St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1889-03-10
Real Estate Men Say the Stu
alton Is One Of Great
Promise.
Eastern Capitalists Swarm
ing to st. Paul to Invest
Their Surplus.
The Prospects for a Good
Years Business Exeep-
tionally Good.
Protests From All Quarters
Against the Passage OF
the Interest Bill.


large-sfzed deals have been put through.
THE situation to-day is one Of great
promise and encouragement. Inquiries
are brisk for ali sorts of property. and
money TO loan on mortgages is plenti-
eul The demand for property is not
speculative to any extent, but is the
Eatural demand created by the activity
IN building last year. The majority Of
inquiries are for residence property OF
81 grades. Cheap lots in close proX-
nifty to transportation are reported IN
great demand by all agents. but there
Is q scarcity of such property, owing to
the fact that the street car lines do
not penetrate far enough into
the suburbs. OF course in the
-eiglborhood of the stations On
oil suburban railway lines there is
&lEnty Or such property. and it has been
sold freely ar good prices during the
week. FirSt-claSS residence property
on st. Anthony hill is eagerly sought
for. but the supply is not equal to the
demand. The same Is true Of business
property. so little OF which is left that
can be bought. One of the most en-
couraging features of the situation is
the number Of building permits issued.
Last year the number eXceeded that Of
any other year, but the first two months
of 1889 show more than twice as many
permits issued as the corresponding
neriod of last year. The mildneSs OF
he winter iIaS had much 10 do with
this; while last year the building opera
tions opened in April and May, this
rear they have been IN full blast prac-
ucaIly all the winter, and if the weather
Inv 4tsTr-
spring Will undoubtedly be one OF IN
precedented activity. This is doubtless
the main cause tending TO create an
activity In real estate.
The mortgages Of two and three
years ago, which were principally pur-
chase mortgages, that is TO say, mort
gages given for q balance of purchase
money. have been almost all paid. and
only a few thousand dollars of this
money is YET to he paid. Many men
have been
Punched TO MEET PAYMENTS,
but the TACT that 50 few have defaulted
shows decided confidence in the city.
The mortgagOrS are now getting around
10 tie purchase of more property and
10 build on what they already own,
causing much property to be taken Of the
market, thus bringing other lands in and
tending TO distribute the market over a
wider field, and raise the prices Of hith-
ertO outside additions, Prices, how
ever. are at low figure in every quar-
ter of the City. compared with those rul-
Ing In other places OF EQUAL size. There
IS no doubt that they are now at low
water mark, and unless something ut
terry unforeseen occurs, will never be as
low as they are now. The class Of men
who are buying now is good evidence
az fHfc font Wl.nF, fhp-r. M
meDt, and speculation is rife, the solid
business men show their sense by hold
ing aloof from any dabbling in dirt,
leaving this TO the spectators. The
conservative merchants, the eomforta-
bly, paid mechanics aud the compare
lively well-to-do stOrekeepers are those
who are doing the buying this spring,
which shows keen foresight on their
part, for this is Just the time to buy.
Everything is quiet, the prospects for
good years business are bright, the
population Of the city has been increased
during the past year by at least LOO
iDcaniers, and an all-around rise may be
taken as q reasonable certainty at an
early date. The men who put their
money in now put it in with the inten-
ton of holding what they buy and with
out any speculative motives. This
shows the s0lid basis on which the mar
ket rests. The land in and around St.
Paul is almost entirely free from en-
cumbrance, such mortgages as are upon
1t having been put on for the purpose of
building, thus enhancing the value Of
all adjacent property.
Real estate agents are alarmed at the
passage 10y the house Of the bill pro-
yiding that thr cost of loan on land
may not exceed S per cent, including
interest commission and all expenses
connected Herewith. Sincere hope is
expressed that the senate viii
DEFEAT THIS ABSURD MEASURE,
as it will injure the farmers to an in
calcuIable extent. The way in which it
viii be prejudicial to their interests is
briefly this: The Eastern CAPITALISTS
who loan the money will not take
mortgages at all under these circum-
stances, for the deals are invariably
made through an agent who must have
something for his commission, and very
frequently the cost Of examining the
lanG amounts to per cent, while at
least per cent must be allowed in
every case for this purpose. One per
cent is reasonable allowance for thu
agent. SO that after dedneting . per cent
for commission and expenses 6 per cent
Is about all that the capitalist would
get, and III many cases not nearly so
much. The capitalists are not com
PEELED to loan money in Minnesota at :.
6 and Z per cent, when they can get lust
as good security III Kansas. Iowa and
Nebraska al Z, s, and even 10. If this
bill passes the farmers Will find the
greatest difficulty in getting loans
though the effect would not be 40
marked in the city, where loans are fire.
quently placed on improved property at
q per cent.
No year has ever opened with such
brilliant prospects as 1889. With almost
unincumbered real estate, and q cease
less influx Of immigrants, all of whom
need homes, it looks as if this spring
would witness abrISk anu upward mar
ket, with new buildings, both resi-
dences and business blocks, erected on
every possible spot. Eastern capital
ISIS, too. are tired of investing their
money in railway stocks. which have
almost all been on the downward grade
for some time, with dividends small and
few. Looking for fresh investments
which viii return a good rate of inter
est, never huctuate in value and be Sc
cure from all risks, they naturally
TURN TO THE WEST,
and seek to place their money in good
mortgages. There are about S25. DOC. 600
living in St. Paul and other banks wait
ing for investment. Not only do the
men of New York, Boston, Chicago and
other cities send their money for
investment in mortgages, but they are
open to buy as apermanent investment.
and many f.the leading real estate men
have correspondents In the East who
are anxious to buy with the idea Of
erecting business blocks. an investment
IN which there is probably more money
Than IN any other. Protests are contin-
ually heard by real estate men. and not
10y them only, but all who have the in
terests of the city at heart. against the
XaY some Of the Nealfhier Residents Of