Evening star., 1936-05-25
OUTLOOK BRIGHT
FOR REAL ESTATE
l.B.A. Committee Forecasts
Home Building Will Double
1885 Mark.
BY EDWARD C. STONE.

BY EDWARD C. STONE.
Members of the Investment Bank
ers Association in Washington have
Just received a report from the as
sociation's Real Estate Securities Com
mittee in which 1t is stated that the
outlook for real estate. and inferen-
tally for real estate securities, Is the
brightest 1t has been in several
years"
Residential construction should in
crease during 1896 about 100 per
cent over 1885, according to estimates
obtained by the committee, which
reported that residential building is
leading practically every other line
of industrial activity at the present
time.
"Given an increase of from 10 per
cent to Is per cent in general busi-
ness activity, the continuance of easy
money, and no material changes in
real estate taxes, 1t is reasonable to
expect further improvement in real
estate values, especially moderately
priced suburban residential property"
the report stated.
Income from properties should in
crease, due both to higher unit rentals
and greater occupancy. The greatest
rise in income should take place in
lower and medium priced apartments
and homes. Rentals should also be
improved by modernizing and improv-
ing property. However, any subStan-
tial increase in real estate values
will probably be checked by the large
amount of distressed real estate still
overhanging the market.
Rejecting the improved real estate
situation, prices of real estate Sc
curities have registered substantial
gains from the low levels reached
during the depression. According to
an index of 200 Eastern issues, the
average price, which was at $2l8 per
$1,000 at the end of 1888, reached
s4os in March, 1885," the survey says.
Capital Tops Phone List.
Washington has the most telephones
per population of any of the large
cities in the world. San Francisco
standing second. Stockholm third,
Denver fourth, Vancouver fifth, Los
Angeles sixth, Omaha seventh, Chi
cago eighth, Seattle ninth and
Toronto tenth. The Capital has more
than 35 phones per 100 population.
Use of telephones throughout the
world has increased more than 2,l00
per cent since 1900, whereas the popu-
lation of all the countries of the globe
has increased only about 33 per cent,
statistics of the American Telephone
Ss Telegraph Co. show. A total of
33,539, $50 telephones is reported in
the world on January of last year,
the latest date for which comparable
statistics are available.
According to the survey, 16,868 ,955
telephones, which is more than one
half of the worlds total, were located
In the United States. Europe operated
l2,028,756 telephones, or approx
rnately SO per cent of the world total.
Canada operated 1.193,729 telephones
and Japan 1,068, 244 instruments, each
having about 8 per cent of the worlds
total. The remaining per cent of
the worlds telephones were distributed
over Asia, Africa, Oceania and South
and Central America.
OF the total world telephones, 81
per cent are operated by privately
owned systems, the report shows. In
the United States all telephones are
operated by private companies and
this company not only has more tele-
phones than all the rest of the world,
but also excels in the number of tele-
phones relative to population. The
United States with 1886 telephones for
each 100 Of its people, has more than
nix times the corresponding telephone
development Of Europe. The second
ranking country in telephone density
h Canada, with IL telephones per
100 population.
Leach Among Bankers Guests.
Hugh Leach, recently elected presi-
dent of the Federal Reserve Bank of
Richmond, will be among the guests of
the District Bankers Association at
White Sulphur Springs. 1t will be his
6rst convention since taking office.
Mariner S. Eccles, governor of the
Federal Reserve System, will be an
other special guest. He attended the
convention last year and gave q very
fine informal talk.
I. I. Chorpening, chief national bank
examiner in the fifth district, also
appears on the guest list, as does ]. c..
Folger, chief national bank examiner
for the whole country. Several other
Government officials will also be In the
party.
Several New York bankers, who have
close contact with the Washington
banks. also are planning to spend
four days at the West Virginia resort.
The party leaves here Wednesday
afternoon at $50 aboard a special
train, reaching White Sulphur about
IL o'clock at night The first busi-
ness session opens at $50 Thursday
morning.
Fifth District Crops Menaced.
While trade conditions remain high
~ satisfactory in the Fifth Federal
Reserve District, including Washing
ton, the Reserve Bank of Richmond
reports worry over crop conditions.
Serious danger in many crops is
now threatened by an unusual spell
Of dry weather that shortly will reach
drought proportions. Corn and early
vegetables are hit hardest and, unless
relief in the form Of good rains comes
within the week, the loss will be
alarming.
Construction work continues to gair
momentum, the district now expert
encing the best Spring since 1929.
Today's Trading on Exchange.
The weeks trading on the Wash
ington Stock Exchange opened today
with q small lot sale in Washington
Railway g. Electric preferred at ITO
ex-dividend, and another small sale oi
Potomac Electric Power 512 per cent
preferred at 1101a, ex-dividend.
National Bank of Washington stock
sold at 1902 on the Washington Ex-
change Saturday. jump or 7la point:
since the last previous sale. During
%hn 60 y,a eaccioo PioOc National Rn nj