Evening Star Newspaper, March 20, 1926, Page 17

CHOICE OF MATERIALS BUILDIN AND LOAN BODIES OFFER GREAT INVESTMENT ADVANTAGES Child of Banking System Has Grown Enormously in Past 20 Years—Have an Interested Class of Men on Boards—Business Letting Up. BY KutiER W. BABSON. BABSON PARK, Fla.,, March 20.— Fuw people realize the tremendous growth which Building and Loan As- soctations have made during the past 20 ye In 1905 there were only 5.326 of these associations In exi having resources of but $64/ In 1925 the number had been in to 11,844, with resources of § 000, and this growth is still continuing at u rapid rate. Building and loan & operative banks, and sl tions have at the pre: distinet advantages. F operated very economically. especially es where there s only one such a . and thus they have not been driven “v compe- tition to expensive offécs employes, and other Juxuri R0 ma the commer Statist ow th expenses per dollir of resour re only about one-half what a regular commercial bank, with the same resources, would T obliged to pay. The second reason for their succwss is that they have commanded exceptionally good loc talent for their boards of directors, men ve been selected not because r wealth and reputation f « zenuine interest in help fellow men save money to build homes. These men feel that the best way to make a good citizen is to have a man own his own home, RS no man was ever known to hang the red flag of anarchy over his own hearthstone. T do not mean by this that the dl- pectors of these small institutions are necessarily better than the directors of the commer hanks, but these build- $ng and loan assoclations without cap- {tal stock have rot vet got the com- mercial spirit and their directors serve wnore with the spirit of the trustee of & church, college, hospital, or library. Personally, 1 belleve this is something which will receive more and more cf gideration in years to come. Men are gradually learning that after one has ® reasonable amount of money any more is only a care and a source of danger to the children. On the other hand, men knew that loafing is bad end to avoid worrying about one’s gelf or avold going to the devil they must have something to do. Hence, today you can get the flnest talent to gerve on boards of charitable institu- tions without pay—men that huge galaries would not tempt. The direc- tors of most co-operative banks and mutual savings banks represent such f the directors of come in the same lass. £ however, are really elacted by the stockholders or because they are stockholders rather than from the purpose of public service. Fersonally I feel that in future years it will be easler to get good men for such trustees and that corporations without capital stock will be organ- {zed for many other purposes other than those above mentioned. How They Work. Bullding and loan associati co-operative banks were reall ortginators of banking on the instali ment plan: that is. they were the first to apply the instaliment buving prin ciple to banking and to building a home. Their plan is to have a per- son regularly pay into the bank the game amount every week, from §1 upwards. Of course, if you enter on the dollar-a-week basis you can pay for five weeks in advance, paving $5 every five weeks; but you cannot pay in $1 one week, $5 the next. and $2 the next, just as vou feel like doing. You definitely subserihe for one or ora shares, as they are called, which you agree to pay for by bringing or pending to the bank a deflnite sum each week, this sum being based on the number of shares for which vou have subscribed. After the required number of payments vou have a full- paid share upon which you receive & rate of intesest varying from 5 to 8 per cent always, a rate higher than commercial banks with capital stock can afford to pav. Hence these banks svhich we are discussing both encour- ege systematle saving and glve de- positors an exceptionally high rate of interest with absolute safety. On the other hand, this kind of a bank is bad for women who are apt to suddenly change their minds and want to use the money for buying a fur coat in- stead of bullding a home! It carries practically no reserves and a depositor s not supposed to draw out his money until his shares have matured. If wvou want your money where you can get it at any time or for any purpose use a commercial bank; this is, a na- tional bank, state bank, or trust com- pany. When a small depositor deposits in a commercial hank he must not expect necessarily to borrow from that bank; but it is understood with the bullding and loan and co-operative banks that every depositor has the right to borrow to either build or buy & home. The money being put in by the new depositor is always belng loaned to old depositors. Hence a depositor s not only systematically saving money, on which he will get a £ood rate of interest, but he is auto- matically building up a credit which will enable him to borrow in order to bulld or buy a house. After bor- rowing the money. the depositor con- tinues his systematic deposits, which g0 to reduce the loan, so that finally ihe home ix vwned frea and clear. did not refer to these banks in my previous talk on bank accounts be- cause I treated such bank acounts as yeserves or reservoirs to be drawn upon In emergencles or to be used for e blishing commerelal credit and for becoming a man of affairs. You can’t draw checks on a building and loan or o co-operative bank, and they will mever loan you money to buy merchandise or perform the other innumerable services that @ good commercial bank will perform. Build- fngg and loan co-operative b: exist ions, co- but | for three purposes only—first, to train people to stematically save; secondly. to help people establish gredit for bullding a home, and Thirdly, to enable such a home to be pald for on the instalment plan. Investors’ Shares Now Being Sold. Up to the present time building and loan assoclations and co-operative banks have been of little interest to the business man or Investor. They deal only in small sums and, there- fore, have been unpopular with the busy person who does not wish to lother with systematic deposits of small amounts. Moreover, very few of these associations and banks would loan a contractor money to build a. dozen houses or In fact care to get mixed up with speculative bullding in any form. Hence the business man deals exclusively with the commer- clal banks. Recently, however, some of these building and loan assoclations are selllng bonds or certificate while the co-operative banks are sel ing “Investors’ shares” or “matured shares,” as they are sometimes called. In most States the banks can sell only a limted amount of their matured hares to one person—in some cases only $2,000 and seldom over $5,000. They are of course not marketable, like good bonds or listed stocks, but they pay a high rate of interest and should be absolutely safe. T believe these are very attractive for investor: to buy at a time like this when sto are high. Today the Dow-Jones li of 40 actlve stocks average about 128, compared with a low point of 85 in May, 1924, which means that these stocks have gone up more than 50 per cent in about two years. Consid- ering the fact that stocks are today 12 per cent higher than any other high point the country has ever wit- nessed should be a warning to all that lower prices are inevitable. This Is why wise investors are keeping a por- tion of their money liquid at this time and are not buying stocks. Of course, the large investor can- not bother with matured shares, but must be content efther to buy 1| short time notes, Treasury certificates, or deposit money in commercial banks and be satisfied with a very small rate of interest if he is to keep his funds liquid. The small investor can, however, buy these matured shares and recefve a high rate of interest with safety pending a time when good stocks are again low. General business shows a slight letting up, but this should not dis- turb us at this time of year, becau It is midseason period, when the Bab- sonchart usually falls off. Today we stand 11 per cent above normal com- pared with a high of 18 per cent above normal at the first of the year. How- ever, all indications are that the first half of 1026 will at least equal any previvus year. - (Copyright, 1926.) ROUTES TO STAR’S MODEL HOME SITES CATHEDRAL AVE @) \WTHORNE. ST F4TH BUACE 357 5T JoCou| ¢ DISTRICT LINE LONGFELLOY Y £ EORGIA_AVE 4 ILE ————b TUR ST = =l DIRtCTIONS TO THE NINE IDEAL HOMES SHOWN WITH THE WHITE HOUSE AS STARTING POINT—DETAILS WITH ACCOMPANYING STORY. BUILDING IN BALTIMORE SHOWS BIG DECREASE Value of Permits for February Was 48.15 Per Cent Under 1925 Figure in Same Month. BALTIMORE, March 20.—The value of building permits in Baltimore for February was $1.853,660, a decrease from February, 1925, of 45.15 per cent. According to figures of the huilding inspector, permits were issued last month for 166 two-story brick dwi ings, valued at $684,000; S1 two-story trame houses, $342,000; 142 factor warehouses, garages, sheds, etc., $9 500, and for one apartment $200,000. FEBRUARY BUILDING DECLINES, REPORTS OF #48 CITIES SHOW U February building in 448 citles showed a slight decline from January and a loss from February, 1925, of about 7 per cent. This was the first month since March, 1925, in which the country as a whole showed a loss from the corresponding month of the previous year. Whether this means that the general building Industry is getting down to a more conservative hasis than has been the e during the last three or four years, or whether, as was the case for the first three months of 1925, there is merel,"l a temporary easing up, remains to be | seen. Unfavorable weather conditions which blocked traffic throughout a large section of the populous North- eastern States combined with slowing up processes due to the coal strike undoubtedly affected building condi- tions adversely. Nothing, however, developed to in- dicate any change in fundamental conditions. Building permits were issued in the 448 centers amounting to $271,524,498, compared with $293,096,127 in Febru- ary, 1925. Since the beginning of the year these cities have shown a small gain, however, as there was an in- crease of 9 per cent in their January reports. Losses in Many Citles. February losses were shown in such leading cities as Chicago, Detroit, Philadelphia, Los Angeles, Washing- ton, Boston, Cleveland, Portland Oreg.; Pittsburgh, Milwaukee, Oak- land, Calif.,, and St. Louis. Among the principal Northern and Western cities reporting increased activities were Newark and Jersey City, N. J.; San Francisco, Seattle and Indlan- leading cities showed a gain of 2 per cent, 13 of them having in- creases and 12 having losses. It is to be noted with interest that building activities in the metropolitan zone of New York City continued to forge ahead. while the five boroughs reported an increase of approximately $3,000,000. Manhattan, Brooklyn and Queens sustained losses which were more than overcome by a §6,000,000 gain in the Bronx and a $500,000 giin in Richmond. In the metropolitan district 45 cities and towns in New Jersey, Westchester County, Conn., and Long Island, including the five boroughs, reported bullding plans filed in February amounting to $79, 821,227. In 43 of these which fur- nished comparable figures there was a gain of $10,259,060, or 15 per cent. Activities in increased volume con- tinued in most parts of the South, Massachusetts Park Washington’s most beautiful residential section of detached 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 Connecticut, Massachusetts and Cathedral avenues. Over 200 homes from $15,000 to $200,000 buiit and under con- struction. $8,000,000. homes, with lots from 50 to 115 feet front. St. and Cathedral Ave. Actual improvements and home values exceed Wooded villa sites, lots, central and side hall Park Office, 32d Middaugh & Shannon, Inc. ESTABLISHED 1899 Riggs-Semmes Bldg., Dupont Circle, Potomac 2200 nfavorable Weather in Northeastern States Ham- pers Operations—South Shows 20 Per Cent Increase, With Florida in Lead. gain of 20 per cent. Florida led the South with a 330 per cent gain. At- lanta reported slightly less than $6,- 000,000 In February permits, making it the leading Southern city and giv ing it sixth place among the cities of the country. Large activities were reported in leading Texas citles, while substantial progress was shown in ew Orleans, Birmingham, Memphis and Greensboro and Asheville, N. (. Reports received from the 12 leading building States for February ranked as follows: uq—-:g Florida . . Penneylvanta . . New Jersey Michizan Onio exas 3 ismiomoone T, BEARNDID! eorgis ', . Magsachtisetts | Indiana ........00 Material Prices Stronger. A strengthening of bullding ma- terial prices characterized the month. While there were a number of declines in some of the materlals, the spottl- ness in the market so noticeable in the opening month of the year practically disappeared. ‘The most decided decreases in the cost of the basic materials were in lumber, though confined to certain grades; the most decided increases were in common brick, due to adverse weather conditions and to the lack of pulverized anthracite. Hollow tile and Portland cement prices remained firm. Some slight weakness, however, was evidenced in the structural steel mar- ket, especially in the Midwest district, where competition among fabricators was effective. Linseed oil continued to decline at New York and Chicago. In contrast to this decline, the cost of other materials, such as lime, crushed stone, sand and wire nail tended to ri On the ole market reflected building materials increased firmness and the indices of building costs re- mained stationary or rose slightly. Quite a few definite wage-scale re- adjustments were reported, the tend- ency being toward higher levels. o Increase in Contracts Awarded. The volume of contracts awarded during January exceeded by 57 per cent the volume recorded for January one year ago. REAL ESTATE BOARD TO HOLD INDOOR BETTER HOMES SHOW Exposition to Be Staged in Auditorium Early in Fall Following Exhibit to Be Sponsored by The Star. | FULLY 400 TO ATTEND REAL ESTATE DINNER 200 Tickets Already Sold for Event on April 8—National Speakers to Address Board. Two hundred tickets already have been sold for the annual banquet of the Washington Reul Estate Board, which is to take place at the Ward- Announcement was made today by Estate Board will consider making it{ .. park Hotel on April 8, according James P. Schick, secretary of the Washington Real Estate Board, that immediately following the demonstr: tion of better homes, sponsored by The tur, his organization will undertake an indoor better homes exhibit. The entire Washington Auditorium will be chartered for this purpose and the show will be conducted for a week s in the Fall under the direction of a professional exposition man. According to Mr. Schick, the board intends to spare no effort to make these exhibits in the Auditorium reach out into every phase of the bullding and home construction industry. "The board, in undertaking this show, has in mind the education of the peo- ple of the District in the vital matter of home owning and home building, as well as giving their members and all builders in Washington an opportu- nity to view all the most modern phases and materials of home bulld- ing. The Real Estate Board will have on exhibit practically every known type of building material, from the old, long established red brick to the very latest inventions in tile, steel, concrete, roof- ing, etc. Steam shovels and carpenter tools of the latest types will be shown. Heating plants, lighting fixtures, deco- rative improvements, floor coverings, furniture and landscaping will also be part of this exhibit. Preparations for this undertaking are now under way and between now and the early Fall every effort will be made by the board to make this a very large affair. This will be the first time that the local Real Estate Board has undertaken to demonstrate to the gen- eral public, as well as the members of thelr profession, the various phases of the industry which they conduct in the National Capital. According to Mr. Schick the local organization will endeavor to conduct this exposition on a plane which will attract others in the building industry in the various parts of the country to the National Capital. The exhibits themselves will not be merely laid out for view, but novel methods of attract- ing the public's attention will be used to demonstrate the various exhibits. Manufacturers, real estate men, bulld- ers and others interested in the build- ing industry not only in Washington, but in all parts of the country, have already manifested considerable out- side encouragement for the undertak- ing. If this show is successful the Real “ALL-BRICK” HOMES Before You Buy See Our Ads in This Section D. J. DUNIGAN, Inc. 1319 N. Y. Ave. Main 1267 Rose Roofs are Reliable The vulnerable part of ost buildings is the roof. It's the root of more trouble than all else put together— and yet it is easy to make tight and sound—when under- standing of conditions and experience in coping with them are brought to bear. ROSE KNOWS—that’s the security of satisfaction you will have—and the certainty of correction of all faults. Get us on the job—and you'll get yourself out of . voof trouble for good. Our budgeted plan of payment takes easy care of the cost Rose Br 2120-22 Georgia Ave. Comeany North 847-848 an annual affair in order that the ad- vancement of the higgest industry of | the District of Columbia, that of build- | | ing, may be portrayed step by step. It is expected that a considerabie amount of benefit will come from the exposi- | tion, and it is pointed out that with the Washington Chamber of Com- merce Industrial Exposition and The Star's Better Home Exposition the exposition_which will be conducted by the Real Estate Board will add ve materlally to a series of aggressive | steps taken by local institutions this | year in advertising to the Washington public as well as the country at large ' the advantag dustry and the to A. H. Lawson. general chafrman of the dinner committee. All of the plans for the entertain- ment have been perfected, and speuk- ers of national prominence have ex- pressed their intention of addressing g the board. Members of Congress, Dis- trict Commissioners and other promi- nent persons in the National Capital will be guests of the board, and it is expected that nearly 400 people will attend this gatherin The total volume of revenue freight transportation for the first weeks of 1926 was about equal to the volume for the corresponding periud Severul of the builders who are erect- ing the model homes in connection with the ideal hoines demonstration sponsored by The Star having already dug the foundations for the houses, attention is now being turned to the problem of selecting the materials that are to go into these dwellings. Practically all of the builders are now selecting the various bullding ma- terfals. Considerable thought is being devoted to this part of the anterpi as It is one of the major problem: the demonstration. faced with the difficulty of selec the best and most practicable mate and equipment commensurate wirn the cost and type of model homes they are erecting. William I. Deming, ar- chitect and structural expert, is head of the committes with which the builders will consult if they desirs in- formation. Foundations Excavated. The Stambaugh Construction Co.'s detached house at Wynnewood Park, Md., has been started and the concrete | foundations have been poured. Rubs Lee Minar has also broken ground & Middleton, who ure erecting a house | at Thirty-fifth and Massachusetts nue, have poured the footin stone foundations which they will use will be laid the early part of next week. i The Cafritz Construction Co. is grad- | ing its site @n Decatur street between Fourth and Fifth #ireets and Is now excavating the hasements. A difficult problem was faced here, where a 20- foot embankment was cut. houses will set on a terrace. Dyna- mite was used to remove some of the | obstacles in the way of grading. Thase louses will set exactly on the No. 9 tee of the former golf course of the | Columbia Country Club, | competent and well informed men in charge of the operation, who will ex- | plan to the public the features of the operation as it progresses. Routes Shown. One of the purposes of the demon- stration is to give the general public an opportunity to see the construc- tion of the houses step by step. For those who desire to visit each of the erations The Star has compiled the accompanying map showing the direc- tions to each of the sites. Each project is numbered and shown on the map. The following informa- tlon gives the name of the builder. the architects, the type of house and its style of architecture: No. 1 The colonial stucco home being erected by L. E. Breuninger & Sons at Hemlock street, Thirteenth street designed by Vic- be reached by go- ing directly out Sixteenth street to Alaska avenue just above \Valter Reed Hospital, north on Alaska ave- nue to the intersection of the three The builders are | s the house in Lee Helghts, Va. Hedges | « Each of the builders plan to have | HOME & GARDEN IS NOW CHIEF CONCERN OF BUILDERS For Guidance of Those Who Desire to Visit Model Homes, The Star Furnishes Map Showing Quickest Routes to Sites. on Twen «cond street to Massa- chusetts avenue, northwest on Mas- sachusetts avenue to Carthedral ave- nue, west on Cathedral avenue to Forty-fourth place, thence south on Forty-fourth place one block to Haw- thorne street. The Miller houss, de signed by Delos Smith of Gregorian style, is to be bulit of brick. No. 3. The Hedges & Middleton home, de- signed by Robert Bereaford, is of co- lonial type and will be bullt of stone. This hous ted at Thirty-fifth B achusetts avenue. 1t 1 by going west on anfa avenue to Twen t, »rth on Twent! achusetts avenue, north west on Mas: husetts avenue to Thirty-fifth street, to the site, No. 4. The detached frame house to be erected in Lee Heights, Va., by Ruby Minar was designed by Ward ond stre vpical Virginia style resi- To reach thi - 'go west lia avenue to M street west on M street to the Key Bridge, nto Virginia, turn to right to the Lec Highway, proceed miles to Lee Heights. No. The house heing erect wood Park, Silver Spring, Md., b the Stambaugh Construction Co. is of colonial style, designed by Percy C. Adams. This home may be reached by going directly north on Sixteenth street to Alaska avenue, out Alaska avenue to the District line, econtinue north on Georgia avenue extenae., known as Brookville pike; thence east pike to the site in the 5. Wynnewood Park. No. 6. Cafritz Construction Co. pro- ject consists of a row of houses in aried designs, giving each one an individuality _all fts own. These houses wero designed by Louls Juste- ment. They are being erected at De- catur between Fourth and Fifth streets. To reach this site proceed northeast on Vermont avenue to Flor- jda avenue, continue north on Florida avenue to Sherman avenuse, out Sher- man avenue to New Hampshire venue, turn northeast on New Hamp- shire avenue to Grant Circle, from nt Circle go north on Illinois avenue to Sherman Circls, continue north on_Illinofs avenue to Decatur. east on Decatur to the site. No, “The group of colonial houses being built by . 11. Small on West Vir ginia avenue at Queen street north- east, designed by J. Wilbur b’mhh_, may be reached by going east on K street to Fighth street northeast, north on Eighth strest to Florida avenue, thence one block southeast on Florida avenue to West Virginia avenue, proceed on West Virginta avenue six blocks to the site on Queen street. streets where the property is located. . C. & A. N. Miller seven | place, go | nue to i N. 8. | The community group consisting of | 14 houses, being erected by Walter A. pigan in Marietta Vark at Fifth ntinied on Eighteenth Page.) Overlooking Rock Creek Just One Square West of 16th & Harvard Study the completeness of Dk wfl-u-c' For Less Than $16.,000 Convenient Terms 6™ STREET this “Bungalow Suite,” and the value of its unexcelled location—on the edge of Rock Creek Park, yet only two and a half miles direct ride out Sixteenth Street from the White House. Houses of this type and in simi- larly desirable locations cost anywhere from 50% to 100% more than this apartment suite, purchased on no nient terms. A goes with the and can be more conve- maid’s room apartment, which is situated in a new, fireproof, thoroughly modern building with every conceiv- able comfort and refinement at your service. You dispense with the burdens and worries of house maintenance; yet you have all the personal pride, in- dividual pleasures and unde- niable satisfaction that go with ownership instead of mere occupancy. The type of building and its superb site assure the soundness of your investment. From every . possible angle of consideration, such a “Bun- galow Suite” as this is eminently desirable. The building will be open for your inspection all day Sunday, and we respectfully urge your personal visit! Mere: WARREN OWNERS 4iND BUILDERS 925° Fifteenth Street Main 9770 Sunday PAone—ddame 3800