Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1919-07-08
Houses Increase 90 Per Cent


Houses Increase 30 Per Cent
The cost price of the houses was kept
to n minimum by the purchase of ma
terials in huge quantities, and getting
the work of building done by private
contractors who made only very small
profit. 1t is said that the houses could
not be duplicated now except at an
advance of 90 per cent over their orr
ginal cost
The houses, which will come into
the market gradually as the orders of
the government are carried out, are in
several groups in and around Phiia-
delphia.
The largest group is that which the
Emergency Fleet Corporation built in
the Elmwood avenue development. There
are 1887 of these. The other big phiia
dolphin group is at Oregon avenue and
was built by the Housing Corporation.
Tt consists of 80 modern and good
looking dwellings, The same corpora
ton built about 200 houses at ESsing
ton,
Other Developments nearby. all put
through by the Emergency Fleet Cor.
porution. include in round figures Loo
houses at Camden. 500 Mt Chester. 100
At Gloucester and 100 at Bristol.
Partial rrliot from PhiIadclnha' :
house famine may be expected by next
spring from private building according
to Daniel Crawford. Jr.. president Of
the Operative Builders Association Of
this city.
This forecast made by Mr.. Craw-
ford in an interview. depends unon
prompt letting Of municipal improve
ment contracts by city officials. Funds
for these improvements. which consist
principally of water mains. sewers.
grading and paving. are provided in tho
municipal loan passed by Common
Council last Thursday. Select Council
has yet to concur in the loan. but no
one expects opposition to the measure
when it comes up Thursday.
The city is short at least 20. 900
houses. according to estimates made by
experts Mr.. Crawford believes that
the amounts appropriated for sewers in
thc loan bill will provide drainage for
between seven and eight thousand
houses.
II am sorry that the sewer items in
the loan bill did not go through uncut. -
said Mr.. Crawford. The sum of
$500. 900 was taken from the original
have to be built ultimately. and the
price of labor is advancing at such a
rate that the same amount of work will
cost n great deal more money n year
or so from now than it would cost if put
under contract at present.
Business Failures Many
Il know of no business which has
seen so many failures as that of the
builder. Nearly all of them are trace
able to one cauSC-builders taking
chances er rpcting dwellings on land
which lacked essential improvements.
The builders put up their houses, hoping
that sewers and water would follow i'm
mediatcly. a year or two passed and
the streets were still without sewers.
Taxes went right on. however, and the
interest on the money borrowed by the
builders kept on accruing. The result
was failure.
''Ruildcrs will take no more chances
of this sort. They are determined to
! go into no more ventures where the
facilities are not alrcady available. 1t
is not practicable even to build houses
and sewers simultaneously.
"Real estate is not Il paying propo-
sition any more. The only way to in e
:. duce people with money to invest it in
real estate for renting purHoSCS is to
make. the investment attractive. With
build7ng costs GO to IS per cent above
normal it is necessary. to make rents
conform if real estate ownership is to
show "a profit.
'I sh hould say that there is rising
market in houses at present, rather
than 'pr1fiteering There will be real
Q profiteering, however, if houses are
,nnot speedily built to meet the city's
e needs.
.'Financihg is another important
consideration, The trust companies
loan funds for building with the under
,irstanding that the builder will re- finance
the houses when completed, and return
the original loan to the trust company
which cannot afford to have its fund
tied up for an indefinite period. The
builder docs this by obtaining mortgages
from private investors or estates, either
direct or through a mortgage broker
Mortgage money at present is scare,
and dear. 1t is difficult to plac,
mortgages. They cost as high as Z o.
S per cent, though some are to be hat
for 6.
Though perhaps it is not generally
known, very definite effort is nov
being made to have Congress exempt
mortgages from income tax up tC
:, SAC, 900 or so 900 of principal. Thi
would have a tendency to hold mort
gage money down to } per cent and tn
:, benefit would be twofOld.
'In the first place it would stimulat,
building activity; in the second i
:. would help hold down rents.
II am glad that the loan has gon