The Wilmington daily Republican. (Wilmington, Del.) 1890-1902, 1892-02-05
actual cost, s1,o14, 900, was q very con-
sentative figure.
Molbrook Hall, Now Called the Yose-
mite,


On this item loss has b'en made. Briefly
the facts are these; In 1889 we made loan
on this property when in course of oonstruc-
tion and after the man to whom the loan had
been made had spent not only his own means
IA considerable sum- but the money loaned
him as well. he failed and we were Obliged to
toreeloss The cost Of the property to us after
the amount of the loan. The WORK
Of completing the structure was then
placed In the hands of an emineut
constructing engineer. He supplemented his
own knowledge by employing an architect,
and the building was finished. 1t was Allled
have paid fair return en- its costs but for
two errors which could not nave been fore
seen. and which do not justly subject the
finance committee TO the charge of making
bad investment of mo9ey.
In carrying out theory of fre-proof con-
stru?tion the aIcaitect maize the same error
Mortou's hotel, THE Shoreham," Wash
ington, made. and both buildings had to be
reason. The mistake OF the architect in each
case wat in creating such n conaitfon that
dry rot speedily destroyed the timber and
tho building had to be vacated at once. 1t was
then discovered that in addition the founds-
tions Of Holbrook Hall put in by the men who
first obtained the loan were ihsecure,an IS
final result,the Whole structure had to come
down. 1t was then rebuilt under the supsf-
vision Of McKim. Mead & White on the most
approved lines, and there is not a finer strue-
ture of Its class IN this country to-day, The
absolute loss to us, The, efore, was approx
mately the cost of the first building. This
our annual statement at the cost II the pres
ent building and ground. The figures s129,
OG6, the sppi aiser Of the Insurance Depart
nSned instSad and entered eeRi ii tie insurance
Departments findings. 1t is proper to
add that on our present basis Of rental,
this property will yield, when fully rented,
net income OF six and a half per cent.
on the value placed upon 1t by the In
surance Dep artment, md would yield it,
tie mote than four I er cent. on our vnlnat'on
($Iga ttjl. do rot desire to evede full re-
sponsibtlity for mystlf and the fiusne" CORA
mittee IN bis IN Gter. The claim Of infalll-
ment Of hundreds OF millions of dullaIs is one
L have ney;r set uD.
Tho Park Proparty.
This property was purchaged some years
ago under the supervision of our chairman of
our finance committee, who was GA the
ground at the time. His Investigations as to
the vsluo Of the rrop"rlv were most search
g, and the purchase was mads with all due
care. That the uyal value OF the property
has siroa deprecated Is true und that TIL re
H. an sprnrent loss is true hut ii the SUPER
intsndettt had not only ctcurrd an appraisal
of no value OF .iht piope las II noS sounds
bur also mai fnyV55 tEnttd 'stHe OF The
pre- 7eriy, when Z WAS purchased, he cou d
have fully sstti .ftd his dnty as anexaminer,
ana ct ihc same time coG!d l!nyt given you
n ATS nCtory reason for thu original price
paid RUt no such investi, atiol was maze.
And as his findings sstm to do IIa an Injustice,
not only HIS above ell ed. but also in tho value
plgetd upon the Property u1H, The matter
will bear word more in explanations,
1t was brought 10 my notice during the
Superintendelt's tINettiSa ion that the fig
uies supploi BY tile department VI Taxa
ton of tho frshchG aycrnm-',so on the request
re PRESENTED val cs t4rd solely tor rs par
ticulsr purposes. nur mans ger q Paris with
q great duai o! iiiicllty succeeded in getting
the Credit FunCier the largest irstittll ion ~
a. he sol q IA
ton OF VII Oh is wed known throughout Eu-
ropt, to have valuation made OF our prop
erty. This va.u tien WA made wtlh TIE
greatest care b. two IT t'te most conpatcnt
and Aperienc~i In yegters.
The estinate OF ne inspectors eHcce the
figures Of the Freach Cove nmeut by $4,000
and their ettifueto of its y Ospectiye value,
based IN improvements certain To he made
by the city OF Paris, exceeds tie iiLures
adopted by the superintendent ty $3.50 4. AS
| understand t, the variation in the supsrin-
tendent's hsures from the sctunl value of
this property Ia similar TO the less winch
would ippAar If tho homo Office building of
the Eqniiahl" Lite Assurance soc ETY. should
be entered mr. CHI dnle OF its asseta at three
millions eight hundred thous suu dsl airs. its
value for purposes OF taxation, and not at
fifteen millions, its books vsiue TO place he
pl opertl Of he equitable il . schedule OF it's
assets n such y to'a Al as TO sauw It loss of
eleven mlhors three hundred aud forty
Thousand dollars would be so unjust as TO he
come absurd, Yet an exactly ssmifer thing
seelns To h&He been dnre IN this case.
Our Waetsra Buildings.
The report of the s1perintondea 1t of Insnr-
rnce values the office buildings recently
erected ny rs in Minneapolis st. Paul, Kan :
sas city aud Omaha Al batr cost 20 the Sem
pqny, but as his opiniui. ii tho wis ium of the
investment seems to be uncertain, as this
language indicates; "Ihere s no imInediats
prospect that they ahe buildiaesl will prove
40 profitable rs tbs Iatesl u OF life fHsur-
anes 20 apHnies shOnld,h ] Hasife to offer q
VOID in Int ttn"e ton, There arr two rea-
sons why Tho i'm mediate income fran there
propert es is suns Her than We lsf.s fairly ex-
peel to receive ia tina future First tie
buildings Mere begun under hornsl cuhdi-
tions, bat Hers cuntpletec in tlto midst OF 4.
period af business depression in tie four
cities mentioned, d aeeor ingIy we have
had fewsr fcnauts ahd lover rents han We
may reasonably eE ect hereafter. Second,
HE buildings Were heated Wllh n vi " 10
future dsvelppem.nts theif Fespeetlv.
Glitter, ANY one who mas observed thu rapid
growth OF the Nsst wilt appreciate 6he
Necessity of conridering t lie future even more
| than the prstent in THO location Of an o. cs
building. Pressat revenue WEs. ihersfora
not so much nf n consideration as that
| the building shoald be 50 Ioe&ted thsU
the future may tend constantly, 10 increase
| aud not TO decrease, the ant producing puwnf
and va us oil tine properties. You will uns err
stand, of eoarse, that Investments Of t. is
char -cter ar Salnab Q bteHuss the elament
| of risk IN rhin9 stment Is D acticAily e!in l.
mated. The mansJ expended in this way is a
fixed item fora very long period of years, Tie
iuil Wisdom, or 70 ~, of tuch transac tiun ia
developed ly By time J o will he inter
ested to know, however, that enc of these
buildings III already yitlding VISA fair return
| on . money invested, end am further ad-
vised h5 cong se ent authority that since the
date nf our purchase of tho r9al estate on
which taess Huiidiuss are situated, thsre has
been n inst appreciation in It's selling value of
five hundred thoHsaed '3oilars, as shown by
| apprnieaIs mafo 1T the close OF 1870 and by
| pulehSse Of ado Ling prnPsrty 81 zee made by
0 htr people IN Rntsritg III So properties on
| cur hooks and in submitting our estim 10 of
their waltz Ia Ia supnrinteh tAnt, hich lie
| accepted, we did moi il evlnnut inc. ease
into account, AZ evidence that the erection
| of this cham Of Weston buildings was we'll
| conaits RID pnint you 10 he tAct that 1llA
| Investment WAS entered pen nfter discussion
| ana epntayal by the Botrd OF truatees. II Is
| my theory thai il is obIS fair to L a members
| OF a company he this, the nature OF whit Sc
| business mai es lafkf Accommodations nfmone,
| necessary, that The be inNe tad
| should 20 ms far as 10 practicable 10 thoeesee
| tiona of the country Wh~ece it emahates. In
| this ca o a part OF The money received was in
/ We ted among the people " no pa Il it.
! The only theory TIA NiliUl hess buildings
| eiai he rateti as bad or even tioabi nj ieves
| ments is oEe when dtserahits the future
gron tn of the Wfsterh ststes. The report
| hntic, D that las adNertseGlt nts et the COM
! rIny they the buildiuEfJ En do, BIT have n
| considerable value - This is emsnqntiy t.ue.
| The territory in which these bindings Sc We
especially 10 advertise The CO.. pIny include
the States of Aiahs sofa, o. Ia aid oath