Evening Star Newspaper, March 16, 1935, Page 20

REA B—4 L ESTATE. MORTGAGE LOANS ATTRACT CAPITAL Few of New Type, Long Term Advances Being Made for New Homes. Capital is starting to swing back tc mortgage investment and there are a PLUMBING COSTS AT 20YEAR LOW Decline in Fixture Prices Disclosed in Survey Asked by F. H. A. That staple plumbing fixtures today THE EVENING STAR, WASHINGTON, D. C, New Home in Kansas Avenue Sold SATURDAY, MARCH 16, 1935. HOUSING SESSION EXPECT RESULTS REAL ESTATE. ferees with the foreign residential financiers. Mr. Rosenthal likewise took part in the 1914 original gather- ing of the international group. Government Housing Effect. “The men from many nations with whom we will meet in Austria, with sessions held in both the English and GAINING IN FAVOR | Natural Finishes With Color ‘ Latest Furniture Fashion. Painted furniture, with the trend | toward combinations of natural fin- German tongues, can give us in full | Shes With color, is reported to be detail the effect which zovemment‘“lmn‘ favor in furniture fashion housing subsidies and partial financing | enters of 1935. of home building h‘"Dl had upon m;’f | Modern furniture has been found country’s normal supply of home- | éffective in color. Bedsteads, chairs owner credit, and they can tell us from | ®0d bureaus, espectally, are adapt- experience to what extent the socio- | able to this mode. Prominent deco- logical approach to home-ownership | rators are reported to be repainting has to depend in the long run upon ‘ old mahogany and walnut piesces. The payers,” v rius. “ | 5. Practical conclusions about the | s the fifth congress of its bnd 3‘%‘5 | dealers in many sections co-operate place of private finance and govemi- |called by the building association | 7Y furnishing suggestions on color World Delegates to Discuss Private and Government Financing. D i 0 Town-torm loans | A0 SCIIIEE for lass ithan (st anyiiime ment paternalism in housing a nation, | leaders of the different countries, and | COmbinations and provide patrons in the last 20 years is disclosed in & for new home building being made, | survey just completed by the Plumbing but a Nation-wide inquiry of the Na- | tional Association of Real Boards indicates that great conserv- atism still exists in loan terms, par- ticularly in regard to appraisals for loans. The survey, made through the mem- ber boards, reveals that many com- munities still have no mortgage money, and the much discussed 20- year 80 per cent loans, insured or otherwise, are at the present time available in few communities. But where money supply has started to open terms indicates a pronounced change from °predepression home mortgage practice. First signs are appearing of coming competition be- tween various types of long-term pay- ment plans advertising for the favor of prospective home owners Lending Policy Changed. A notable change taking place in the lending policy of life insurance companies is a feature of the situa- tion, the association points out. The Prudential Insurance Co., for example, Estate | and Heating Industries Bureau at the request of the Federal Housing Ad- | ministration. Prices for boilers and radiators are approximately half of what they were | in 1926, ihe survey reveals. | Adopting the 1926 price ‘level as | basic with the index number of 100, | the bureau finds that the index num- | ber indicating relative prices for 8 | 5-foot corner built-in tub varies from .1in 1914, 112.1 in 1920, 100 in 1926, 85 in 1928, 61.9 in 1932, 65 in 1933, to 55.1 in 1934. | Long-Term Trend Down. A similar downward tendency is evident in the relative prices of kitchen sinks over a 20-year period, the bu- reau states. The index number for a 20 bv 52 | inch roll-rim one-piece sink, which stood at 65.8 in 1914 advanced to 91.1 in 1920, and to 100 in 1926, and then declined to 932 ir: 1928, 71.5 in 1932, 75.1 in 1933, and today stands at 55.2. through R. R. Rogers, second vice | With the stimulus of unpn%e;:enwd president, informed the association j ::m;):u(-:}s.‘;?anl;Iragli\‘;.;remdp&; that it will entertain applications fOF | Nayjon_wide interest in modernization, new loans or renewals on residential | ¢, "p ey finds the public engaging property, on its 200-month or quarterly payment plan, and will also entertain applications for new 240-month resi- dential loans, subject to the following minimum interest rates and percent- ages of loans to value: Under 41 per cent of appraised value, 4'. per cent; 41 per cent to 50 per cent, inclusive, of appraised value, 5 per cent; 51 per cent to 55 per cent, inclusive, of ap- praised value, 5!, per cent; 56 per cent to 3 per cent, inclusive, of appraised value, 6 per cent. Walter 8. Schmidt, Cincinnati, pres- ident of the association, observes: “A visit to major financial centers con- vinces me that within a very short time real estate mortgage money will be made available in all the stable communities. It will take some time, of course, for this flow to become active.” “Despite the fact that mortgage money may be expected shortly in some quantity,” he adds, “its steady flow at lowered interest rates demands the establishment of a central mort- gage bank, whether under Federal or private auspices. Prevention of fu- ture debacles requires this.” Many Articles Misleading. Meantime, many articles relative to new financing available are very mis- leading, J. C. Taylor, Kansas City, Mo., chairman of the land developers and home builders’ division of the National Association of Real Estate Boards, points out. “Many individ- uals are laboring under the misappre- hension that the Federal Government is making 80 per cent home loans,” Mr. Taylor finds. “Of course, the truth is that the Government under ‘Title II makes no loans at all, but simply insures loans if, as and when they meet certain conditions. In our community—and, so far as I can find out, in most communities—there is very little if any money available for these so-called 80 per cent loans. The truth of the matter is the F. H. A under Title II has not yet done very much io assist in the financing of new construction on a long-time basis, and it is unfortunate for the public to be- lieve that this aid is available when it is not.” Charles G. Mullally, Westchester County, N. Y., writes, “In this dis- trict there is abundance of mortgage money for the legitimate home secker from private sources on an uninsured basis.” Walter Gehrke, executive vice president of the First Federal Building & Loan Association of Detroit, an approved mortgagee under F. H. A, | hazards the opinion that loans will be available under “usual” mortgage practice at less aost than insured loans | under present law and regulations and that “in Detroit, at least, on loans under the Federal housing act the amount (percentage of loan to value) will be slightly more than the 60 per cent which we are now loaning under our regular plan, but not anywhere | near the amount the public has been led to believe they can borrow.” Reg- ular plan of this institution, 6 per cent on 10-year amortization with initial service fee of 3 to 5 per cent, the lat- ter on construction loans. More Homes Being Built. Morton G. Thalhimer, Richmond, Va,, says, “The Government insurance loans up to 80 per cent of the value have not been operating in this sec- tion, due to the fact that no local bank in Richmond has as yet deemed it wise or expedient to qualify.” He adds, “There are a few more homes being built at the present time and planned for this Spring than any time in the last three or four years. These homes are being financed by first mortgage loans representing approximately 60 | per cent of their fair market value at an interest rate varying from 52 per cent to 6 per cent and run for a period of five years, and are being amortized at the rate of 5 per cent per annum on principal, payable either annually or semi-annually.” In Dallas, 2,500 applications for in extensive modernization of the | plumbing in residential and business | properties. 197,355 Pieces Shipped. Shipments of vitreous china plumb- 1 ing fixtures reported to the United | States Department of Commerce by | 18 manufacturers for October, 1934, | were 197,855 pieces, as compared with 99,403 pieces in October, 1933, and 1 91,061 pieces in October, 1932. Exam- | ination of the reports for previous years indicates thal shipments ir Oc- | tober of this year were larger than those in 1930 and 1931, and only | slightly ander the shipments made in October, 1929. The vureau calls attention to the fact that besides the unprecedented low prices, the public buying plumbing | today is getting the advantage of im- provements in the performance of plumbing equipment, advances in de- sign and superior durability and lower | maintenance costs | Bathtubs Have Low Lines. | Bathtubs, model 1935, have the long, low lines of a streamlined motor car, and are made to match perfectly in style and design with the other bath room fixtures. A steady recession from the high prices of the boom period in the con- struction industry is shown oy the index numbers for boilers and radia- tors. The same tvpe of a five-section domestic-type of hot-water boiler has varied from an index number of 96.8 in 1920, 84.4 in 1926, to 64 in 1934. The index number for the price of radiators has declined from 101.9 in 1920, 72 in 1928, to 53 in 1934. Kansas Is Organized. The regional executive assistant of the Federal Housing Administration in Kansas reports that chairmen have | been appointed and committees set up in every county in Kansas. Much activity is in evidence, the report stated. loans under Title II of the national housing act are waiting for lending agencies to qualify and take them up, according to R. B. Winfleld, associate district director of F. H. A. But trend of mortgage and insurance companies is toward more conservative loans, Sam C. McIntosh, executive secretary of the Dallas Real Estate Board, reports. Loans on homes are made on an average of between 50 per cent and 60 per cent of conservatively appraised value, the interest varying with the risk from 6 per cent to 7 per cent. Interest Rates Change. Interest rates begin sporadically to show change. The Howard Savings Institution, Newark, announces a re- duction of interest on all its non-de- linquent mortgages to 5 per cent. The Franklin of Newark has lowered its rate from 6 per cent to 5 per cent. Massachusetts savings banks very gen- erally have agreed to reduce the mort- gage rate on home properties to 5% per cent. Agreement went into effect March 1. Aggressive advertising of financial institutions for loans begins to appear. The Federal Home Loan Bank Re- view, in its current issue, cites a Louisiana member of the Home Loan Bank System, which by vigorous ad- vertising has found $500,000 of small loans since June, 1933, at 60 per cent of present value to people who are paying their dues and taxes promptly. The institution has been getting 10 applications & week for the past few months. The Review states that “specific examples seem to prove that the active search for eligible borrowers is sure to discover such borrowers.” The Federal Home Loan Banks, on March 4, were authorized to make short-term loans to their member in- stitutions at a new low rate of 3% per cent. 3103 Oliver St., Chevy Chase, D. C. Attractive all-brick resid Three large bedrooms, completely tiled bath, living room with open fireplace, dining room, kitchen; garage. A Real Value Today 8,950 DO NOT FAIL TO INSPECT. To reach: Out Conn. right 5520 Conn. Avi to Oliver Street and the property. EDW. H. JONES & CO., Inc. ence, in new-house condition. At the Low Price of Ave.,, to Nebraska Ave., This new house, located at 5727 Kansas avenue, has just been purchased by Mr. and Mrs. John J. Barg- hausen. It was built and sold by the firm of Waple & James, and contains six rooms and two baths. Architectural Clinics Favored To Serve “Man in Overalls”| System Advanced by Buffalo Man as Method of Educating Public to Value of Expert Planning. Architectural clinics “to serve the man in overalls” are advocated by John J. Wade of the Buffalo Chapter of the American Institute of Archi- tects. “It is necessary for the architects to pattern their services after those of the medical profession and make some sacrifice,” Mr. Wade declares. “A clinic for those in the lower brack- ets of income would be the best means of educating the public to the work and usefulness of the architect. “In one section of the clinic there would be a small fee, let us say $5, for an office visit, or $10 for a fleld visit. Any architect registered at the clinic headquarters would the sick house and writing a pre- scription to remedy the difficulties. Such a small fee would not include the ‘operation,’ and, if drawings were necessary, & nominal additional fee would be charged. Link With F. H. A. Favored. “New homes would be designed in another department of the clinic. No house costing over $7,000 would be handled through the clinic. For pre- paring complete plans and specifica- tions for $3,500, $5,000 or $7,000 houses there would be a flat rate of, for example, $50, $75 or $100. “The work of the sections of the clinic would be tied with title I and II of the Federal Housing Administra- tion, furthering the architect's serve ice to the individual home owner. ‘The public would be invited to use the clinic only when there is no personal preference for a particular architect.” In cities where architects and builders’ exhibits are being held the manager of the exhibit should be the head of the architectural clinic, according to Mr. Wade. He would have a complete list of all archi- tects registered with the clinic and full information on building ma- terials. Builders and building ma- terial manufacturers, Mr. Wade points out, would keep in close touch act as | doctor in diagnosing the ailments of | | with the clinic and direct the public to it for advice. | “The word ‘clinic,’” continues Mr. | Wade, “is understood by the man on | the street and prevents a client capa- |ble of paying a full service charge from requesting clinic service, just as he would not do so for medical | treatment. | “Fees in the architectural clinic | must be kept low to insure aid to the public and success to the clinic. Each | fee should remain a flat rate and | not be used as a minimum, as mini- mum fees have no attraction to a |buyer. If an advertisement in a| newspaper is read stating that a pair of trousers are on sale for ‘$5 and up’ one’s mental opinion is that the price | is going to be ‘up.'” The small house, it was pointed | out, comprises the overwhelming bulk of residential building, and it is in this fleld that the most emphasis is likely to fall during the next several years. The least technical advance- ment has been made in the small house in proportion to its importance. Public education, it is said, is even more important in connection with the small house problem than im- mediate technical advancement, for there are few small homes built today that enjoy the advantages of up-to- | date knowledge of design, materials, | inancing and equipment. | Obstacles Described. The immediate obstacles are de- scribed as the dificulty of equitable fee arrangement, excessive amount of | need with reasonable return to him- | self. ¢ The building arts, it is felt, would | | bath room. QNN TS —Star Staff Photo. ignorance on the part of the public concerning the best practice in house building. Any practical remedy, such as an architectural clinic, must aim at these difficulties, and when they are obviated a study of more funda- mental economic barriers can be made. The problem is held to be the lack of effective means of getting au- thoritative and unbiased information to the small house owner. The Buf- falo Chapter of the institute plans to attack this problem by establishing a pioneer clinic. | Any effort to solve the small house problem, according to architects, must look at the low-income group's need sympathetically, from the low- income side of the fence in terms of dollars and cents. Then it must help the professional man to fulfill that | profit by establishing the importance | of professional advice in the minds of | small home owners, building up the | taste standards of the country, and| by the continuous study of, and train- | ing in, smaller jobs by the younger members of the professions. Modernism in Bath Room. | ‘Tubular furniture has invaded the In connection with the unit panel bath room display at the New York Housefurnishing Show, | chairs of chromium are chosen in the correct execution of modern bath room furnishings. They are up- holstered in royal blue fabrikoid, a | lacquered fabric, in a silky-looking finish. ! routine work for possible fees and New Detached Brick He M s, Nt Ik 8 moms gty e The Toledo Guaranty Corp. 1026 Woedward Bids. Nat. 2626 Th.h is structed NEW COLONIAL BRICK RESIDENCE (Center Entrance—Corner Lot—100-Ft. Front) 49th 8 Brandywine Sts. N.W. Features 7 Rooms, 2 Baths Slate Roof Hardwood Floors Cedar Closets Electric Refrigeration Ultra-Modern Kitchen Equipment Recessed Radiation Venetian Shades Recreation Room Complete Insul J-M Rock Wool Furred Walls Caulked, Weather- stripped and Screened Copper Spouts and Gutters Garage A Real Value at $11,250 OPEN FOR INSPECTION DAILY AND SUNDAY Brige \W. turn right 3 out Massachusetts Avenue to 49th Street Brandywine blocks to J. DALLAS GRADY Owner—Builder 1104 Vermont Ave. N.W. 7 DI. 9179 7 Extraordinary—$6,650 4617 Chestnut St. Rosedale Park, Bethesda, Md. A large, lovely six- Large living room has rai ~water attie and full cellar. ASTOUNDINGLY LOW pen 3 large It _has been I e ol “Bew-betse: condition and Price—on ferms. OPEN 'SATURDAY AND SUNDAY Drive out*Wisconsin_Avenue ank to Chestnut St. turn PHILLIPS & NA. ond Bethesds et Plavares See This Lovely New Home Today! Modern Electric Kitchen. Six Large Rooms. drawn from many countries’ actual experience with both factors, are ex- pected to be reached at the Inter- national Congress of Building Societies in Salzburg, Austria, the first week in September. American building and loan association leaders will confer there with delegates from half a dozen other countries, in most of which experiments with housing sub- sidies, low-priced housing units and government financing of portions of th:;lw residential building have been tri Plans are now being completed for an official delegation of between 50 and 100 Americans to attend as repre- sentatives of the United States Build- ing & Loan League, the national or- ganization of the $7,000,000,000 build- ing.and loan business in this country. H. F. Cellarius, Cincinnati, secretary- treasurer of the league, will be chair- maa. Morton Bodfish, Chicago, its executive vice president, will be a prominent member of the delegation, and Henry S. Rosenthal, Cincinnati, international secretary of the congress, will be there in his official capacity. Wide Representation. British buildiog societies, German bausparkassen, and the counterparts of these thrift and home financing organizations in Austria, in other | European countries, and in some of the colonial outposts of the British Empire, will send their official bodies to the week's gathering. All of them represent those who have husbanded the private and savings capital for the use of home owners in the same coun- tries where the government experi- ments have been tried, Mr. Cellarius pointed out. ‘The chairman of the American dele- gation participated, in the original In- ternational Congress of Building So- cieties held in London on the eve of the World W ‘The Executive Com- mittee of the United States League, meeting in Washington last week, unanimously chose him for the lead- ership of this year's group of con- UXMANOR The Suburb of Contentment HOMES ON 1 ACRE SITES OR MORE Model home open daily and Sunday until 6 P.M. Directions—Out Wisconsin Ave. to Bank of Bethesds and follow car line road to Luzmanor signs. Just 25 minutes irom the heart of the city. SHANNON-&-LUCH DEVELOPAENT <O JUST COMPLETED 502 GODDARD ROAD BATTERY, MD. Center Hall Entrance. BUILT BY ALFRED T. NEWBOLD Out Wisconsin Avenue to Bank of Bethesda. Follow car line to Battery Lane, left to property. PRESENTED BY CYRUS KEISER, JR. 5211 Wisconsin Ave. The Talk of Washington! NEW McKENDRIE HOMES DONT miss seeing these homes if you want the BEST in construction, features and finish. Step-down living room library . . . breakfast room . . . HEALTH KITCHEN with the lates inets, range, refrigeration and outle bed rooms, 2 beautiful tiled baths. recreation room with real fireplace -+ » Sun room or @ ALL BRICK @ STEP-DOWN LIVING ROOM ELECTRIC t steel cab- ts...3 large A new-type ...detached brick garage. New community, near schools, churches, stores . . . half block fronr bus service. Orlental Rugs by DRIVE OUT RIGHT NOW! Open Daily 9 am. to 9 pm Out 5th St. N to Oneida, lej Oneida CANBY, INC. Investment Bldg. omes. W, a'.l'n.lll‘. i it i by far the most important. Where | hitherto we have had only general | problems of international interest to deal with, and compared notes on the practices and policies of these par- ticular institutions in the various countries, today we have one of the most pressing problems on any na- tion’s horizon with a real opportunity to achieve international co-operation by learning from the experience of the others.” The official program for the con- | gress has not yet been drawn up, but it is expected that several of the United States group will be asked to | give papers on this country’s situation in home financing from the angle of practical building and loan associa- | tion operation and from that of the Government attitude toward this ac- | tivity. Mr. Cellarius was author of one of the leading papers at the | Fourth International Congress in Lon- don two years ago. with color charts. The House Beautiful 4316 18th Street N.W. $15,500 A modern. all-brick home in » select neighborhood! A home containing all the refinements of a much higher priced residence, A step-down living room, one of the largest you ever saw: modern kitchen. recreation room. Z2-car detached brick garage and elec- tric refrigeration Three large bed rooms and 2 baths. Areplace, garage and ol a Paint for Clothes Hampers. Wicker clothes hampers may be freshened up for a new lease on life with a coat of soft yellow, coral or | lavender paint—the fashionable col- ors for bath room furnishings. The | paint should be thinned and well brushed into all the interstices. “0il Can” of Rubber. Use of fine graphite as a household, new rubber “oil can.” When it’s squeezed, measured amounts of graphite are deposited by air pres- sure. It expresses an air of quiet o) refin 50 desirable in the place can call HOME. Occue pied less than one year. Be Sure and Inspect Today and Sunday Frank S. Phillips Realtor 927 15th St. Di. 1411 Chevy Chase Bargain $9,750 Ten rooms, two baths. Can be divided into two apartments. Large stone-floored front porch, completely equipped kitchen, po New House Condition Lot 80 feet wide with several trees. and new school. 3211 McKINLEY ST. Open Sunday HARRY B. PITTS CO. 1015 15th St. N.W. Met. 0100 Close to transportation Just Completed English-Type Bungalow and Priced s 5,8 50 On Convenient at Only Terms Open for Inspection Day and Evening 806 WILLETT AVENUE WAVERLY HILLS One of Nearby Virginia's Attractive Home Communities Drive out now and see this cozy home—5 cheerful rooms and bath— open fireplace—model kitchen—full basement—attached garage— weather stripped—unusually large lot, 6212x167. This is one of the best values we've ever offered and, if interested, we suggest an early inspection. Drive out today—O: ey Brids Lee Highway to Glebe Road, left five to Wil venue and property. T. J. Brumback Presented Exclusively by WAInut 8921 New Quier MAY Oil Furnace adds four more Features to the best in Oil Heat. ESIDES an amazing new arrangement for clothes drying —Quier. MAY Oil Furnace gives you these four other plus features: 1. Heats any size house for less cost than coal and, in our experience, for less than any other oil furnace. 180 gallons of household hot water per hour. No tanks necessary--it all comes right out of the furnace. 2 3. 4 Heats cellar without radiators. Turn off the heat in Summer—get hot water just the same. Ask us to show you how these five revolutionary feae tures work, COLUMBIA SPECIALTY CO. 1636 CONN. AVE. l-"uel 0il NORTH 786,-2.3 Air Condifioninj