Evening Star Newspaper, May 30, 1931, Page 15

: REAL ESTATE. MORTEAGES CALLED BEST INVESTIENTS Returns From Real Estate Loans Claimed Higher Than Less Safe Securities. Pirst mortgages are more readily convertible, dollar for dollar, than Wall Street securities, M. Morganthau, jr., president and manager of the National Realty Service Corporation, New York, declared in an address before the Na- tional Association of Real Estate Boards at its convention in Bgltimore this week. The speaker clted the records of some of the largest investment institutions in the country to back up his conten- ‘tion not only that returns on mort- gage investments as made by these in- stitutions were higher over a period of time than the returns obtained from stocks end bonds, but that mortgage holdings, despite the fact that real estate is not technically a liquid asset, “meet the test of convertibility as well .as it can be met by other holdings| without heavy sacrifice of capital value.” Outlines Survey. Mr. Morganthau, a former president of the New York State Association of Real Estate Boards, outlined statements | made to him by investment institutions | in a research he has been making into| the subject of mortgage security, mort- | gage convertibility and mortgage Te- turn, is part, as follows: “Several of the large savings banks| have given me their figures in confi- dence and these show that thelr re-| turn from mortgage investments has| been nearly 20 per cent higher than on | their bond holdings and fn almost every case this difference has amounted to 1 per cent of the total amount in- vested. “During periods of depression, that the margin in favor of mortgages con- | stantly increases. This is due to the| fact that rates on mortgages never | decline as rapidly or as severely as on money loaned on so-called Wall Street securities. No Cause for Loss. “There has been no occasion for any | Yoss whatsoever on mortgage inv ments during the last decade, or say since the war. This does not mean that there will not be foreclosures or delays in collecting interest and prin- cipal in certain cases. But let me just point to the record of an insurance | company. Their record shows that they | have placed about 44 per cent of their | total assets of about $3,000.300,000 in @irst mortgages, distributed all over the United States. | “They tell me that they have never taken a plece of property under fore- closure which they have not afterwards resold at a profit. In other words, in- stead of losing money, they have ac- tually made money in addition to the interest which they have obtained on these investments. “Remember that they have nearly $1,500,000,000 invested in first mort- | gages, which vield over 5! per cent, against $1,333,000,000 invested in other | sccurities ylelding less than 5 per cent. Greater Return, Greater Safety. “In other words, whereas, you might expect on account of this extraordinary | safety of first mortgages that the re- turn would be less, we find the reverse | to be the case and that mortgages stand up not only as ylelding a larger re-| turn, but as proving to be almost 100 per _cent safe. i “There can be no safe rule as to the percentage which may be safely loaned | on all classes of property. A loan of | 60 per cent on certain properties, as you know, would be excessive, whereas, a lon of 80 per cent on other properties | would be perfectly safe. | “I cannot too strongly urge those| interested in first mortgage real -m-u' bonds to consult experts before making | any such investments, and I also urge | the realtors of the country to provide such an expert service for bondholders in their localities. Manufacturer Buys Home W. H. RAWLEY ACQUIRES RESIDENCE IN WESLEY HEIGHTS. THE EVENING STAR, WASHINGTON, BUYS STORE PROPERTY ALONG KALORAMA ROAD Joseph David Gattl Makes Pur- chase in Northwest Capital as Investment. Joseph David Gatti has as an investment the store properties at 1726 to 1730 Kalorama road, from A. Samuel White, and the property at 8114 Eleventh street, from Norman and Stanley Fischer, it was reported today by the N. E. Ryon Co., Inc. ‘The store and apartment property at 3407 Fourteenth street, the Ryon purch: firm also reports, has ase by W. T. Willett from Nathan Good- D 20 ness property at 1214 New York avenue, The four-family apartment at 19 Eighth street southeast, it is reported, has been;urchued by J. M.’ Coleman from H. P. Amos. Nicholas T. Chaco- nas has purchased from Martin H. Bray the detached brick dwelling at 1410 Manchester street, Rome Had Plumbers. ‘The word “plumber” comes from the Latin word “plumbarius,” which means a worker in lead. Rome had its plumbers for its great public baths as well as for the installation of running water systems in private houses. Prac- d | tically every house that has been ex- cavated at the site of Herculaneum and SATURDAY, MAY 30, | building and home ownership. | Residence at 4315 Hawthorne street, Wesley Heights, purchased by Willlam H. Rawley, president of a local manufacturing concern, from W. C. and A. N. Miller through H. G. Smithy Co. The baths, center-hall plan. house contains eight rooms and three —Star Staff Photo. REALTY BOARD MEMBERS HELP STUDY OF HOMES Leaders in U. 8. Association Named by Hoover to Committes for Research. Members of the National As<n-iation | of Real Estate Boards are serving in important capacities on committees ap- pointed to carry out the work of Presi- dent Hoover's conference on hame‘ Harry 8. Kissell, president of the | real estate association, was appointed on May 12 to serve on the division on mortgage structure of the Committee on Finance of the conference. William H. Kingsley, Philadelphia, is chairman of the mortgage division. Other mem- bers include Samuel N. Reep of Minne- apolis; Henry R. Robbins, Philadelphia, and Harry A. Kahler and Clarence Dil- lon of New York City. F. H. Ecke president of the Metropolitan Life I surance Co., is chairman of the F: nance Committee under which various subcommittees have been organized. Herbert U. Nelson, executive secre tary of the real estate association, was appointed last week to the Committee | on Design of the conference. Willlam Stanley Parker, Boston, is chairman of this committee which has been charged with the task of improving the planning of house construction throughout the country. UNUSUAL VALUE 13,950 3709 Legation St. N.W. One-halt s Connect Chevy Chase, D. C. New, all brick. 6 lar n hall, brea 40x150. Completei osk shade trees. This home 18w y well structed and is priced right. easy terms. Open for inspectio: and Sunday until dark. JOS. A. SHAFER Owner onsin 4208 Potomac 6384-J 1436 Holly Street Beautiful 16th FAVORS LOCAL LABOR Maryland Employment Head Urges Preference Be Given. Bpecial Dispatch to The Star. BALTIMORE, May 30.—Raymond W. t‘ellnmy, Federal director of employ- ent for Maryland, left this week for | £ome of the countles of the State for a survey of building projects about to be | started with & demand for employment. Mr. Bellamy said he would arrange for preference for Maryland unemployed in the selections for jobs. In connection with the expected work | in’the countles he sald, “I hope to con- fer with those interested in the con- struction work and arrange with them to employ people out of work in their | own localities. When_all the local | Jabor is put to work I will request that if any further is required the selection | be made from adjacent localitie: | Street Heights 4 Bedrooms 2 Baths T}m Tooms are spacious and beautifully decorated. Pan- eled walls add immeasurably to charm of lower floors. Big attic. FRIGERATION kitchen. Brick, stone and tion with slate floor. All oak ELECTRIC RE- and splendid GARAGE to match. stucco construc- roof. Big lot. Many other fine features, includ- ing exceptionally reasonable Fr{ce. Drive ont 16th St. to Holly St. and east in first block. OPEN DAILY ALL DAY BOSS & UNTIL 9 P.M. SUNDAY PHELPS 1417 K St. N.W. Realtors 2908 32d STREET + OPEN SATURDAY AFTER- NOON AND ALL DAY. SUNDAY very one familiar with Washington knows the beauty and exclusiveness of Massachusetts - Avenue Park We have selected this home for display and sale as a splendid value in a high-class location, especially suitable for people of affluence who appreciate the charm of the Early American, and require a roomy house. brick with slate roof, CENTER HALL type. sun _room, the right wing an open, screened porch. Electric refrigeration and oil THREE BATHS, and first floor lavatory. It is all The left wing is an inclosed IV E BED ROOMS, burning furnace. The lot fronts 100 feet with wonderful trees surrounding the house. From Connecticut Ave. TWO-CAR BRICK GARAGE with side drive. drive out Calvert St. to Cleveland Ave., west to 32d St. and turn right to house. MAY CONSIDER SMALL PROPERTY IN TRADE BOSS & PHELPS 1417 X Street Realtors man, as an investment. The latter ha8 | Pompeli had runnis - acquired from Mr. Willett the busi- | gators report. e Sl S vest Buy a Home With All Conveniences $7,650 - Sample House 1835 Bay St. S.E. Between 18th, 19th, B & C Sts. S.E. Near Bsstorn Hieh school = electrie_elock ter B Salesman on Prem Until 6 dwood floors Hardwood trim Frigidaire Walke " Bldk: fined closet v $60.00 a Month Tmsm CaSh (@pcludes Interest on Both Trusts) Steuart Brothers, Inc. Real Estate Construction 138 12th St. N.E. 1931. All-brick construction, slate roof center-hall ‘plan; 4 bedrooms, 2 baths on second floor; library or den and lavatory on first floor; servants’ quarters and bath; finished attic; A B C Oil Burn- er; screened sleeping porch ad- joining master bedroom; large electric refrigerator; screens, awnings, weatherstripping. Two- car brick garage. REAL .ESTATE, 108 Rosemary St. Chevy Chase, Md. Beautifully landscaped grounds with a street frontage of more than two hundred feet. This delightful home cost the owner considerably more than thirty thousand dollars. We consider it to be an outstanding buy at the price of $25,000 Drive out Comnecticut Ave. to Bradley Lane, turn left (west) ome block; then right to property. J. Wesley Buchanan ' Exclusively ME. 1143 WI. 3732 What COST means to a builder This semi-detached home at 521 Oneida Place N.W. Dbuilt and for sale by John B. Tiffey, features Bryant Automatic Gas Heat. Beau- tifully landscaped, it is situated in one of the most desirable residen- tial districts, In addition to the three above, the following Wash- ington Home Builders install and recommend Bryant Auto- matic Gas Heat: Cafritz Construction Co. Cooley Bros. C. W. Morris & Son D. J. Dunigan, Inc. Federal Construction Co. B. H. Gruver Wm. A, Hill Co. Fred Schnider Thomas A. Jameson Kennedy-Chamberlin Co. Waple & James, Inc. " Charles L. Tankersley Waverly Taylor, Inc. C. M. Wilcox P. H. Willis Realty Co. Young & Oppenheimer Edson W. Briggs, Inc. A row of homes now under con- struction by Frederick B. Mills in the 1300 block of Allison Street N.E. Presenting sound values, and mod- ern in every respect, they are equipped with Bryant Automatic Gas Heat. Over the week end would be a good time to in- spect this attractive detached home for sale Breuninger & Phifer at 3300 Military Road N.W. It is priced with Bryant Automatic Gas Heat. Used in connection with heating a home it suggests, to the average person, merely the price of COST is a word which can mean a good many things. fuel. To a builder, about to decide on Bryant Automatic Gas Heat after carefully weighing all other types of heating systems, it means the entire cost. Trained in analyzing cost figures, from the very nature of their profession, and vitally interested in buying the best at the cheapest price, the builder looks at cost from all angles. In the first place he considers depreciation, a distinct cost, but one which the average person is apt to overlook. He finds that the gas-fired boiler has far less depreciation than any other type of heating plant. That means a saving. Then there is the cost of repairs and servicing, a careful check must be kept of them. Since the gas company gives free lifetime service, that means a big saving, especlally as compared with other makeshift or semi-automatic types of heating. A complete record of the “hidden” costs, of cleaning drapes and curtains, time spent in fussing with a balky furnace, discomfort from an improperly heated home (and this is a cost) shows a staggering total'of expenses which, other “cheaper” heating methods incur, but which Bryant Automatic Gas Heat does not. Is it any wonder, then, that outstanding builders in this city—keen men who are not content with superficial figures—have decided that from the point of view of cost Bryant Automatic Gas Heat is a good investment. Their judgment is backed, too, by over 2,500 thrifty Washington home owners who tell us they are more than pleased with Automatic Gas Heat. Automatic Gas Heat this week end. Ask your builder about Woashington Gas Light Co. Georgetown Gas Light Co. Rosslyn Gas Co. Tune in on Rudolf Schramm over WRC every Thursday and Scturday evening at 10 o’clock