Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-09-04
D. c. REALTY VALUE
J: DECLARED SOUND
Real Estate Board Statement
Sees Difference in "Specu-
T. Iative Undertakings"

sThe Washington Real Estate Board
came to the defense of Washington real
State in respect to its soundness when
il issued the following statement today
through John A. Petty, its executive Sec
4tary:
S"While the difficulty being experienced
b. chain of banks in nearby Maryland
il regretted, it is unfortunate that in
Explaining the difficulty Washington
real estate values were referred to as
Fling abnormally depressed. If refer
esnce was made specifically to certain
tSpc5 of first mortgages secured on
Nghly speculative and, in most in
Sances. large building ventures whore
the basis of security was appraisals
which did net reflect either sound values
lyDr sound Judgment, the term 'apnor-
rfally depressed might more properly be
applied even though such depressed
value is in fact a depression OF APP
r,faised value as distinct from sound
value.
S"Furthermore. the soundneSs Of Wash
tS2ton real estate values cannot be
Measured in terms of the present condi-
ton of large second mortgage holdings
a2ouired in purely speculative real estate
Enterprises, end it IS, therefore, lmpor-
tsnt that the type of real estate invest
rSents be identified more specifically
Wien reference to 'abnormally depressed
Conditions is made,
Values Held Sound.
SThe sound value of Washington real
estate has not only shown no abnormal
IL depressed condition, but based on
fundamental factors that underlie real
eNtate values, Washington is perhaps
the most fortunate city in the country
il having its real estate values main
tanned. The instance where improper
financing has been carried on. and Tor
Mhich most of the responsible parties
have either been handled or are III
process of being handled, do not re-
feet the general condition in washing
ton. No Washington bank, trust COM
rSanv. building and loan ASSOCIATION
Mr. anv local mortgage brokerage house
which has confined its activities eH-
olusively to the District OF Columbia
have been subjected to any crlC-c.s!i,
nor investigation of any character and
Neither have their capital or the con-
tn,ed successful operation OF their
Business been curtailed or hmoereo III
any manner. .. 49,. +ho
= 1t is to these institutions that the
sernd and constructive upbullding CT
me Nations Capital City can be credlt-
81 and the development OF scores Oh
RESIDENTIAL and business communities
md literally thousands OF homes suc-
cesefullv financed and sold 10 tne
1;eonle of Washington bear testimony u
this fact.
{ I'll Forces Eliminated.
S"Uashington today is in an enVlaoie
rSsi.ion in respect to its real estate
SITUATION. a resnonsible
fsr the severe criticism OF W9snlngCCn
resnect to the financing OF certah i
enecific properties have been elimnlde.o
from tie field and the real es'"Gs
financing business Of Washington y
tcday confined to reputable ana S'u'r no
scnrces which are not end nave nov
nnrsucd the policies and tsctlcs Prev
pIisly participated in by a rev. 49,
1T is only fair, therefore. 10 .tne e
thousands of home owners ana o'n nea
Thousands who have invested n tne
security for which in the main tness
homes are the basis that the ln1erencss
about Washington be ar" 2Ieo ana
fiat assurance of the co-,-lued SOUND
ness Of washington real estate De given
to them