The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1897-06-27

L
| Indiana farmers who would sell out and
come here in hurry did they know the
| facts"
CHICAGO WAS OvERBUILT
Kansas Not the Only State That Did Too
| Fast Growing.
| New York, June 26-E. " Smalley. in
the New York Evening Post, under a
Chicago date. says:
A real estate man VINO goes about this
city good deal tells me that there are
today in Chicago 10000 vacant flats and
| dweliingi houses, and that on West Madi-
| son street alone, a thoroughfare that
runs out to the city limits and is the chief
business artery OF the West Side, 300
empty stores can be counted. When you
go a little way out Of the business center
by cable or electric cars you notice tall
buildings and small buildings on either
hand that are speckled with signs Of For
| Rent" In fact. this big, growing city
was about as badly overbuilt during the
period OF excessive speculation as any
| Of the new and boastful towns Of Kansas
or Of the Pacific coast, and it will proba-
bly, take four or five years OF steady de-
| velcpment to bring the population up to
full occupancy OF the existing facilities
for housing it and furnishing it with
business offices and stores. The result
Of this zeal for building has been heavy
decline in rents. For flats and small
stores the decline ranges from 30 TO 50
per cent. Office rent in the new tall
buildings has gone down about 25 per
cent. II any properties now yield their
| old incomes they are such as are very ia
vorabiy locat5d in the immediate center
and whirl of the business movement.
Chicago. like New York, has its best
! business district closely limited and cor.
rallied. Here the boundaries are set by
the river on two sides and the lake on
third.
Building operations have, Of course, re-
ceived a serious check from this condi-
ton Of affairs. There are few inportan.
structures now going up and the cree
ton Of new dwelling facilities has almost
ceased. All outlying real estate has tum-
bled from old valuations. 1t viii be a
great mistake however, TO conclude from
| these statements that our great interior
metropolis is suffering a serious decline
or has come TO stumbling block in the
way Of It's further progress. 1 have seen
number OF the leading cities OF the
country during the past year. and with
the possible exception of St Louis, they
are all feeling the effects of over-specula-
ton in building. The artifciaily high
rents OF the boom times turned a mass
of capital into building operations on
which it was easy at tina. day 70 figure
out annual returns Of 10 per cent The
decline in rents has been almost univer-
sal. and II is certainly wholesome in one
respect. since il has no more than kept
pace with tah declining incomes Of hard
times. Rent payers are not able 10 pay
the old rates. and fortunately they ara
not obliged TO pay them. High rents
may be regarded as a sign Of business
prosperity, but. if long continued. they
become serious drain on the resources
of all classes Of the community except
the owners OF improved real estate, and
n the end city that can offer low rents
enjoys an advantage over one which :ev-
les a high tax for living room and busi-
ness room en- all who come within its
borders
One hundred vacant houses will pull
down the rent % two or three thousand.
just as surplus OF wheat over the needs
for consumption depreciates the price OF
the whole worlds crop. Yet in the long
run Il may we'll be doubted whether Il is
a disadvantage for city % have dwell
ings and stores 20 offer 20 newcomers a.
moderate rentals. Such opportunities al
tract new people 10 seek on; ways Of liv-
ing for themselves and lead - ;ne es.ab-
lishment OF permanent enterprises. Fa-
ci,ities for the distribution q products
are now so cheap and abundant that 10
place has any very great advantage over
ether places toy production. ard low
rents become an important; factor in the
economics OF manufacturing and trading.
The rush 10 re cities during our specu-
lative epoch pushed up rants and sup
posed values OF real estate 10 a point o.
ahssIrd..y. and a decline was inevitable.
We have, perhaps. gore too fa- in the
reaction. but venture to cay that Il IS
no, pessimistic TO predict ma; when We
regain normal business conditions the
landlords viii have 20 be satisfied IN cur
great American cities with ne: per
cen: OF actual raue y their investments
jus: as they are in tae great cities o.
Europe.
Chicago IS ssiu growing There ere
Only 1yo cries % the first rank in the
United States. Chicago and Greater
New York. and by :ais CO not refer
% population alone. b0; also 20 . firm
grasp c.. ne trade c. a US. region and
secure prospects CO continued advance
n,ea;- y ,aiTd city o. this rank wou,i
grow U, o. re Pacific coast !. the
deserts and TIE noun saias did not come
50 near ne sea Tae-a the fruitful .e--
ri:p-y IS 81. narrow STRIP oou1aare;
with the gces- Mississippi valley Seci
a city migh; also appear on che Gui: Q.
Mexico Il climate were 70, agai-s; tie
exercise o. The highest energies 90 TIE
white race. No city now seems a. all
Axsir - erow INTO rivalry With New