Evening star., 1926-10-02
MEN AND MONEY
BY VI. S. Ruke,'ser
tCopyright. 1a26.)


Steel Corporation-will soon reluc-
family lose his mansion on Fifth ave
nue.. He thought in 1910, when he
acquired the property, that he had
selected a home for life, but the
pressure of city growth has changed
his plans. He has submitted to the
inevitable-and multiple apartment
house will Supplant his seven-story
urban castle in which he has always
taken great pride. He had either to
yield or become entirely surrounded
by tall structures.
Mr.. Gary has entertained variety
of distinguished foreign visitors in his
home. Shortly after the United States
entered the war Niscount Ishii and
his conferees on the Japanese com
mission made their headquarters
there.
The Vanderbilts and the Goulds,
too, have stepped aside to make room
for the new crop Of millionares, who
are so numerous that they seek shell
ter in giant apartment houses rather
than in one family homes.
Winter Leading Realtor
Benjamin Winter. who came from
Russia as house painter scarcely
more than a decade ago, and is now
leading realtor has specialized in
demolishing the beauty spots on Fifth
avenue and substituting modern
structures. lie has been chasing New
York's Four HundEed into new neigh
borhoods The elder buildings of an
earlier generation must sigh. IF Win
ter comes, can demolition be far be-
hind?"
The meaning of the present phase
of the building boom which incident
ally has been slowing down signifi
cantly since the Spring. is that Amer
lea has been remaking itself. sub
stituting new types of structures for
old. The country is no longer merely
making up a housing shortage. The
physical shortage. broadly speaking,
has long since been corrected. The
present activity involves raising the
standard of living in respect to
housing, and is a part of the same
clamor for the good things of life
that is reflected in the extraordinary
sales Of automobiles, radios, bath tubs
and telephone service.
incidentally, city real estate values
are high. Whether they will go high
er or lower is a matter Of conjecture.
but the investor who seeks only safe
ty of principal and regularity of in
come In real estate mortgages or bonds
will make sure that he is dealing
with an issuing house that has al
lowed for possible deflation of eXces-
sive valuations. This is conspicuous
ly a time for extreme caution, not
recklessness. in lending on developed
or undeveloped real estate. Paste this
remark in your hatband and refer 10
1t during the next few years when the
chickens, born of imprudence, come
home to roost.
Passion for Novelty
The disappearance of old buildings
in America is an expression of the
national passion for novelty. for the
last word in modernity. The wreck
ing of fine and artistic homes would
be unthinkable in Europe. Local and
national governments overseas inVa-
rlablN step in to protect for the ages
places of exceptional historic or artis-
tic int crest. Both continents go to eX-
tremes. We sacrifice old memories to
our eagerneSS for material progress.
and in Europe material growth is
stunted by worship of the things of
the past. The difference in attitudes
helps to explain why our factories and
WOrkingmen are buster than those
overseas. America s home market con
Sumes more than any group of equal
size in any other part Of the world or
in any previous epoch in history. Eu-
ropean trade is somewhat retarded by
the inacpacity of its people to con-
sumo on the high level of opulence
which prevails in prosperous America
My impression is based on first hand
observation in 10 countries overseas
The striking prosperity of the Gen
eral Motors Corporation invites COM
parison with the activities of Henry
Ford. One of the significant trends
has been the relative growth of CheV-
rolet. as compared with Ford. While
the former shows substantial gains In
sales over 1925. the latter has been
losing ground. Henry Ford has had
his back TO the wall several times be
fore. and in the past has always
leaped over hurdles. In 1920. during
the postwar depression. he went
tentatively to Wall Street for finan-
cial aid. heard the terms. which he
considered harsh. and then emerged
from the crisis without borrowing a
dollar
The competition between Henry
Ford and the group that runs the
Chevrolet unit Is contest between
eccentric genius on the one hand. and
orthodox business and financial talent
of the highest order on the other.
The iuncture in the General Motors
=
unit, of forces like Alfred p Sloan.
jr.. the president and operating head
John J. Raskob, the financial field
marshal; the banking support Of J.
p. Morgan & Co., and the capital in.
vestment of the fabulously rich gun
powder du Points of Wilmington, has
transformed that enterprise into the
United States Steel Corporate Of the
automotive industry. Less than a
decade ago the enterprise in its
pioneer days, was little more than
reflex of the imagination and dyna mic
energy of William C. Durant. who has
twice lost control--the last time in
1920. Recently Mr.. Durant. as an out.
slider is reported to have prof1ted
greatly from the spectacular market
rise of General Motors stock.
Brilliant Though Conventional.
The General Motors crowd. though
hrillian Mt. is conventional. and follows
all the known rules of business sue
cess. Henry Ford. the strangest mass
of economic phenomena in the United
States. has done pretty we'll by violat-
ing many Of the accepted canOns. He
is a hereto in economics. He hates
the money power of Wall Street. and
once told me that he regards stock
holders a s parasites.
IT is part of the record that each
group. holding dametrically opposite
views concerning the conduct of
business. have been successful to an
extraordinary extent. Nearly three
years ago. seeing the trend, / asked
Mr. Ford If he would eventually turn
Prompt Action.
Te