The following text may have been generated by Optical Character Recognition, with varying degrees of accuracy. Reader beware!

18 WINNETKA WEEKLY TALK, SATURDAY, DECEMBER 27, 1924 NEWS OF INTEREST IN REAL ESTATE AND BUILDING FIELDS PADDED RENTS GIVEN A BLOW Realty Association Would Stop Practice Holding that "padded" leases, in which a larger consideration is named as ren- tal than is actually agreed upon between the owner and tenant ,are becoming an increasing element of danger in the fin- ancing of construction, the Property Management Division of the National Association of Real Estate boards has taken a stand unequivocally condemning all such lease arrangements.» The action was taken at a meeting of the executive committee of the division just concluded at headquarters of the as= sociation, Chicago. posed to the making of leases with cgn- cession, free rent or rebates unless such' are clearly shown on the face of the] lease," the resolution states. Space a Commodity To insure sound financing of apart- ment buildings and office buildings, a careful analysis of the rental capacity and maintenance costs of every proposed building by an expert in property man- agement to determine its earning pow- er is as essential as an examination of the land title by a competent lawyer, or the drawing of its plans by .an architect, or the examination of its accounting by an auditor, division officials point out. Whether the building will pay interest on the loan is bound to depend on there being a healthy relation between its rent rolls and such matters as construction costs, taxation, and extent of vacancy. Space is a commodity. The experienced property manager knows what it costs to sell a given type of space. Analysis of office and apartment buildings to determine their net income value present or prospective will be an important topic to come before the di- vision at its meeting in connection with the annual meeting of the National As- sociation of Real Estate boards in Dal- las, Texas, January 13-16, 1925. The division meeting, which will be an in- formal round table on the problems of property management, will be held on the opening day of the session, together with simultaneous round table meetings of the divisions of the Association special- izing in industrial property, farm lands, home building and subdividing, real es- tate finance, general real estate broker- age, and real estate board organization. National surveys will be undertaken by the National Assaciation during the year through the Property Management Division to determine the amount of residential vacancy normal to American cities, the prices actually being paid for store rentals and office space in cities of more than 250,000 population and in cities under that population and the de- tail of cost of property management. The Association also will study the rise or fall in rents, the types of apartments most in demand, the effect of overbuild- ing on rentals, and the tendencies in types of apartment buildings now being erected. NEWSPAPER ADVERTISING IS EDUCATIONAL MEDIUM The increasing value of newspaper ad- vertising as an educational medium and the necessity of its use by public utility companies, was recently discussed by the Connecticut Public Utilities commission, when the mayor of Stamford, Conn. protested to the commission that adver- tising was not a legitimate expense of the electric and gas utility serving that city. The commission, in its ruling, said: "The experience and observation of this commission has been that frequent- ly complaints by patrons in matters re- lating to utilities are due to the omis- sion of the utility to provide intelligent information. "This commission has always advo- cated a proper amount of publicity on the part of utility companies in order that -their patrons may be informed in a general way as to operating and fin- ancial conditions as affecting the rate payers. "A fair and frank statement by a util- ity on controversial questions will assist in maintaining a relationship of good will and co-operation between the com- pany and its patrons." The commission found that there was no grounds for intervention and dismiss- ed the petition of the mayor. "This division is op-4 LEASEHOLD IS PROPERTY SAYS APPEALS BOARD A leasehold is property, and its cost and increase in value are properly capi- tal, according to a decision just made by the Board of Tax Appeals in rela- tion to the Federal income tax. The board, in regard to Decision No. 72, held: 1. That a leasehold is property and its cost and increase in value prior to March 1, 1913 are properly capital. The owner of the leasehold is entitled to take deduction for exhaustion of such leasehold in the same manner as he would with any other exhaustible prop- erty. 2. That where the March 1, 1913 value of a leasehold is determined, and that value is used as the basis for com- puting gain on the sale of a lease, the taxpayer is entitled to take deductions for exhaustion on the same basis. | This Realty Board Pays Up Dues for Year 1925 For the third successive year the Louisville, Ky., Real Estate board claims the honor of being the first member board of the National Association of Real Estate boards to pay its annual national dues. A check for $1,000 representing dues for 200 active members for the year 1925, has just been received at national headquarters from the Louisville board. The board takes the occasion to ex- tend to real estate boards throughout the national association the wish of the board to welcomes them in the new board home, recently purpchased and now being remodeled. The board ex- pects to move into the new building within the year. In making the purchase, at a cost of $50,000, members of the board gave $10,- 000 outright to raise cash for the first payment. The board has made two increases in its initiation fee during the year, but the increases, making the fee now $250, have not been found to interfere with an addition of 19% to the membership during the year. Nor has it made the board less disposed to scrutinize appli- cants for membership as to tehir fitness, Maurice Dunn, executive secretary, re- ports. Suspend Realty Dealer For Untrue Statements Recent action reported to the Nation- al Association of Real Estate boards by the Cedar Rapids, Iowa, Real Estate board illustrates the meaning of real es- tate board dicipline. The Cedar Rapids board has just suspended a member in- definitely for making untrue statements to a client, concealing from her the fact that the property he had shown her was next to a property occupied by a colored family. A second board member who in con- versation acquiesced to the action of the first dealer was reprimanded by the board of governors of the real estate board. Make Fare and a Half Rate to Realty Parley A fare of one and one-half for the round trip has been granted all real es- tate people attending the annual meet- ing of the National Association of Real 'state boards in Dallas, Texas, January 13-16. The rates are given on the cer- tificate plan. Tickets at the regular one-way fare for the going journey must be pur- chased on January 9-15 inclusive. We Have Your 1925 Automobile License Application Blanks We invite you to avail yourself of our complete [.icense and Notary Service Just phone for you blank, and we will send it to you and help you in whatever way we can--no obligation on your part whatsoever. CLORE, BUDINGER SMITH Ph. Wil 1750 1177 Wilmette Av. WILMETTE, ILL. "We are here to serve you" 10 Carlton Annex E. E. STULTS REALTY CO. WISHES YOU A MERRY CHRISTMAS AND A HAPPY NEW YEAR Let us give you "Service you will like" in 1925 Winnetka 1800 ILLINOIS ROADS NOW IN SHAPE Main traveled highways in the north- west which last week were impassable, have been cleared of snow in Minnesota, Wisconsin and Iowa, according to the touring bureau of the Chicago Motor club. Illinois roads are clear, but still slip- pery. The main highways are not ma- terially affected by weather conditions. Scattered snows in northern part of state and rain in southern caused roads to freeze rough. Main highways are open and not materially affected by weather conditions. Illinois highway 2 is scheduled to be completely open January 1, between Sub- lette and Mendota ; and between El Paso and Bloomington. Illinois highway 3, detour between Hillsdale and Carbon Bluff scheduled to be eliminated January 1. Illinois highway 7, detour between Marseilles and Ottawa eliminated and road open. Illinois highway 18, Mendota and Princeton open January 1, 1925. road between scheduled to E. H. Calvert, who appears in Pola Negri's latest starring picture of Para- mount, "East of Suez" was once a director for Essanay. He gave Gloria Swanson, Agnes Ayres and Rod La Rocque their first work before the motion picture camera. Plant Now Trees--Shrubs--Perennials This is the right time to plant and buy trees, shrubs and perennials. Prices are lower than in the spring. John Ostrowsky 1487 Asbury Avenue Hubbard Woods Phone Winnetka 546-J now oe Stults Realty Manager Succumbs to Poisoning Funeral services for G. Wesley Betts, manager of the Stults Realty company offices on Central street, Evanston, for three years past, were held from Cove- nant church, Evanston, Monday, Decem- ber 22, The Rev. Almer M. Pennewell con- ducted the service, and interment was at Rose Hill cemetery. A trio composed of Mrs. Keith E. Kellenberger, Mrs. C. C. Wells and Mrs. William I. McKay, sang. Mr. Betts was well known in north shore real estate circles and among the younger social set in this vicinity. His death was caused by blood poisoning. Chicagoan Buys Valuable Corner Tract in Wilmette Axel ILonnquist, real estate operator and Chicago and Florida subdivider, has bought the northwest corner of Michigan and Elmwood, Wilmette, 100x150, for a reported $24,000, and intends erecting an expensive residence. George C. Kroll, president of Heinsen & Kroll, negotiated the deal. ; GET REAL ESTATE PINS Gold enameled coat pins bearing the emblem of the National Association of Real Estate boards have just been pre- sented to each member of the Red Bank, New Jersey, Real Estate board by the retiring president, Edward S. Allaire. Evanston land is of $100.00-$500.00- $1000.00 Security at 61:% provements are well above the average. Both are security for our Gold Bonds and Mortages. SMARLY I LEE University 285--Rogers Park 0272 the best. Our im- 1580 SHERMAN AVE. Just a Chat at Twilight ov ony evening after 8:30, long distance tele- | phone rates (for "station-to-station" calls) are about 50 per cent lower. At midnight a still further rec ction becomes effective and until | One Policy - * Minimum reduced rate is 25 cents O meet the de- mand fornew tele- phones more plant must be built--at costs greater than the cost of the average of our present plant. To do this we must obtain capital and to attract this we must pay satis- factory returns. This | we cannot do with- out adequate rates. 4:30 A.M. night calls are com- pleted ataboutone-fourththeday "station-to-station" ILLINOIS BELL TELEPHONE COMPANY BELL SYSTEM One System - This service makes it possible to call distant friends or relatives or your home if you are out of town, at a very small cost. Just give the long distance oper- | ator the number of the telephone wanted and say you will talk to anyone who answers. rates." Universal Service .T