Evening star., 1924-06-03
STUDY SEEN NEEDED
TO REDUCE OVERHEAD
F. D. Chase Tells Realty Section
! Care in Selecting Factory
/ Site Is Important.
BUSH TERMINAL IS SUBJECT
Expert Advice Necessary in Buy
A., ing Property.

Factors to be considered in low
ering overhead charges in industry
were outlined today by Frank D.
Chase of Chicago and Los Angeles, in
an address before the industrial prop
critics division of the National Asso-
citation of Real Estate Boards. meet
ing in the New willard Louis B.
Beardslee of Chicago is chairman.
Addresses were also delivered by w.
l. Brent, president of the Los Angeles
Realty Board; S. c. Blackiston, sec
rotary of the Bush Terminal Com
pany: George c. Smith, executive as
stiant to the president of the Can
ton Company of Baltimore, and by
Mr.. Beardslee.
Virtually the only means of reduc-
ing raw material prices, labor costs
and overhead and fixed charges, Mr..
chase said, is to find the factory that
hts, the right state, the right city,
the right site and right kind of
the right state and city within the
state and the right property within
the city, he added. have practically
the same points to be considered
of raw materials. labor. market for
finished product, transportation of
finished product, manufacturing facil-
tiles and capital.
Tells of Bush Terminal.
How the Bush terminal was built
was told by Mr.. Blackiston. In re-
counting the experience of the found
er, Irving T. Bush, he stressed the
point that development of an indus
trial project depends primarily upon
vision, audacity and persistence.
NJ ha No
of his representatives into the west
and middle west and told them to buy
vast quantities of hay and ship 1t IN
carloads to Bush Docks Station.
road men in various sections Of the
country kept the wires hot flashing
back and forth, Where is Bush Docks
Station? The agents for the various
small towns throughout the section
in which the hay was purchased were
told: If you are offered hay in carload
lots, accept it. We will find Bush
Docks And it was not long before
the place was found by various rail-
roads and the hay delivered at Bush
terminal. thus establishing Bush Docks
on the map
Expert Advice Needed.
Value of hiring an expert to nego-
dustrial site was pointed out by Mr..
Beardslee. He cited the case OF
nationally known concern which
wished to purchase site for ware
house in Chicago. The broker whom
they had chosen without due inves-
tigation to carry the deal through
took it for granted that spur could
be built from the adjacent railroad
track to the warehouse door and so
assured the concern. But when they
applied to the railroad for switch
track connections they found that it
was an engineering imposSibility to
serve their property with track.
Few activities in real estate take
keener judgment, more scientfhc and
extensive knowledge or shrewder ex-
perience than appraising the value
of industrial property, Mr.. Brent said.
He went into some details to be con-
sidered in this work.
The man who locates his factory in
q certain town because he likes the
way that city's chamber OF commerce
band plays jazz. or because he once
lived there and has fond memories of
the old swimming hole, instead of de-
manding a cold business survey of re-
sources and conditions, is slated for
failure, Mr.. Smith said. Some factors
which must be considered he outlined
rs follows: The whole tax structure
of a community, transportation facili-
ties and rate structure. the cost OF
living, educational facilities, oppor-
tunities for recreation. Perhaps. he
added, the least important of all is
the actual land cost of available sites