Evening Star Newspaper, May 15, 1926, Page 13

REAL ESTATE suemmonos n . GHE Z0ening S oo wer » CONTRACTORS PRESSING FIGHT ON GOVERNME Day Labor Systems Declared Wasteful of Public Funds—Move t in Congress. Perhaps the most vital question that is stirring the building construc- tion industry of the Nation is that of day labor. The day-labor system which has brought State and Fed. eral Government into the construc- tion industry, according to prominent construction engineers and contrac tors, has had a marked effect on the activities of the general contractor. An effort is now being made in Congress to eliminate the Federal Government from continuing in the building industry in connection with public works, such as Federal high ways, dams. reclamation projects. etc. This bill, H. R. 8302, introduced by Representative Camphell of Pennsyl vania, would preclude the erection of puhlic works by the dav-labor system and would establish the bhid system under which the general contracto: making the lowest hid would usually get the contract. ‘Times of publi emergency declared by the President are excepted. Under the day-labor system bids by private concerns are eliminated and the Federal or State government purchases its materials, hires its own labor and conducts the work under the supervision of its own officials. Resent Such Competition. The chief complaint of the ciated General Contractors, architects and the Chamber of Commerce of the Tnited States is that under the day labor system both Federal and State governments are entering into busi- ness. This is felt to be an un-Amer- ican principle, and a dangerous one. in that the general contractor and private business man is being driven from his legitimate field of business Not only on the grounds of govern mental interference with private bus Iness, but because day labor is inefii rient. expensive. dilatory and presents wide apportunities for abuse, do these interested parties claim that they op: pose the day-labor system. The favorable recommendation H. R. 8902 by the subcommittee of the House judiciary committee thls week was hailed with much enthusiasm by those in the building industry and has been termed “the first actual move by Congress toward eliminating Govern ment from the field of private bus tness.” Army Engineers Criticized. The Corps of Engineers of the TUnited States Army has come in fo ita share of condemnation by the As sociated General Contractors of Amer ica. who do about $3,000,000,000 worth of the Nation's annual construction It is charged by the contractors that the Army engineers have driven pri- vate business out of contracting by bids for many Federal jobs and that by the day labor system used by the engineers vast sums of money have been lost to the tax payer and estl mates have been exceeded two and a half times in the ultimate cost It is pointed out that under the day- labor system Federal and State gov- ernments are not held to completing jobs within a specified length of time and at stated cost under bond, as is the general contractor. In the hearings on the bill Brig. Gen. . R. Marshal, Jr., retired, for- mer head of the construction division of the United States Army during the war and now president of the As- rociated General Contractors sald in discussing the day labor system: Great Cost of Trojects. “The construction of public works in the United States is toda the American people something $2,000,000,000 a year, a sum wh promises to pyramid to inconcei proportions as the decades pass. construction work of the Fed Government alona seems likely t¢ well over $200,00,000 a year. does it become evident that the man ner in which this money is spent a matter of no small public con “There are two well-defined m by which an individual, a commu a government. may perform struction work. One is by lei out by contract to the lowest respons NT COMPETITION o End It Begins ible bidder. The other is by materials and hiring workmen doing it directly by what is known as the day labor method. “Either of these systems is open for instance. to the private individual who concludes that he will put up for | himselt a 10-room house to cost around £20,000. Such an individual in | elther case would have an architect ldesign Lis house. laying down the plan and specifying just the ma- and workmanship that were | o It. If he were then to build | se under the contract system, | he would advertise for bids, stipulat:| ing 11 the itions. ‘The builders | of his community won!d respond and | name figur which they would Agree to execute the job. Nermally it would go the lowest bidde He bond guaranteeing to complete the job for the amount and as specified in the time named. E: “If, on amples in Washington. the other hand. this man were to build on the day-labor sys- tem. he would merelv instruct the irehitect to buy materials and employ workmen to compiete the job. He would have no guaranty as to cost, tima of completion. or faithful com- pliance with the plans and specifica- tions “There are examples of structures bullt by the Government here in Washington under each of the two alternatives, The Government, some vears ago_wanted to construct a Dis- trict Building to house the municipal Government. It had designs prepared for the sort of structure it needed. It | decided to build it by the contract | em 1t advertised for bids, ac- cepted the lowest. and let a contract | for a little less than $2,000.000. As the contractor zave a bond to com- | plete the building in accordance with | the cont tha amount to be ex | pended was known before the work began. little later the Government de- | cided that it would throw a bridge across the Potomac at Georgetown. The plans presumably were made and the Army ture would cost $1.000,000. The Gov ernment permitted these engineers to employ public forces, day labor, nn§ the job, to buy materals, and go ahead. When the task was virtually completed in 1923, six years had elapsed and the expense had amount- ed to §2.350,000." Reasons for Private Work. The Chamber of Commerce of the United States favors the erection of | public bulldings by private contract- ors because they feel that the work is under the direction and inspection of the contractor, who is under bonds as to time and cost of completion, be- cause these men are specialists, be- | cause the contract system is based | on well established economic princi- | pies, in which competition, reputa- | tion and skill are involved. as well as the life of private enterprise. The day-labor system is condemned | because often public officials are ap- pointed or politically chosen for office | for other reasons than their ability as | enginee 1d come actively in charge of construction. Political power and ambition play a prominent part; the designing department, inspection de- | partment and construction depart- | ments are many times ail one; pay rolls under Government operation be rome excessive, and many other rea- sons are advanced. | "Defictency appropriations on Gov- | | ernment projects under the day-labor | svetem are cited by the contractors, | who say they have to stand the loss after accepting a bid that is too low. Outside of the general aversion of overnment in business, the general contractors, the business men and private individuals feel that the entry of Federal and State govern- ments into the building industry to the exclusion of the private con- tractors and under the day-labor sys- fom 1s full of all sorts of dangerous, costly and inefficient results which . say they ecan amply prove by ual projeciz undertaken MORE DAIRY FARMS, NOT GOLF COURSES, NEEDED IN FLORIDA Roger Babson Says the Winter Playground of the Nation Will Find Its Wealth in Future Prob- ably in Crops, BY ROGER W. BABSON. BABSON PARK, Fla, May 15.- Florida s growing at a greater rat today than ever before in its histor: 1826 will record more new homes bulit, greater raflroad earnings, larger check trunsactions, higher population fig- more land under cuitivation and ing industrial activity, com- pured with 1925. Yes, I wiil add that ere property will be sold in 1926 for home sites, farms and industrial pur- poses than in any previous ¥ ida is today growing at than ever before It is true that specula ida land is dead today. The man who denfes it is not acquainted with the real situation. 1In mos: portions of Florida there simply is left no such business as real estate sales for spec- ulation. As a very large proportion of males heretofore have been for spec. ulation, the real estate market is n very quiet. Owing to the fact thr there are now about 50 times real estate men (and women) to divide this business than heretofore, the de- cline in activity is even more appar ent and is felt more keenly. But these things are nothing for the true friends of Florida to worry about. Three years ago, before the Florida boom started, the price of the 40 most active stocks on the New York Stock Exchange averaged about 70. These same stocks closed on December 31, 1925, at an average of more 135, nearly 100 per cent increase. Since then they many | Market Garden. | i | | have had a most severe decline, which | [ many fnvestors only too well realize. Those who read my article in the No { vember Review of Reviews on Flor {ida’s future may remember that 1 | stated speculazion in Wall Street and | speculation in Florida must go up and | ldown together. lience, when asked {how long will (he Florida boom last, i1 replied: This present Florida hoom will lnst %o long as this boom in Wall | Street lasts Both must subside to- thar, both will for a wl t tozather, and both will agan re- heights Both s who come | p get pun- ¥ 1ue honestly ) = both good times and | | bad, do well and prosper. No business | | is aiways good. 1 so, every one would | go into it and it would die like the | mastodons of old, by its own weight. Liabilities and Assets. nate situation in Florida is that 75 per cent of the lots which have heen sold the past (Wo years weve solid (o speculators who never in tended to b d © a them. Most of ! theze lots have not been r mon. never be pad fnan ; The unfo i \ases, vet there has thus fa | becn no break in prices. 1If, however, | these speculators are forced to sell in | a market where there are no buvers, |a tremendous break in prices will he | Young Man (37) Wishes to enter arrangement with grow- ing building and real estate business. Is now and has been for past six years with large firm now operations, where he discontinuing building has been in charge of building operations and estimates. Excel- lent sales experien changed. References ex- ce. Address Box 492-S, Star Office |over, wha PROGRESS Upper, engineers said the struc- | poptheast. The Virginia detached residence at Lee Height Lower, left to right: The row houses on Decatur het mi.detached residences being built by Walter Vaughn at Thirteenth and Upshu news of the model homes is on pages 18 and 19. A visit. to the various projects will be of gre: Cafritz. The HOME & GARDEN ON SOME OF THE STAR’S MODEL HOMES Jeft to vight: The row houses designed by J. Wilmer Smith and being erected by €. H. Small & Co.. at West Virginia Va., designed by Ward Brown and being buil ceen Fourth and Fifth streets, designed by Louis Justement. and being constructed by Morris streets northeast, and designed by W. H. I. Fleming. Other | value to prospective home owners, | hy Ruby Lee Minar. The National Capital jumped to sixth among ‘the leading cities of the country reporting the greatest volume of building construction during the past month. This is the highest that Washington has ever stood in com parison with the great metropolises of the Nation. Such large cities | Franciseo, Buffalo, Milwaukge, e are considerably behind the Distric which, despite the fact that there was a Nation-wide falling off in construc | tion, is making peak records A slowing-up in building operations throughout the country was indicated in the reports of permits issued | the 484 leading cities and towr | public _yesterday by W. S Co. These citles repe ing plans of $439 376, ' | with $479,833.247 in April. 1925 of 8 per cent There was gain from March, however. volume of permits fssued places was $433,852,219. 1 Future Is Undetermined. | | Since the first of January, permits | |for $1.410.826.336 have ben wed | compared with $1.432,126 651 last vear. | | The first third of the vear, thersflore |wound up with acti slightly | behind the record for the same period last year Whether these losses w comtinue and bring the industry to the end of the vear o consliscable RAcint |age ‘of activities compared with the | phenomenal record of . or whethey | there will be a revival later in the | year, are points that cannot n« | determined. savs the Straus s | although no one familiar conditions throughout the looking for a pronounced In the 25 leadi it losses were scored he Manhatian, New York. I Losses of consequence in othe FILIPINOS ADOPTING " HOME-OWNING IDEA as Boston | ing in these JonN MUELLERD venue and Queen street | Nipa Houses Are Giving Way to witnessed. As the increase in prices has been most spectacular on the east coast, o it is natural that the decline in prices may be greatest there, al though intrinsically the east coast may be the most valuable of all por- tions. The fact which, however, will make all Florida prosperous some day is the gradual growth of the going-away- ‘Winters industry After a person spends one Winter in California or Florida, he or she is very likely to ac- quire the habit. When this habit is fixed it is as hard to break as the habit of keeping an automobile. More ¢ the children will consider The most profitable in dustries are those based upon its,” both good and had. Neither the telephone nor automobile is a neces sity. People can be healthy. happy and prosperous without either. Yet, after one once has had either a tele phone or an automobile, in very, very few cases is it ever given up. while the children consider these things ab. solute necessities. 1 firmly believe that going away Winters will take hold of the Nation in the same way, and that both California and Florida are developing a new hut permanent in dustry. Moreover, owing to Florida's proximity to 80 per cent of the Na tion’s population and wealth, it will equal California and may ultimately outstrip this wonderful Pacific Coast State. as a luxu a necessity. Florida Needs People. Because Florida today has an over- production of lots s no reflection on Florida. There always is an over- production of sometk derful counivy of ours. One year it is wheat, another vear it is corn, other year oil and another vear su This year, for the first time since the breaking of the Northwest boom some vears ago, we witness an overprodue- tion of subdivisions. Moreover, let me say that this applies 1o most of the citles of the country, and not alone to the citfes of Flarida. Now, what does the producer of nther commodities do when he is faced with an overproduc- tion? Why, he stops manufacturing for a while and lets consumption catch up to production. Hence the first step o iiato llacia o Ao ol AR FoLm on outlying subdivisions, an eighteenth amendment against hlue prints and very drastic legislation against 50-foot —are becoming steadily more limited. Washingtonians of long amazed at the splendid growth in this fine residential community, which includes all tha* remains of The Triangle of Increasing Values —between Connecticut, Massachusetts and Cathedral avenues. Wooded and rolling sites for individually designed homes are now standing are continuall available, As the firm under whose management t successfully developed into one of the city's fine sections, we are singu- farly prepared to furnish accurate information. Park Office: 32d street and Cathedral avenue. Middaugh & TABLISHED 1899 Riggs-Semmes Bldg., Dupont Circle, Potomac 2200 Don’t “Raise” the Roof When the —bhut raise Rose Phone North 8§847—848 F you'll only do the expedient thing and put the roof under our charge you won't have roof troubles. We prevent as well as repair damages—and pre- vention involves much less trouble and expense. The advantage of Rose service is that we know all ahout roof troubles—and what to do for them. There’s no experimenting—our work will outlast your expectation—and our reasonableness. ROSE 2120-22 Georgia Ave. the parents now look upon | “hab- | g in this won. | Phone us to-come and roof a thorough looking over. lots in the wilderness. That will shut off the supply for a while. 2ut shutting off the supply for while is not sufficient. The demand | for property must be in creased by developing agriculture, in | dustry and commerce. This can only be done hest by getting more people live, or at least spend a of the year in Florida. I'm especial impressed by the interest whi Florida papers are taking i ture. It may be that the next Flori boom will be in agricultural land: but it so, I hope such land will honestly be sold, and =o far possible sold only to those with the hrains and | capital to ea n. Florida’ ri- | | cultural and d: possibil vond the fondest dreams. living farming anywhere ay requires ability and e man who cannot succeed probably cannot succeed in | whether he s a farmer or realtor, Speculation in farm lands will do | \ida no more good than speculation in nge groves or 50-foot lots Florida needs more people. hoth tour «ts and workers, and it needs them at once if it is to fill with merch s and others, the and offic: which soon may be vacated by real tors, 1armers, however, should not | g0 to Florida unless the: & both | ability and capital. Good farm iands ! in Florida either are expensive o t | must be drained and irrigated. Flo will some day ba the market garden | of eastern America: but it will come | about only through men of intelli-| gence and experience. Greatest Resources. To make a | however, to- | industry. | North, | Florida, climate. South 's greatest source of income | manv vears be from Winter | resident Florida must supply the | | homes, clothing and fond for these people. The growth from now on will | not be in millionaires. Florida has al- ready gathered about all of those \\'hn‘ exist. Florlda's wealth from now on | |1 largely coming from the midd classes and retired peopla of New | ngland, New VYork. and Pennsyl | vania, from the merchants of the | Gireat Lakes section. from the pros- perous farmers of the Central West, | and from the employes of industries | and commeree throughout the Nation. | Fifteen vears ago I was ridiculed in | Chicago, especlally by the Studebaker | Woodland Drive Sites m Massachusetts Park . his restricted area has been Shannon, Inc. Roof Leaks charges surprise you with their ve your people, who were then making wag ons, for saving I would live to see ilmost every prosperous farmer have in automobile. Today there are more automobiles owned by farmers than there are farmers! Permit me to make the prophecy that I shall live to see almost every prosperous farmer spend Winters in California or Florida There are 2,000,000 farmers in the United States with net incomes in ex- cess of $5.000 per year who have never been in California or Flori If we can get 200,000 of these to journey to one of these St this coming Win ter in their au es and spend only £60 each for the best three months they have ever spent In their lives, this alone will amount to more than the total recefved from the entire cit- us crop. tomato crop and celery crop nd all truck vegetables raised in the State of Florida. To attract moere good people to either California or Florida certain things are necessary. They demand: BROOKLAND I Built with the same care and exactness that make our houses the ‘8,95 | Modern Structures in Sub- 7 livi conditions. With | ew eptions all Florida and Cali- ivisi fornia cities now have this to offer. divisions. Clean attractions and amusement. The people who are to make Florida | and California do not want wide-open cities, Sunday celebrations or all-night dances. (Checkerboards and the amuse- ents which made . Petersburg are what is wanted, together with good active churches, 3. Economlical living conditions. For the present there are emough expen- sive hotels in Florida and Californi More dairy farms rather than mol f courses are the need of the hour. axhioned New England dinners | with baked heans Saturday night and | N4 loan association fish chowder Fridavs will attract more | Of PIans of buving, just as Ameri o act more | §iq" Reading # Manila newspaper o ":‘:\;K,,‘;;:::‘;‘}"‘"VEJL: | minds an_American of his own need producers, and to| such lower rents and |son chart. at § per cent ahove normal. conditions are ahso- | which compares with just normal at this time Iast vear (Copyrizht 1. Hi American zeal for home ewnership has taken a firm hold in the Th pine Islands and the ‘Own-Your-Own Home"” slgan is just as pop r in our island territory as in the States acording to Philippine Progress, the semi-monthly publication of the United States Mission of the American Chamber Commerce of the Phil pine Islands. Fillpinos have sidopted the buildink nday ct them lower cost livin Intely essential Rusiness now vy sters. by the Bah. 1096, Announcing Our Latest Offering of 16 NEW HOMES B () KX EASY TERMS ON BALANCE SAMPLE HOUSE 000 St £3.400.000 82,5 3 fBoston, §3,450.000; San Francisco. $1.- I& . of the country !'In 114 lea - | structions in certain sections of outstanding values on the market today CAPITAL GOES TO SIXTH PLACE IN VOLUME OF CONSTRUCTION |General Falling Off Throughomt Nation Is Reported, | But Capital Stands Higher Than Boston or San Francisco. wemn phia, Chicago, $10.200.0, Louis, Baltimore, Lowiisville, $2,000,000. $4,500,000; Philadel. Angeles, $3.000.. 000,000; Cleveland, $2.600,000, and Many Gains Shown. On the other hand, many subsian thl gains were shown as follows: Sorough of Bronx, New York, $10. 000,000 Brooklyn, $4,000,000: Detrott, 00,000 Washington, $2.300.0 600007 Newark, $1,700,000; Mount N. Y., $2.300,000. Houston. §1 Tampa, $2.000,000; Gar: and Evanston, 1L, ery 100,600 000,000 The South continied to lead the rest in bullding activities, ng cities of the 11 South. ern States gaine of approximately 20 per cent were made over April last vear. The 37 leading cities and towns of Florida reported permits of $19. 309374, compared with $14.063,33 last Apr nd with $18,611,433 in March this vear. The 25 cities reporting largest vel- ume of perm per. Therein are contained adver ments of a new sudivision with Iots on e: ments, surrounded by I the attractions of modern conven iences. “more fresh and pure air, far from the noise of the city.” The Filipino doesn't like to pay rent nv more than does the American. An flux of building capital during the 1 st few years has served to lower rents on home properties. but Fiif | pinos are learning to save their money and buy homes of their own. Expansion of the home-buying campaign is naturally curtailed by a lack of capital. Insular development is retarded by the unsettled political status of the islands and by the land laws, which limit the holdings of in- dividuals and corporations. Banking cilities are limited in the provinces d the greater part of modern home yuilding has been confined to the ur ban centers. While a majority of the Filipines I live in nipa houses. frame con riction predominates in new bulld Restructions have served in large measure to insure proper’ con- the | larger cities. These ordinances forbid | the building of nipa houses in re cted areas. with the result that {modern houses have arisen where there might have been a tendency to erect ightly shacks. a 709 18th ST. N.E. NEAR THE MONASTERY AND ST. ANTHONY’S CHURCH DESCRIPTION Finest of brick construction; Colonial style; concrete front porch; six beautiful rooms and reception hall, tile bath with built-in tub and fixtures; double rear porches 10 ft. wide ; hardwood floors upstairs and down; one to three floor plugs in each room; modern kitchen equipment; very large closets. enough for any car; best of hot-water heating plants; expensive lighting fixtures; large front and rear yards. DO NOT FAIL TO SEE THESE HOMES SUNDAY Drive out Rhode Island Ave. to 17th St.; north on 17th St. to Newton St.; then east one block to 18th St. N.E. COMPANY North 847—843 a WOLFE, SHAPIRO & HAVES, BUILDERS Built-in garage large 1416 K St. NW.