Altoona Mirror from Altoona, Pennsylvania on November 8, 1929 · Page 10
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Altoona Mirror from Altoona, Pennsylvania · Page 10

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Altoona, Pennsylvania
Issue Date:
Friday, November 8, 1929
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Page 10
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•' ;VJ &f^;^^^ 10 NEW HOUSING IS SHOWING DECLINE Roger W. Babson Declares Unsatisfactory Mortgage Causes Decrease In Residential Building. i.Special to Altonnn. "Mirror.) BABSON PARK, Mass., Nov. 8. Statistics clearly indicate that building is on a downward trend. Kxr.p.pt. for * brief recovery fibrtut mid-year, 1K29 has witnessed an almost constant fall- Ing oft in building contracts awarded compared with 1928. The decline lie- came vetfy pronounced In September which was 25 per rent under a year ago and 10 per cent lower than August. Residential building has been lilt the hardest for two reasons. First, speculative construction Is mostly of «. residential character nnd particularly sensitive to 'high Interest rates and heavy carrying charges. .Second, there are plenty of new resklenr-es to supply the demand and in .tome crises (ilUes have definitely ov«r-biillt along tills line. This does not. menn that, n panic nee pssnrily will ensue In the building Industry. The growth of the population will always require building ut new homes. A temporary breathing spell, however, iippeiirx to hnvp r.nme.\ Moreover, history of building operations shows clearly that .hny lliir.tuate in volume with the trend of ^nturcsl rates. In the j>aHt ten years building has always responded to low rates and has continued in M«h volume Just as long as money was cany. Conversely, severe tightening in money, even though comparatively temporary, has always caused recession In building. Wo aro now faced with a. situation where mortgage money has become both high and scarce. Tho drastic liquidation in the stock market which we have seen recently will tend to ease credit to some extent. The drop In the rediscount rate indicates this. However, interest rates are will) lilgh In comparison with recent years. Particularly burdensome, to new building operations aro the bonuses demanded orf construction loans, running sometimes as high as 115 per cent. This practice has been going on for some time, but as long as property could be sold readily, Hpcculative build- firs were willing to pay ther*e chargcB in the hopo of puannlg them along to the buyer. Now, however, when tha building shortage has been fully mado up, property moves slower and tho heavy financing c'.iarges become unbearable. This results in foreclosure^ Hales by first and second mortgages ,on speculative property. There may Indeed be excellent opportunities uncovered within the next few months to buy In good residential properties at attractive prices because of forced .idling. AH one would naturally expect, the. second mortgages arc now even moro difficult to place und entail heavy discounts and high Interest rates. Developers of sub-divisions usually plan to put up second mortgages an collateral for fulidij with which to start new building. Now It is necessary to pay such high rales nnd to accept such great discounts on these mort-, gages that there is little incentive for 1 carrying on new developments. Discounts as high as -10 per cent on second mortgages nre common. Inasmuch as n. large part of our total building THK Akl'OONA MIRROR NOVEMBER. 8, W ! l'y : ^'^-^ ; :';,':\:f:ff^ is done for speculation It Is nnturft that we should now experience n worked decline in operations. The man who Is building a home I? In a preferred position today. B.-uikx which hesitate to loan for speculation nre willing to go far for the mnn who Is building his own home. This ns- flinnes, of course, that the man Cias a good reputation In the community. In fact, present conditions may he come more favorable than iini'a.vor able for such a builder. If n.man fs putting In n. fnirly good.equity he will find thn hiinlfs ready to cooperate with him. Also he obtains the benefit of morn favorable contract prices from milldrrs whn lire anxious to keep thr.tv orgnnlKatlonn intact, during the dull winter period. Nnlurally under such conditions building material prices are lower, and efflHeiH'y of labor Is greater. Hence, the nian building Tor a home may flnrl thiit. this is an opportune, rather than an Inopportune time to do .«o. The crash in the stock market may biive a definite effect on real estate. The public was in this stock market ns never before nnd the public has suffered more than tho professionals from the decline. Hence, some 'rils- trc-.Hs selling may come in the renlden- tliil real estate market ns n. result of stork market losses. There should bfl uncovered aomc very good bargains in desirable properties. Of course, In the long run tho severe lesson tatignt by tho ntoc:k market decline should be bon/jflclnl to building- and real estate. It will tend to ease money and people will begin to think of something, else besides buying stocks. Ultimately this money situation wilt change, rind lower rates once more prevail. This change may require nome time, but the economic history of interest rates is sure to repeat itself. Furthermore, scaling down in 'construction now should prove a salutary dnvolopment because Jt will give the demand for new building a. chance to en ten up with the stipply. Tnn fundamental growth of the country's popu- Intinn alone will take oftrn of. that; nlso well situated land Is steadily rising In value. There in only no mufli (Ir-Nlrable land and there will never be nny morp. However, this Js no time for ((peculation In building, real estate, nr anything else. The man who performs the real service today, nnd the on? wlio will reap ..-wards for such servlcp, in the man who uses his cash fo buy (food bond* or to build bis own home. By doing the farmer he will 7i<?lp to slnbfl/se tfifi neeDi-lly market, «.ml by ilolnR tho. latter he will aid In prvvimtlnK n morn drastic decline In tlio building industry. Ruslnr.-KH by tho Babflonnhart fa now 3 per cent above normal compared •\vHli 10 per cent above a, year ago. Cn;iyrl«ht, 102!), PubllshcrH Plndnelnl Bureau BELIEVE MABKET STRAIN RESPONSIBLE FOR DEATH NEW YORK, Nov. 8.—Tho strain that tremundous markets brought on brokerage office personnel In the past fortnight was believed responsible for the death of Mrs. Hulda. Browskl, who Ithar fel! or Jumped thirty-seven storlns to her death from the JHqultablo building. She was head of the bond department of the brokerage house of Sutro Brothers, and like other employes In :he financial district, had put In long lours Blnc'j the great wave of buying and selling started a, fortnight ago. Her body barely missed several persons as it hurtled Into crowded, narrow Cedar street. Every bone in her >ody was shattered. Mrs. Browflkl was 51 and had been n tho employ of Sutro Brothers thlrty- our years. She lived with her hus- band and lira. John NT. Schwab at 144 South Eleventh. street, Newark, N. J. At breakfast yesterday, Mrs. Brow- skt, tired and nervous, remarked! "W"!' '» wjti be nil over In a couple or day*." jfirn. Schwab thought she meant the. stock market would settle back to rtor- mal and her work would become less arduous. Members of the firm snld (hat as far as they know Mrs. Jirnvrakl hart not flittered In the market Collapse.. ERIE RAILROAD MUST PUT MINSSS TRAIN IN SERVICE HARRISBUHG; NOV. s.-Restora- tlon of Hnrvlee by the Erie railroad of the miners' train which it formerly operated between Jussup borough nnd Underwood breaker was ordered by ihe public service commission. Complaints against the abandoning of tha miners' train was filed by the grievance committee of Local No. 876 ilnd of District No. 3, United Mine Workers of America. On June 18 the commission dismissed a. petition by the respondent corrt- pany demanding the complaint be dls- misfted on the grounds that the commission had no Jurisdiction to compel hest.ora.tfon of the train service. • The respondent compn.ny -at the; hearings attempted to show that it was not acting as a, common carrier In the operation of the miners' trftln, because of a special contract with the, coal company. . • . ; The commission, however, determined th« Service, wag thai o£ a cbmmoft carrier. f \, . Complftinto showed that during, sum- mar months 860, and during winter months 450 miners, availed them selves of the train service. Jerusalem was entirely deserted for a period of 70 years. Keep Skin Clear If your skin is not fresh, smooth and .unblemished, here is an easy way to clear it: Bathe with Resmol Soap and warm -water. Spretxd on a little Resi : not Ointment, letting it remain over night if possible, then wash off Tyith Resinol Soap. Thousands testify to the QUICKNESS with which Resinbl acts. Use Resinol Soap daily for toilet and bath. So cleansing and refreshing, it tends to prevent skin blemishes. Note its tonic odor. Resinol Have a Cheerful Fireplace Wt have the: largest selection of Fireplace Fixtures slioWtt Between Pittsburgh and Philadelphia. See them displayed til th*y will look in yotir home. Dougherty Hardware Store 11th Ave, & llth St. Join the Cftrittmas Treasure Hunt $300 In CasH Prizes to Winners See what goes into the bean pot / BEAN HOLE BEANS HOSIERY FwU Fnihfrmcd At? Sitt >T99 $325 'TTWO • sav? DESIGNS" did say? Wefl, that's all we have room to show here but just drop in at the Golden Rule store and see all the others! We have everything from •irresistible little one- strap models to swagger Oxfords. You'll find faarinafr ing designs in Suede, Kidskin and Reptilian Calf with high or low heels. We've tried to assemble all the styles you like at a price you'll like—and we think you'll agree that we've sue* ceeded when you see these export models at Golden Rule for only $4.60! Gable's Downstairs Extraordinary Saturday Values for the Thriftyl Girls' Chinchilla Coat Sets $5.00 3 to 6 Sizes Navy blue chinchilla coat and malch- ing tarn at this Saturday price. Raglan sleeves. Warmly lined. 7 to 14 Sizes .95 Black Kldskln adopts the youthful round' toe. Cut-oat dcdcni and tppliquci .((in tbU HHHkl In Hack Sued*. Regularly tliese chinchilla coals an'd matching hats sell for $7.95. Lined throughout, BASEMENT' Girls'Woolen Dresses $4.95 Wool plaids and wool crepes in sizes 8 to 14. The newest shades. One and two-piece models. BASEMENT Tots' Suede Zipper Sets .95 $4 These sets consist of little 'jacket with zipper closing, leggings and helmet to match. Sizes 2 to 4. BASEMENT Elaborately Fur- Trimmed NEW FALL $39.50 and $49.50 Values , I Fall and Winter coats of fine . quality broadcloths and smart .sports tweeds. Smartly flared models, belted mpdels, wrap-around style with front flare and strictly tailored models. All are beautifully silk lined: Furred with fox, wolf, beaverette ^and caracul. Smart Fall shades. Sizes for misses, women and larger women. DOWNSTAIRS STORE— BASEMENT Specially Planned Sale DRESSES $7.77 Actual Values to $14.95 Dresses for street, sports, business or afternoon'wear. Of canton crepe, flat crepe, georgette and satin in the popular fall shades. Choice of two-piece styles, straightline models, others ^ith flares. Trims of tucks, pleats, novelty stitching and bows. Sizes 16 to DOWNSTAIRS STORE-BASEMENV Dainty Rayon Under things '-*! Dance sets, step-ins, panties, slips, gowns, chemise, and . bloomers of rayon either tailored or trimmed. Pastel shades. All sized. ; BASEMENT •' I Women's New Corsets Full-cut and 'well-made corsets and girdles in various styles. Fancy materials. ' • BASEMENT :. . Women's Washable 59c Single or double fabric gloves in slip-on and novelty cuff styles. Assorted sizes. BASEMENT Women's Bemberg Full-Fashioned All the new fall shades in these Full fashioned Bemberg hose. Sizes 8% to 10. An exceptional value for tomorrow. BASEMENT rOIBEN RlUWE 1302 Eleventh Avenue Big Values for Women! . Special—600 Pairs Women's SHOES $9-95 Samples and Slightest Rejection Models, Exceptional price concessions, from leading manufacturers of higher- priced shoes accounts for ihis unusually low price for tomorrow. Newest models in satin, suede, patent leather, black kid, brown kid, reptile oneclM. Mostly sixes 3 to 4V> in dip. urnim Imf nil BI'»J>= are represented Winter MILLINERY $ 2.77 Felt and velvet hats in the wanted seasonable shades. Styles in the group for misses and women. Large and email head sizes. New Handbags Pourh and underarm bags in \aii- /h 4 /\f\ ou» lu-ithers. Assorted colors. ?K I fill oiiaJ values for Saturday. *r * *\r\r DOWNSTAIRS STORE—BASEMENT Big Values for Men! Broadcloth SHIRTS 99c Irregulars $1.79 Grade Collar-attached and neckband styles-in white, colors and fancy patterns. You will find tliese shirts launder belter than any shirt you have ever bought at this low price. Replenish your supply of shirts at this low Saturday price. Sizes 14 lo .17. Boys' Coats ' $6,90 Leatherette coats, well-made und full-cut Sheep-lined and have womballone collar. All-around belt and four outside pockets. Sizes 8 to 18.. .Regularly $9.75. Boys' Shirts ;69c The newest patterns in these shirts and blouses. Shirts have collars attached. Blouses in sizes 6 to 14. Shirts sizes 12V& lo 14. Boys'Suits $5.95 Boys four-piece suits in gray and Ian mixtures. Coal, vest and two pairs of full-lined knickers. Sizes 7 to 15. Exceptional values at this low price. Men's Hose 38c Fine grade silk-and-rayon and all silk hose in fancy patterns. Regularly 79c a pair: Special for Saturday. All sixes. Men's and Boys' Sweaters :Novelty sweaters in ,-ariou» puttenis. Slip-on styli with V-neck. Sizes 30 lo 42. DOWNSTAIRS STORE—BASEMEN'!' 1 >«^*^N«v'V ! ^^vy\^«»<y/V

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