Evening star., 1918-12-01
AVOIDS Waste
IN REALTY BUYING.
Washington Man, in Charge
During War, introduced
Effective System.
MAY C0NTINUE IN FUTURE

When the united 0tdteS ooAS
Industrial Housing and Transportation
,,oes out of business with the signing
Of the treaty Of peace, will its method
OF buying real estate be retained oy
the government?
This question is asked by real estate
men in Washington and elsewhere
The bureaus system admittedly mas
saved the government many thousands
of dollars during the war.
The method was devised by William
Z. Shannon, a Washington business
man, manager of the real estate ana
comnsand ndeering division of the bureau.
Like aany of his associates, Mr.. Shan
n5nsIsft a prosperous business last
spring to devote long hours daily to
the psoblem of providing homes for
war fprkers in Washington and other
citieE
Sought Standard Basis.
7Rsafizins that the government al
waIs.had followed a helter-skeiter
policy. of buying real estate ana tnat
his lsck of system frequently result.
ed in departments bidding against
ings. Mr.. Shannon undertook TO put
the bureaus realty transactions on a
basis that might be standardized Tor
all government operations.
He sought and obtained the assist.
ance of the National Association of
IseaI Estate Boards, chambers of
commerce. boards of trade, rotary
clubs and municipal officials through
cat the country. The underlying
principle of the plan devised was that
n
say what property was worth.
And this is how the plan works:
Two scouts selected from list OF
rsafors furnished by the National
sent~to a city or town where the
bureau contemplates acquiring prop
erty. They return with a preliminary
repof4, their mission having been a
confidential one. The next step is the
sendfHg out of a committee of de-
signerS, which is composed OF a. re-
aHors an engineer. an architect ana
4 town planner. This committee in
vestigates every phase OF the pro-
posed development. From the mo-
nrent it arrives on the scene until
the transaction is completed the pub
lie is kept informed as to the prog
ssss of the bureaus plans.
Reach Local Agencies.
When the committee returns to
Washington a STAFF meeting of the
bureau is, called. which is presided
over by Otto NJ. EitAitz, president of
the bureau. If it is decided to go
ahead with the project the various
sites under consideration are plotted
and maps are sent to committees of
citizens representing the National
Association of Real Estate Boards,
the Rotary Club and chamber OF COM
rnerce. or board of trade in the town
or city where the proposed develop.
10 IN ha Nan a
are sent to the mayor and assessor.
This makes five local agencies that
are asked to pass on the worth OF
several sites, with the question as to
which is to be selected not yet de-
terInined. -
when the ratings of these local
bodies have been received Mr.. Shannon
compares them and decides what is
tho actual worth of the property. An
other staff meeting is called. The
project once, more is canvassed. If it
is finally decided to buy negotiator
goes to the municipality in question
armed with the full record of the ca Use.
THE negotiator invariably ds one Of
Ehe two scouts sent out in the first in
stance. He is authorized to commander
The desired property if 1T cannot be
bought at a fair price. In but few in
stances, however. has communicating
been necessary.
Approval OF Contracts.
Contracts are made subject to the
approval of President Eidlitd. When
the contracts come in a third and
final staff meeting is held for the pur-
pose of approving them. after which
they go to the board of directors of
The bureau for final ratification. The
legal end fiscal divisions of the bu-
1eau then close the sale.
Complicated and cumbersome though
fhiS system may appear to be, it has
worked smoothly and quickly. as many
purchases have been put through in
legs than fifteen days. 1t is claimed for
The system that it makes Vaccinations
Cfsspecu!atorS and proiiteers impossi-
hfc. For the first time probably in the
History of the nation complaint has
l'"cti made that property has been
IouSht too cheaply.
according to recent figures, the bu-
reatu has investigated 132 proposed
I'r@jectS and effected purchases in
c'inety-two cases. 1t had purchased
s2.477,s00.72 worth of land at $780,
4?e.a7 under the appraised value. This
was more than a million dollars under
The. original asking price.
Real estate and business men gen.
orally. therefore, are wondering wheth-
er this system. which has saved the
government SO much in wartime, will
become a permanent legacy o. the bu-
Seau to safeguard the government
against swindle in it's realty trans