The Hocking sentinel. [volume] (Logan, Ohio) 1871-1906, 1886-03-18
The Dead CrRsus.

The Boston Transcript discusses the
nature OF Mr.. Vanderbilt's wealth in Al
interesting way, making these obserya-
tions:
Mr.. Vanderbilt is reputed to have
been at his death the richest man in
the world, worth at least 5000, 900, 600.
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
stocks. bonds, etc.-which vary in mar
ket value from day to day, and which if
offered for sale III a body must fall even
below their actual value. OF this im-
mense wealth more than one-third was
in Governncn: bonds of the United
States-these of course the least varia-
BILE 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 lie
placed on it, and it was subject TO fierce
and constant attacks, to defeat or ward
Off which called for constant expcndi-
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 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 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 81 900. 900, 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 ap-
preciating. If Vanderbilt at any time
had suddenly made up his mind to go
out of the active world into retirement,
he 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 in 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 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. 10 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 Westminsters vast pro-
perty 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 bcliev-
ers in real estate. MIR. William II. VAN
derbilt sllrewdly 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 ''the boys" who run city gov
ernments.
There is many 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. Oh
valuations that are excessive, approach
coniiScation.