, 1876-07-30
Review Of Last Weeks
Business in Chicago.
Indications that Capital Is Getting Up
an Appetite for Productive
Real Estate.
Irreconci. able Difference Of View Be-
tween Would.Be Buyers and
Owners.
ST. LOUIS.
WHAT INVESTIGATION D1SCLOSE5

ket Of st. Louis which will surprise your read
ers, and may prove consoling to them at tlli.
time
1t is generally conceded in Chicago that St
Louis is 1tsolid" city. In the absence ol
nearly every other distinction in which tile large
cities OF the country take pride, St. Louis has
been allowed without challenge to rejoice in the
attribute OF peculiar and exceptional solidity.
purpose, by an array OF simple facts, to disturb
.r claim in this respect, and to show that,
while she never enjoyed the benefit OF lively
speculation in real estate during prosperous
times, she is now suffering more from shrinkagc
of values than is Chicago.
It is the general impression abroad, except
among tho Eastern capitalists and insurance com.
panies whose loan Investments here have given
them an insight into the true state Of things,
that the greater part OF St. Louis real estate is
owned by wealthy, or at least solvent, residents,
who have no trouble IN carrying The slight i'll
cumbranccs upon it. The truth is, that, al
though the word foreclosure u seldom finds
its way into the St. Louis newspaper reports OF
the real-estate market, it is sgribblcd very ex-
tcneivejy through the records. BY far the
greater number Vi the notes, both for principal
and interest, maturing last spring aud this
summer,
HAVE BEEN DEFAuLTED,
AMI the property sold to pay the membranes.
In nearly every case the MORTGAGE has been
obliged to buy the property for ms debt. Much
Of this property vas improved, and all of it val
red tetore the panic at twice the amount of the
incumbTancc-
Four years ago, local corporation loaned
$3.50 on a p.ece OF well-improycd property
50 feet on Second. It was then appraised at
$35,00Q. Default was made in the payment of
the interest note for 1876, and the property Was
put on sale under the incumbrance. The cur
poration bought it in for So, 600, and have not
met rcal-cstatc dealer who did not consider
the bargain bad one. This property is within
block of the Merchants Exchange, the Gus
tom-Housc, and POST Oi1ice, and the Globc- Demo-
crdt Building.
About four years ago, prominent downtown
confectioner moved out OH Olive street, lead
ing residence street on which the retail trade is
struggling to obtain footing. He purchased q
lot just west of Thirteenth street, with 'front.'
age Of 50 feet On Olive, and erected thereon q
fine three-story stonc-front building, fitting up
the two stores in frst-class style The lot cost
him SCI, 900 cash. the buildings SIS, making
total Of $4,000. ION the whole he placed ali
incumbrance of $500 Last spring tile lenders
bought in the property at d trustees sale Tor
$4,000. Now both stores are vacant, and the
candy man is running modest little shop under
his sons name.
But those are not bad cases for St. Louis.
Several years ago 4 loan Of SIC, 900 was made on
a piece OF property on Walnut street, near the
Southern Hotel. 1t was then valued at 500, 600.
Default was made, and the property went to
the mortsagee, who is to-day looking anxious1y
for somebody to take it off his hands at S2O,000.
THESE ARE NOT EXCEPTIONAL CASES.
The several pieces OF property are well To-
Gated In active business centres aud their record
must be taken as Representative Of business
statement will confirm this view. During
the two or three years Immediately
preceding the panic, IN Eastern insurance
company placed large number OF loans in this
city. 1t has been compelled to take in SO much
Of the incumbe:cd property that it has had to
establish local land agency to manage it. The
seizures BY this corporation are estimated by
leading dealers to amount to $2,500,oo0 in
Taluei
There is no sign of touching bottom. Sales
under deeds Of trust are on the increase, and
that, too, among men who have held high places
in financial circles, and whose credit has been
almost unlimited. Quite number Of names
that havc been classed among the 'ssolid ones
OF solid u St. Louis now figure in the disagree
able fne-typc advertisements that betoken the
sale under mortgage
To this list may Be added many hundreds of
"suspended :" debts, rs they arc termed here,
just before the panic Of 1873, and, as money was
in very rapid circulation and constant demand
here at that time, borrowers paid 10 per cent
interest, giving semi-annual interest notes for
the incoming interest. By special statutory
can thus be charged. By far tine larger part Of
these interest notes are now held delau1ted by
the lenders, and the borrowers are carrying in
terest On the principal and compromising it on
the interest. This
is fastened upon vast amount Of property,
most OF which is unimproved, and much Of
which lies Immediately west and northwest OF
the city limits. OF the latter class Of property
Tili hare more to say tgrther ~ a, on. .o+ r,,oo
has about dozen magnificent hotel palaces
closed and in possession of the Sheriff. St.
Louis has very few fine hotels, and they arc
nearer the Sherif's hands than anv that know
Goss So pss Rap scusern as has Just
changed hands, after bankIupting its old pro-
prict0rs. A New York firm is now running it..
The Everett, which has a frontage Of 75 feet on
Fourth street, just north of Olive, in the heart
was offered on the market under administra-
tors sale two years ago. It was well advcr-
tised, and, although there is no more avail
able property in the city, the best offer
fell considerably lower than 100000, and
the Court pcremptorily refused to confirm the
sale Other efforts we're made to dispose OF the
property, but it still goes begging purchaser.
Notwithstanding this record, property all along
this square Is popularity quoted ut $500 per
front loot. The new lindcll could not raise its
head until the citizens of St. Louis donated
$l51000 as a bonus to the projectors Even
this effort was insufficient to secure the rcstora-
ton Of the old building. The old Lindcll,
which was destroyed by fire, occupied the entire