Evening star., 1936-09-09
BY WILLIAM C. McCLOY.

A LIMITED dividend company" is a
company that limits its dividends,
legally or voluntarily, in order to re-
duce costs and pass the advantage
on to the consumer-or, in the case
of housing companies, the tenant.
Though they offer a low rate Of
interest, such companies are able to
attract investors because their con-
servative financial policy makes them
remarkably safe investments. They
also attract philanthropic investors
who are willing to accept compare
lively low return on investment when
they know their money is being used
to do away with slums and provide
low rent housing for the low-income
groups.
For years there have been private
housing companies with limited divi-
dends, both here and abroad. The
most famous in this country were
those organized by Gen. George Stern
berg in Washington, D. c., as long
ago as 1879 and which are still -four
ishing in 1896.
Lower Rentals Wanted.
The first schemes in the Govern
ments present housing program were
seven projects built on the limited
dividend principle with p. w. A.
loans. But 1t was found impossible
to keep rentals as low as the Gov
ernment wished and pay even a lin
tied dividend. Most of the limited
dividend companies, private or sub
sidized, have rentals that range from
~ to $40 per room per month. The
Government wanted to reach q lower
income group, with rentals ranging
from IS to $6 or So per room per
month. So it abandoned the limited
dividend principle and began letting
contracts directly to private con-
tractors in the SO P. w. A. projects
already described.
Meanwhile, of the seven limited
dividend projects started in Decem-
Der, 1882. the first was finished and
opened September Is, 1894. All are
now completed. Eleven thousand per-
sons are living in the seven projects.
Their cost was about 100000
The seven projects include: Alta
vista. Lynchburg, Va; Hillside Homes.
Bronx. New York City; Euclid Hous-
ing Corp, Cleveland; Carl MackIey
Houses, Philadelphia; Boylan Houses.
Raleigh. N. c.; Neighborhood Gar
oens, st. Louis; Boulevard Gardens.
Queens, N. Y.
The Virginia homes are small.
single-f family frame houses. compris-
ing so living units. They cost s84 900.
In Cleveland both individual and
double houses were built-56 in all,
and costing altogether s5OO,0O0. The
sum Of $4,000 went into Raleigh,s
three-story apartments, with their 81
living units. They rent at sl1 per
room per month. The three-story
apartments in st. Louis, costing $780,
600, have 252 living units and the
rent per room per month is s9.4s.
Hillside homes, costing $1,000. 600
represent the most money in any OF
the limited dividend projects. It con-
SN's~S "a q VA dP61
the highest being six stories, and il
has altogether 1,416 living units. Many
exceptional features characterize Hill
side homes. The more than II acres
the project occupies slope gently down.
hill. This makes possible large num-
ber of basement apartments six inches
above the garden courts. Private ter
races added to these make them the
most desirable apartments in the de-
velopment. Nothing is wasted in USE
less ornament or establishment.
The object Of Hillside homes Is to
provide comfortable living quarters for
those unable to pay more than $11
per room per month, and, as far as
possible, with no additional costs for
the use Of community facilities. Both
Hillside homes and Boulevard Gardens
have push-button elevators.
Boulevard Gardens, for the second
Of the national housing divisions
limited dividend projects in New York,
Is another important undertaking that
has more than justified itself. Its
record Is 100 per cent occupancy, with
100 per cent paid up tenants and q
waiting list Of 5000 families for ANY
vacancy that may occur" Its cost
was $3,450, 900 and the buildings, 10