The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1892-01-03
What G. II. Umbsen Said.

What G. II. Umbsen Said.
G. H. UmbSen gives a valuable opinion
as to the prosperity of real estate Oh this
Coast saying:
Curiously enough, according 10 the many in
jeiYieWs or real-e>tate bIoherS, lately published
IN daily papers, all agree that 1892 viii see an
active rea!-eState market. When all the prin-
Cipal agents agree on this point here must be
some just ground for the conclusion; in all cases
u Is impossible III { The wish should be alher 10
the thought. IL Is worth while therefore, 10
examine upon what these representations of an
active market are based. First and foremost
comes Tie fact that never in The history of the
ely was there so much capital IN savings banNs
and the hands OF brokers for investment III ciy
really The money in the banks wl principally
be invested in small outlying lots, while the
brokers are mostly looking out for downtown
business proper les. Secondly, the season past
has on tie whole been a successful one IN the
interior. While it Is tue that fluii-ETuwefN did
considerably beJeT Ia 1890, stu the Two years
zen together should show good Dtiabce on
the credit side OF the ledger. NHeat-fal>ers, on
the other hand have had Yeiltable bonanza
10 theIt last crOp, not only IN quantity but IN
price. Ii IS true that much wheat Is being held,
AID therefore The entire benefit of the crop of
1891 has not as yet really accrued 10 the State;
but taken together The sale OF both wheat aud
fruit should Insure good lines IN tie interior,
aud This naturally m ans activity IN all branches
OF It8de IN san Francisco The reasons above
given are amply SUmcient for The foundation OF
good market during the coming year. bur 10 them
can be added the acuoG OF The manufacturing
and mercantile communities IN the formation OF
shown most progressive spirit, thu renewed lu-
terest taken in Ihe Nicaragua Canal. tie compile
lion OF which Will TeyOlutionZs business on the
Fac nc Slope, and the generous outlay Of capital
ISIS IN building such structures as tBe Chi Uu!ce,
Mills. Croker and other similar buildings. 1t
must surely be argued that The investment OF
30 many millions III buick. stone aud non build
lngS SHOWS sufficient practical faiih IN the future
of This CITY 10 walran the sangulne views eX-
pressed by reai-estate brokers.
\ very important matter aud one which should
receive the special attention of the municipal au.
thOnles is Tie subject OF assessments.
The proper assessment OF Improvements
Is a difficult task, and many IN this city
are both over and under taxed. The ia'e NlchO-
las LuHiug derived a considerable portion OF his
income from The rents derived from old rock
cries. which were assessed al Il very low figure
based upon he actual value OF The buildings aud
not upon the revenue derived from them. BY
this means Mr.. Luning received much larger
Ieturn fOt The capital invested 10 such buildings
than lie would if they had been pulled down and
costly structures erected IN ihriI stead. On the
other hand new and subs antal business blocks
are assessed at such high rates compared with
the revenue derived from them that the cost OF
taxation Is a bar 10 the erection uf other build
lBGs OF lie same class. 10 DINER WORDS, "hlie
shautes IN bac- streets pay handsome pIuit,
structures u. the Palace and Chronicle Build
ing because OF tie high rate OF taxation pay only
pen cent on the capital invested. Ii would APP
pear the efore, that the basis OF assessment upon
imp OVements >h0uld rather be upOA tie amount
OF NE earnings ION me e4p ,,la ,,,i IN
ing tSeIf. ibe present plan OF assessing such
buildings uiScOUrageS pc manent improvements,
aud venture TO say that macy oWnets are de
Ted from building costly ST. uetuTes because OF
thIS TACT
Hardly year passes but owners Of large build
iHgs appear before the Board Of Equalization
and produce proofs thar The amount OF income
derived does not justify the taxation imposed.
II should certainly be the aim of The municipal
government TO encourage tie erection OF such
structures as the CrocKer and Mills buildings,
for instance. This could be done either by fixing
the taxation at a certain sum for period OF years
hEF IA Fh4 - nj In al
UPON what 1t cost 10 erect but upon the per
ceDtage IL pays uDOn Tie amount OF money in-
vested The city need be no lose by this II the
Assessor would adopt tie same rule Yaueless
structures which pay big rentals. II is a bad
rule that does not work both ways, and certainly
a change Ia the rtesent mode OF assessing I'M
prOYemeutS would 90 so.