Evening Star Newspaper, January 22, 1927, Page 17

REAL ESTATE WASHINGTON, REALTY GROUP TO STUDY BOND ISSUES FOR INVESTORS’ SAFETY National Board of Real?ior; Will Name‘ - Committee to Make Survey in Move Against Unsound Investing. A special’ committee to study the Mmatter of real estate bond issues and to take action on steps designated to protect investors inst unsound practices in the is of real estate aga 1e mortgages and bonds will be appoint.- | ed by the National Association of Real Estate Boards, according to action taken at its annual business meeting just closed in Miami, Fla. The association adopted resolutions formulated by its mortgage and finance division and constituting a platform of principles for the making of sound real estate bond issues. These principles will be the basis for the committee’'s work. A resolution adopted by the association states “The sale to the public of honds based on real estate securities h grown enormously in the past few years, to the great advantage both of the public and of real e g whelming percentage of c desirable investments, neve a limited number of cs i abuses have crept in, which have been | brought to the attention of this or- | p ganization, and it is felt that no effort should be spared to keep such bonds on the highest possib’e plane and to protect the investing public from any losses thereon. Will Name Committee. The resolution called for the crea- tion of a committee to formulate a statement of the general conditions of sound real estate mortgage bond practices and authorizes the commit- tee to consifler and to take action on steps - designated to remedy certain practices of some underwriters of mortgage bonds and to co-operate, far as it may deem feasible, with committees of other organizations formed to accomplish the same ends. It asks that the committee take note of and give careful consideration to the following expressions of opinion formallv adopted by the mortgage and (1)=That speculative risks should finance division of the association: tnot be assumed by holders of first | mortgage bonds. (2) That money held for specific con- structfon should be absolutely proteet- ed against appropriation for other purposes. (3) That the loans represented by bond issues sold to the public should be limited to an amount which expe- rience has demonstrated is safe and conservative. (4) That circulars and advertise- ments should fully, frankly and ade- quately disclose all pertinent informa- tion relative to the issues offered. Fixing Responsibility. (5) That the title, “First Mortgage Real kstate Bonds,” should be used only when the bonds are a first lien on both land and building, and that lease-hold bonds should invariably be 80 characterized. (6) That mortgage houses should assume full responsibility for ap- praisals on which they base their issues. (7) That every real estate bond, issue ‘should provide for amortization of the debt, to offset depreciation and 9 lescence and to liquidate the debt in an orderly manner. (8) That all appraisals should be conservative, taking into account both physical valuation and earning power. The association further adopted the report of a special committee recom- mending legislation that would put in the hands of the trial judge the power to designate persons to serve as expert witnesses as to real estate valuations in court cases. It reviewed the need of adjustment of the Federal revenue act in regard to real estate sales, which need it has recently brought before the finance committee of the Senate and the ways and means | committee of the House in a formal brief, a hearing on which has been | .):I‘(ln(e\l for the last week in January.| It indorsed a general program of | State legislation in matters affecting real estate. Amendments were passed to the constitution of the assoctation which | relationship 8 i and a neial r | and which will give the various State groups of real estate beards repre Sentation upon the national associa- tion’s board of directors. New President Elected C. C. Miatt of Louisville, Ky formally inducted into office as pr dent of the association for the y 1927, succeeding Robert Jemison, j of Birmingham. A With Mr. Hiatt Fred F. Reed of Oakland, Cal vice president; Joseph K. Brittain of Chicago, treasurer, and other officers d | st temaining vice pre nk McLaughlin, Toronto, for Penn: - anfa, Delaware, Maryland and Di trict of Columbia; Harry T. Sharpe. Ashville, N. C., for Virgihia, North Carolina and_Georgia; Frank J. Pep- per, Miami, Fla., for Florida; Joseph R. Emery. Shreveport, La., for Ar- kansas, Mississippi, Alabama and Louisiana; Walter S. Schmidt, Cin- cinnati, for Ohio, Kentucky, West Virginia_and Tennessee; Lawrence Miller, Dallas, Tex., for Texas New Mexico; Frank E. Gates, Indian- apolis, Ind., for Indtana and Michigan; Walter J. Ruediger, Belleville, TIL, for Illinois and Wisconsin; R hone, Lincoln, Nebr., for North Dakota, South Dakota, and Nebraska; John H. Mi Okla., for _Missouri, ns Oklahoma; Charles H. Culver, Culver City, Calif., for California, Ari and Hawafi: Frank Wheeler, Seattle, Wash., for Washington, Oregon, Idaho Kan: Divisional chairmen who are =also ex officio vice presidents—Mortga and finance division, John H. Stalker, Detroit, Mith.; home builders and sub- dividers’ division, John J. Hurst, Bal- timore, Md.; brokers’ division, Parker Webb, Boston, Mass; industrial prop- erty division, R. Vernon Clark, Sast St.” Louis, Ili.; property management division, Carlton Schultz, Cleveland, Ohio; farm lands® division, J. E. Mil- ler, Geneva, Ohio; co-operative apart- ment division, Albert W. Swayne, Chi- cago, Ill.; realtor secretaries’ divi- sion, Perry Powell, Milwaukee, Wis. Directors Selected. Directors for a three.year term— Harry E. Gilbert, Baltimore, Md.; Leonard P. Reaumo, Detroit, Mich.; Willlam H. Gardner, Winnipeg, Mani- toba, Canada; Joseph W. Hannaeur, St. Louis, Mo.; Walter W. Rose, Or- lando, Fla.; Phillip V. M. Fry, Port- land, Oreg. (term expires 1928). Chairman of the national board of presidents and secretaries of State real estate associations—Harry B. Al- len, San Francisco, Calif. The ex- ecutive committee of the association for the coming year will be made up as follows: C. C. Hieatt, Loulsville, Ky., imcoming president; Fred . Reed, Oakland, Calif., first vice presi- dent; Willlam H. Gardner, Winnipeg, Manitoba, Canada; Leonard P. Reaume, Detroit, Mich.: H. R, Ennis, Kansas City, Mo.; Joseph K. Brittain, Chi- cago, IlL; Herbert U. Nelson, Chicago, executive secretary. REAL ESTATE BOARD URGES DEEDS OFFICE Secretary Testifies at Gibson Inves- tigation of Conditions—Situa- tion Held Dangerous. The Washington Real Estate Board took an active interest in the hearing by the Gibson committee investigat- ing the affairs of the District of Co- lumbia in regard to the necessity of e new recorder of deeds office. James ‘P. Schick, executive secre- tary, appeared before the committee &nd advocatell a new recorder of deeds office as an absolute necessity for the proper protection of Washing- ton realty interests and of the Federal Government's transactions in the Na- tional Capital. It was pointed out that the Real Estate Board, within the last few months, had made an in- tensive survey of conditions in the re- corder of deeds offices throughout the country, and further that Washing- ton’s system of handling deeds was in a deplorable condition in compari- son with other cities. It was shown that other cities re- (gord their deeds within a period of anywhere from five days to three weeks, while ‘deeds and important papers in Washington lie urecorded for a year or 18 months. Mr. Schick said that if a serious conflagation occurred in these offices, actual records and all evidence of title and ownership of millions of dollars of real estate, improved Federal prop- erty and the title to thousands of homes would be destroyed. It would cost untold sums and take many years to re-establish legal title. Perhaps in many cases this could never be done. It was recommended also that in addition to the building of a proper recorder of deeds office a local man be eppointed in charge with an adequate force to handle the work and that eppointmenis oe made by the Com- missioners of the District of Columbia APARTMENTS HEATED T0 68 DEGREES ASKED Baltimore Ordinance as Proposed Denounced Widely by Owners and Realtors. Special Dispatch to The Star. BALTIMORE, January 22.—An or- dinance introduced in City Council this week requiring apartments to be heated to 68 degrees from 6 a.m. to 10 pm. will be opposed by the real estate board. Penalties would be assessed for violation of the proposed ordinance. “Any person,” it reads, “violating the provisions of this ordinance shall be deemed guilty of a misdemeanor and shall be subject to a fine of $10 on conviction for the first offense. On a second conviction the person shall be subject to a fine of $25, and on any subsequent conviction shall be subject to a fine of not less than $50 nor more than $100, or imprisonment not exceeding 30 days, or both such fine and imprisonment.” George R. Morris, owner of many apartments, said such a law would be hard to enforce and would be more of an annoyance than a benefit to tenants. The only time the ordinance would be used,” he said, “would be when some tenant wants to break a lease.” Secretary Pitt of the real estate board said a similar measure was pro- posed about three or four years ago at a time when apartments were scarce and there was more need for such regulation than now. Even then it was killed, and he feels sure it will have less backing now. “At present there are more apart- ments than tenants,” he sald, “and landlords are anxious to do every- thing to keep tenants. As to the 10 p.m. limit, I find nobody goes to bed instead of under the present method. Re-subdivision on Woodland and Rock Creek Drives, ad- joining Rock Creek Park, one block west of Conn. Ave. Bridge ., now available. Included in what remains of and near Mass. Ave The Triangle of —between Connecticut, Massac| Over 250 homes built and under ments and home values exceed $10,500,000. Wooded villa sites, lots, central and side hall home front, from $25,000 to $200,000. Middaugh & ESTABLISHED 1899 717 14th cut down heat then.” Massachusetts Park Increasing Values husetts and Cathedral avenues. construction. Actual improve- s, with lots from 50 to 300 feet Shannon, Inc. at that hour now and no apartments || approximating $300,000. plicity its feature. Wardman, the left half of w Byzantine influence. the month. be Foening Stap - UARY 22 192 HOME & GARDEN AT LEFT: New home of the Perpetual Building Association, northwest corner Eleventh and ‘E streets, which was built of Indiana limestone at a cost 1t is two stories, Corinthian in style, with sim- AT RIGHT: Fivestory building erected at 143537 K street by Harry ich will be occupied by the Wardman organiza- tions and the right half by Shannon & Luchs, realtors. Built of Briar Hill sandstone from Ohio, the structure is of Italian renaissance architecture with The cost was in excess of $100,000. All three organizations are to move into their new quarters by the 1st of OFFICE STRUCTURES COMPLETED IN DOWNTOWN WASHINGTON. MIANI CONVENTION ISREALTORS' BEST 50 Local Delegates See Sights of St. Augustine. Washingtonians Give Talks. Fifty members of the Washington Real Estate Board attended the annual mid-Winter meeting of the National Association of Real Estate Boards at Miami, making the most successful trip in the history of the local organi- zation. The District of Columbia realtors left Washington on_a_special train and procede on schedule time to St. Augustine, Fla. At this town, the oldest in the country, they were met by the St Augustine Chamber of Commerce and were the guests on an auto tour around the venerable city, remaining there six hours. They viewed the Spanish fort, the oldest dwelling in the United States and the oldest frame dwelling in the United States. They were shown the Fountain of Youth which was thought to contain unusual properties by Ponce de Leon, the slave market, alligator and ostrich farms and other interest- ing sites in the city. They then proceeded to Coral Gables, where they were quartered at the Miami-Biltmore Hotel, the headquar- ters of the convention. Here they took an active part in the business of the convention, and among the speakers to address the meeting from Washington were: James P. Schick, executive secretary and treasurer of the local board; John A. Petty, vice president of Shannon & Luch; R. B. Warren of the co-operative section and John Ihl- der of the Chamber of Commerce of the United States. Following the meeting, 18 of the local delegates embarked for Havana by way of Key West and will return to Washington by boat from Havana to New York. Many also took the special train for a one-week tour of Florida. It is expected a number of new recommendations and many new prob- lems and questions will be taken up by the local realtors during the coming year as a result of the meeting. dition is the roof? —all wrong. We'll know. Oehmann Is Optimistic Over Building Prospects While Expecting Decline Forecasts of a decline of approxi- mately 12 per cent in the building operations of the nation during the present year, which have been made on the basis of numerous statistical surveys of national scope, will hold true for construction activities in Washington, in the opinion of Col. John W. Oehmann, District building inspector. While Col. Oehmann expects no “slump” in realty investments, he be- lieves there will he a decline in the amount of building in the District this year amounting to at least 10 per cent of the $63,000,000 figure reached in last vear's local operations. The decline may even go below that estl- mate, he says. The building inspector bases his prediction on the mass of money which already has been invested in building _enterprises here, the in- creased difficulty of financing opera- tions, the number of vacant apart- ments and houses and the extent to which northwest Washington has been built up since the war. Col. Oehmann, however, is far from AWARD REALTY CUP. Minneapolis Delegate Wins Valua- tion Prize. The Minneapolis Real Estate Board, represented by Norman Newhall of its appraisal committee, won the cup in a national appraisal contest held at Miami, Fla., in connection with the annual business meeting there of the National Association of Real Estate Boards. The Dallas Real Estate Board, represented by Lawrence Miller of its appraisal committee, was cited by the judges of the contest as a close contestant for first honors. Appraisal of the 15-story bullding erected during the past year by the Miami Realty Board for its head- quarters was the problem presented The award was based on accuracy of the value given by the contesting appraisal experts, the logic and com- pleteness of the justification submit- ted with the valuation and merit of the forms used in the presentation of the valuation. The cup, presented by the St. Paul Real Estate Board to be contested for annually, has for the past year been held by the Philadelphia Real Estate Board. Don’t “Guess” About the Roof Send for Rose—and Know— OULDN'T you like to know in just what con- If there’s nothing wrong —all right. If there is the sign of weakening We are not alarmists—but we don’t judge by appearance—we find out— and know exactly what remedy is required to make the roof a Rose roof—which means it’ll stand the strain of time and weather. The very moderate ;:ou can be budgeted for your convenience. JCOMPANY 1432 K St YOUR OLD HOME AS PART PAYMENT ON A NEW HOME 711 Van Buren St. N.W. and 849 Venable St. N.W. OPEN SUNDAY Inspect These Attractive Homes That Are Priced Right Wm. S. Phillips & Co., Inc. pessimistic, and, in fact, is predicting new and large devalopments to take place in the northeast séction of the District, nearer to the District line than the center of the city, in the next five years or so. This growth, he believes, will be the natural expansion of the city to meet its suburbs, necessary as the city be- comes “solid.” Additional engineering facilities will be necessary before the northeast sec- tion of the District can expand as he expects it will, Col. Oehmann says. Bridges are needed over the railroad tracks, and other city developments, such as sewers, straets, water, etc. Construction of bridges across the Anacostia River to make more acces- sible sections of the scutheast to the city proper would result in large de- velopments there also, the building inspector said. Col. Oehmann points to the recent acquisitions of land in the northeast section by a number of real estate concerns engaged in operative build- ing ps an indication of the antici- pated development of the section in the near future. BULDING PROJETS ATNORMALLEVE Week’s Permits Represent Construction Amounting to More Than $466,900. Building projects launched during the past week, as shown in permits granted by the building inspector, again dropped to a more normal level for this season of the year, being far below the unusual point reached last week, when the total mounted above $1,100,000. The past week's total per- mits represent construction amount- ing_to slightly more than $466,900. No unusual enterprise is contem- plated. in these latest permits. Those | approved are: . C. and A. N. Miller, owners and builders; G. E. MacNeil, architect; to (Continued on Twenty-second Page.) | | | | INCREASE IN LEVIES REFLECTS GROWING REALTY VALUES HERE Million-DoH.ar Jump in Assessments Sets Record and Gives Evidence of Soaring Real Estate. BY DON 8. WARREN. The ever-mounting value of land and improved property within the Dis trict of Columbi flected in | assessments levied against owners as | a basis for taxation, once more dem- onstrating significantly the ultimate value of such investments in Wash- | ington. | According to information at the office of the District sor, the annual assessment of prop- | erty, which is being inaugurated this to replace the former biennial ows the total value of improvements to have | mounted considerably above the bil- | lion-dollar mark, setting what is be lieved to be a record for cities of com- parable_size. The last assessed value of $950.- 000,000 thus gives way to a new total expected finally to be definitely set tled at between $1,100,000,000 and | $1,200,000,000. Many inquiries re- garding assessments are being made, and the largest number of appeals ever known in the history of Wash- ington are expected to be made from the findings of assessors. However, the total valuation is sure to stand well above the billion-dollar mark, in the opinfon of officials. This mammoth increase in assessed value, being 20 per cent or more above the last assessment, is seen as a clear demonstration of the steadily rising value of the territory of the District, which is ever due to increase with the further congestion of build ings, addition of new and more costly and ornate structures, together with the normal increase of population. But there is an added significance in_the boost of realty assessments. Increased valuation, amounting to approximately $250,000,000 over the previous assessment, means an added burden of taxes on the shoulders of the city's property holders, who now are paying taxes on real estate and personal property at a rate of $1.80 per hundred. Comparisons of Wash- ington’s tax rate with those of other cities often do not point out that the ocal assessment is on the basis of ull value, whereas in many cities the assessment is on partial value, often | far below full valuation. The new assessment will mean, ac- cording to the best information ob- tainable at this time, that the average | assessed valuation of holdings here | amounts to $2,000 per person, far above the average of 30 of the larger cities of the country, and against which the new tax rate will be com- puted. An analysis of the new assessment and of the tax situation therefore is pertinent at this time. No_other city in the country hav- ing 500,000 population will even ap- proach 'a total assessed valuation amounting above a billion dollars. Of this increase $50,000,000 is allotted to cover the Increase in the value of land and $150,000,000 for new build- ings and extensions, which, added to the last total valuation of $950,000,000, brings the new total to $1,150,000,000. Then there will be further additions to be made for new buildings and re- pairs to be made up to July 1, 1927, which must go into the new assess- gain has been re a tremendous increase in ed | land and ment and which are expected to bring the total nearer $1,200,000,000. sions in appeals from the valu 't by the assessors of the Dis of course, will alter the total. values assigned in are not to be of the District found not to have enjoyed growing values, and increased <sments were not made. Boosts, wever, are to be found in points 1ghout the District. ago the tax assessor aise in building The boosts in the the new ssment found in t of construction. This year land values will receive their greatest hoost, since the erection of mew buildings, costing more than $100,000,000 will cause the same amount to be reflected in land values, ording to the assessor's office. In other words, land values and building values in all cities generally are approximately the same. Land values, however, will not be increased with any uniform step-up over the entire District. In some places there is practically no change noted—and In other places the as- sessment as finally set on July 1 next will be several times the old asses: ment. During the last three years, many new plots or squares of land have been laid out and improved. Deep ravines have been filled, hills have been lowered, streets paved, un- derground improvements made and new buildings erected—all of which has added many times to old land values. It has been pointed out also that the erection of so many hundreds of build- ings have decreased the available sites and thereby adding value to sites heretofore not in particular demand. The increase In population also has added to the value of the business community, in the opinfon of asses- sors, although sales in that section are reported in a perfod of quietness. To be more explicit regarding the ncreases in assessment, the North- Wwest of the city has recelved a gen- eral and rather uniform bbost in valu- ation in land assessment. The North- east, Southeast and Southwest of the city has been touched only in spots. The section west of Rock Creek has received great increases in new sub- divisions and this may be said also of the North and Northeast. Beyond the Anacostia River, acreage property has been found to reflect little or no changes, but the settlement of Ana- costia is said to have received *some needed attention” regarding assess- ments. Comparison of the 1928 fiscal year assessment, just completed, shows strikingly the growth over the assess- ment figures of previous years. In 1913, for instance, the real es- tate assessment was about $340,000,000 —a figure that would have to be multi- plied three or four times to equal the total value set for the*1928 assess- ment. The revenue raised on the 1913 assessment was $5,000,000. For 1927, the revenue obtained through realty assessments amounted to $17,000,00) and for the coming fiscal year, the real estate tax may be nearly four times the 1913 figure, or $20,000,000, “(Continued on Eighteenth Page.) T Elevator servi Full-length mi: Tiled baths. 1 room, kit., Main 2100 St. NW. Built-in bathroom fixtures. 3 rooms, kit., rec. hall and bath 2 rooms, kit., rec. hall and bath....___.. e i A S T $55.00 to $65.00 MARYLAND COURTS Ninth Street and Maryland Ave. N.E. | NORTH BUILDING 518 9th St. N.E. SOUTH BUILDING 816 E St. N.E. Two New Fireproof Five-story Elevator Buildings Overlooking Beautiful Maryland Ave. These Buildings Have the Following Improvements: ee. rror doors. Laundry and drying rooms. Switchboard service. Radio aerials. rec. hall and bath Hardwood floors throughout. 1 room, rec. halland bath. ... ot o s et o s R . P $32. Conveniently located to H Street shopping district, both car lines, schools, churches and Northe_au Market See Resident Manager in South Building, Apt. 105. Lighted Until 9 P.M. B. F. SAUL CO Storage space. Attractive lobbies. Resident manager. $72.50 to $77.50 925 15th S . N.W..