tons, with a producing capac- ity of probably 35,000.000. So far this year. the steel industry has operated on a basis of more than 40,000,000 tons annually, a rate materially over the actual output of recent years. As a matter of fact, the abnormal stimu- lation in steel output started in August, 1921 In 1922 total output jumped 75 per cent over the previous year, while production during the first nine months of this year stands over 60 per cent above the same period of last vear. However, the main point is. if this country were called upon we could prodube steel 56,000,000 and 58.000,000 tons annu- ally. Even today, at the current rate of 40,000,000 tons, we are producing more stecl than we can consume and export. Nor should we lose sight of the fact that our European neigh- bors expanded their steel-producing capacity to cope with abnormal war needs. v Drop in Unfilled Tonnage. The underlying situation is well defined by unfilled tonnage—the barometer—which, from the low in February, 1 of 4,141,000 tons, climbed ~ with little interruption to 7.403,000 tons in March of this yea: Today, six months later, unfilled ton- nage has dropped to approximatel 5.000,000. General business as reflected in the Babson chart dropped to 10 per cent below normal. My main thought is that although no radical de- parture from the present price level is Indicated, a survey of actual conditio shows that the weight certainly on the bear side, as it is, in most lines today. On the financial side we find fur- ther evidence of this slowing up in the amount of .recent refinancing which has been undertaken by some of the newer companies, During pe- riods o record-breaking business new financing, it is true, may be re- quired by the old conservative manu- facturers for justifiable expansion as well as the new ones. It s a char- acteristic sign of the beginning of a sharp competitive period, however, when many new offerings of funded debt with specially attractive prom- ises appear in connection with co porate names that are new to invest- ment lists. Restraint Now. Evident, at between | |set to the street, limiting new business to established capacity and reducing indebtedness rather than taking on more overhead. Signs of this stage of business have not been lacking in the iron and steel industry this year. The wisdom of the restraint,shown by the larg est factors at the peak of the de-, mand carly in the year now is aps parent. Already certain of thelr more aggressive new _competitors are falling by the wayside. A.few of the seasoned concerns which_have consistently turned sur- plus back into equipment without increasing capitalization offer sound | bonds for Investment. - This is as far |as the conservative Investor should go at the present time. i Success In Investment Buying. Those who would purchase iron and steel stocks as a speculation must weigh the outlook with the un‘ | derstandini of the position which they accept as stockholders—that of | merchandisers in the _commodity. Success lies in buying when business is slack and the commodity” low, to sell when busfness is brisk and coms modity prices high. From this test it must be apparent that it i mot yet time to look for attractlve pur: chases in iron and steel stocks. | (Mr. Babson, the noted stitistician and econ- omist, will continue his special articles on business and finaneiul conditions in uext Sat- urday's Star.) SMALL HOUSE GROWING | RAPIDLY IN POPULARITY | Privacy and Elimination of Serv- | ant Problem Lure Many From ! Apartments. | i The small house, whether a six or eight room two-story affair or a three-room bungalow, will continue to grow In favor—it has so many good points. If it is small and inexpensive enough it gives an opportunity for the apartment dweller to have .the | privilege of a real home, not merely a place to eat, sleep and listen to the neighbor's phonograph. = Costing less { than a larger house makes it possibld for any one with the home-creating instinct and the necessary few thou- sands or credit for monthly payments | to_ become a property owner. | It is worth reminding the modest | builder, who perhaps feels a trifle | apclogetic among more pretentious | neighbors, that clever planning will enable him to design a little house | that can be enlarged as circumstances permit. The quaint charm of many English dwellings is often attributed to the picturesque additions that have been made to them from time to time, Wings pushed out on one or several sides of the main bu:iding, perhaps at an angle, are but a suggestion of what can be done when more rooms are needed. | The little house may even eliminate that modern tyrant, the servant, for with_clectrical appliances daily be- { coming more practical, it is quite | possible for the home maker to run | the domestic machinery herself and | yet have time left for other duties | ond pleasures. |, A narrow house looks much smaller than one with the width of the house and 'this must be The absence of any new financing | taken into consideration in planning. or concerns at such noticeable. Tt is nore experienced erving resources, A rare opportunity to purchase an individually built detached brick home in Section “Two” of Old Chevy Chase, Md. Conceded to be the most exclusive and | widthways, [ pergolas or trellises. The effect of size is achieved often by merely spreading the rooms out or by adding porches, Thisx building, occupied for many years by the Dumbarton Club, tory School after December 1. It wax sold for the Weaver estate, by the neixhborhood of $100,000. The property oecuples an entire block. at a eoxt xald to he COVERS FOR RADIATORS | ADD TO HOME BEAUTY| | Decorators Devise Ingenious and| Practical Methods to Conceal | Heating Apparatus. | Builders and decorators these day are oxerclsing great ingenuity in con- cealing the radiator. There are sev-| eral ways of doing it. Portable cov-| ers are available that fit radiator. There are three-sided af-| fairs with a top shaped ke radiator itself. The back is entirely open o that the cover casily slides over: the whole thing, and may be taken oft easily for cleaning. | These portable radiator cov really llke furniture, and may finished to match mahoga nut or white and tinted In addition to protecti the walls, these covers provide places for books, statuary or flowers, and con-| tribute another decora touch to the intimacy and personality of the over enam & { home [ Radlators are ordinarily seen under window and in this location a| window seat Is effective to keep it out of sight. Deflecting lining should be used to direct the heat into the | room and not let it go unguided up | the window seat. | Instead of the window seat It is also satisfactory to have a taller ar-| rangement which mounts to a wide | window sill t forms a shelf on| which flowers or other things may be | placed. - | Whenever the radiator covered is flush with a wall or window seat, so | that the air cannot be emittcd from a grill at the top, a curved lining of | tin or asbestos will lead it out| through the front. The matter of circulation of the heated air cannot be overstated. If the heat is closeted | within the radlator cover so that It cannot come out into the room the decorative value has overstepped its| proper bounds. the WEEK SHOWS DROP the | the | ! northeast; $5,500 % to become the home of the Devitt Preparn- . McKenney Berry, to Dr. George R. Devitt, FILM MADE OF OFFICE BUILDING CONSTRUCTION of Erecting Thirty-Two-Story Structure in Chicago. ,A departure which may prove an | important innovation in connection | with skyscraper construction fs being introduced in Chicago. A mov- ’Inu pleture 'is belng taken of the progress of a large new office struc- | ture, and when the film s completed it will be possible within the space |of twenty minutes to witness the | entire process of the creation of a | thirty-two-story office building. The building peing filmed is the S. W. Straus & Co. buiiding now going up on Michigan avenue. To show the building from the be- IN BUILDING WRITS $52,200 Total Value of Per- mits Issued for Construe- tion in District. Bullding permits fssued by the Dis- trict government for construction in the District showed a falling off dur- ing the week just ending. The total value of the construction authorized | To, e building ] ¥ i tisn " | gloning until the outside of the struc- is estimated at $52,200. The list fol- | {upe is entirely inclosed with brick lows: | and Indiana limestone: a special mo- T. A. Hillyard, to repalr 1832 Tth|tion pleture cage was constructed street; §1,200. _ |in_Grant Park. s Sy % When the pictures are finished they Parsons -and ‘Hyman, to repair Tth ! | will be to engineering schools and T streets northeast; $12,000. | in various parts of the country for M. Molowitz, to build house, 5th and | the_Rurpose of llustrating butlding Longfellow streets; $3.800. nstruction methods. They will also used in architects’ and contrac- R. V. Snyder, to erect garage, 1220 | tors' conventions for the purpose of Morse street northeast; $1,200. jRuoring Mazo Brothers, to build, 39 M :treet! 3 the latest construction northwest; $13,000. | Edward E. Richarason, to reparr| FIVE NEW HOMES SOLD. Congress Heights Baptist Church, | o — Sales_of new homes were reported J. Dunigan as follows: Brothers place and Esther place In Columbia Park, 742 Ingraham southeast; $10,000. | by D. John Seater, to build, 2643 Myrtle | sireet to James J. McAuliffe, and 734 avenue northeast; $5.500. | Ingraham street fo Earl O. Baker, W. P. Irwin, to bulld, 802 47th| 1In Petworth, 1323 3d street to Hor- | . W 32, Va street northeast and 4546 Eads street | acs, vesoic 5" Biase ann 215 Farnim | street to George Bean. Picture Will Show Whole Process | I WINTERBULDING My New Factors Have Vital ATV UREED| Zeerine on 1924 Construciion Advantage in Early Beginning Pointed Out by Construc- tion Council. Professional Investors Find Numerous Elements to Discount; Early Man to Be Best Served. Professional building investors find | resumption of the federal building pro- entirely new factors to discount in |®ram. It is planned forthwith to budget weighing the yield value of 1924 con- | }2:“};&""“ m””;m”ddnl'ars annually struction : | rnment building programs, #rticdo :::icm 50 far in advance | but there were still grenter appro- ¥ season, says the Dow | priations set aside a or more Service. | ago. when, because of lack -of labor These factors are numerous. Labor | were deterred. Fortnesmime acius @eficiency, the most disturbing factor | ities of hitherto ~deferred - foderal of the prospective building market of | 1'”’.”";1“ programs ma be expected S Mas Beo % 0 be financed from these funds. 9 s been leveled to a parlty "~ pyujlding material production prob- with newer elements, such as bulid- | ably Dushed as near to manufaco ing material supply, trade ‘practices, | turers’ capacity this year as it has - er been. Cement manufacture in revision, introduction of new mate rials, like synthetic brick and the in- | fluence of foreign material upon | eptember, for example, eclipsed all previous records for any previous prices and upon building construction | methods. | month. The total was 13,000,000 bar- Investors have become impressed rels. The nine-tenths productfon of this gle building material was 101,000,600 s greater than for any entire year's production prior to with the fact that the early man in the 1924 construction market will be | the best served, not only from a construction point of view, but from 1922. There is nothing ahead, as far as ry standpoint. | est phases of the trend of | To avold a possible bullding crisis the American Construction Council is urging that construction projects be begun as far as possible at an early date to derive the advantage of the usual slackening of demand for ma- terials and labor during the winter. “In the spring of this year the council advised the public of the de- sirability of curtailing construction work so that its volume would not be so great that the labor and material available could not possibly carry through,” says the council. Had the larger volume been undertaken it would have resulted in raising the cost of construction to prohibitive prices, which would have caused a break such as occurred in 1920. This happlly has been averted. The result of this advice, together with the co- operation of others, was that a large volume of construction work then un- der contemplation was not under- taken and the prices of construction did not rise to the breaking point. + Longer Working Year, “Having in mind the great desir- ability for a longer working year in the construction industry, the bene- fits of which would accrue to the publfc, the contractors, the manufac- turers, the transportation companies and the various trades which would be helpful in reducing the seasonal peaks of construction activities, which are conducive to increased coste, and further recognizing the general te dency at this time of the year to de- fer building projects until spring, the American Construction Council suggests that cognizance be taken of the fol- lowing: “Maintenance, alterations and re- pairs of existing structures, through long custom rather than through any reason, are carricd on/during that portion of the year when new con- struction is most active. It will be in thoe interest of all concerned to do such maintenance work as is pos- sible during the closed season, and | now is the time for owners and man- agers to give this full consideration. Mixcellaneous Construction. “Miscellancous new construction that should not take more tian four to five months to complete can f:l'dl-} narily be taken on in the fall and| carried under more advantageous conditions, which will result in satis- | faction ali around, at the same time | giving continuous employment to! Workers who might otherwise be| idle. i “There appears to be a continuing] demand for construction of large! projects. It is perhaps too early to, predict that this will result in an| abnormal demand for labor and ma- | terials next spring. Yet there seems | to be such.a trend. Therefore, until the season is more advanced and this can be determined more definitely, | the situation in many localities suj gests caution, as indicated in the re- port of the American Construction Council of last spring. However, such necessary construction as has| to be done should be arranged for, now and the preliminary work un-| dertaken at an early date, 80 as ml building financing interests can see, that will interfere next year with the free flow of building funds. Cam- % | paign fervor may warp it somewhat building and of building material [as the 1924 autumn approaches, but cupply In 1924 include the govern- | by that time the financing for next ment's intention, backed up with |year will have been practically com- President Coolidge's approval, for the | pleted. The fact that stucco can be given | e any desired color adds greatly (o its Use | Bays Head Players to Use Audi- as an architectural material. The pro- ; duction of a pure white Portland ce-| torium, Which Will Be Ready ment was the first step that made pos- | stble the light and delicate tints. Not First of Year. only can stucco be made almost any | 4 L desired color, but it can also be tinted| A theater is bLeing constructed in orlpalnud with m;m‘l,}w ‘{m;fl-" -‘goflor the Wardman Park Hotel as a part colors come in red, blaek, buff, brown 2} 5 o R late ailioltve grosh:, anfliare ef-| O ;2 I0UVGENy, for theThetterment fective with brick work. lof drama, and, according to an an- | “The coloring of rough .cast stucco nouncement by Harry Wardman, it { presents few difficulties, it seems, and |will be used by the Ram's Head adds much to its effectiveness. The|pi,vers, a Washington organization. The new theater will adjoin the color lends a rich warmth that ordiary gray stucco does not possess. In smooth-finished stucco the color follows | present swimming pool at the hotel, i the trowel or float, giving a surface of | petween D and B wings. The ne | somewhat irregular or mottled appear- | oot o the players will be ready ance. To many this irregularity and Variation increases the interest of the |for occupancy about the first of the year. finished wall. * Massachusetts Park Washington’s most beautiful residential section of detach- ed homes. Containing seven million feet of forest-covered land, with six miles of improved streets. Includes what remains of “The Triangle of Increasing Values” between Connectieut, Massachiisetts and Cathedral avenues (Woodley Rd.). Over five million feet of land snld. Over 130 homes from $15,000 to $200,000 built and under con- truction. Wooded villa sites, lots and central and side hall brick homes, with lots from 50 to 115 feet front—Park Office, 32d and Cathedral Ave. (Woodley Rd.). Middaugh & Shannon, Inc. | Woodward Building, 15th and H Sts. Establixhed 1599 gain the advantage of fall favorable Teriods for progress betwen inter- mittent Interruptions caused by in-| Clement conditions and, in addition, | relieve as much as possible the con gestion that may come in the spring.” “Located in Sections Noted for Their Fine Homes and Quiet Atmosphere” We are Confident That a Thorough Inspection Will Convihce You of Their Real Worth OLD CHEVY CHASE restricted locality of the capital's nationaly known suburb. Only One Block East of Conn. Ave. OPEN FOR INSPECTION ALL DAY SUNDAY lgl:burbA 18 EAST BRADLEY LANE. ‘Wonderful Lot 120x120 " This beautiful home property bullt for the owner, is comparable to the finest residence - in Chevy Chase. ‘Tapestry brick center hall plan house; beautiful oak floor: An outstanding value at the price asked—assuring {ts immedi: Might particularly appeal to members of the Chevy Ch‘ase and cmumwfialmumry Cl.;:fin..m' exceptionally spacious livi handsome open fireplace; also French doors to large covered 2emen(‘sidéngo;gg¥nl';{'(: SPLENDID PORCHES; TWO COMPLETE TILE BATHS WITH SHOWEBISI two wide roomy enclosed sleeping porches (Southern exposure); also first floor rear porch across entire house; attic with mald’s room and conveniences; SPECIAL FEATURES: rean stairway; screens and weatherstripping; numerous closets; Pittsburgh instantaneous water heater: hot-water heating plant; choice electrlcni fixtares; slate roof;: BUILT-IN HEATED GARAGE. The lot, 120x120, is well graded, has numerous shrubs, evergreens Ampie space for a tennis court. EpesN end Sovernl trees. CLEVELAND PARK 3525 35th St. N.W. Corner of Quebec St. Side driveway to garage. Go out Conn. Ave. to Porter Street . West on Porter St. to 35th St., one block North to Quebec Street ; It parque! Lo ROOMS; THREE BATHS (FOUR MASTER BEDROOMS SECOND F side: maid's quarters and storage rooms’ FEATURES: atorage tan! New and ready_ for bccupancy. A delighg?ull'y situated’ corner-brick ‘hood: Highest quality workmanship and finish throughout. ¢ white oak floors throughout; all windaws 4nd doors screenec CLEVELAND PARK Located 1Y/, Blocks West of Conn.” Ave. At One of the Highest Elevations Around Washington 3031 NEWARK - STREET Splendid Lot Having 90-Ft. Frontage is of the center hall entrance type; contains wide stairway and beautiful try floors throughout first floor and second floor hall. There are TEN LARGE AND TWO BATHE ON LOOR); thiree open fireplaces; sun porch; double porches—front and attic; ample. closet space. SPECIAL New “NO-KOL”-vapor heating plant with 500-gallon underground ; Pittsburgh heater; BUILT-IN GARAGE FOR TWO, LARGE CARS. t is beautifully laid out in an.abundancé of shrubbery, flowers and trees. Cantains’ six BOSS & PHELPS Members of Washington Real Estate Board s Exclasive Agents A very delightful and picturesque home situated in Washington’s most exclusive This charming home property, situated as it is, représents exceptional value at the priée asked. - Owner leaving the city is obliged to sell. An-ideal home for a discriminat- ing:family—well arranged for entertaining. R dwelling—ideal for.a small fami! Jarge, bright rooms; tile bat! hot-water heat; electric lights. CHEVY CHASE A wonderful corner home property of hollow tile construction, built for the present owner, of selected matcrials. Lavish expenditure as to details of construction. First time ever offered for sale. Corner of 38th and Jenifer Streets, One Block Off Conn. Ave. 5209 STREET Beautiful Lot—91-Ft. Frontage A home of unusual charm and individuality. Bullt under personal supervision of the present owner. Hollow tile construction means less depreciation, minimum upkeep, heating economy— highest value per dollar. Beautiful outlook—exclusive environment. Center hall plan; spacious living room with handsome fireplace; choice electrical fixtures; French doors leading to large covered side porch; selected plate glass through- out first floor; four splendid bedrooms; two tile baths (one with tile shower); large attic; oak floors; all walls painted; screened and weatherstripped throughout; maid’s foom’.and complete bath; installed Arco-Wand Vacuum cleaner; hot-water heat: auto- Tnatlc regulator; numerous added conveniences for comfort. Garage to match house. Lot was laid out by expert in flowers; evergreens and costly shrubbery; hedge and stons coping. 1y desiring to have a moderate priced home in an exclusive neighbor- h; concrete porch off living roon:; screened breakfast and sleeping porches; Large Built-in Heated Garage. Excellent lot 50x100; lawn, shrubs and hedge. 1417 K St. N.W.