Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-01-10
Witness Tells the Investigators
Property Is Worth 100000.
GIVES REASONS FOR VALUATION
Offset to Charge of Undue Increase.
Committee to Introduce No
More Witnesses.

the insurance investigation began the
presentation OF testimony today before
the subcommittee of the House of Rep
resentatives.
Alexander T. Hensey. one of the COM
mittee of appraisers. told the committee
just why he believes the property to be
worth S2,O00OOo. He went through "A
running fire of cross-examnation follow
ing the direct examination by Charles A.
Douglas.
The value of the Southern building is a
vital point i'm the investigation. The
charge on file is that the building was
marked up in value overnight" and to-
days testimony was i'm refutation of this
charge
Testimony of A. T. Hensey.
A. T. Hensey OF the Swartzell Rheem
& Hensey Company was the first wit
ness today. He was one of the apprais-
ers Of the Southern building appointed by
George Ingham, superintendent OF insur-
ance. The committee of appraisers
placed a value of $2OO0.0OO on the South
ern building. He said he placed a value
of $40 a foot on the land.
Mr. Hensey read letter dated Janu-
airy 10, 1910. and addressed to the Presi-
dent of the Southern Building Corpora
tion. in which 1t was stated his firm had
appraised the site at 10Th and III streets
before the building was on il at $50 a
foot
"Mr. Darnelle and / appraised the
ground he explained. Mr.. Lipscomb,
being a builder. we did not all go into
that
He told of the methods by which the
ground had been appraised at $45 foot.
Comparisons of the value on other
property in the neighborhood Were
lnr Hot Tha
Myers property. for instance, next to
the old Herald building. on 18th street.
he said. was being held at $40 foot.
and the property o( his own firm is
held at $40 foot.
Taking these a measuring stick,
it looked as if the Southern property
is worth $45 foot.
Compared. With Other Property.
He said the Lehman property, 18th
street near New York avenue. had
been offered at $50 square foot. and
that the Southern property is worth
at least SIS foot more.
The Arlington Fire Insurance prop
erty. on 18th street near New York
avenue. is worth $40. he added, and
was used as a comparison.
I'VE used as a comparison also the
Montrose Hotel. which has been sold
for s51 a foot, at 14th and II streets:
a II
urlng stick against lower values in
ESTIMATING Hg the Southern building prop
erty.
ION the northwest corner of 14th and
II streets there is property being held
at $50 a foot" Mr. Hensey stated. The
Arlington property, he said. was sold
for $1,4OO.00O. including $500 square
feet averaging s24 a. foot. Dividing
this into sections. he said. the corner
property is worth $54 foot.
1--WE consider this Very valuable
testimony, this sale of the Arlington
property said Charles A. Douglas at
torney for the insurance companies.
Values in the Vicinity.
How much more valuable is the
Southern building corner than is the
Vermont avenue and I street cornery'
asked Mr.. Douglas.
AT least $40 foot more"
"If the Chamberlin Hotel site cannot
be bought for $50 a foot what would
Won saw about the Southern property?
About SO foot more for the South
ern.''
He said 18th and II streets compared
very favorably with 14th and I'll streets.
valuable, some of it worth So foot
Tie Small corner he believed TO he
worth $13 foot, or at least Small hao
refused that for 1t.
Mr.. Douglas asked about 10Th ana ~
street property Mr. Hensey thought
the Southern building was on a very un-
usual lot and said much was added 10
the value by the alley back OF the
building.
'Mr. Lpscomb said a fair way to
value the building would be TO ascertaII
its net. earning capacity Ilat was
about $4,000 a year." said Mr.. Hensey.
Reason for So, ,oO0, 900 Appraisement.
Following this line of calculation the
committee of appraisers, he said, ap-
nraised the Southern building at 5000
OOO.
Mr.. Douglas introduced hypothetieal
conditions which would place the value
of the Southern building at S2.6N.OO
Mr.. Hensey explained that he had made
the appraisal for the insurance depart,
ment and had no idea why the appraisal
was being made, and that no one IN the
fire insurance companies had sdlu any
thing TO him about it. Mr.. Douglas
brought in the fact that there mad peeh
testimony to show that some OF the III
surance company officers are directors
i'm the District National BANK put MT.
tnansev said that fact had no bearing ON
the appraisement. r. n. Harper. presi-
dent of the bank. is an oiilcer Oh the
Commercial National Bank
MIR. Hensey said Mr.. Darneiiie haa
never asked him for high appraisal
Arlington Hotel Site.
panresentative George asked Mr. Hem
sev about the Arlington Hotel property,
which is irregular I'm shape Mr.. Hensey
,,,t varying values, per foot, on property
In various parts. The III street end, he
said. is worth $54 foot. while some OF
the land or on the me. uy strese GEORGE end wens rs
into this I'm considerable detail