Evening star. [volume] (Washington, D.C.) 1854-1972, 1926-10-02
MEN AND MONEY
b. N. S. Ruke,.er
(Copyrlght. 1881

SISSI SOOil
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 a 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 millionaires, 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
q lcduIIk IcdllOI, HAS SpSCldllAcu III
demolishinE the beauty spots on Fifth
avenue and substituting modern
structures. He has been chasing New
York's Four Hundred 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
shutting 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
standard OF living in respect to
housing. and is 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 hiEh. 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 IL dealing
with an issuing house that has AL
lowed for possible deflation Of exces-
sive Valua tions. This Is conspicuous
lN a time for extreme caution. not
recklessness, in lending on developed
or undeveloped real estate. Paste this
remark in your hatband and refer to
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-
riablv step in to protect for the ages
places of exceptional historic or arts
tic int erest. Both continents 60 TO eX-
tremes. We sacrifice old memories to
our eaEerness for material progress.
and in Europe material growth is
atunted by a Worship Of the things Of
the past. The difference in attitudes
helps to explain why our factories and
~ ofkins mrn are buster than those
overseas. America g home market con
size in any other part of the world or
in any previous epoch in history. Eu-
ropeRn 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 Chew
rolet. as compared with Ford While
the former shows substantial gains in
sales over 1928. 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 4
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 juncture in the General Motors
Corpora ton. OF which Chevrolet Is a
unit. of forces like Alfred P Sloan.
ir.. the president and operating head;
John !. Raskob the financial field
marshal; the banking support Of !.
r. Morgan & Co.. and the ca pital in
vestmAnt Of the fahulously rich gun.
powder du Fonts of Wilmington. has
transformed that enterprise into the
United States Steel Corporation Of the
automotive industry. Less than q
decade aGo the enterprise. in its
pioneer days was little more than A
reflex Of the ina gina ton and dynamic
energy Of William C. Durant, who has
twice lost control--the last time in
1920. Recently Mr.. Durant. as an out
slider. il reported tn have prof1ted
greatly from the spectacular market
rise of General Motors stock.
Brilliant Though Conventional.
The General Motors crowd though
brilliant is conventional. and follows
all the known rules Of business sue.
cess Henry Ford. the stransest mass
Of economic phenomena In the United
Stat 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 AS para sites.
1t is part OF the record that each
group. holding dia metrically opposite
views concerning the conduct Of
business. have been successful to an
extra ordinary extent. Nearly three
wears ago. seeing the trend. | asked
Mr.. Ford If he would eventually turn