Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-02-27
Conflict of Interests.

ut was apparent from the beginning
that there were two interests cOntending
in this hearing for different results. 1t
was apparent to the committee that there
were certain witnesses that were anx-
ious to keep down the value of this prop
erty for fear that it would affect the as
sessed valuation of property in that
gbborhood. On the other hand. there
was q class of witnesses that seemed
DESTROYS of raising the value of this prop
erty as high as permissible. with an evil
dent desire of Initiating values in that
neighborhood.
without a doubt the ground values
have increased very rapidly in that Sec
ton, and from all the evidence introduced
before the committee we think it is now
fairly worth $40 per square foot. and as
there are 22o21S feet in the tract. 1t would
make it's present cash value sSSS.12o.
1T is quite difficult for US to determine
from the evidence in this case the exact
value of the building. 1t was constructed
by the ThompsOn-StarrettC Company under
contract for SGS1 ,S4O.92.'
Original Cost Cited.
James NJ Baker. who was the treas
urer Of the Southern Building Corpora
ton during the time of it's construction.
testified that the building corporation re-
ceived from all sources available, for the
purchase of the land and the construc-
ton of the building. sl,21:.U1. and that
this amount paid for the ground ana
| building and left no floating debts. eX-
cept a disputed account OF about s-O.OO0
with the Thompson-Starr Company.
IF we add this $4,000 TO the cost or
the building and grounds We VIII ma
that the total amount OF money That went
into the grounds and building was 81
295O CO The ground cost $4,000. That
will leave the money available for the
building $7SJ,OOO. This includes the in
terest paid on the building loan and taxes
upon the land during that period.
1T must be apparent that 1t would not
be fair to charge to the cost of the build
ing either the taxes or the interest on
the value of the land during the time or
construction. if we credit in the ap-
praisement the full amount of increas In
the value of the land. Deducting these
amounts we find that the money actually
going into the construction of the South
ern building was about SltoWo.
Counsel for the insurance companies
insist upon adding to this cost certain I'M
provements put into the building by the
United States Trust Company and which
cost that company about $4,000. We are
wholly unable to understand how this
amount can be considered as part OF
the assets of the insurance companies.
THE Southern Building Corporation did
not put this property in the building, did
not own it, did not transfer 1t to the in
surance companies; the insurance COM
panies do not get any rent on account Of
it having been put in. nor do they In fact
own the fixtures and improvements. but
under the contract with the United States
Trust Company may yet have to pay Tor
30 per cent of the cost.
I'VE have, therefore, not taken into
consideration I'm determining the cost OF
the building. the improvements put there
In by the United States Trust Company.
Valued at About Cost.
There has been evidence introduced
showing that the cost of the construction
now would be more than it was i'm 1910
when this building was constructed
THE consensus of opinion as expressed
by the witnesses is about . per cent on
the entire value. whlcn lncluoeS poln
material and labor.
But as the building has deprecated
since its construction by wear and tear
and obsolescence, practically the same
amount, we have felt that fair valua-
ton of the building on those premises is
about it's cost $4,000. Figuring, there
fore. the land at its present value, and
the building at its cost. the whole prop
erty would now be worth $1,65S 30.
The testimony in this case shows the
ground value of this property to vary
from $25 to SO per square foot. in the
opinion of witnesses. Mere opinion is an
unsafe guide. Perhaps one of the best
tests that can he applied to the value OF
real estate is what willing seller can
get from willing buyer.
The evidence In this case discioses the
fact that this property had been on the
market for year or more prior to the
time Of it's purchase by these insurance
companies at price ranging from 81 ,5OO.-
600 to 81 $4,000 The best offer that the
Southern Building Corporation had Sc
cured, however for this property was
81, 100000.