Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-01-11
COMMITTEE MAY PROBE
MONTROSE HOTEL SALE
Query Regarding Price of Property
Bought by Trust Company.
SUGGESTED MARGINAL SALE
r. II. Goldsborough's Testimony Re-
garding Realty Values-E. E.
jordan a Witness Yesterday
on the Same Line.

An objection by Attorney Charles A.
Douglas to a question put by Commits
sioner Judson to r. III. Goldsborough.
who testified today in the insurance in
vestigation of the House District commit
tee. threw the committee witness and at
torneys inio wordy war which cuimi-
mated in a determination to probe further,
if necessary. into the sale of the Mont
rose Hotel property at 18th and IL streets
northwest. Attorney Douglass arose to
his feet and characterized the query pro-
pounded by Commissioner Judson as a
"scurrilous one" and asked that it be
stricken from the records.
Col Judson had asked whether or not
il was true that the price OF SOL foot.
said to have been the price of the prop
erty recently bought by the Real Estate
Trust Company. was bona fide or whether
il was not merely margin transaction.
which was nothing more nor less than a
bubble of inflated value
Mr.. Douglas told the committee in no
uncertain terms that he believed the
question was asked to besmirch the char
acter of T.. F.. Jordan. who had testineu
TO the sale and purchase of the prop
erty yesterday and who is interested In
the deal
The exchange of words was rapid for a
few minutes, but the question was lett
in the record. and it was suggested that
Mr. Jordan be recalled.
Mr. Goldsberoughs testimony today
was of the most optimistic character. so
far as real estate in Washington is con-
cerned He told of the big growth or
values here. and estimated that the
Southern building corner is one of the
nine most valuable in the city. :.
While Mr.. Goldsborough was on the
stand Representative Redfield asked him
some questions about the relative value
of Washington property and New York
property. This led Representative john
son. chairman. to say that New YORK real
estate has about as much to do with the
question under consideration as have
building sites in Calcutta.
Real Estate Expert Heard.
r. f, Goldsborough. attorney, was the
first witness. appearing as real estate
expert.
Increases of value of property in
Washington. he said. have been enor-
nous The rate of growth has been phe
nomenal. Go back fifty years and look at
every assessment. This establishes the
fact that the 1st of each January has
shown an increase. OF course there have
been panics. but there has been grad
ual increase.
Il foresaw the development of F street
before it began. / bought in lower r
street when it was residential street.
bought 300 feet near 9th on + street for
81 a foot twenty-five years ago. 1 turned
il over to Mrs. Coyle. mother-in-law of
my brother. DIR. Goldsborough."
He said the annual growth of business
property here has been per cent and
perhaps 10 per cent. He said the land on
which the Southern building is situated is
worth $50 foot. Asked how it should be
capitalized, he replied: About per
cent
Mr. Goldsborough qualified this by say
ing that as matter of fact business
properties do not bring per cent as a
rule He added later that the Southern
building corner is worth easily a third
block north. He also said that the
north side of III street being the thor
Oughfare side, the northeast and north
west corners are more valable.
Mr.. Goldsboroughs testimony was all
extremely complimentary to the Southern
building property.
rs there another corner in Washing
ton better for business than the South
ern building corner?"
There are nine corners in the finan-
cisl district four al 10Th and III streets
where the Shoreham. Union Trust, South
ern and Woodward buildings are; three
corners at New York avenue and 10Th
street, where the Riggs National Savings
tate are; two corners at 18th and G
streets, and one at 18th and streets
Comparison of Values.
The corner at 14th and II streets is
not as valuable as 18th and H?" sug-
gested Mr.. Douglas.
Not at all as valuable" said Mr.
Goldsborough
The Southern building site Is worth
more than the Montrose Hotel site?"
oh. yes"
Testimony yesterday showed the Mont
rose site had been sold recently for over
SIl foot.
Representative Prouty asked him il
Nashington's growth had been more
rapid than that Of other cities.
The financial growth has been, most
certainly"
He continued:
There are 1900 more people here who
are interested in the financial district
The National Savings and Trust Com
pany started there in the financial dis
irlct with small capital 1t now has
Io.VO depositors- The American Security
and Trust Company has now 10 600 deposi
tors and the Riggs does a big business
including among its depositors the mos,
important people in the District of Co
Iumbia. The National metropolitan
down the street has tremendous list OF
depositors and there are other hank:
ri2ht there with 1900 or $1,000 deposi
TOYS. all OF whom are visiting there al
the time"
Mr.. Goldsborough went into the com
merclal and manufacturing aspect o.
Washington Representative Prouty ask
cd him what was the source of Washing
tons wealth.
Government salaries and purchase,
constitute the foundation" said Mr.
Goldsborough
Representative Prouty asked about tn,
government clerks deposits Mr.. Colds
borough said he did not believe the clerk
constitute the biggest element in tn,
financial life. but that in addition Z,
them the big financial systems of tn
country have agents here.
Growth of City.
Mr. Prouty asked several question
about the growth of the city. Mr. Colds
borough said that Washington had ad