Evening Star Newspaper, January 23, 1932, Page 19

REAL ESTATE. THE EVENING e STAR, WASHINGTON, D. C., SATURDAY, JANUARY 23 1932. REAL ESTATE. B3 HOME LOAN BANK VIEWS CONFLICT Proposed Plan Attacked and Praised Before Senate Subcommittee. (Continued From First Page.) obsolescence of existing structures does not warrant increasing the annual rate of home construction 50 per cent more | sbove the foregoing normal figures. Such an abnormal promotion of build- ing activities could cnly bring tempo- rary prosperity to the building and real estate interests. It would add greatly to the present overbuilt condition, with an | additional depreciation of real estate values. A drastic increase of foreclosures in existing home mortgages would fol- low, with resultant distress and loss to present home owners. This would also adversely affect the basic security behind the financial insti- tutions which today hold $26,0 of mortgages. 2. Existing credit agencies, augment- ed by the Reconstruction Finance Cor- poration, the National Credit Corpora- tion and the strengthening of the Fed- eral land bank system, should be given an opportunity to demonstrate their usefulness in_ the present situation. Emergency rellef for frozen mortgage assets is provided by the Reconstruction Finance Corporation. Oversupply of Mortgage Funds. ‘There is no need in normal times for any additional agen posed home loan b trary, the present overbullt situation was partly created by the oversupply of mortgage funds in recent normal years. * * * There is no more need for 8 permanent organization to relieve the frozen real estate mortgage situation than there is for a permanent organi- zation to relieve frozen railroad bonds, or to relieve other troubled industries 3. The bonds of the proposed home loan bank system cannot be sold at & Jow enough interest rate to allow a rea- sonable interest rate to the member borrower, as the expenses of the new | system would have to be paid from the interest differential. 4. The sale of home loan bank bonds, tax exempt, would further d plete tax income to the Federal Go ernment, the States and smaller gov- emnmental units. It would depreciate other Government securities. The ad- ditional $125,000,000 proposed for the Federal land banks predicates the is- suence of additional tax-exempt bonds, and the $150,000,000 for the proposed home loan bank predicates the is- suance of $1,800,000,000 of tax-exempt bonds. Cites Federal Land Banks. 5. We should profit by the experience of the Federal Land Bank system dur- | ing the current depression, when their bonds are depreciated, new bonds can- | not be sold. comparatively little can be | loaned and the land banks must be | furnished additional funds by the Gov- ernment to restore liquidity. | 6. The fiscal situation of the Govern- ment should be considered. To provide for already scheduled expenditures of the Government, for the capital needs of the Reconstruction Finance Corpora- | tion and for the Federal Land Banks (not including the refinancing of ma- turing governmental obligations) will require financing upon governmental credit during 1932 of $3,000,000,000 to | $4,000,000,000 of new money; in other words, the creation of new debt to this | amount. ‘This program calls for an increase in taxes and borrowing greater than ever required In peace times. To | provide up to $160,000,000 more for the proposed Federal home loan bank would add to the already heavy burden. 7. There has been & strong and gro ing tendency for the Federal Govern- ment to usurp the functions of State governments in supervision of local private business. This bfll is a further effort ajong this line. It proposes to take the control of real estate finance out of the States and put it in the hands of the Federal Government. Other Winesses Opposed. Three other witnesses heard during | the week cpposed the measure. | Winston K. Ogden, Summit, N. J, | and Thomas F. Clark of New Haven, | Conn,, told the committee they be- | lieved the home loan banking system ! would add burdens of taxation as well as enccuraging enflationary develop- ment. Mr. Ogden declared that speculative builders are just awaiting for such a financial move to start operations nd he predicted their renewed would start a new depres- sion in prices that would go far below the current levels. Mr. Clark argued | that the proposal was unsound as a matter of law or business and that it would not supply funds for the indi- vidual who desires to build a home of moderate cost because of his difficulty | in finding_second mortgage money. | Henry R. Robbins of Philadelphia asserted he was disgusted with business‘ interests that run to Washington “to dip into the Federal Treasury e\'cry‘ | time they get into a jam.” Urge Need of System. Robert Oakm Detroit, State tax commissioner of Michigan, and Isadore Friedlander of a Houston, Tex., building and loan association both urged the need of a mortgage banking system and declared that since the Government alre is in “the credit business” it shouid provide the means for financing the homes of the | for A however, said the meas- | sideration did not co- incide with the recommendations made by President Hoover and should be re- written to carry out the ideas of the Chief Executive He ‘sald one of the principal defects of the measure is the provision limit- ing loans to 50 or 60 per cent of value. “By including that (provision) you not only have made it impossible for the working man to go ahead with home ownership without & previous start, but you have o that there will be a gradual on of resources of loaning age which have put up twice as mu " he s “A banker ma y, of $3,000, or about half of the value of the house. The banker wants to trans- fer that mortgage to the Government | interpreted in | inc | as high as $15,000. Colonial Motif | [] in Wrenwood sidence at 6000 Thirty-fourth place, Wrenwood, at Rittenhouse street and Bro of the Bureau of Mines from the developers, Shannon & Luchs, Inc. house and others of the group are built about a street which has been gl\'cni the cul-de-sac outline. i Branch road, which was purchased recently by Reginald S. Dean This APPRAISERS' GROUP RECEIVES APPRUVAL‘ Organization Is Formed to|&"pritate actective to force Miss Etiza- | Prevent Defaulting of | Real Estate Bonds. (Continued From First Page.) efficiently planned to eliminete un- necessary steps. An attractively fin-| ished room in the basement for play or study is almost universal. An open wood-burning fireplace and ample closet space are general. “Construction must be sound and fire-resistant, with emphasis on items that reduce maintenance and de- preciation. _Insulation is expected; | radiation is being concealed and of the newest type. “There is a growing ‘certify’ construction. Many are featuring it by affixing their trade- | marks or signatures as evidence of their responsibility. “Good architecture is being more ap- preciated and demanded. Its value is being Tealized. The restoration of our best historical examples of early! American architecture and subsequent publicity, as in Willlamsburg, Va., and the rehabilitation of many of the older | sections of our Eastern cities, and the | tremendous prices people have paid for | these renovated old homes, because of | thelr intrinsic_beauty and charm, their | ‘atmosphere,’ have impressed the pub- | tendency to! builders | | GIRL CHARGES PLOT Says Father and Son Conspired to Force Her to Leave Town. NEW YORK, January 23 (#).—Russell Sage Underwood, grandson of the former president of the Erie Rallroad, was accused in Supreme Court Thurs- day of conspiring with his father and beth Furst out of town because, she alleged, he owed her “certain rights, duties and obligations.” Miss Furst, who claims to be a former fiancee of young Underwood, is suing the trio for $100,000, ‘charging slander and conspiracy. The girl charges she was slandered. Co-defendants with young Underwood are his father, Frederick D. Underwood, and Harry A. Pohr, private detective. 3231 Patterson St. 4 Bedrooms $13.950 Chevy Chase, D. C. A Real Proposition. Brand-new: large rooms: real up-to-date equip- ment. A kitchen that will delight the particular housewife. First- floor lavatory, 2 bright baths, large attic, dry, bright cellar; large lot with garage. Open Daily and Sunday Until 7:30 H.G.Smithy Co. 1418 Eve St. Nat. 5003, lic forcibly with the cash value and | permanence of good design. Good architecture is the greatest enemy of | obsolescence. Heat Control Expected. | “Fully automatically controlled heat | 15 expected now generally. Rust-proof | screening and radio connections are | provided. “In our frantic search for knowledge of public demands, and our anxiety to | fulfill it, however, we should heed the | words of caution sounded by the Com- | mittee on Design of the President’s Con- ference on Home Building and Home Ownership: “‘In so far as these conveniences and equipment represent added comforts. they should be provided to the greatest extent possible, but, in many of these recent examples, comforts have been terms of unnecessary elaboration, and features which con-| stitute useless gadgets of questionable value for use, or &s an investment.” | —_— cent of this $3,000 A-1 security, or $1,800." | Again, in his testimony, Mr. Oak- man said: “Supposing a sound and | stable bank having $3,000,000 or $4,- 000,000 of good, sound amortized mort- gages in the morgue wishes to replenish its cash aceount to the extent of $1-| 000,000, guaranteeing said loan. Does | any one believe that such a bank would | Hie up for 10 to 20 years the sum of | $2,000,000 in order to borrow 60 per | cent or 50 per cent of the value of the roperty mortgaged? | “While I am opposed to this bill, T am in favor of & genuine, permanent mortgage bank that will pay its cwn expenses and make a profit without asing the rate of interest charged by the great life insurance companie Such a bank would not compete un- justly with the large, substantial life | insurance companies.” | The bill provides for mortgage loans Mr. Oakman urged that this be reduced to $7,500, and Mr. Friedlander thought that a maximum | of $10,000 would be better than $15,000 Hopping from roofs or private gard- | ens before the year is many months | older is the expectation of Londoners as | | the result of experiments recently made | with the autogiro types of airplanes. Heating Equipment 4100 Georgia Ave. AD.0145 bank. He can get for it only 60 per 16th Street : Heights 7538 14th St Brand New Only 14,250 The Latest Appeal to the Discriminating Home Buyer 324 17th Place N.E. —will surely please you. You will find here four large bed rooms; many closets; a complete tile bath; extra tile lavatory to permit the arrangement of some rooms into a private apartment; attractive living room and din- ing room and the most complete kitchen you have ever seen. The garage is built in. Restricted white neightorhood, adjoining Eastern High School. Unusually low price and easy terms. Exhibit Home Open to 9 P.M. R. E. Kline, Jr. Owner 717 Union Trust Bldg. Nat. 6799 Or Your Broker LOANHEAD SEES BUSIES UPTUR Holds Progress by Congress and City Spending Are “Hopeful Factors.” Rapld progress made by Congress in | | acting on the administration’s program | | for economic relief and a pause in the | “saturnalia of spending” by municipal | | governments are cited as “hopeful fac- | tors” in the current economic situa- [tion by George A. Martin, president | of the Railroad Co-operative Building | and Loan Association of New York. | “Without _straining our optimism in search of ‘major business indicators’| of an upturn” he sald today, “we| can find many hopeful factors, which, | if permitted to continue, will show the way to business recovery. Trend Away From Panic. “There has been a distinct trend | |away from panic psychology, & sub-| | stantial stiffening of courage on the | part of the general public. Hoarding | has dropped materially; seasonal first | | of the year withdrawals from saving institutions were smaller than was an- ticipated. Mortgage payments have | been encouragingly, regular in the face of reduced inconmes and unemploy- | ment. “Faced with the consequences of a saturnalia of spending, for which the unorganized taxpayer has paid, and will continue to pay for some years to | come, municipal governments " are at last feeling the necessity of adjusting expenditure to income in _order to obtain needed financing. From this the taxpayer, and particularly the home owner, will profit. When all's said and done, you must save or you can’t have. Relief Moves Forward. “President Hoover’s economic relief program has moved forward with ex- ceptional speed and steadiness in & none too friendly Congress. The $2,000,000,000 reconstruction finance act, which will unleash millions of dollars of frozen assets through re- financing of securities, is about ready to function. Measures for farm bank relief and to broaden the rediscount facilities of the Federal Reserve banks seem assured of early enactment. Another measure providing $150,000,000 for the relief of depositors in sus- pended banks is assured of early enact- ment. “A distinct gain in the effort to bring labor costs into line with de- flated commodity prices is a decidedly hopeful factor, to which labor itself is contributing in a spirit of high public service. Acceptance by the railroad brotherhoods of a reduction in wages now seems assured and will be a nota- ble step in this direction. “Building and loan shares do not rise and fall with a fluctuating market. The dividends declared may be higher or lower, dependent upon business con- ditions at the time, but the principal is always safe. Building activity is still below normal, but, with the up- ward swing expected in 1932 and a return to some degree of prosperity, it | is hoped that there will be renewed activity in the field of small home building, creating a greater volume of small mortgage loans and increased business for building and loan asso- ciations.” Ninety-seven miles of Panama’s sec- tion of the Inter-American Highway re- main to be completed, 215 miles having already been completed with an all-year surface. | Home and register your name! | | Open to 9 P.M. Daily Never before have you been able to purchase an All-Brick Home as finished with the modern conveniences and practical features that we have incorporated this group we are offering for the low price of 8,250 Small Cash Payment Monthly Payment Like Rent! 3 Sold This Week completely in WE INVITE YOUR INSPECTION WAPLE & JAMES, Inc. MEMBERS WASHINGTON REAL ESTATE BOARD 1226 14th St. N.W. NOW! Enjoy That EXTRA Room e Without EXTRA Cost See This Newes Just Completed in t Group of Homes Beautiful Glover Park 7 Rooms and Bath Including Finished Recreation Room in Basemen $9,250 t Opportunity Free!—Free! To the Head of EACH FAMILY inspecting during the month of January, 1932, we will on a BEAUTIFUL ELECTRIC PERCOLATOR SET. You do not have to be a Prospective Home Buyer—just see our Exhibit Our Model Home e a FREE Vote Sample House Completely Furnished 1704 D St. Some Interesting Features 6 large, well proportioned outside rooms, hardwood trim, oak floors throughout, abun- dance of electric outlets, wall brackets. Fireplace With “Radiant Heater” Beautifully Equipped and Arranged Kitchen! Sanitas on walls and ceiling; inlaid linoleums; cabinet gas range; electric refrigeration; Oxford kitchen cabinets, trim- med in two-tone Duco; fold- away dinette; Colonial front porch, screened breakiast and sleeping porch; large bright cellar; deep lot; garage; paved alley. North 0962 RECREATION ROOMS That EXTRA rtoom _ that adds so much comfort. Large, bright-finished room in base- ment . . . sultable for chil- dren's " play room, club room or clean, dustless’ storage. TILED KITCHENS The new idea kitchen convenience and sanitation... TILED WALLS._ ~ Also_equip: ped ‘with the LARGER SIZE electric refrigeration, inlaid linoleum and built-in’ froning boards and broom closets. COLORED TILE BATHS Luxurious colored tile baths suggestive of the costly resi- dence. Chromium fixtures, built-in tub, shower, pedestal lavatory. Done in' green or lavender tile. CONSTRUCTION Solid_all-brick using deco- rative face that gains mellow beauty with age. Cement front porches, screened rear porches. copper screens for all openings IMPROVEMENTS Strect and alley paved with concrete. Deep. rettily planted lawns. - Rigid " come MUy restriciions. slect o sirable nelghbore v min: utes from Dupont Circle. Few steps to cars and bus. OTHER FEATURES Cedar-lined closets. bracket lights, g’uarm paneled ‘u'xlh gas or coal heatl - tems " at”slight diferetice” in price. ® HOME OWNERSHIP HELD THRIFT SYMBOL Sears-Roebuck Official Says Many‘ Have Taken Advantage of Break in Prices. Home ownership is described by a home construction leader as a con- vincing symbol of thrift that has stood out in sharp relief during the ecenomic depression of the past two years. In a statement yesterday to the Na- tional Thrift Committee on the occa- sion of “Own Your Own Home day” of national thrift week, Harvey L. Harris, general manager of the home construc- | tion division of Sears, Roebuck & Co, | declared: “The home owner as a class has been | able to weather the economic storm | better than others, because of the fact | of his home ownership and because of | the habits of thrift, which such home | ownership usually involves. | “He has not only been prepared by | habit, in the generality of cases, to| budget his living expenses more intelli- ' gently, but with the credit background which home ownership supplies, he has | been able to take prompt advantage | of opportunities offered by the break in | commodity prices. “This has had its application. also, to thousands who because of habits of thrift have been able to take advantage of lower costs in building or buying a | home during the depression. | “By offering early and tangible re- ward in the form of a home. which is still man’s most treasured matg:ial pos- session, the habit of saving and spend- ing wisely will be encouraged and | | strengthened In hundreds of thousands | » kidnaping, showed police what might of Americans.” —_— The Swiss Federation of Workmen's Gardens now has 12,800 members. To inspect: tol St. to 17th 17th"to C, then The Model Home With the Many Features 1804 C St. NE. Beautifully Furnished and Decorated by NELSON FURNITURE COMPANY Open and Lighted DAILY AND SUNDAY Until 9 P.M. Drive out East Capi- east to Home. GRUVER & MARSHALL OWNERS Brokers Protected Escapes Police on Crutches, JACKSONVILLE, Fla. (®)—+Warren R. Workner, 24, held in eonnection with be called ‘handicap escape” when he hobbled away from detention on crutches while recuperating ffom a bul- let wound in the leg. Street, morth om == = 2z THE GARDEN SIDE of 1705 Hoban Road, in Colony Hill. Imagination cannot picture a lovelier scene than that pre- sented in this New England home and its surroundings. One of about 70 Early American and Georgian houses, completing a Village that will rival any community in America, each Drive out Que St. to Wisconsin Ave., north one block to Reservoir Road, west to 100 feet beyon 44th St. house distinctive in design and plan, and possessing an indi- vidual charm different from its neighbor. Horace W. Peaslee. Landscaping by Rose Greely. OPEN DAILY. BOSS & PHELPS Architecture by Creators and Exzclusive Developers of Colony Hill and Fozhall Village e Streets N. Price % 28th and Albemarle Forest Hills ’35,750 An Eminent Distinguished Home HE result of scientific thought and careful supervision. A product of true craftsmanship and a credit to the city. Solidly built of stone and brick (with particular attention paid to spaciousness) home smmediately appeals to the lover of “better things,” and there is a of home ownership when you this desire enter its door. with room W. bath; large hall. slate. General Electric refrigerator, oil heat, two-car built-in garage, imported wall handmade paper, ware; First Floor: A huge living room massive fireplace; a porch with rustic gate and a wiew over Rock Creck Park; a dining 14x24, with fireplace and built-in cupboard; butler’s pantry and kitchen, spacsous library with lavatory. Second Floor: Five bed rooms, three baths, seven cedar closets and Third Floor: Large recreation room and separate storage room— all insulated and a strong roof 0{ stone servants’ room entrance and hall ; \ fivtures and hard- monel metal sink, special tiled sink and many other unusual features. A beautifully wooded corner lot 98x131. ’ OPEN—HEATED—LIGHTED Saturday and Sunday Until 8 P. M. . 3759 W St. N.W. 1. B. Moses & Sons ° ° For Sale by Any Broker or Owner...B. H. GRUVER. .. Builder 927 15th St. NW. NAvL 1737 Model Home . . Completely Furnished Glouerpm it and Decorated by . . . ;Ad}ommg Mass. Ave. Heights. | 1f you miss seeing this home you are missing the outstanding buy of the year—6 large rooms—2 baths—large, finished attic— bright cellar—ultra modern kitchen with breakfast room and elec. refrigerator—Brand new—All Bmick—Colonial Type—2-car brick garage—Don't fail to see this. Reasonable terms. i H.6.Smithy Ce Open Saturday and all day Sunday PHILLIPS & CANBY, Inc. Investment Bldg. Take Burleith-Gle bus tnr drive out %“' oA St, labs Rd., lejt on Benton St. to 35th, thence left to W St. Open every day until 9 p.m., NA. 4600 Exclusively |