The Manitowoc pilot. [volume] (Manitowoc, Wis.) 1859-1932, 1886-01-14
manitomof Dilot.
THURSDAY, JANUARY IA, 1886.
The Dead CrRsus.

The Boston Transcript discusses the
nature of Mr.. Vanderbilt's wealth in an
interesting way, making these observa-
tons:
Mr.. Vanderbilt is reputed to have
been at his death the richest man in
the world, worth at least $500, 600, 900.
Whether he can be considered the rich
est man in the world depends upon how
we understand the term. His property
was almost altogether in securities s.
stocks. bonds, ctc.-which vary in mar
ket value from day to day, and which if
offered for sale in body must fall even
below their actual value. OF this i'm
mense wealth more than one-third was
in Government bonds of the United
States-these of course the least varia-
bic in value of all his possessions. He
was no believer in real estate, although
he owned the palace in which he died.
His last years were passed in holding
up his property to value which he
placed on it, and It was subject to fierce
and constant attacks, to defeat or ward
off which called for constant expendi-
ture of his reserved wealth. Whether he
did not draw from a hoard to pay the
dividends from which the estimate of his
income was partly computed is a ques-
ton which has been the theme of dis
cussion in the stock market for years.
Many shrewd observers made or lost
fortunes in backing their opinions that
he carried a portion of his properties in
stead OF his properties carrying him.
The Duke of Westminster is believed to
own property, almost entirely real estate,
valued at $500. 100000 This nets him
an income of about 100000, or 2 per
cent. But here is the difference: The
Duke can probably turn his property for
all it is worth for it is situated in Lon
don, where real estate is constantly APP
preciating. Ii Vanderbilt at any time
had suddenly made up his mind to go
out of the active world into retirement,
ne would have found that as soon as he
undertook to turn his vast holdings of
stocks and bonds they would depreciate
rapidly. The more he put out the more
the price would sink, the wider would
be the difference between the value of
his property on paper and liz cash, be-
tween the estimated and the actual. OF
course the Vanderbilt properties having
actual merit and high-earning capacity
would not sink as fast nor as far as
those which depended for their price
not on combination of circumstances
but a combination of brokers: If Mr..
Vanderbilt took dividends out of one
pocket and put them into another he
had not added to his income; he had
simply changed the location of the same
money. To press all his property to
immediate sale would run it down far
below the estimate which the world so
glibly puts on it.
The Duke of Westminster vast pro-
perry is the product of the growth OF
London, as the wealth of the Astors re-
presents the increase of New York.
The Vanderbilts have not been believ-
ers in real estate. Mr.. William H. Van
derbilt shrewdly said that the munich
| pality owned the real estate, the holder
| being a sort of tenant. He was afraid
to trust his property where it could be
stolen by 1.-The boys who run city gov
ernmentS.
There is many a heavy holder of real
estate who will appreciate this, especial
| ly in cities where the taxation and as
sessmentS crawl up toward the amount
of the income. Three per cent taxes, on
valuations that are excessive, approach
cOnliscation.