Indianapolis Times, Indianapolis, Marion County, 31 December 1950 — Page 27
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"$1 Billion Year
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i Real Estate . Section Four
New Year
in Business—
~ Shortages Loom In Many Fields
| | ~~ Conversion to War Production Reflected in 1951 Outlook
‘© By HAROLD H. HARTLEY, Times Business Editor
HERE'S HOW it looks from the starting line of 1951:
-PRICES—"Honor frozen” but still moving up. Nothing but the “solid freeze” will stop them.
WAGES—Under patriotic restraint, but still squirming under price pressure. Mandatory freeze on the way.
FOOD-—Plentiful except in some imports, such as spices.
Abundant basics, meat,
potatoes and grains.
Expect
vegetable oil products, soaps, frying fats and margar-
ines to move up briskly.
CLOTHING--Plentiful but price-restless. . and cotton textiles advancing now.
ing both.
HOUSING—Speculator-owners who want to sell but. are|
waiting for higher price higher. CARS—New models will dry
Government buy-
s, are driving prices slightly
up to trickle. Used cars will
pick up the trade, but probably under price ceilings.
TV-RADIO—Cutback will be
real and sudden, may develop
brisk gray market, along with cars.
APPLIANCES—Being caugh metal squeeze. Cutback
X Equals
t in the steel and non-ferrous will be deep, and fast.
s ” »
The mystery factor, hidden but evident, is controls. A few are here. Many more are to come.
They'll take a bite out of civilian employment, then put it back in
war work.
Restrictions on strategic materials already have hit a few payrolls, more will be affected in the next few weeks. There will be
union complaints. These will fade as war gears mesh. The fastest hiring plants in town both are beamed to war
roduction. They are the Allison y Naval oy Avioon) Controle mi and put their re-Was the last day in which real-
plant and the plant. Allison is advertising for skilled men throughout the Indiana area. And the Ordnance plant which has no advertising fund is asking present workers to bring more. Mallory’s is accepting big war orders, and expects bigger ones. And many steel working plants are taking war sub-contracts. The biggest plants which may be hurt by material controls are Western Electric and the RCA. Both use most of the war-con-trolled metals. That's my opinion, by no means official. The cobalt order on Friday to cut deep into radio and television, and telephone pro-
duction, unless someone finds a |practical. substitute. As yet, no {one has.
Controls may move into the
lstraining finger on vegetable ofl
products, cooking oils, fats and soaps. It is not likely controls will be needed on sugar. The government set the country’s allotment for next year at 8 million tons which was enough to take care of 1950, even with its Korean pantry-fill-ing (est. 500,000 tons). Present prices will not hold until they are government-sealed, as with new cars. The reason is that manufacturers say, and quite correctly, that they cannot control rising costs. These, they must pass to the consumer, or go broke.
The best estimators in town worked on it. The figuré they produced was amazing.
The town this year had a spendable income (take-home after taxes)
of close to $1 billion.
Payroll money flowed fast. And there was no glue on the dollars once they got into workers’ hands. They figured goods was the
thing to have, not cash. . As the dollar got cheaper, it was tossed around like hay at harvest. Wage earners made up their minds to get what they wanted while they could get it. When they ran out of money, they signed notes, bought for nothing or $1 down, until the Federal Reserve cracked the whip over credit, bruising mostly the used car business. Housing credit regulations did not actually hurt much. Lenders had always been conservative beyond the Federal Reserve rules.
, But housing did tighten up be-
cause builders quit taking longrange risks. They wanted to know where they stood. Most of them quit speculating. Turning most of $1 billion into merchandise gave the town a dizzy spin. And some of those riding the swift current of quick profits stopped picking up their
change at lunch. At last count, Sam Springer who, as head of the Indianapolis Employment Office, knows the payroll winds like a seasoned mariner, said 293,600 in Indiangpolis are working. Most of these have factory jobs. Only about 2500 work on farms. The average factory wage, taking in everybody on an hourly rate, is $65.51 a week, and the hours worked are 42.02. This should go much higher. Women are scarce for white collar help. Mr. Springer said, “I've got any number of jobs. for stenographers and bookkeeping at $225 with few takers.” Factories are holding back on the hiring of women for men’s machine jobs. But the word I get is that they will surely come to it, by March or before.
uke When the key turns in the door of the Super-Ba Indiana National Bank on Tuesday morning, it have become, by merger magic, approximately as large as
the next three banks in town.
Its assets will have boomed to somewhere around $375-or-$380 million. And its bulging capital structure will be in the $25 million
bracket. Facing turbulent. 1951 it is im-
portant to the robust industry of the town to have a bank which can handle quickly transactions involving multiple millions without flicking an eyelash. : The super-bank arises thro the merging of the assets of the
LULU RECO VR SE
Union Trust Co., which became official on the last business day of the year. " The merger, regarded as a “natural” among bankers, did three thin,
gs. : a) It gave the Indiana Na- ' (Continued on Page 29-Col. 7)
Wool weaves|
Homes To Cos
designed by Ralph C., Husiagh,
Stocks Retain Best Levels
Recovery Follows Profit-Taking Wave
By ELMER C. WALZER United Press Financial Editor
NEW YORK, Dec. 30—Stocks advanced this week in the traditional year-end rally and held around their best levels touched 2 20 years.
The recovery came after a day lof profit-taking on Tuesday. That izing sales could be made in the regular. way for tax purposes. {Profit-taking sales the remainder {of the week were made for cash
The Indianapolis Times ° ‘Slightly’ More In
Functional, economic. . . . That's the future of living for Hoosier home-makers. This three bedroom home was selected as runner- | up to the "Home of the Year," the 1951 Home Show centerpiece conceived by Ewing H. Miller of Terre Haute. This gem was
a Cornell University architectural student.
x a & Prenat SUR oR ES ¥ 3 % Ee
Bring nature right inside. . . . That's the theme of this dwelling, a three-bedroom house designed by Ralph Robert Knapp, University of Illinois architectural student. His idea took third spot
3
‘and the cash transactions dotted {the tape. * On Wednesday when the mar ket was relieved of profit-taking! prices ran up sharply in all departments. Railroads and other war issues featured. But the peace stocks were strong too, including the televisions. Airlines land utilities, tax-sheltered groups, ‘moved higher. List Levels Off A further gain on Thursday was followed by some leveling off in the main list on Friday. But when the leaders rested for a time, the outside public entered the market in greater numbers and took over the speculative groups and issues, The stocks selling from $1.25 to $6 a share turned very active and many rose to new highs. wi The market apparently ignored action of the Federal Reserve System in raising the reserve requirements of member banks. The street had anticipated that move for a long time and apparently it had ben discounted. Before the speculative demand picked up, the market benefited from strong investment demand. Many reinvested funds realized in recent sales of stocks for profits, Others put their dividend cash into the market. > Heavy Buyers Institutional buyers — investment trusts, trust funds, and pension funds—also were heavy buyers of stocks, especially after the dip in the Tuesday session. | Trading increased and sales crossed the 3 million share maik in the Thursday and Friday sessions. They averaged above 3 mil-
>
sessions of the week.
noted inthe rails, metals, oils,
lioh shares daily for the four full} Best gains for the week were!
(Continued on Page 28—Col. 1) Outlook in the Nation—
Year to Bring Vast Dislocations By J. A. LIVINGSTON THIS IS an apprehensive
_ New Year. In contrast with New Year, 1950, few persons look forward to '51 with pleasure. Last New Year the country was emerging from the mild
1
Holiday Week, Snowstorm
|short holiday week and a heavy $37.00 snowstorm-in the mid-west cur- Most medium to average-good
in Home Show design competition.
ge
L-shaped and No. 4. . .. That's the design and place this architectural dream garnered for Augusto Tono Martinez, University of Illinois student. His plan will be shown with other winning competitors at the Indianapolis Home Show, Inc., open house next Saturday and Sunday from 10 a. m. to 6 p. m. at 1456 N, Delaware St.
3
b [3 ge i WEA
Hilltop manor. . . . This design by John Jelliffe of Lennox & Matthews, Indianapolis architects, was awarded honorable mention in the Home Show competition. It's also a three-bedroom plan by the DePauw University graduate. :
e e
New Year Cinch to Pinch Apprehensive U. S.
a pledge to keep wages on a par | just as anxious as ever to pro-
People and Business
with prices. tect the purchasing power of sz » = agricultural areas. If the prices Expect Curbs WILLIAM GREEN, of the | farmers pay go up, then’ they
terials. We can't have guns and butter too. We've got to cut down output of automobiles, refrigerators, washing machines, etc., to conserve steel, aluminum and manhours for tanks, airplanes, ammunition and artillery. Inevitably, production con- | trols will multiply, g 8 = NEXT TO rearmament, the government's big: job in 1951 will be to defend the dollar, In 1939, the dollar bought 100 cents of food, clothing, shelter and miscellaneous conveniences and supplies. dollar buys about 55
If the same rate of deteriora-
want farm prices, which means food prices, to go up too. Wash~ ington must find a way to break the link between wages and prices, of which more later. Something must give in an economy already operating at top-speed — utilizing fully its
American Federation of Labor, and Philip Murray, of the Congress of Industrial Organiza-
tions, have notified President Truman that they don’t want a drop in the workers’ standard of living.
Curb Livestock Receipts
CHICAGO, Dec. 30 (UP)—A steers were delivered for $36.00 to
3 week Comm colored tion were to continue for anBE as steers and yearlings 'go1q on Rg of-col Kinds! other 10 years, the dollar would were unevenly steady to $1 higher, to choice fed heifers| Pe worth only 33 cents; for an--
be
is R 1
higher, other kinds of low-| Medium to low -good heifers good ane below were barelyisold at $26.50 to $32.00, and most| The catch-phrase of 1936 and steady in late sesisons. ~~ lcommon to good beef cows| '37—"“profitless prosperity” — is Cows sold 25 to 50 cents higher, traded for $21.00 to $24.00. apt to be revived. There'll be ? 1 bulls were fully $1 higher, Canners and cutters sold largely business a plenty. The Army, i trong to $1 higher, at $17.50 to $21.00, and most me- Navy, and Air Force will want coyts, government com- , sold| woolens for uniforms, for wintrols and higher taxes. ter underclothing; eottons for lin Tat ifiderwear, eets, © Workers will be caught be- rl eri penting: living costs and | straining be to make raupressure to keep Si Ths es. Labor's tradi- But the excess profits tax,
© 11950
1281.17 in realty values, more than
Good steers traded for $32.50 to $36.00, and a Other 10 years, less than 20.
[their pal
Real Estate ihe 2129.
__
cesses “es
To Up Price
In the economy range,
with a little edge up. There'll be money around) to borrow in 1951, but gener- | ally loan activity will follow | the number of new home starts, | {going down, | | Mortgage rates will | steady with borrowers turning. . {more and more | {to the conven-
remain
position, {said. | With a {luck in jrials, Marion | County builders expect to match {1949's output of 5065 new units. /But this is more possible than probable. Brisk Market Seen However, building should be just good early next year, taper ing off toward fall. With demand
Mr. Stillerman
- |still up and wages the same way,
the market should be brisk with credit controls the biggest lemon, builders forecast. Fear that home buyers will be back-tracking into the scarcity premium era also was expressed last week by realtors. Paying a little extra to get the keys to comfort and security got {big play for three years before 1949. Houses were in heavy demand, low supply. That brought the premium. In the last 18 months, the premium went the way of all prices. It was absorbed in higher costs, became a “legitimate” part of financing shelter, : Now with the brakes on new. building, materials and some labor, shortage, the scarcity may return. Offsetting this unpopular repeat performance was the outlook for heavier taxes and more money into savings and bonds. Economists predict that extra cash in the pay envelope will be
New Building Dip
Pressure
Materials Lack Probably Will Force Cul; Scarcity May Resurrect ‘Premium’ Market
Times Real Estate Editor
If you're eyeing a $15,000 house next year, you'd better have an extra $1500 in the poke. The price will be up that much, at least. :
$10,000 and below, and the
suburban dream house, $25,000 and up, prices will firm
Quote, Unquote—
Realtors Hope
Prices “Hold
Discount Government Appraisal Ceilings
By KENNETH BUSH Indianapolis real estate men looked at 1951 home prices last week and said, “They're going up, slightly.” At best, as some put it, conclusions could be no more than guesses now. They're hop{ing that prices won't jump, not {even a little. They said they want {to shelter as many people as they can. But many took a stab last week at where prices are going, the possibilities of ceilings on home sales tags and the plight of home owning men who are destined for service. And here are the answers which experts in the real estate business volunteered: The possibility of a government ceiling on home prices is dim if not. impossible. And from the broker's viewpoint, it looked like men being called to service are going to hold tight to’ the little bungalow longer. They've looked into the past, at World War II veterans’ housing experiences. Many Factors Involved The picture is not clear, broker's said, There. are too many factors which can change the scene overnight such as a big war, a greater clamp down on’ materials, and wage and price freezes. ; Servicemen aren't going to fol-
last war some real estate men concluded. They're going to hold
(Continued on Page 20—Col 1)'(Continued on Page 20—Col. 3)
By ROBERT
ing in 1951.
Defense Program Expected To Cut 1951 Home Buying
Realty Expert Sees Record Production of New Dwellings Halved During Year
P. GERHOLZ
President, National Association of Real Estate Boards Gearing of our national economy to a stepped-up defense program will change the character of home production and home buy-
Our record production rate of about 1 million new dwellings in 11 be cut to half, or less than half, in 1951. : Withdrawal of home buying credit for families having only
Find Property
| | |
For 21.700 Here
Realtors Post Top Marks in 1950
There were more than 21,700 “new” home-owners in Marion County this year. : It marked one of the biggest helter efforts by realtors in the last decade, second only to 1946 when Johnny came mar home, temporarily. ! There were more new units on’ the market, almost 6100, and’ more existing dwellings up for ‘sale. There were more buyers during 1950, too. : But realtors pointed up the
home ownership. That's invest{ment in a commodity hedged lagainst the current inflationary high dollar tide. " Best Sales Year The mid-century year also marked the best sales year on Associated North Side Realtors’ ledgers. And transactions by 38 of the leading brokers more than mirrored activity by some 400
year. The allied brokers completed sales involving 2035 properties, new, used and undeveloped. On the books it blacked in $23,522.-
$11,500 per unit. This was almost double what the North Siders did in 1949. . Outgo ANSR Chairman Warren M. Atkinson said in 1949 the Associated realtors found ‘shelter. worth more than $13.2 million for 1122 families.
Average Jumps
18 more per week than in 1940.
most compelling motive pushing puilding
This year the brokers averaged of 39 completed sales weekly, almost |!
[small down payments is the /principal factor in this cutback which began to result in reduction in new home {starts tember. ample, 3 ber starts of new homes in
gust level.
Miami area. The first brake on 1950 home production in September took the month's total output 26,000 units below the August total. This was" the greatest August-to-September Secline on Tecord The siow-aowl} continue, an y Spi have us in low gear ay Limit oni Productions In addition to the force or Regulation X and other
ditional limitation on production of building materials from the
en here ‘this real estate salesm pete
E
the average.’ } Was a greater ‘property in
AE Rl ha VE 8 ESE I TA
ida Ce
low the example of men in the .
drastic,
credit curbs, there will be the ad-