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Show APARTMENT HOUSE OWNERS LAMENT AN INDUSTRY IN BIG TROUBLE not doing any new financing at all on new apartment units in Salt Lake," reports Robert Thompson, head of Western Savings commercial and industrial loan Were making some apartment loans, but weve become much more conservative than a year or so ago, we look very carefully at the location and the equity, says Raymond G Willie, of First Security Banks mortgage loan department. . . . Wilt o HOW DID IT START? CALLMORE OFTEN Haven't you said t! at after a Long Distance visit with your children? No need to say it HYING! again. Pick up your phone right now. Mountain States DEARDEtl VISUAL CLtUIC Telephone In fh Htllflrfcy Squcrt Shopping Confor 4419 Hollorfoy Blvrf. - South of 4tth So. sub-grou- ps Most of the leg work falls to the Economic of the University of Utah, with William M. Stewart and Gary Wells A formal re- and well might prevent port will be issued this fall a reoccurence of the present problem But for now, there's trouble HOW FAR The extent of the problem depends upon how badly hurt the particular builder has been To date no foreclosures have been reported on major buildings, but rumors in the industry have it that such a drastic move might be in the offing for four apartments Robert Thompson of Western Savings says that his del- company is not now experiencing any difficulty with ness Research department Continued on Page a well as Taxpayer bankers rejoiced Tuesday as excise taxes were reduced or eliminated from many articles and services The tax on safe deposit box rental was eliminated as a result of the new order and Zions FtrstNadon-a- l Bank announced that the full tax saving will be passed along to customers W. Bank president Roy Simmons said that 10, 000 bank customers will benefit from elimination of the tax. Mr. Simmons further stated that he expected the bank w ould be affected in other ways by repeal of the tax. ' We expect to see some Increase In automobile purchases, which in turn will accelerate our automobile loan volume. Those Individuals who are saving a pro determined percentage at their Income may find they have a larger -- amount available to save, too The tax on safe deposit boxes will go into effect officially July L 1965, but provisions of the law make it possible to rent boxes now without collecting the tax, Mr. Simmons said. OFF FOR EUROPE Miss Sorenson, daughter of mr. and Mrs George A. Sorensen, 7564 Michella Way, departed for an exciting summer in Europe, June 14. Miss Sorensen, a senior at Hillcrest High School next fall, will study and tour Europe with the Foreign Language League. She will study TGerman i Austria, and tour Vence, Salt-bur- g, Lynn r Ikit PM OmnMM rnuw) 44nt-Cumik-Tkt mmmpmpr f9r tkttr support. Ut-- f. i m ftr dsM n I r 4rt ment thank pmtrft btftrl i n4 th is Munich and Innsbuck Dairy Association To Pick Princess WP Great, New Power Formula m a why not do it right? Salt Lake county beauties will vie for the Salt Lake county Dairy Princess crown in competition to be held at the Taylorsville Stake center, 1399 West 4800 South, on Saturday, June 26. The Salt Lake county finals, sponsored by the American Dairy Association of Utah, will begin at 7PM, Calvin G. Webb, Riverton, chairman of the Princess competition, said this week Last year s Salt Lake county Princess, Dairy Margie Gerome, daughter of Mr. and Mrs. Clyde P. Gerome, 1835 East 3210 South, will crown the new county winner. The new Princess will compete with other county winners in the state Dairy Princess finals at Hotel Utah in November. Salt Lake county finalists include: Joy Christensen, 19, daughter of Mr. and Mrs W. A Christensen, 3847South9th East, Salt Lake City, Utah; 17, Shirley Christensen, daughter of Mr. and Mrs H 3629 Christensen, Que South 2140 East, Salt Lake City; Truby Ann Clayton, 18, daughter of Mr. and Mrs Ben S. Clayton, 5574 Revere Drive, Holladay, Utah; DyAnn Jean Dlmond, 18, daughter of Mr. and Mrs. ArlandDimond, 2863 West 7800 South, Salt Lake Utah; Judy Elkins, 18, daughter if Mr. and Mrs. R. D. E kins, 4814 Quail Point Road, Holladay, Utah Linda Hardcastle, 18, daughter of Mr. and Mrs. Archie P. Hardcastle, 225 West 9400 South, Sandy, Utah; Lee Ann Jones 18, daughter of Mr. and Mrs. Frank P. Jones, 5 West Utah; Miller, Murray, Marianne McKay, 18, daughter of Mr. and Mrs. Robert R. McKay, 2942 Connor Street, Salt Lake City, Utah; Lyn Poulsen, 17, daughter of Mr. Ernest A. Poulsen, 7648 Michelle Way, Sandy, Utah; Belva Whitbeck, 20, daughter of Mr. and Mrs Willis Whit-bec- k, 5770 South Redwood road. Salt Lake City, Utah; Cl, Teressa Wlrtx, daughter of Mr. and Mrs Thomas W. 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PtR PINT Enjoy B 6 Bank Cheers Tax Removal OUGHT TO HELP YOU GET MORE FUN OUT OF financial record of the applicant, and claiming the FHA uses only professional checking procedures The FHA does not actually lend money to builders, it insures loans for a fee, usually about one -- half of one percent of the loan But when a mortgage is FHA insured, the builder is guaranteed of obtaining a mortgage, and usually for a very high percent of the value of the project The FHA has insured only about 11 percent of the apartment buildings in the Salt Lake area A combination of all of these factors may have influenced the present glut of apartment houses Addec to the easy availability of money from lending institutions has been a lack of accurate information on the condition of the market In a move that may be akin to closing the barn door after the horse is gone, a group of interested Salt Lakers recently formed the Apartment House Survey Committee Chaired by Ray Knight of the Equitable Life Assurance this committee is part of a larger group under the Chairmanship of A. M. McDonald, Vice President of Walker Bank Opinions on the cause of the present sad state vary widely Common among builders is the blame on easy money " Bankers and other lenders say its the economy, and point out that inequities between supply and demand often occur in many industries In the May 27 Wall Street Journal, where the oversupply in apartments was reported to be nationwide, another branch of the government echoed the same The U S Controller General's Office simifeeling: larly has censured the FHA for not checking up enough on builders whose mortgages it insures It says the FHA has allowed builders to inflate construction costs, and Government insured financing, by feeding building contracts to subcontracting firms they control, The Journal reported Mr. Romney denies the allegation, stating that the FHA carefully checks the management ability and the (liD JlE 24. 1965 Business Revieiv and Loan WE G ROCKY MOINTA1N REMEW "Our firm has stopped making new apartment loans since the first of the year," says Hayden Calvert, who holds a similar position with Prudential Federal Savings happens. "We've rejected applications for new apartments as they come to us, says L. C. Romney, regional director The last FHA of the Federal Housing Administration approval on an apartment was for the Stansbury - a high rise structure under construction on the corner of 7th East and 2nd South. p) B2 division ge which will larger committee ofhas ninereal estate situation in the several aspects study Silt Laie and BusiThe "We're tune among construction people In Salt The Apartment House Owners Blues" .. the Lake: the same: song's there but the words arent -always and I don't know The Industry is in big trouble how deep it will go," this from a builder. "Its a temporary situation, the prospects are still attractive for the long run' - that from a banker As the soaring sixties dawned, builders institutions - insurance companies - and just looking for a good investment saw the people plain as a prime plum, ripe for picking bouse apartment The plum got riper and riper, and last fall the horrible truth became apparent - the bubble had burst, the boom had run out of steam Hardest hit were the new high rise, luxury apartments, renting from $175 to $850 per month, but lower price units have also felt the pinch. "I have some good moderately priced units, that were adeasy to rent two years ago - I didnt even have to vertise says Uriel Swenson, now executive secretary I can of the Apartment House Owners Association, rent them now if I can find prospects - and most of them are still rented, but the trouble is finding prospects Strongest concrete evidence of the bursting bubble comes from Institutions responsible for lending money, or Insuring that lent money will be paid if anything Current tut banks-mortga- THE CAUSE A MYSTERY - |