New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1877-04-16
WRECKED BY REAL ESTATE.
spEcuLATIoNs ENDING IN RUIN.

That there have been immense losses since
September 1873, nearly all lines of trade in and out
side Of the exchanges is wei! known by every business
man in NewYork; but the full story OF the effects OF the
fan the real market and OF the terrible reyerses
OF those owned acres OF mimproved property
IN around the metropolis has not yet been told The
present time when holders Of real estate and brokers
are looking for brighter future and increased
activity, may not be inopportune for reviewing some
OF the more striking OF these eases Of disaster.
process of wedding out weak holders by daily
forecosuTe sales is still ia progress, it Is claimed that
there evidences Of returning confidence, and
that the market is slowly but steadily improving.
prominent insurance company succeeded a few
weeks ago in selling house ia Brooklyn at an adj
OF upon the best offer made for 1t last
Prominent uptown builders who purchased Madison
ave- lots last year for 81 OO0 compelled TO pay
Sl4 OOO and IN the district bounded by Msdson-aye
the east sxth-aye. the west, Eghty-sxthst. the
north, and Fify-nnth-st. on the south, more houses
have been sold since tue year set in than anci
pated by those who placed them in the market
reporter of TIE TRIBUNE recently had long inter-
view with gentleman who has closely identified
with ups and downs OF the market during the past
few years. ct ia frightul retrospect" he said "but
warning to those who again may desire TO speculate
in unmproved property, the whole story ought TO be
told. 1t is not necessary to give the facts will
speak for themselves and those at all acquainted with
market will at be able to identify the bodIes'
Before you proceed" said the reporter please ex-
plain how it is that when merchants with goods on
hand fail, they generally something from the wreck
enabling them TO start again; but that propo ryowners
when in trouble having solid ground Tor their assets are
totally ruined IN nine out OF ten"
1.-THE difference between the two is great" the
ply " and not generally understood. merchant
compromise with his creditors Not debtor real
estate. The creditor in this instance takes everything
away from him; all he possesses, and more too Sup
pose an insurance company has mortgage upon your
property Of 500 goo which you cannot pay and the prop
erty upon being fOrcclossd brings only $4,000. Tie
company at bring suit not only against you
for the deficiency, but also against the who signed
the bond when you signed the mortgage The law gives
the real estate creditor his full pound OF Gesh Hence
the total ruin which has befallen those people
who In 1869 and 1870 and 1871 bought
boulevard. Mornngsidc. Riverside Park and all such
lots, and thought that NeW-YOrk would grow like mnsh
Those who had little improved property in adj
dtOn had to sacrifice that in order good the
deficiencies the foreclosure sales OF their vacant lots
Even thOse-and their number Is very snawh) bought
sparngy and had plenty Of cash capital pay of their
few mortgages of the ordeal in crippled con-
dltion. The rest Of them all runed-sOme dead
Others crazy and again others poor thai hey have
not dollar in their pockets. Aye and these only
few years ago considered themselves and were cori
sdered by Others hundreds OF thousands and
millions.
"Any at all acquainted with the history Of real es
tate in Newlork during the past years will at once
! be able to name those whom mean. A gentleman well
known to all retired with ample fortune from BUSH
in 1850 Later he bought lots and sold them
TO advantage. He rapidly became a bold buyer and also
successful seller Of real estate and OF the greatest
bulls in the market. The panic OF 1873 found HIM with
large quantity Of vacant lots hand, and even when
the decline set in lac refused to believe that il would con-
tlnue FOR any length of time. He borrowed thousands
after thousands Of dollars paid interest ON hi,
lint
time. Unwilling to have his property forcclosed. no
placed 1t all at auction, hoping to stem the current of
downward prices but the sale a failure. Hardly any
property disposed Of The unfortunate old gentle
mans became affected and his family have
him tn relatives in the South where his wife
has now joined him. Even his magnificent house in
Fitt-ive, belonging his wife, had to be sold. and his
entire fortune accumulated during long aud busy life,
has been swept away.
Take again the Of another gentleman, who was
a great friend of the first named, much younger In
years. Astounding in energy and full OF faith the un-
improved soil of Manhattan Island lie was at the head
of large mercantile firm that could any day borrow
100000 in Wallst. When the crash came. the funds OF
the firm had TO be used for the young mans real estate
paw until the firm forced TO fail his real
estate was sold under the hammer and he has set to
~ welknOwn politician, the envy OF less
favored popular for his urbanity and slrewdness
of his specuations in lots. His now
has an ordinary clerkslp down town, while the past
money Of wealthy father could provide.
The proprlctors of large shipping house IN Frontst.
have been ruined By the real estate held by the senior
Two gentlemen actively engaged in the cloth busi-
ness tired together with ample years ago,
and jointly went INTO real estate speculatOns. They
acted as they thought prudenty, and did not own many
body they could hold on TO their property but
it was finally oreclosol One OF them has st become
head manager OF Eew manufacturing concern being
forced "a 20 back again 20 mercantile life in order sup
port his family.
"A wei known Germanimporter, hOnored ana beloved
By all who knew him, retired from business years ago,
ana in addition his real estate charge OF the
property OF his relatives and managed IL office
specially lifted up fof hai purpose in OF the fashion
able streets up town He once attempted 10 sell it all
auction, but could not dispose OF II. Siagnaon and
continuous decline in prices followed and reyedupon
his mind that II necessary 10 take him 10 private
asylum, where in tit OF insanity he committed suicide.
"A gentleman living beyond FOrtysecond-st., in adj
dition to his vacant lots, owned magnificent house
OF the fashionable streets which he had inherited
from his father he wa compelled TO- sell one lot after
another at terrible Sacrifices IN order to provide for the
payment Of interest his mortgages Recently he was
Obliged TO sell his house also ana he now does not own
bit OF property After MS fathers death le never
down town before the panic except 10 cash his
lac has to make ll!ns IKE an ordinary DI0her
Ihese facts IN regard tO people well known In the
community, and MI men only few years ago possessing
very large fortunes coad go into the lower strata OF
upper tehiom' aud show YOU how families who owned
property along TIE Boulevard. Nnetyninth-s, and go
Oh are impoverished but their cases are not well
known among real estate men those | have men,
toned. They nave all bad to tuSn leaf sell
their carriages sell their pictures sell their houses
trench and economic even IN the ordinary necessities OF
life. Those who still retain something ia the shape OF inn
proved property from me wreck o th,ir heai estate
the unreasOnabenJss OF the public in demanding still
Fred sufficiently Guiing this crisis now Lappiy an
preaching an end. But tncy must submit ami can no
change the present than they could in tne
tHeip n"rtSoeaes whom the law fSvnrs hrT"J on1
other creditor The masses OF the people magiue
that they alone have suffered during these hard times
would open their eyes II they could understand the
msfOrtunes sustained during the past four years by
many of the formerly wealthy families of Nsw-Yo and
q lsIIrrn nnI-