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REAL ESTATE v BUILDING VOLUME IN AUGUST MAKES RECORD FOR THE YEAR Month Also One of Three Showing Most | Activity in Construction Work in. Capital’s August was the largest month in building construction d ng the year end one of the three months | the history of buildin: the Na- apital | a total of $8.972 in new ion last month 4 only York City, Ci . Detroit and iladelphia The filing of the Press Club building project assisted in bringing the Nu tinnal Capital from a standing of s enth in the country I Auguet building repo: & W. Str : Co end towns over July cent from figures bring Angust of 20 per York City, the list of 2 ghows a decline of only a gain per cent. T to indicate th present hold ters of popul: places. 47 States Included in Report. Among the 47 States reporti August, and the Columbia showed gains reported lo n The . and towns r compared gust and In th was ar £lthoug They incl Mississip and Virgi Amgng the I: the country v gains were Chica hore, Cleve Wh Haven, Jac and Providence Francisco, Albany, Milwau Twelve Leading States. The 12 leadin based on Au gust reports \ in buildi activities, were York ol ifornia nnesota Building Reports foi the build bealthier time. The trend. which ed in July. cont ued for the most ough Aug History. With the exception of a slight re-| duct rice of cement at two of i mills, deciines in the prd g at Cleveland, | Denver ar e latter matorial at Boston, L City, few change Due_to local condi- Detroit materials cat and prices terals fell, notably or stone, lime, common brick and hollow tf al steei market was wards during the last sing the largest of lie Chicago distrlct is v “ing a “hoom demand m et _experienced a - better, and showed ad- siployment Recogd Satisfactory. ¥ as a whole was or emplnyment basi v the s v over the coun- ranguil, wi of the Pacific (0 isco contractor for an_ injunction nst fur- r vinlence in the carpenters’ strike, to union- t. Tate in ible developed in Jor projects conflict be- non-union he landis : of the 25 leading cities E. 5,165 . 34,024,600 | Rosion . Bltimore HOME BUYERSARE DISCOURAGED BY INCREASE BY RICHARD L. CONNER, 1 Aseistant Secretary, Washu Board of Trade. On July 1, 1926, the Census Burcau credits Washington with a population of 548,000, which exceeds that of nine States in the Union . Dela ware, Idaho, da, New Hampshire, New Mexico, Utah, Verment and Wyoming census, the National Capital hi me ahead of the States of New Hampshire and Utah. This rem wih was accomplished wh tionship between the dera! Government and the Government of the D t of Co lumbla was upon a more fair and equitable basis than has existed dur tng re years. Tn 1922 the fixed definite proportion ate financial contribution was changed from the 60-40 basis to a lump sum contribution of 9,000,660 nnually from the Federal Treasury toward the upkeep and maintenance of the Capi- tal City. Last vear, or rather the fis- cal year ending June 30, 192 the total dget for the District of Columbia IN LOCAL TAXES six years more, tie people of Wash- upon to bear | | | i i i i i i, il from ¢ 3 of the en cost ntenance and U N While the Federal Government will be mpelled to pay but 5 to 10, per cent. ‘thing fair and equitable ate? We submit it is not, ured the coming session will take all necessary has been quite a noticeable 3 off during the past year in the purchase of homes in comparison with previous years. Why? Not be- I « \Washington is really overbuilt 1 lost its attractiveness as the atest residential city in the United a reason advanced by many leading business and profes- sional men, bankers and lawyers, and < helieved to be the real true rea- E Washington is the home of thou- sands of people of moderate means. 1ts prople are “home folks” who, with a modest income, plan to own their own home, raise a family and give to their community the support and co- weration: of good loyal citizens. Their was about $35.000,000, and the $9,000,- 000 from the Federal Government | amounted to approximately 30 pe cent. ! For the coming vear, or the fiscal | year ending June 1927, our entire | budget will proba mount to 42| millfons, 1 > miilions to | be appropriated from T, 8 { gury about 25 per cent ¢ to run This me: District « of 75 per ce ¢ the Federal City. It should be bor in mind that the Federal Government owns approxim e real estate Capital. upon which not one cent o taxes is | No taxes are paid by Unele San the quantity of water used o part ments of the Governmen is any direct contribution made urn for the po 2 afforded Uncle s | ~ontributed s the situ- | | the District | 3 are per: A propor- | 10 will be As t i so_must necessar!ly lzet. If the $9.0 bution con- | tinues i ¥ »d of five or ! Washington's most beautiful homes. Containing seven millon 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 256 homes built and under construction. Actual improve- ments and home values exceed $10,500,000. Wooded villa sites, lots, central and side hall homes front, from $25,000 to $200,000. Middaugh & Shannon, Inc. ESTABLISHED 1899 f 717 14th St. NW. ome eing limited, it becomes nec- ary for them to actually count pen- nles, sctting aside varlous amounts for taxes, water rent, gas, electricity, household expenses, clothing, etc. Perhaps in the end they manage to barely keep their heads-above water or even save ‘a few—very fe: lars. Then perhaps llness ma; dollars wiped aw hen on top comss announcement that e to be increased Jwny home owners are tius h; . but cont e the game fig piacing an additional little home. They have ha n to, pay off this trust b announcement comes =~ again to be increased. mad> a bitter fight—and lost. homie 15 sold and their dream iness is ended. Is it any won ¢ the pr ve home owners e to take the step which they e have cher Let Congress at t. posstble in the com! « and upk Wash you will soon find the bital in the forefront Freight Revenue Higher. The total volume of revenue freight transportation for the first 32 weeks of 1926 excceded by 313 per cent the lume recorded for the correspond- period in 1 Park residential section of detached , with lots from 50 to 300 feet the Sununer. The community group wt Fifth ard Longfellow streets is now and will be open to the general public today. These houses were built by Walter Dunigan and desigied by Gilbert L. Rodier. These houses are built in groups of three and are part of the group planned by The Star in its demon- stration to interest persons of moderate means. A new type of architecture for the small house has been introduced in this project, namely Italian. Upper: One of the groups of three. Lower: Entrance to one of the two end houses in group, which is shown to the right. This is the last of The Star’s nine projects designed to encourage and demonstrate the need of home owning, better archi- | tecture ana building. Thousands of persons have visited these projects during Despitc Recent In a passing reference to the re- sponsibilities of the Land Office, in a recently published review of the prog- ress of the Department of the Interior, Secretary Hubert Work, in speaking of depletion of natural resources, is represented as saying, “We are ad- vised that there will be a timber short- age in 10 years,” and ‘“a lumber famine 15 years later.” However, in an interview on the 'state of the Na- tion's natural resources, just pub- lished, Dr. Work states the situation in considerably different terms and with an explanatory interpretation. In this interview (Magazine of Wall Street) he says there may “possibly” be a “famine” of ‘“forest products” within 25 years, lumber not being specified, and continues, referring to his previous remarks on soil de- pletion by improvident agricultural methods: “There is this difference (be- tween land and forest depletion), how whereas we reserved no ag land, we did finally, begin bout 1590, reserve much forest and will hold in per- petuity 0,000,000 acre: n empire itself—for the growing of tre * 1 do not hlame the woodsmen | for the dep! of the forests any | tha public domain. We | Dr. Work Optimistic of Forest Future. Forecast of Shortage. more than I blame the farmer for sterilizing lands. “This Government and the people were, and are, one and the same, and they voted to distribute the ‘good things of the continent among the people. The forests were as value- less as the land until population made them valuable; and land and forests made population possible—fed and housed it. Finally, value will make it possible to grow trees, as well as to mine the forest wealth deposited by nature. Then we shall have new forests. Where the.economic sequence does not work out the Government must be the forester. The exhaustion of the original forests and the produc- tion of new ones is a cycle of surplus and deficit of forest goods that seems Inevitable under our economic system —and I don't know of any better. But now that we have reached the period of regeneration, it becomes the duty of the State to foster in every legiti- mate way the general practice of forest: After mentioning that outside of Alaskat there are 165,000,000 acres of public forest reservations, ‘contain- ing about 700,000,000,000 feet of stand- ing timber. DERFECTION FOMS 1 PRESTON E.WIRE CO. 58,950 and 39,250 On Terms Conveniently Arranged Take bus running N.E. on Termont or R.I. Ave. get off or 20°h and Monroe Ste. N ©.and walk one square 1010 VERMONT AVE. Only 7. left out of 39! And no wonder they've sold so fast. with such features as: FOUR B ROOMIS, tiled: bath with built-in shower, oak floors.' OPEN FIRE- PLACE, concrete front porch, built-in breakfast porch, CEDAR closets and every modern refine- ment. Every one says they're the greatest home values on the Washington market to- day! 20th & Newton Sts. N.E SEE THEM SUNDAY! i 0 []g gngmng %hlf e e Original in design! Artistic in finish! 25, 1926. BY NATIONAL Administrative interpretation of the income tax law asked for by the Na- tional Association of Real Estate Boards to make requirements as to tax returns equitably consonant with actual business practice in certain ac- cepted types of real estate selling, s included in_part in a ruling of the Treasury Department, just issued. providing new regulations in regard to reporting income received from sales of personal upd real property on_the installment ‘plan. Complete regulations of the Bureau of Internal Revenue under the reve- nue acts of 1928 are in the hands of the Government printer, but have not yet been issued. According to the Natlonal Associa- tion: “The ruling just released, known as Treasury decision 3921, complies substantially with the recommenda- tion of the association regarding de- ferred payment sales of real estate not on an installment plan. but is unsatisfactory in its language in the matter of non-marketable obligations or evidences of indebtedness which may be received in payment. Hardship Seen in Ruling. “Further, the ruling does not touch on the matter of tax returns by mem bers of syndicate trusts or other jeint| investment organizations engaged in subdividing and selling real estate, and by failing to make the provision asked for by the National Association in regard to this phase of the tax law, leaves a situation in which, un- less something further is done, the taxable profits of such syndicates must be computed with the syndicate itself, rather than the beneficlary as the profit-earning entity. The result will be that in many cases members of syndicates will be taxed on their proportionate share of the syndicates’ profits before they have received or can receive any part of such profits, or even before the return of any por- tion of their capital investment. “Difficulties in the provisions of the 1926 revenue act affecting real estate sales which may involve the imme- diate accrument to the Government of millions of dollars in taxes are pointed out in an analysis of the present ruling and of the whole in- come tax situation in respect to real estate sales, which has just been sub- mitted to the heard of directors of the National Association of Real Es- tate Boards in a joint brief by Nathan Willlam MacChesney, its _general counsel, and by George P. Ellis and Paul W. Pinkerton, its consulting ac- countants. ““The act provides that income fromy installment sales of real estate may be reported on the installment plan if the initial payments do not exceed one-fourth of the contract price. It defines ‘nitial payments’ as ‘the pay- ments received . during the tax- able period in which the sale or other disposition is made.’ Advance Knowledge Uncertain. “Under the law as adopted, there- fore, a subdivider can never know until the close of his taxable year | how many or which ones of his sales The Chening Star Invited us to build a group of Model Homes— Here they are! 5th and Decatur Sts. N.W. Facing an Entire Block Occupied by Public School and Playground Practical in arrangement! Sumptuous in equipment! T‘hey have given opportunity for a great demonstration of the capacity of the Cafritz Construction Company—convincing of its ability to plan-and build the best Homes—at a price that means a Saving of at least $2,000! —and with Cafritz terms to make buying easy. When You Come to Inspect Take Note of These Unusual Features: HOME & GARDEN 1.’1 'INCOME TAX RULING ANALYZED REALTY BOARD Provides New Regulations in Regard to Reporting Revenue Received From Sales on Installment Plan. during the year will, under the provi. sions of the law, be considered as in stallment sales, since the test is the amount of the payments actually re- ceived during his taxable year. So trivial a circumstance as the payment by a customer on December 31 of an installment not due under his contract till the following day, Janu- ary 1, may under the present law de termine whether the seller may return the sale as made on an installment basis. “Following study of the text of the new ruling the assoclation is prepar- ing to take what further action may be advisable to bring about the ad- justments held necessary in the act or in the administrative regulations to accompaf “In the ate form of enlisting capital for real estate development because of the nature of the organi- zation, it is impossible to determine whether or not there is any profit ac cruing to an fndividual member until such time as the original capital paid In shall ve been returned to the participants,” the National Associa tion_hag pointed out “Practice has varied in the various district offices of the Internal Revenue Bureau as to whether syndicate trusts subdividing and selling real estate should, therefore, be permitted to re. turn no taxable gain until such time as an actual gain had been received, in other words until such time as the invested capital should have been re- turned, or as to whether such trusts should be treated as partnerships or ssociations. The National Association in its memorandum to the Treasury Depart- ment asked that the principles as to joint adventures suggested in Article 1507 of Regulations 65, be applied spe cifically to real estate syndicate trusts. Fear Standardized Practice. “Unless this question is treated sep arately in the forthcoming regulations of the Treasury Department or unless something further is done, the prac tices of the bureau may, however, be expected eventually to become stand- ardized along the lines of immediate taxation of profits earned by such v dicates,” the joint brief presente: the association points out. “The ociation, in resolutions passed at its annual convention held in Tulsa, Okla., in June, pointed out that the Federal income tax tax law has not adequately provided for the return for taxation of deferred pay- ment sales of real property when such sales are not on an installment basis, though such a bas is a’ well recog- nized and sound plan and the only one by which a majority of the people may purchase homes. In a memorandum subsequently addressed to the solieitor of internal revenue it g ed that the fullest possible provision be inserted in the expected Treasury regulations in rega to this plan of sales. “The effort was successful to the ex- tent that Tre ury decision 3921 has continued to recognized the so-called ‘deferred payment plan’ It pre. scribes that in such cases ‘the ob- ligations of the purchaser A""I“L“"’,‘L"“ ~(Continued on Twenty-third Page.) 6 “Life-time” rooms, well ar- % Spacious Coat Closet on first ranged. Large Concrete Front Porch, and screened Breakfast and Sleeping Porches. Built-in tub and shower. Master Bedrooms across entire front. Hardwood Floors upstairs and down. Effective lighting fixtures. ‘One-piece Porcelain Sink and Glassed Dresser. . lmtk:‘ Built-in Wht;te Moun- tain rigerator, wi i for 100 Ibs. ice. S | floor. Large Wardrobe Closet in st Linen Closet in upper hall. Laundry. Servants’ Toilet. Cold Storage Room in base- ment. Screened throughout. Separate Garage 'screened from view by attractive lattice. d:‘-'-r:e yard, beautifully sod- Deep front lawns with hapd- some planting. = . Exhibit Home furnished by W. B. Moses & Sons that you may see it as it will appear when you are living in it. _ Entirely the production of the Cafritz organization — combining .the most skilled craftsmanship with the very best of materials—built the Cafritz wa; Open for Inspection from 9 AM. to 9 P.M. Every Day and Sunday Tuke cars or 16th St. busses to Decatur Strest—or phone for ane of cur autes = CAFRITZ Owners and Builders of Commanitien. M. 9080