Evening Star Newspaper, December 1, 1934, Page 17

REAL e ESTATE. HOME MORTGAGES FURNISH SECURITY 79 Million Investors Pro- tected by Paper, Report Indicates. ‘The three institutions holding the majority of American home mortgages have given their 79,000,000 investors the highest degree of security found in privately capitalized finance organ- izations. Naming the building and loan asso- ciations, mutual savings banks and life insurance companies as the ‘“big three” in safety, A. D. Theobald, di- rector of education and research for the American Savings, Building and Loan Institute, said today that the home mortgage has been the balance wheel for their safety in every case. The institute is the research enter- prise maintained by the building and loan industry through its national organization, the United States Build- ing and Loan League. Taking the depression years 1930- 1933, Mr. Theobald pointed to the good fortune of investors in these | institutions. “Of the total assets of building and loan associations at the beginning of 1930, representing investments of 11,000,000 people, 98.72 per cent sur- vived the four years of depression intact,” he said. “Of the total life insurance companies’ asscts at the same time, money paid in by some | 55,000,000 people, 98.5 per cent were safe at the end of 1933. The safety record of mutual savings banks who were investing the funds of 13,000,000 people at the beginning of the de- pression is so generally known as not to require compiling of figures. Record Is Cited. “Investigating the relation of this safety to the holdings of home mort- | gages we find that these three insti- | tutions held $12,000,000,000 of the total $21,000,000,000 home owner debt when the Federal Home Loan Bank Board made its first complete survey of the urban mortgage field. Building and loan associations which averaged | throughout the depression about 87 | per cent of their assets in such mort- gages held the greatest volume, $6,484,500.000. Mutual savings banks investing 53 per cent of their assets in urban mortgages show $3,393.000,000 of the total. and life insurance com- panies, devoting an average of 25 per | cent of their assets to home mortgages, held $2.079.000.000. “In these three American investor and small saver | had at the end of 1929 about $36,000,000,000 so secure that only a ! little more than 2 per cent of this sum has been jeopardized during the | on and a little over 1 per cent written off as loss. There is of any financial institution or any investment outside of the Government block which could stand up against that. It is significant that a third of that total volume of safe investments had been loaned to the American home owner and de- pended upon his stability and honesty. | “While it is true that only the building and loan associations of this group invest exciusively in hofe mortgages and can therefore trace their full safety to this type of loan, the other two institutions have found in their home mortgages a lever of safety which had more to do with their splendid record than any of their other holdings with the excep- tion of Government bonds. | Role of H. 0. L. C. ‘ “The point naturally arises as to the role played by the Home Owners’ Loan Corp. in making this safety possible for the investors. The rec- ord shows that to date less than $2,000,000,000 of the home mqrtgage indebtedness has been transferred | from private hands to the Govern- ment refunding corporation and prob- ably not much more than a billion dollars of that refunding has gone into the hands of those three insti- tutions. A large per cent of the | Home Owners’ Loan Corporation relief | has had to do with mortgages held by private individuals and commer- cial banks, so that by and large the safety of building and loan associa- tions, insurance companies, and mu- tual savings banks has been due to the stability of the home owners who borrowed from them and the con- servative management exercised by the institution. “Since the home mortgage has per- formed in this extraordinary fashion during the four drastic depression | years there should be no fears that the future American investor will keep his money out of the home lending | field. Our problem in providing home financing facilities for town and city population is rather one of mobilizing that type of investment to the best advantage of all. “All indications point to the future dominance of the home mortgage field by the long-term monthly in- institutions the | | highly efficient A view of a portion of the living room of a new home at 7801 Sixteenth street is shown above. beautiful mantel and large fireplace lend charm and a feeling of comfort to the room. structed by L. E. Breuninger & Son. STAR, WASHINGTON, D. C., SATURDAY, DECEMBER 1, 1934, The The house was con= —Star Staff Photo. CENTRAL HEATING PLANT HELD BEST Adequate Size, Moderate Cost and Economic Oper- ation Considered. The first requirements of a heating quate capacity, moderate original cost and economic fuel consumption. The Government Health Service and | Government heating engineers are of | the opinion that temperature, humid- ity and motion are most important in the air we breathe. A hcuse equipped to provide an even | | red lacquer lining of the built-in cor- distribution of heat on the most se- vaie Winter days is best served by a central plant. This plant should be equal to emer- gencies without foreing. cost, are many thoroughly efficient warm air, hot water and steam plants on the market, will be moderate. The fuel consumption will depend in large part, regardless of the type of equipment, on the expertness or inexperience of the stoker. Degree of Lightness. Another factor of major importance is that concerning the degree of weather tightness of the building. A heating system which fails to meet demands in a building without insula- tion or weatherstripping may prove in a building so equipped. It is to be remembered that tem- perature figures do not always record the degree of comfort or discomfor* Dry air at ordinary room temperature may chill the body because it in- creases the rate of evaporation from the skin. To restore the heated air of a build- ing to approximately the same moist condition of outdoor air at comfort- able temperatures may require the evaporation of one-half to three- fourths gallon per hour, even in a small home. Such a vaporizing would require special equipment, but an or- dinary pan of water on the boiler, fur- nace or stove materially helps. The Department of Agriculture esti- mates that more than 70 per ccnt of the farm homes of the country are without central heatirng systems. The national loans under ihe modernization creait plan may be made by iocal financing agencies and insured against loss by the Governmeni, so that before an- other year has passed thousands of | rural property owners may have, in | this respect at least, the comforts of | the urban dweller. stalment loan plan. Amortization of | home loans on a monthly basis would adequately prevent piling up of short- | term mortgage maturities which be- | came such a strain upon the credit facilities of the country in 1932. | Building and loan associations can | be expected to do more and more of the home financing because of their | 104-year adherence to this long-term | amortization plan.” Take em away! Owner Invites Your Inspection of These Unusual Homes—Compare With Other Real Home Bargains In Takoma THESE HOUSES HAVE BEEN Park, D. C. 6604 5th St. N.W. Detached 6-room brick home with every improvement. Real fireplace and breakfast room, electric refrigeration, trees, shrubs, garage, oak floors. Lot 50 by 148, Price $8,950. Easy terms. * 6601 5th St. NW. Beautiful well-built corner bungalow, 5 rooms, sleeping porch, brick fireplace, oak floors, large dry cellar and attic, large south front porch, garage. Lot 68 by 148 feet. Ideal home for small family. Price $8,250. Easy terms. NEWLY PAINTED AND DECORATED AND ARE LIKE NEW Open 10 A.M. to 6 P.M. Sunday H. L. Thornton, Owner-Builder Office, 6900 4th St., Opposite Takoma Theater Office Phone, Ge. 2291; Home, Ge. 2811 | amount of life to the white walls and | | contrasts pleasantly with the deep | The original | in view of the fact that there | housing act provides that | New York Model Home Used To Promote Grace of Living: Special Dispatch to The Star. NEW YORK, December 1—The Little House, New York’s suggested model home for the American family, features labor saving and gracious- ness of living as the two prime req- uisites of modern-day existence. And these two factors were kept uppermost in mind when the New York Better Homes Committee planned the phint- | | ing of America’s Little House. plant for farm or city home are ade- | Simplicity, cheerfulness and ease of | housekeeping are the keynotes of the | modern home. The white-painted | walls of the living and dining room give the maximum of light reflection and offer surfaces that are easily kept clean. White is the dominant note on | the lower floor, and in each room care- | ful attention has been given to the small details which lend color and in- terest. In the living room, the bright | ner bookshelves adds just the right | green of the chintz draperies and the | chairs. Metal Table Has Tan Top. The white-walled dining room has a painted metal table with a tan top, | lacquer red legs and edge. The backs and legs of the chairs are of the same red, but are upholstered in a har- monizing shade of tan suede-like ma- terial. In the hall, the telephone closet | which affords privacy to those con- ' versationally inclined has walls painted a light gray. There is & hori- zontal carmine stripe painted about 4 feet from the floor that relieves the severity of the gray wall and matches the carmine telephone table and chair. Upstairs, in the bed room, arranged for two boys, the cream-colored walls harmonize pleasingly with the orange and brown floor linoleum and form an effective background for the cream- painted furniture with its trimming of grayed orange. Nursey Walls Are Pink. ‘The walls of the nursery are painted shell pink and the floor is covered with dark blue linoleum, decoratively sprinkled with the alphabet. There are two storage closets in the room— one for toys and one for clothes. Movable shelves are painted shell pink, while the background is sky blue with silver stars. The furniture in the nursery is pine, rubbed in oil and waxed. Even the linen closet comes in for special attention. Its walls are painted a golden corn color, and the edges of the shelves are striped with blue. The outside of the house is es- pecially attractive. The gleaming white of the clapboards is set off by the deep gray shutters and roof. A white paling fence outlines the yard. America’s Little House is an example of what has been done—and can be done—to make a home not only pleas- ing to the eye, but at the same time sensible, durable, practical and pleas- ant to live in. NEW HEAT DEVICES SAVE | Home Owners Advised to Seek Advice of -Engineers. In order that home owners get the most effective and attractive re- sults from remodeling of heating sys- tems, it is advised that local heating | engineers be called in to help plan the work. Reputable engineers are | aware of new economical devices that | have recently been developed to save | fuel costs and insure efficiency. A unitary modutrol system is sometimes selected as the solution for properly controlling temperature in the larger homes, _— Enamel Easy to Keep Clean. Enamel js really varnish to which color, in the form of pigment, has been added. The resulting finish may have a high luster or none at all, depending upon the ingredients. In either case it | is durable, waterproof and easy to | keep clean. $8,750 Semi-Bungalow—Is a As you will agree when you CLOSETS ARE PROBLEM Plans Are Offered in Recondition- ing Houses. How to fit new closets in old houses when they are being reconditioned is often a perplexing problem which may be solved in a bed room by building one in each of the two corners in a wall. This forms an alcove in which the head of a bed may be placed, in the Prench fashion. Pastel-hued walls, gray, or rose, for example, are appropriate in such a room. Another good place for closets is the space on either side of a fireplace chimney. Color Schemes for Bed Rooms. Miss Selma Mackby, New York con- sultant for modern decoration, lists the following as the most popular color schemes for bed rooms this Fall: brown and white, with yellow touches; turquoise blue, white and silver; peach, ivery and gold. For This Lovely Detached Real Bargain Price 've seen this cozy home at 2579 Rhode Island Ave. N.E. Completely reconditioned. bed rooms and bath on 1st floor. Living 2 room, dining room, kitchen, 2 bed rooms, dressing room and bath on 2nd floor. Front and side porches. Ofl heat. 2-car built-in garage. Open, Lighted and Heated Till 9 P.M. Saturday and Sunday BY FAR H.G.Smithy Co. 811 15th St. NA. 5904 The Most House for the Money This Year! 4405 Brandywine St. N.W. We claim this in all llucrltl DISTINCTLY OUT OF THE Ol floor, wil ome. ms are First fleor lavato ‘WATERPROOF. Open Saturday & Sunday Fox Bros., Builders—Designers beeause we BUILT IT TO BE A HOME DIN; to be sold at a I ice. A first Neo-ansle in baf Built-in garage. Beautiful lot. Drive out Wisconsin Ave. to River Rd. thence 1 block to Brandywine St., turn left to home. REALTY ASSOCIATES, Inc. 1506 K St. Realtors NA. 1438 [LUMBERMAN HITS HIGHER RAIL RATE Compton Declares Increase Would Set Up Barrier to Building. Asserting that present costs of transportation by rail are excessive and. a substantial deterrent to the resumption of general home and farm building activity, Wilson Compton, general manager of the National Lum- ber Manufacturers’ Association, testi- 1ying before the Interstate Commerce Commission in opposition to the ap- plication for rate increases by the railroads, charged that increases would “disproportionately increase the barriers to the resumption of general building activity.” Supporting his testimony with sta- tistical data largely from Government sources, Dr. Compton informed the commission that “a larger percentage of lumber now moving by rail, if able to move at all, is being shipped on rates two or three times more than the mill price of the lumber.” He said the ratio was disproportionate to the value of the transportation serv- ices. He declared that freight rate discrimination against lumber had resulted in substitution of other ma- terials totaling in the last 15 years more than 10,000,000 average car- loads of lumber, and showed that ‘present rail transportation costs for lumber were, per ton, one and one- quarter to four times the cost for competing materials, The witness showed further that, whereas inroads on lumber markets nad reduced shipments by 70 per cent in those areas served only by rail, the reduction was no more than 50 per cent where lower water rates were available, Quoting the United States Bureau of Foreign and Domestic Commerce | to the effect that “with two and one- | half million homes in the United | States there is a present housing shortage of 5,000,000 homes, with 15,- 000,000 needing repairs and 3,000,000 needing serious structural repairs. He quoted the United States Department of Commerce to the effect that 81 per cent of urban dwellings recently in- ventoried were of lumber construc- tion. Dr. Compton contended that lumber might be expected to partici- pate more extensively than any other | material “in such additional housing | activity that is expected to develop,” provided circumstances were “reason- ably favorable.” ey “Marble-izing” Is Popular. Old-fashioned painted floors are now being “marble-painted.” This is inspired by the more realistic marble- | ized effect developed in Europe, and consists of spatters in varied shapes | tation of light and dark oak. CHE design. trees, two-car detached garage. Circle to 32d Place, 916 15¢h St. VALLEY [ ] Newly Finished R PR 6121 32nd Place N.W. $11,750 Unusually attractive new center hall plan brick home of Va. Colonial It contains 6 large rooms, 2 baths in the main part of the house, and a delightful game room in the basement. Drive east_on Rittenhouse St. from Chevy Chase turn lejt (morth) i block. J. WESLEY BUCHAN Realtors REAL ESTATE, % B3 Douglas ERROR IN PHOTOGRAPH IS CORRECTED. IBOARDS COMPILE POLICIES ONLOANS | 1Methods in Real Estate Fi- nancing Investigated by Mortgage Unit. Statements as to present real estate loan policies of leading insurance com- | | panies made by the companies them- | 1 selves, ordinarily through their respec- tive chief loan officers, are now being compiled by the mortgage and finance division of the National Association of Real Estate Boards for publication 4| shortly. The compilation is of unusual inter- est in view of recent indication of a | reopening of capital sources for real | estate financing, following a four-year | dearth of mortgage money. Statements | of the companies are expected to be given general study as indicating the | loan attitude, under changed general | conditions of this highly important | group of institutional lenders in the real estate fleld. | Data included: Chief loan officer of each company; type of property on | which the individual company makes | mortgage loans; length of term of its| loan, in years; maximum per cent of | value of the property loaned; maximum amount loaned by the individual com- | pany; the amortization requirements | it makes; territory in which it will| make loans; pre-payment privileges it | will allow; policy as to appraisers it employs. ‘The compilation constitutes a re- CAPT. J. S. DOUGLAS, Jr. Environment™ Is Due to the similarity in names, the photograph of J. E. Douglass, jr., was reproduced in last Satur- day's real estate section as the likeness of Capt. J. S. Douglas, jr., in the announcement of the latter's acceptance of a position with the Washington offices of the Toledo Guaranty Co. J. E. Douglass, jr.. is manager of the insurance depart- ment of the J. E. Douglass Co. and secretary-treasurer of the Douglass Construction Co. Capt. Douglas, a World War veteran, is a native of Alexandria. Harris-Ewing Photos. Good Painters Economical. To get a good paint job employ & | ' \ J. E. DOUGLASS, Jr. ‘ of white on a gray ground. Another | good painter. Good painters use good wey to treat an old floor is to paint | paints and do careful work. or stain alternate floor boards in imi- | gives you assurance of a beautiful, long | lasting paint job. This OUTSTANDING NEW HASE HOME K2 . g Wide lot with N, Ine. MEe. 1143 Factor in the Choice of a Home. A New Model Home $9,250 vision of the associaiion’s previous compilation, “Real Estate Lcan Policies of Insurance Companies,” published in 1931, which contained data, from offi- cial statements, as a loan “appetites” of 146 leading insurance companies. Earlier compilations, on an identical plan, were published in 1928, 1929 and 1930, as a special service to members of the association’s mortgage and finance division and brokers division. Burning and scraping off old paint is an expensive operation which can be avoided if good quality paint is used and the repainting is done when it should be. $12,750 LARGE BRICK HOME 1725 Lamont St. N.W. MT. PLEASANT One of the finest homes ever offered at a modest price in this convenient and popular sec- tion. A semi-detached brick home perfectly reconditioned and newly equipped, having five big, bright bed rooms, three baths, back stairway, bright kitchen, butler’s pantry, large living and dining rooms, is per- fectly situated on a large lot facing south with pretty shrub- bery and a garage. See it by all means. OPEN AND LIGHTED RM HOOKER Tower Bldg. Me. 2663 Developed by MONROE WARREN A Community Planned for the Discriminating Purchaser of Moderate Means, to Whom an All-Important 4408 Yuma Street N.W. FURNISHED AND OPEN FROM 10 AM. TO 9 P.M. This is an Electric Kitchen Health Home Earle M. Dawson, Sales Phone Emerson 5744 Drive out Wisconsin Ave. to Yuma Street, left 4 blocks to property at 44th and Yuma. : J GEORGIAN COLONIAL HOME HIS new house, sitting upon a wooded knoll n Spring Valley, presents unusual structural features. . . . Sturdily constructed of brick, solid masonry, concrete floors, “Stran Steel_" supports, and complete insulation. This beauti- ful Georgian Colonial dwelling is modera.tely priced for immediate sale, offered on convenient monthly terms. W. C. & A. N. MILLER 1119 17th Street District 4464 “There’s @ mew mode in ex- terior house design as well as interior . . . a mode that adds a new delight to comfortable home living.” We present Our Home . . . beautiful 7801 16th Street N.W. (N.E. Cor. 16th and Kalmia Rd. N.W.) Time, thought, energy and 40 years' experience in house plan- ning and construction, combined with an eagerness to blend the charming simplicity of the grounds of this lovely neighbor- hood with the comforts of today’s best living, were utilized to achieve this latest of Breuninger Homes. A garden that can really be “lived” in— The picturesque garden shown above was mot an after thought, but rather grew with the actual construction of the house it ad- joins, thanks to the careful land- scaping which was supervised through the office of DANIEL COX FAHEY, JR. Any out-of- door room needs boundaries and a little feeling of seclusion—so naturally we built a dry stone wall to give the desired effect, Here on a warm July day you can enjoy the free air, lunch, a siesta, cool drinks, or an afternoon of bridge in privacy and comfort out of doors. For building materials we chose natural field stone, brick and clapboard, all typical of the best of our early years. The house leans toward a simple Maryland farmhouse style, certainly not be- cause of its location, but largely because of the tree white paint- ed gables and the simplicity of manner we desired to create. From the time you approach the front door by a winding flag- stone walk ’til you reach the pleasant breeze-way connecting = Farstihiogs the hot with garden yoi il be able to decide which |nesum(luiic woms| D- S. POOL never be able to decide which HEALTH HOME part of the house you liked best. However, we shall leave the choice with you. Open Daily Until 9 P.M. .5 Preuninger S Sons ARCHITECTS—BUILDERS NA. 2040 211 Investment Bldg.