The Telegraph-courier. [volume] (Kenosha, Wis.) 1888-1946, 1920-04-22
FORCED TO STOP
BUILDING PLANS
Kenosha Homes Co. viii
Meet Problem of Ris-
ing Prices.
NINETY HOUSES SOLD

The Kenosha Homes company at a
special meeting held Friday afternoon
at the Elks club. voted unanimously to
keep faith with its purchasers Of
houses even though the living up to
verbal agreements may entail a loss
of several thousand dollars. The mem
bers of the company accepted the re-
port of the special committee which
has been in charge of an investigation
of the complaints of various persons
who purchased homes during the past
year and took steps Immediately to
come to an agreement which will be
acceptable to every person who has
secured home built by the company.
Because of the sky rocketing of
prices and the uncertainty Of the build
ing situation, the company has decided
for the present to discontinue its
building program, out it will continue
to aid individuals in financing the
building of their homes.
Prices SCARED on Contracts.
Because Of the rising prices of build
ing materials, the company has expert
enced some difficulty with purchasers
of homes. Purchasers who last year
expected to pay certain amount for
a building have found that out of
necessity this has increased owing to
sky-rocketing Of prices. The company
has done everything possible to keep
the terms down to the original sum,
but in some eases the cost has in
creased several hundred dollars, This
has been absolutely unavoidable, but
the company will endeavor to decide
upon proposition which will guaran-
tee satisfaction to all the purchasers.
A way out Of the difficulty was sug-
gested yesterday by committee COM
posed of superintendent from the To-
cal factories. The proposition was
presented to the company and it will
be duely considered and will be re-
ported on early next week at another
special meeting. The proposition will
doubtless eliminate any element of dis
satisfaction that may be present.
Get Settlement Started,
"The misunderstanding" explained
Charles Pfennig, president Of the
Homes company, "came up over the
meaning of the word approximately.
The company agreed to build these
houses at various prices, depending
on the building market. For example,
some houses were to be erected at APP
proximately from $4,000 to $4,000, ac-
cording to the verbal agreement. The
cost of materials in some instances
has run this increase in cost above the
estimated price more than $500, but
the company intends to stand back
of its word and will take the loss in
order to secure satisfaction among The
owners of the homes"
Today meetings were being held at
factories where several owners of the
homes are employed and statement
was being secured from each of these
as to their understanding of their con-
tract Early next week second meet
ing Of the company is to be held to act
on these reports. 1t is said that
the company plans now to accept
the higher estimate Of the price even
though they are not legally bound
to this settlement.
Caused By Unusual Situation.
"We do not believe that the company
could be held legally to any of the
verbal estimates" said President Pfen-
mig, since the contracts were all made
contingent on increases in the market.
Purchasers, however, have failed to be
satisfied with any settlement which
would meet this increase and rather
than have dissatisfaction, the company
own terms" 1t was explained that no
one was blamed for the difference in
the estimates and the cost price as the
jump had been caused by conditions
which could not have been foreseen or
which could not have been stopped.
1t is said by persons not ipterested
in the company, that many Of the pur-
chasers, while they are unwilling to
pay the price set by the company as
the cost on the grounds, that this is in
excess of the estimated price, have also
shown an unwillingness to sell their
homes for this price in several in
stances. The settlement which is
in sight has thus far met with the
approval of all concerned.
Discontinue Building Operations.
The ninety homes built by the com
pany in the past year have all been
sold and if it were possible to build
ninety more they, also, could easily
be sold. But owing to the uncertainty
of building conditions, the Kenosha
Homes company has decided not to
proceed at the present time with the
building campaign. Instead, the com
pany's activitiess viii be devoted to
helping the individual purchasers to
finance their homes. Methods for carry
ing on this work are now being
organized.
Elect New Secretary.
The company at its meeting Friday
afternoon accepted the resignation of
Robert E. Mailer, who has been the
secretary Of the company since it's or
ganization and who has retired and
plans to move to Pasadena in the near
future to make his home. In accepting
the resignation the company com
pany commended Mr.. Mailer for his ef-
ficient and faithful service for the
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