December 3,1881





The Real Estate Record





1119





"I found the Union Pacific very unpopular
with people in Colorado. Last winter, when the
cold was so unexceptionally severe, the ranch¬
men wanted to bring corn to feed their cattle,
but the Union Pacific charged such outrageous
tariffs that it would not pay, and so they died
in tens of thousands all through the grazing re¬
gions of Colorado. It is a penny-wise and pound
foolish policy, which will result in giving an im¬
mense business to the Chicago & Burlington
road, which wUl soon reach Denver. Then, the
Union Pacific has not helped to improve the
country. It has charged such heavy freights
upon timber and building material, that it has
retarded the natural growth of the towns which
gave it business. In coming home, I took the
Northwesfc road, and was struck with the im¬
mense business that property is doing. At all
the depots I saw a great quantity of corn. That
crop was certainly not a failure in the region
traversed by the part of the road I passed over."
"I understand you that there is a good deal of
real estate excitement in the Western cities ?"

" There is quite a boom in Kansas City, Denver
and Chicago.   It is quite a furore.   There are a
number of  land companies ^building suburban
towns near Chicago.   The most notable of these
is the town of Pullman, just south of Chicago,
near which run three trunk railways.    Some
capitalists connected with the Pullman directory
own three thousand acres of land, which they
bought cheap, three hundred and sixty of which
they sold to the Pullman car company at cost
price.   The  latter^ have  built  car  shops  and
houses for its operatives.   It is a model com¬
munity, artistically laid out, with a lake and
canal which .gives it access to Lake Michigan;
it has perfect sanitary arrangements and every
preparation is made for a population of forty
thousand persons.   A contract for seven hundred
and fifty houses in Pullman was given out when
I was in Chicago.   Friends of the Pulhnan Com¬
pany claim that if it lost all its contracts, and its
cars and sleepers were excluded from every road,
that they would have enough property remain¬
ing to pay the $10,000,000 stock in full.    An in¬
sider says that the Pullman town property and
the car works are to be set apart and capitalized
for $10,000,000, upon Tvhich 6 per cent, will be
paid.   This will be kept in the treasury of the
Pullman Car Company for the benefit of its stock¬
holders.     The earnings of the last quarter were
atthe rate of $2,100,000 per annum."
" You are glad, of course, to get home ?"
" Well, yes, after all there is no city like New
York.   Its streets seem cleaner, its air purer, its
people healthier than in any city I visited. These
new cities in the West are very crude affairs.
The bituminous   coal, infiltrated with sulphur,
gives out an ungracious heat accompanied by
vile odors.   The water is so hard as to be un-
drinkable, and so full of lime that you cannot
wash your hands.   The smoke from the bitu¬
minous coal discolors the houses.   Give me New
York with its abundant  supply of  good soft
Croton, its clear atmosphere, its unstained house
fronts, its various  places  of amusement, and
superb pubhc buildings and private residences.
In view of the boom in real estate in Chicago,
Denver, Kansas City, Pueblo and even St. Louis,
I am surprised that there is nothing of the kind
on the way here, but I suppose it will come."

" How were you impressed regarding the con¬
dition of the country?"

"WeU, I think the immediate future_full of
uncertainty, with the chances in favor of J a pros¬
perous turn. First, I would say that the rainy
season, which certainly has been disastrous to
many people who own lands along river bottoms,
has really been productive of great good to West-
em farmers generaUy, as it has made fall pastur¬
age exceedingly fine, and where last year stock¬
men were compeUed to begin feeding corn and
hay in November and even earUer, they are stUl
keeping stock in good condition without calling
at all on their reserve store, and many who
counted on feeding up everything wiU have in the
spring a surplus to seU. Second. Warned by
the bitter experiences of last winter every owner





of stock on the great plains has provided himself
against a repetition of such a disaster by storing
up during the summer fodder which usually has
gone to waste. Third. Every indication at pres¬
ent points to an open winter, and every one is
active in preparing his land for an increased acre¬
age, and a good crop for next season is highly
probable, and this in connection with a stoppage
of the railroad war would make Eastern people
feel exceedingly hopeful. You must remember
that it is only in New York, Boston and Philadel¬
phia you hear much said about the bad effect of
a raUroad war; at the West it has a contrary ef¬
fect, as it helps the farmer and the merchant by
just so much, and really adds to their profits.
Those who have had anything to seU, and there
are a great many of them, have gotten good
prices, and crops at the West, with the exception
of Southern Illinois and parts of Kansas, are
about an average. There is also a great deal of bosh
about over railroad building, and much of this talk
eomes from people who haven't been west of the
Mississippi in ten years, and do not at all reahze
the tremendous increase of population going on
in that region, and fche West generally. "Why,
Chicago today has over 600,000 population, Kan¬
sas City 70,000, Denver over 50,000, Pueblo 15,000
and nearly every little town that you come across
has doubled and trebled its number of people
within the last few years. Farms which five
years ago were heavily mortgaged are now free,
and the demand for loans from that class of peo¬
ple is exceedingly light. No, I do not believe
that the end of this is near at hand, but caution
should be used, as a poor crop next year would
cause trouble. The great secret is to keep out of
debt, and go ahead to the fuU extent of your
means.





"Observer," and that is, "extravagant prices
alienate prudent capitalists," but this rule does
not apply to the sale in question, as every lot
brought not high prices but fair ones, and low
enough at that to be re-sold at even higher prices
by disappointed purchasers.                W. N. J.





BROOKLYN'S GREAT SALE AGAIN.
E'ditor Real Estate Record: Exceptions are
taken to " Observer's" letter in your last number
of the Record. Your correspondent is either a
property owner in New York City, and does not
know much about Brooklyn, or else he is much
disappointed at not being able to buy gilt edge
lots at low land prices; I fail to see his point so
far as drawing the moral respecting the sale.
He says that he has watched the market for
years, and claims to represent the views of
operators; he also says "That purchasers paid
too much for their Brooklyn lots." Who is fche
judge in this case, those who bought, or those
who did not buy 3 I think the buyers are the
proper judges, and every one of them is well
satisfied with their purchase and deemed to have
secured eligible lots at fair prices. As a proof
that the lots were not sold too high, and that
many were much disappointed in the non-con¬
tinuance of the sale, I will state that fourteen of
the lots have been resold at an advance of 50 per
cent. "Observer" is right in saying that the
sale was 30 per cent, better than was expected,
but not right when he says 30 per cent, befcfcer
than it should have been. As to the intrinsic
value of thelots "Observer," in my judgment, is
not a competent judge.

He is right in saying Brooklyn is not New York
but it is far better in every respect than New
Jereey as a place of residence, and those who
bought lots at the sale appreciated this and paid
accordingly. '' Observer" says, '' If the property
sold was worth the price paid for it, then unim¬
proved property on Manhattan Island should
double up in value at once." 1 fail to see the
force of this argument, but do not fail to see his
want of knowledge of the comparative values.
Take for instant a lot on Eighth avenue, near
the Plaza, 25x100 feet, which sold for $5,000 cash.
A lot similarly situated near Central Park, sells
readily for $50,000, now because the Eighth avenue
lot is only worth in his estimation $3,000. is that
a reason why the value of the New York lot
should be put at $100,000 because the Eighth
avenue Brooklyn lot has sold for $5,000.

I would like "Observer" to offer the writer
some of the lots he mentions as having been sold
at half the price. I have a quick taker for just
such chances. He talks of " Psychological influ¬
ences," &c., at a spirited sale. That is just the
influence desired. Competition, also, is another
desirable feature in public sales. "Observer"
is mistaken in saying that, "were the sale con¬
tinued in a month, it would have been seen how
extravagant wei'e the prices." I believe, that if
another sale was held in December, that aU the
remaining lots would be sold at figures equal to
any obtained—excepting the hotel site, as many
who intended to buy at the first sale the lots that
were not put up, would then buy readily, and the
enlarged audience would clean out the entire
quantity, no laatter what the grade was. There
I is only one point upon which I agree with





MINING INFORMATION.

The following is to be found in a late number
of a New York mining paper, being a paragraph
from a letter dated Tombstone, Arizona:

The Gaborca is now recognized as an enterprise to
be avoided. Hoffman and others, the original owners,
have sold out at a loss, and George D. Roberts, of
State Liae notoriety, and Charles McDermott. of the
Bradshaw fiasco, have recently been at Gaborca—in
the Altar District, Sonora, Mexico—with the expecta¬
tion that, through their fertile imaginations, they can
put up a scheme whereby they can induce fools to buy
the siock. It is a statement beyond argument that in
no part of the Altar District has a paying mine been
found up to this time, and there is no prospect that
any will be found in the future. Tiiere has been a
large amount of capital invested and directed by the
best mining intelligence; and, notwithstanding, the re¬
ports come in thick and fast that every thing in min¬
ing there is a failure. The Messrs. Sturgis have tried
it for three years. McGruder tried it; put up a mill,
shut down, and cannot make it pay. Several Chicago
companies have tried it with like results. The Ga¬
borca is the most complete failure of all.

Can it really be that the Caborca is the long
heralded Mexican mining swindle which is to be
brought upon this market early in the coming
year? It is painful to read such .slighting allu¬
sions to simple, innocent and honest George D.
Roberts. It would be well to remember the name
of Caborca, in case the property should come on
this market. As a general thing, all Mexican
properties should be avoided. The government
is insecure, the law capriciou's, and the inhabi¬
tants often hostile.

Apropos of the Bradshaw swindle, " Jeemes
Pipes, of Pipesville," otherwise known as Ste
phen Massett, lost $1,200 by having bought 300
shares on a point given by Mr. James R. Keene.
Sam Yf ard, it is said, took 5,000 shares of the
sam*^ stock, and many of Mr. Keene's friends were
heavy losers. But it is very doubtful whether
Mr. Keena himself lost anything.

After all, President S. V. White, of the Min.
ing Board, treated the " boys " pretty well in
that Robinson deal. Instead of allowing the
brokers in his own Board to be "stuck" when
the deal was to be made, in connection with
Mr. Brayton Ives, he used his position on the
Committee to have Robinson listed on the
regular Stock Exchange. The stock marked
over $14 when first called on the regular board
but in three weeks' time it got down to S4.50_
Can it be that these two shrewd gentlemen were
deceived by some unscrupulous people among the
insiders who owned Robinson stock?

The stoppage of the dividends upon Robinson
Mining Company explains the recent fall in the
price of the stock.   If the members of the regu¬
lar Board are of an inquiring turn of mind, they
will ask why this stock was listed at tho very
highest  figures it reached,   when  the  insiders
knew that the  bubble was about to  explode.
This stock has been for over two years upon the
regular Mining Board, during which time it paid
regular monthly dividends but was not very
generaUy dealt in.    It grew in favor as the divi¬
dends were  kept up,  and its   price gradually
advanced to $14.50.   The insiders, \\ ho had been
pocketing the profits, then managed to secure
the help of Brayton Ives and S. V. White to get
the stock listed on the regular Exchange.   As
these gentlemen were large holders of the  stock
ofthe mine, it was supposed they knew all about
it.   The collapse in the price and the stoppage of
its dividends within a month after its admission
to the regular Board, show that it was fisted for
the express purpose of making a deal.   Under
the circumstances, ought not thisl^stock to be
struck from the list, and the gentlemen through
whos importunities it was caUed be requested to
resign their membership of the Securities Com¬
mittee?

AU the accounts from the West agree in say-
mg that we are on the eve of great developments
in the mineral wealth of the country. The raU-
roads are now penetrating every section where
gold and sUver is being mined, and production is
greatly cheapened in consequence.     This  wiU