Hammond Times, Volume 7, Number 44, Hammond, Lake County, 8 August 1912 — Page 8

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THE TIMES. -hursday, Aug. 8, 1912.

GARY COIHM CLUB HAKES BUILDING REPORT

The followlng-jreport was made laet night by the . house-building committee of the Gary Commercial club, appointed some time ago by President II. S. Norton. "At the regular monthly meeting of the Gary Commercial club on June 5, 1912.' a motion pievailed that the chair appoint a committee of five, whose duty It would be to present to the club some practical method that would produce results desired, via: procure more homes for Gary. The above mdtion was the result of an interesting session at which ways and means were discussed for the building up of our city at a more rapid rate than the present, and bringing to our merchants, our business men, our professional men and our bankers profits they were entitled to and to be derived from the enormous amounts of money that is being carried away by some 2,500 men, now employed in Gary but who cannot live here owing to the small number of available' homes or apartments for rent. "It Is perhaps needless to remind the members of the Commercial club that Gary is but six years old and has a population of some 30,000 people. Our development has been wonderful on both sides of the river. The development north of the river in the building of factories has not been kept pace with by the home-building development south of the river. Homf Onlldtnc Hard Problems. "A Trillion dollars manufacturing corporation can lay its plans and carry them out to much greater advantage than the work of a great many individual investors. The corporation, realixlng the need of homes in Gary as built through its subsidiary companies in the neighborhood of 1,000 homes. The first homes that were built were built by the Gary Land company, followed by the ., J. & E. railroad. Last year and this year the development of the Ambridge district by the American Bridge company and the building of the concrete houses by the Tin Plate company has gone forward. This has been but a drop in the bucket to the demand. But it has been an enormous help to Gary from a manufacturing, not a home-building corporation. "The development of home-building In Gary has been a hard problem. In the early days the investor would take mortgages at a high rate of interest and a long commission, but only 35 or 40 per cent of values. Today that condition has been relieved and loans may be procured on practically any legitimate type of building up to around 45 per cent of the value with a comparative low rate of commission. Bankers' Raten Mot Hluh. "The banker of Gary has often been, criticized on the commissions charged for procuring loans. For tho banking fraternity I wish to say in a personal way that the general public does not appreciate the difficulty the banker has labored under. Many Is the loan the Gary banker has taken without one cent of profit to himself, and I do not hesitate to say that I do not believe the Gary banker has averaged much more than one, probably one and one-half per cent, commission on the loams he has placed. I have lalwaya felt tnat the excellent revenue to b procured from Gary property was such that the matter of commission, if in reason, should be a secondary consideration to the borrower, and 1 can assure you that it is the banker's desire to lessen, rather than raise, the commission rate and thus aid in the development of our city. Plana Develop, However. 'This committee was appointed not to settle on the location of any buildings to be built, nor on the type, but as we understand it, to devise ways and means of putlng up homes or apartments for rent. The homebuilding proposition on a partial payment basts has developed wonderfully in the last year and practically all home-building operations where the builder has 30 per cent of the value of the property can now be financed in a satisfactory and economical manncrl "The proposition of building homes for rent does not seem to be coming through in a satisfactory manner. The problem of devising ways and means for building such properties immediately and in appreciable number is a serious one. SuKKrata a Building; ( nmpnaj. "The committee after deliberating the problem desires to report the following plan: We do not claim it perfect, but we believe it practical. The working out of the plan will take away its rough edges and we believe lead us to the desired result. We would suggest the incorporation of a building company with a capital, we will say of $100,000, and a large board of representative business men to

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LAKE COUNTY PRINTING & PUBLISHING

COMPANY

SUMMARY OF THE GARY HOUSE BUILDING- REPORT. Sot only In Gary where l.OOO houses are needed today la this report of vital Interest, hut it contains plana that may be followed In Hammond, Whiting, l'.nnt Chicago, I.apor and Indiana Harbor. Summartr.ru the report l a follows! 1. Suggrata the organization of a f 100,000 stock, company; Ktork to be nold to any one on the cash, weekly or monthly payment plan. 2. The I'ompany to expend, at the outset, f-iOO.OOO on lots and the building of che.ip houses. 3. One-half of this num. 91O0,OOO, to he raised by the flotation of fl per cent first mortgage bonds. These will sell readily in any part of the country. 4. Italic $100,000 additional by the Issuance of second ' mortgage bonds. Guaranty to be evidenced by the endorsement of l.OOO worth each by lOO responsible business men. Certification and endorsement as to validity of Issue and responsibility of the guarantors to be made by the Gary Clearing House association. These bonds, thus guaranteed, will aell readily at par In any financial center. B. Employment of the 9100,000 stock subscriptions fund aa an additional ... guarantee for the second mortgage bonds. thus protecting the guarantors from possible loss and eventually relieving them of their liability. 6. The stock subscription's also

to be Invested the same aa the bond'l proceeds. Expected that profits of company will run 8 to lO per cent. 7. Thus 300,00 is secured for home building purposes ttOO.OOO from first mortgage bonds, 100,000 from second mortgage bfuds. and 100,000 from stock subscriptions. 8. Details! These bonds to bear Interest at 6 per cent, probably to be of ten years tenure with possible earlier redemption clauses. 9. Three hundred thousand dollars will build 2oO homes. Rentals probably wilt bring 915 monthly, or a gross Income of $38,000 annually. However, houses will be sold on the easy payment plan and the proceeds re-Invested, where there la a demand for such sales. v 10. Details as to managementthere will be a representative board of directors; -principal and Interest funds, etc.. will be worked out later. 11. It Is urged that n building and loan association be established. A meeting of the Commercial club probably will be held next week to take further action. manage its afTairs. That this compa- ' ny start Immediately the fculldlng of I properties representing the valuation of 1200,000. These properties as completed should be mortgaged or bonded to as high a percentage as possible, we will say 45 to 50 per cent. This , would care in round figures for onehalf of thje total debt incurred, or $100,000, and would leave the other half, or around $100,000, to be raised in cash. We would suggest the rais ing of this additional fund by the placing of a second mortgage bond issue on the property. The sale of the first moragages would be a comparatively easy proposition. The sale of the second mortgages as second mortgages and for the remaining ,50 per cent of the value .would be a hard problem. Guaranty nf Bonds. ... "We would overcome this difficulty, however, by asking 100 or 200 representative men of Gary, who have the good of Gary at heart, to individually guarantee these second mortgages. In other words, if there are 100 men here tonight whose Individual net worth is $1,000 each or over, we would ask them to guarantee this paper to the extent of $1,000 each. This would give us a negotiable bond. The Commercial club could stand behind this paper guaranteeing to Investors that the -representations made by the company selling the paper were true; in fact, giving a statement of the values of the property, their location, etc. The Clearing House association could also aid in the work by certifying as to the worth of the guarantors. I Have a Stock Company. L "Now, as to protecting of the guarjantors from possible loss and making I the paper even more saleable and I e ventually relieving the guarantors of i their liability, we will take up the

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IF YOU WISEC TO BE IN TO THE

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Dining with cows In Pari. There is a new fad in gay old Paree, which in due course will probably be adopted by the ultra-fashionable of Newport's exclusive set. it Is to dine with the cows.nd the Paris women declare that it is an aid to health. In the accompanying photograph are seen Madge Lessing and Marguerite Sylva. two prominent American singers, in the stable of the Restaurant Prix Catelan, in the Rofs de Boulogne, Paris.

question of the $100,000 company. We would suggest, that this company be incorporated, that books for subscription to its stock be opened and that the opportunity be given to any citizen of Gary, or elsewhere, male or female, white or black, Jew or Gentile. American or foreign, to subscribe for this stock, paying cash for their subscriptions should they desire, or paying at the rate of SO cents or $1 a week or more as they desire. But let the company sell stock up to the extent of $100,000 and as the money is received in payment of the stock of this company let it stand behind the second mortgage bonds already Issued until the point has been reached where there is sufficient equity. to satisfy the Duyers oi tne second mortgage notes, ana reueve me iocai guarantors oi

wieir guarantee on me secona mori- licenses gage notes. The working out of this j Joanttla( Jacob E. Barbauld, plan gives the small wage earner the John Jack8on John Poiock Nick stu. opportunity to become a landlord on a'n ovlch John Sllkora, Frank Lemanweekly or monthly payment basis and , Bkl John Pre8ton JohR Bonlck Joe procure greater returns on his money D

than could be procured by letting It stay with the banks at 3 per cent interest, or even investing it himself ln mortgage securities. Good Profits In Sight. "Time alone can tell what the profIts will be to this building company, but I, would hazard the opinion that they would probably run from 8 to 10 per cent. The Idea of the company as outlined above must not be cctafused with a building and loan proposition. A building and loan association is not allowed to own real estate other than that taken over to secure the payment of debts previously Incurred. The committee would further strongly suggest that a live ' and energetic building and loan association be started by the representative business men of Gary. A building and loan association can handle loans more cheaply and more advantageously, than a bank can. It can handle the small loans on a much more economical basis than a bank can handle them now, and loan up to a greater percentage on the value of the property. In the development of the building plan as previously out lined would, of course, come to the point of sales of the properties erected. These properties of course we would expect to sell at a profit AVhen Bold on a small payment the balance due on the property could be turned from the building company and handled by the building and loan association, thus giving the, building company an opportunity te re-invest its funds invnew properties. ' The plan s outlined for the immediate building of an appreciable number of homes la Suggested on the unit basis, vta: on the stock company of HOO.000 capital. ' 0TT,ze Second Company. miould it be the success we believe, a second unit company of . $100,000 could be started, or the capital stock of the original company increased by $100,000. As before stated, we do not clam perfection as yet for- our plan. The actual working out of the problem will wear away the rough edges, but we do believe thatf our plan is feasible, and. we strongly recommend that Immediate steps be taken looking toward the putting into operation of the plan. 1 "Respectfully submitted, "S. J., WATSON. Chairman. "C. E. WIRT. . "H. A. VOSSLER. "C D. DAVIDSON. "HARRY HALL." FIRE IN STREET CAR. About five o'clock yesterday afternoon an alarm of fire was turned In to the Indiana Harbor fire station from Euclid avenue and 141st street. Tha blaze proved, to- be located In. an Indi-

ana Harbor car whose transformed had son of Garlan! Morrow, a prominent burned out,, a short circut had been ! Politician, and Frank Jackson, 2 years established and the blaze was the con- hi" senior- were suffocated in a co-n sequence. .. Dln at an elevator owned by Morrow The fire was extinguished before the late yeBterday ""'I the bodies were not department arrived, without damage of recovered for an hour after the victims any consequence, but the car was put disappcared benath 1.000 bushels of out of commission temporarily, limp- corntng back to the Harbor about an hour' Tho boys were playing in the bin later, after having held up traffic in when a ;hute leading from the bottom the meantime on the Indiana Harbor-j waB opened to load the corn ln a car East Chicago branch of the South Shore j and the bovB were drawn down to the lines. i bottom "of .the ' pit.' A report had come back to the Har-i The Jackson boy's brother, who witbor while the' car was disabled that ' neB8ed th tragedy, summoned help, traffic would not be resumed untiibut "both were dead long-before men morning and many started to -walk to:WorIclnK ln two shifts could reach the

East Chicago. However, by six o'clock the road was cleared and the -cars began to run again as close to schedule as they have been operating since the traffic was rnterrupted by the Calumet Kennedy sewer construction. AKJB VOC READING THE) TIMS It

STYLE IN GAY OLD PAREE JUST REPAIR STABLE AND DINE WITH BRINDLE AND BETTY

WRITS OF MANDATE

ISSUED L Writes of mandate were Issued by ' Judge Lawrence Becker 'of the Lake superior court in the following cases ln whicn Gary 8alo0n keepers desired man. Benjamin C. Shaffer, Anton S. Chemla and Andrew Kollus. The orders were similar to those which were issued by Judge Johannes Kopelke in the cases which he tried several months ago. They direct the city officials of Gary to Issue licenses. COUNTY ROADS TO GET PRESERVATIVES fConttnuad from Pag 1.) bridge lies in Munster territory, and will be sprinkled by that corporation. The portion to be sprinkled by the county was rebuilt only thjs fall. l"se OH to Avoid Repairs. The other road to be sprinkled by the county is known as the Saxony road and it will be sprinkled from the Erie railroad east to Kennedy avenue, or what Is known as the Hessville Highland road. This road will be completed ln the near future That some road preservative must be adopted is evidenced by the fact that portions of the Columbia avenue ravement have been rebuilt four times within the past fourteen years. At first the county commissioners were at sea how they could use county road funds for sprinkling, but it was finally decided that road oil should be considered as repair material, which is permissible under the law. Putting this construction on the law, permits the county commissioners to proceed without delay, as no bonds need be floated. Nor Is It necessary for the board to advertise for bids for the sprinkling. The'procedure la the same as ln road repairs, the money is taken from the general fund. Under the law, however, the county cannot pay for the sprinkling within city limits. One oil application will be made on the two county roads this fall. Two will be made next year, and after that, it is thought that one oil application will be sufficient. TWOJIOYS SUFFOCATE III CORN BIN Son of Prominent Wabash Politician Buried Under 1,000 Bushels Grain. Wabash, Ind., Aug. 8. Max Morrow, t bodies, HOB ART MAN IN yj AUTO MIXUP E. E. Carlson, a motorcyclist hailing from Hobart, was slightly injured last'

I night about eight o'clock. Carlson was

riaing in the Aetna-Fifth avenue road when a passing auto crashed into his machine. The name of the occupants of the machine were not obtained by the police, but the number was and this Is being looked up today. Police records show machine "5-17-19 Ind." as the one figuring in the collision. TEXAS TO GARY A GARY, TOO The organization of the $10,00,000 southwestern steel corporation has been effected by New Tork, St. Louis and Houston capitalists for the purpose of exploiting Texas ore proper1 tIes and erectlr8 a teel works and uih.hl lurnaces adjacent to tne mineral fields. In connection with the building of the steel works 4,000 acres of land has been purchased for the site of a second Gary, to be known as "Steel City." This new model town will be on the Houston ship canal. John H. Klrby, a Houston financier, is one of the leading men in the new steel corporation. GETTING READY FOR THE COUNTY FAIR The Gary and Southern interurban will be a big factor this year ln boosting the attendance at the annual Lake County fair. Th management of the fair association is keeping up with the demands for modern features ln amusement, and has already engaged some attractions which wo,,id be headliners anywhere. The biggest feature of the fair, of course, will be the displays of farm products, including the live stock. The fair will open on August 14th, and run for four days and three nights. The racing will begin on the second day. The K. O. T. M. band will furnish the music during the season. TIMES WANT ADS SERVICE TO YOU! ARB FDR Please

(H, Doctor, the baby has had another those attacks, and I'm frightened half

death What can I do? Please come at once; won't you, Doctor? When the family physician gets a telephone message from a mother he tells her what to do and gets to the house as soon as possible. The Bell Telephone saves the precious minutes which often mean life orxdeath to the sufferer.

FOR STATE CONVENTION

Oct. 3 and 4 Are Set as Dates for State Commermercial Club Federation Meet, Which Was Secured by Indiana Harbor. There was a meeting of the Commercial club of Indiana Harbor and East Chicago last night at which it was decided to hold the state convention of federated commercial clubs Oct. 3 and 4. A finance committee of three consisting of A. O. Lundquist, A. G. Schlleker and V. C. Dickey was appointed to raise funds for he event, it being decided that about $1,200 will be required to cover the expenses. A feature of the convention will be a banquet to be held either on the evening of Oct. 1 or 4. The club will erect a black board In the club rooms for the purpose of displaying statistics regarding the industrial Importance of the Twin cities, the payrolls of so ne of the larger plants, number of men employed etc. The secretary was instructed to compile the data to be placed upon the board. A letter was read from W. J. Wood, chcirman of the state railroad commission concerning the improvement of the Pennsylvania depot at Indiana Harbor. With the communication came a letter from W. C. Serlven of the railroad company which had been sent to W. J. Wood in which the former state that the railroad company was willing to render sanitary the present depot, but that the city council rejected its proposal to build an addition to the structure. Mr. Wood suggested that if the club saw fit it might Intercede with the council to allow the building of the addition, Secretary Rutledge was instructed to write Mr. Wood explaining the entire situation, setting forth the true character of the present depot which I.r. Serlven has represented ' as nearly new, the fact that the club could not conslstitly ask the city to grant a permit to the railroad to erect a frame addition to the building inasmuch as the depot is located within the fire limits, and the urgent need for an entire new. building, rather than the makeshift which constitute. A communication from the carpenter's union was read asking the club to provide a float for the labor day demonstration. It being the objet of the unions to keep the men at home on that day. A committee of three was appointed to arrange for a float as requested. The chairmen of the eight standing committees of the club were appointed a committee to select the five most Important achievements of the organization and report to the Chamber of Commerce of the United States for the use of the organ of that organisation entitled "The Nation's Business." The purpose of the United States1 Come at

Every Bell Telephone is a Long Distance Station CHICAGO TELEPHONE COMPANY

Chamber of Commerce is to publish this paper setting forth what is being accomplished by the lommerclal clubs of the country of Interest to the country at large. The committee appointed by the Commercial club of Indiana " Harbor and East Chicago Is also to report on what the local organization has done or started that may concern the nation, as for example the preaent project of the Indiana Harbor to the gulf waterway." A letter from President E. N. Hager of the Universal Portland Cement company plant at Bufrtngton, to C. A. We9tbti?S' cna,rman ' the Industrial committee, was read. The letter deals with the "dust nuisance" and sets forth that while more dust is escaping from the plant than heretofore, the plant has been doubled ln panarltv di tv.n v.

- J t uiiia uiai L 11 0 proportionate inrreaee of escaping cement is by no means as great as the Increased output which is now 8,000,000,000 barrels as against a previous of 4,000,000 barrels yearly. The writer stated that the machinery had been Introduced that saved from forty to sixty per cent of the waste, and that the company was at work now experimenting with still more Improved machinery which if it proved oetier man that now used, would be introduced at Buffington plant. Th salvage, Mr. Hager stated, meant more to his company than it could possiblymean to the community here and that it naturally followed that the latter would do all in its power to minimize) the waste of cement. J. G. Allen informed the club that Mr. Schroeder of the Buffington plant had told him that if the members of the club would come to the plant some day and take luncheon there, he would endeavor to show them that his company was up against ln Its efttot'ts to minimize the dust nuisance, and how the escaping cement means thousands of dollars loss yearly to the' concern. W. C. Dickey, chairman of the Indiana Harbor to the gulf deep- water ways committee reported. He suggested ln his report that the club wait until next year to hold the convention planned ln -connection with this project on account of this year being election year. He reccommended that the. club get busy ln drafting bills for presentation to the state legislature) bearing on the project and that next year, armed with" sunnnrt nrnviii k the state, it go to work with renewed Vigor preparing for the convention. C. J. Mesta. general manager of tha Hubbard Steel Foundry was elected to membership. t . SUICIDES BECAUSE OF QUARREi; CContlnued from Page tran screaming from the room, not knowing but what the man might turn the weapon upon them, but scarcely had they cleared the threshold before) a shot rang out. The wife and daughter returned immediately to find BartQ breathing his last uponthe bed. Dr. Herskovltz who has an office at Chicago and Melville avenues was summoned and arrived in a few minutes after the tragedy, but Barto was past all human aid. Mrs. Barto had in the mean time apn prised the neighbors who came flocking into the house and excltment ran high for a time. The Bartos are Hungarians and the woman can speak very little English so It was impossible to ascertain the cause of the quarrel. Tha couple have two children, Mary the daughter who was present at the time of thjt trouble, and Steve,' a son, aged 17, tho Is employed at Gibson. -Barto was a laborer. Dr. Herskovltx notified the coroner and an Inquest will be held today. Once! of to