Evening star., 1937-10-19

M increase OF 9U3,
and 1890 four
"''' fami lily flats, a
gain of 81 and making total upturn
in the three classes of construction of
1851 units Mr. Lusk stated
1t is more than probable, he added,
that 1887 will be the all-time high in
the history of residential building in
the Nations Capital,
Boom Outside District Line.
During the present building boom
there has been a marked increase in
construction outside of the city, he
continued. Until 1884 most of the
building in metropolitan Washington
was in the city itself; no apartment
houses had been erected in the ad-
joining counties in Maryland and Vir-
ginia. This is changed. So far this
year of the 3,790 houses started in
metropolitan Washington, only l,477
are located within the city itself, the
rest being in Arlington, Montgomery
and Prince Georges Counties.
The same is true of apartments.
There is an increasing trend to build,
particularly large low-rental housing,
outside the city limits. During 1886,
746 apartment units were started in
the metropolitan area beyond the city
lines and to date this year GA have
been started in the counties, Mr.. Lusk
announced.
This is having material effect upon
the finances Of Washington and is
something which every one should
understand Until two or three years
ago all apartment construction was in
til. city and all of the increased tax
value that such construction produced
provided revenue for the District gov
eminent. Today a considerable pro-
portion of the apartment construction
and more than half Of the home con-
etruction is going out of the city.
Thi means just so much lost reve-
nue. for the District government. The
loss in taxes to the District by reason
of this building trend away from the
city was at least 100000 in 1886 and
will be S150,000 in 1887. While the
owners and tenants of this outside
building will use Washington streets
and in many instances send their chill
dren to Washington schools tuition
free, they will not provide any tax
revenue for the District government,
Mr.. Lusk told the bankers.
Fears Too Rapid Building.
The speaker stated that since 1910
approximately 100000 in the city have
been provided with living quarters.
During this time the estimated popu-
lation increase is $4,000. The New
Deal produced large excess popula-
tion in need of housing. The extern
sive building program supplied housing
for this excess growth about four
months ago. Today construction is
more than providing for the normal
growth of the city and all that is
erected in addition to those needs
will pile up surplus.
This years rate of construction, if
continued will in time bring back the
troubles that followed the big 1921
1926 building boom. After issuing this
warning, Mr. Lusk concluded his
builders who are in the business only
temporarily and expect to get out as
soon as the cream is taken off"
Many will find the cream is gone by
the time the buildings are finished,
he said, adding:
Unbelievable as it may seem, during
the last 80 months, over 1000 indi-
Siduals and corporations have been
building houses and apartments in the
city of Washington alone; there are
hundreds more in the outlying areas.
Buyers should look carefully not only
at the house they buy but inquire
about its builder, his experience and
integrity"
Bankers Hear Many Reports.
The bankers met late yesterday in
the board room of the American
Security & Trust Co. At the request
of President Thomas j. Groom, Robert
". Fleming gave a most interesting
summary of the high lights of the A.
B. A. convention in Boston.
Francis G. Addison, chairman Of the
Law and Legislation Committee, ma,
a report; Lanier P. McLachlen, chair
man of the Taxation Committee, also
made statement and Frederick P.
H. Siddons spoke of the plans of the
new speakers unit.
President Groom presented the GUS
tomary badges to Chairman Irving
Zirpel Of the fiduciaries section; Chair
man Helen R. Sharpe of the safe
deposit section, and Chairman Harry
L. Downey of the auditors section.
I. I. Chorpening chief national
bank examiner in the Fifth District,
just transferred to New York, was
accorded high praise for his work here
in a resolution presented by S. Prescott
Galley and adopted by the associa-
ton.
Crowds in Broker Offices.
Brokerage houses in Washington's
financial district were jammed to the
doors today long before the 10 o'clock
opening of the New York Exchange.
The jam reminded one strongly of
1929 The market opened very much
lower than Mondays close.
The monthly meeting of the safe
deposit section of the District Bank
ers' Association will take place to-
morrow evening in the board room of
the American Security e. Trust Co.
Albert E. Fisher, Riggs National Bank,
will speak on Modern Precautions for
Safe Deposit Departments and Lax
Methods to Be Corrected"
Prices were lower on the Washington
Stock Exchange today. Capital Tran
sit opened at ga and closed at 9la.
Ten shares of Washington Railway
& Electric common stock sold at S625
share, off 100 points from the last
sale several weeks ago.
Lincoln Service Corp. common came
out at 20 and 10 shares of the new
Washington Gas Light preferred stock