Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-05-27
BUILDING EXHIBIT
URGED FOR CAPITAL
New Yorker Tells Realty
Boards 1t Would Aid En-
tire United States.
BY DON S. WARREN,
Real Estate Editor of The Star.

lishnent of permanent exhibit OF
housing and city planning in Washing
ton, D. c., as means of stimulating
the construction industry, was proposed
today to the National Association OF
Real Estate Boards, in convention here,
by Edward A. MacDougall Of New York.
The proposal was laid before the $500
realtors of the country this morning at
the first general session of the three
day convention which was opened with
addresses of welcome by Gov. Albert c..
Ritchie of Maryland, and Mayor
Howard Jackson of Baltimore and a
statement by Harry S. Kissell, Spring
field, Ohio, national realtor president,
that "the strength of real estate has
been the great stabilizing factor in the
past two years"
The proposed permanent housing ex-
hibit in Washington, II adopted, would
be organized by the national real estate
body. the United States Building and
Loan League, American Institute of
| Architects. American Federation OF
Labor, American Bankers Association
and others, together with Government
experts.
Stresses Educational Value.
Mr.. MacDougall, exponent of the
garden" type of city development,
urged creation of an American Institute
of Housing in the National Capital,
where the public, architects, builders,
students and foreign visitors could view
! exhibits of the best in American home
development and gather composite in
formation.
Such a permanent exhibition would
encourage homecoming and conse-
quently assist in reviving the building
industry and raise standards Of home
building, he said
The speaker, one of the developers Of
Jackson Heights, Long Island, also de-
clared that home building costs, rising
more rapidly than incomes, had made
1t necessary for the family Of limited
means to accept smaller quarters than
formerly.
Mr. MacDougall lauded the efforts of
the White House Conference on Home
Owning and Home Building, but de-
clared that the following changes would
have to be brought about before any
"SubStantial' progress can be made
in expansion of home ownership:
REIMBURSEMENT or equalization" Of la
Dor costs, new or improved methods of
real estate mortgage finance, relief from
the burden of real estate taxation, more
general adoption Of coming and deed
restrictions, better housing plans, safe
guarding the building industry against
unwarranted trade combinations to ad-
vance and control costs of building ma
terials and renewed confidence in the
buying public.
Kissell Is Hopeful.
President Kissell In upholding the
reputation Of realty investments, on
the basis Of the last two years expert
ence. declared, IF real estate had taken
ErrnfN lob al
commodities took during the last de-
preston, this country would have been
financial shambles today"
Comparing realty investments to
others. Mr.. Kissell quoted statistics
showing that industrial stocks listed
on the New York Stock Exchange
showed depression of 81 per cent be-
tween their high of 1929 and their low
Of May, 1881. Railroad stocks listed
showed depreciation of 81 per cent,
utilities 81 per cent and the stock
OF II leading banks in one large city,
all OF which are in an unusually safe
position, showed a depreciation of So
per cent. as between the high and low
points in stock sale prices In the past
two years.
Declaring that this was not a criti-
ctsm Of the banks and predicting that
their stock prices would rise, the real
tor president said:
The great criticism Of real estate Is
that 1t is frozen, that 1t lacks lquidity.
We admit we have no exchange on
which we can throw our real estate and
get the money for it within an hour.
but we submit that If you are willing to
take the same depreciation on real
estate which stocks have taken within
the last two years, If you are willing to
discount your real estate from SIS to go
per cent. then the lack Of nquidity be-
gins to fade away.
Sees Safety Of Real Estate.
IF you have a 100000 property
which is distressed and you are per-
mitted TO sell 1t for $4,000 to $45, 900,
I question II you could not find a buyer
for 1t over the telephone.
No bank which has made real estate
loans based on a scientific, intelligent
and honest appraisal-which the bank
itself should have made-should have
lost any appreciate amount on their
real estate loans during the last de-
preston"
matters was set up by President Kissell
as one of the four major detectives of
the association.
-Four years ago the association went
on record warning the financial tnstitu-
tons and the public against buying So
called real estate bonds based on In
Suf1c1ent and incompetent appraisals.
The method Of appraising land and
buildings separately and basing earn
ing power of the project on peak rentals
was absolutely false way to deter
mine the real value % the completed
structure"