The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1900-02-09
NEN KIND OF TRUST
Real Estate the Subject, and
Specially Suitable
FOR A FAMILY COMBINE
Small Holders Placed at a
Ruinous Disadvantage.
FOR A FAMILY COMBINE

New Yark, Feb 7.-FamiIy corpora
tons to deal in real estate are the latest
developn tent in the current New York in
vestment boom.
The ide q is said to be new. 1t offers
so many advantages. experts think it will
become sur prisingl!y popular. 1t not only
evolves into a prof Mable and pleasing in
vestment, I'ut it enables wealthy men
with large femihd TO effectually dispose
| OF their propE in a manner that can
! not be contested after death.
The first coSnpa1 of this kind has been
| formed by E. NJ. Fulton, formerly Sec
rotary Of the Co -dage Trust. He has
named it the B; arlington Realty Com
pany. ITS stocklH Jlders are Mr.. Barring
! ton, his children and a few near rela-
t1ves. All hold heir pro rata share of
stock, and all an thus interested in the
management of d ne family investments.
The first inves tment property bought
by Mr.. Full IONS ,anliIy corporation is the
new sever t-stor y elevator apartment
house on tn e mo- rtheast corner of Broad
way and Mi lety sixth street. 1t was re-
Gently compl, tied by Charles J. Lacrosse
builder Hr. Fulton paid something
over S225O00 Or it. He has leased it to
Edwin B. KnC swl IS for five years at 800, 900
a year. So t he new femily corporation
has already lad sure Of nearly 10 per
cent return on his one investment for
the next five y'a lrs, with practically no
responsibility as to rentals and manage
mAITt-
Mr.. Fulton is N wv making inquiry for
other fine new in yestments Several of
his friends who an millionaires are pre-
pairing to form ST nilar companies. All
have large families 1t is said a dozen
such family corrpa 'ations will soon be
running each with a fine list of income
paying properties a nd a keen disposition
to absorb more Is their scheme meets
with success.
This new corpo EBtion idea has arisen
from three causes. They are:
First-The exten: don of the trust idea
into all branches 81 public and private
business.
Second-A decid I'd new movement
among lenders on I Mortgage TO hquidate
their loans and buy property outright
Third-OppoINunitie for a wonderful
real estate speculate an and an enhance
ment progressing ste hdily through not
only the present but two or three sue
ceeding generations.
The profitable trans tctior of business
in which large mounts of capital are re-
ouired on the trust or combination idea
( has received cond lusive demonstration
, during the past two or three years.
Where the trust waAi at first regarded as
a, questionable method of procedure it is
now looked upon as the logical outcome
of advanced business conditions. It's
efficacy in economical administration and
control of prices has made it exceedingly
popular with the capitalists. It's appli-
cation to real ESTATE did not come until
it had been thoroughly tested in other di-
rections. Its adoption by the conserva-
tive fnanciers of realty Is regarded is its
strongest argument
| Such real estate trusts are now forming
, in large numbers. The individual, as in
other businesses that have been gobbled
! I'D by the trusts, is practically forced to
sell or join larger combinations. 1t has
been found that small capital in real es-
tate is at even more disadvantage when
in competition with rich aggregadons
J than it is in the smaller domains of trade.
Boston. Ifle seat VI tOllSCA NsNN4N q NtlH'-btI
started the trust fashion New York is
following on a greatly enlarged scale.
The first big company perfected its organ
ization during the past week 1t IS the
Alliance Royalty Company.
1t elected Frederick Soutrack President
| George r. Read. Vfce-Presdent; J. Q.
Cobb, Second President; Alwyn Ball
! ir.. Secretary and Treasurer. Among its
directors are Henry o. Eavemyer, of the
Sugar Trust: President James Stillman,
of the National City Bank: Charles Fran
els Adams, 3D. of Boston; Charles F.
Aver. of Boston. representing the Aver
patent-medicine millions and President
Henry Morgenthau, of the Central Realty
Bond and Trust Company, who organized
the new trust and is the expert operator
for all these caDitalista
This trust which is preparing to dom
mate the smaller trusts now in process Of
formation. and which may eventually
seek to absorb many Of them, has already
begun operations on a mammoth scale. It
has filed plans through Its agents for
more than a dozen new skyscrapers be-
low Fourteenth street, each TO cost from
$3.50 900 to $500. coo The twen5y-story office
building that it intends to erect on the
southeast corner of Broad street and EX-
change place viii cost siO00.Oo1. It is also
supposed TO be the prospective buyer of
the old Stevens House site. on Broadway,
north of the Bowling Green Building.
running through to Greenwich street The
plot has been accumulated by William H.
MARS. 1t Is a strong bidder for the old
, buildings at Nos IS to a Broadway. run
ming through TO New street, owned by
Woodbury. C. I,anrdon.
At least two big transactions OF the
week, supposed to represent independent
deals. were traced 10 operations OF the
Alliance company. One was the sale of
Nos. $50 and 6S4 Broadway. running
through 10 Crosby street, by Henry Corn
: to A D. JuilHar5 Mr. Corn had Just
! completed there a Ie-story store and loft
structure valued around $4,000. He
takes a plot between 5th and 9Th avenues
with 75-foot frontage on 18th street and
SsS feet on 18th street, for Improvement
with another 12-story mercantile struc-
ture.
The directors OF this combination rep
resent the William Waldorf Aston. Henry
o. HavemyeT. Standard oil and other
Aver. Adams and other Boston money
: invested IN Nav York office buildings. II
. l. said tire Alliance capitalists can COM
pletely control the downtown situation
when once they choose to exercise an
thority. The Boston interests are under
| stood 10 be BUYERS % the Victoria Annex