The morning news., 1889-04-22
UNIQUE AMONG FORTUNES.
John D. jennings Believed in the
Ninety nine Year Lease.
From the Chicago Tribune.

Ninety nine Year Lease.
From the Chicago Tribune.
John d. Jennings, the dead real estate
king, leaves a unique fortune. 1t is
unique, not because it is in real estate, but
because it is in peculiar sort of real es-
tate. The great bulk of it is in down town
land covered by ninety-nine year leases,
and on which the lessees have erec ed val
liable buildings standing as a perpetual
guarantee of his rents. In addition to the
security given by the buildings, most of the
older leases issued by him have become for
tunes in themselves
Speaking of this feature of the Jennings
estate Mr.. Thomas B. Bryan, president of
the Mutual Trust Company said yesterday
THE income from his property is a mat
ter of cIocklike regularity, and must con-
tinue 80 until the expiration of his long
leases Not a tenant can afford to default
for the penalty is a reVersiOu Of the lease
and superstructure. When the magnitude
of the estate is considered it may be said to
involve no care such as is commonly the
penalty of great riches. ~-@
"Many people found it difficult to under
stand why Mr.. Jennings was so fond Of the
80 year lease. The condition in which
he leaves his estate may throw some light
on the subject. Besides, he had his own
way of reasoning about the matter. He
would buy, say, lot for 100000 As he
only bought III times of depression or at a
bargain the intrinsic value of the lot would
be- let us suppose, one-third more than he
paid, or, in round numbers, Sl3O,O0O. He
would fix, at any rate, on some such figure
as basis for bis calculations. This done,
he would say:
"'I will lease this lot for ninety-nine years
at rental of 6 per cent on Sl30, 900 without
a revaluation, provided fine building is
put on it
"'But,' his friends would protest, the lot
is in neighborhood of advancing values.
In five years you can sell it for double
what you paid. The man who accepts your
proposion will make a handsome thing out
of the lease, which you might as well make
yourself by holding on
"'All the better Mr.. Jennings would re-
ply; If my lesseee makes money he will be
the more able to pay my rent. The man
am looking out for is Jennings Six per
cent. on $l30,00O will be 9 per cent. on my
actual Investment of 100000, for which
excellent rate / will have a superb security
for ninety-nine years. II my lessee does
better | shall not grumble. ,"
HIS DOWNTOWN PROPERTY.
Mr.. jennings farsighte1ness Will doubt
less begin to count in the not distant fu-
ture even more than it has heretofore, when
and 10 per cent. which his property is
under leasehold to bring, will be remem-
bered by investors as the rates of a fabu-
lous day. In the meantime number
of persons have made fortunes out of the
Jennings leases. Jonathan Clark. the Or
iginal lessee of the ground on which the
Ovington building stands, sold his lease for,
perhaps, S75, 900 profit. Mr.. Cuthbert,
lessee of the northeast corner Of Monroe
and Clark streets, sold at big profit.
Leroy Pavne disDosed of the lease of the LOT
on which the Hotel Richelieu has bsen built
at an immense gain, and could do likewise
with the lease on his stable ground. SINH
lar instances are numerous. In the mean
time, however, and from the first, Mr. Jen-
nings had been drawing his s and 10 per
cent, and his grasp will not relax for many
year TO come.
His total estate is estimated by an iati-
mate business friend at not possibly less
than 50 200, 900 and when his bonds aad
cash are counted S5,000,000 may prove a
nearer figure.