The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1901-07-12
BUYING BACK PROPERTY
THE HOLDINGS OF EASTERN INvEs-
TORS GREATLY REDUCED.
Real Estate I'm Indianapolis n Stable
Observation-Disclosures Discussed by
Thomas HI. Spann.

"while we are discussing the general
prosperity of Indianapolis" said Thomas
II. Spann yesterday. permit me to sug-
gest that to me one of the most gratifying
things is that the people of this city have
about succeeded in redeeming the city's
best business property from the hands of
Eastern investors. who held 1t for a num-
Der of years. In other words, we have
literally bought ourselves back from the
East"
In explanation Of this somewhat remark
able statement Mr.. Spann called attention
to the great panic of 1874, when property
was mortgaged with an almost reckless
prodigality. He said that for a number of
years after that the big Eastern insurance
companies did a large business in this city
in the way of handling these investments,
which came into their control through
the mortgageors being unable to pay off the
mortgages. During the past eight or ten
years the greater part of this property has
come back again into Indianapolis owner
ship. AS a rule. the insurance companies
have been glad to part with the property
on payment of the amount of their original
loan. together with interest.
One curious incident was brought to light
in an investigation of this interesting sub
ject. 1t was learned that a prominent
local investor in real estate offered $45, 900
for a large block south of Washington
street at a time when the city's population
was but little more than half it's present
size, and that a few years ago, when the
population had almost doubled. the same
man obtained the block for $37, 800. He is
now holding the deed from record because
he does not care TO have such an anon
alous fact become public. He regards the
investment as the most fortunate of the
many he has made in the past twenty-five
years, and holds the property at 500, 900,
not being very anxious to sell even at that
figure.
MORTGAGE DEPARTMENTS.
Mr.. Spann said that the mortgage de-
partments of the Eastern insurance COM
panies are dwindling away at a rapid
rate in this vicinity. About twelve years
ago the firm of John s.. spann & Co. started
as agents of the Connecticut Mutual with
local mortgages amounting to $780, 600.
To-day the company holds mortgages
amounting to the small sum OF $500, 900 in
indianapolis. The Spanns at one time
looked after mortgages of $4,000 for the
United States Mortgage and Trust Com
pany, but that amount has been entirely
wiped out.
The Equitable company had about $1,000
600 worth of local real estate in its control
Il I Olle IlIlt. Dul Tic dtlOUIll III ullh
10 100000. The Berkshire Life Insurance
Company, represented by Charles +. Coffin,
had. about six or eight years ago. $780,
600 of Indianapolis real estate in it's con-
troll, but $4,000 of this amount has come
back into possession Of local people.
Mr.. spann said that about the only iarse
holding of local real estate by nonresident
| people is the old Franklin Life Insurance
Company building at the intersection of
kentucky avenue s ana iiii m GiS scTee., owned
The natural order of things" said Mr..
Spann, lis for a man to own real estate In
the community in which he resides, SO that
he can exercise a supervision over it. These
nonresident holders acquired their property
here by foreclosures OF mortgages and their
money out of it. so that whenever they
could get anything like the original cost
they have sold it. 1t is the rule the world
over that a man wants TO own real estate
in the town in which he lives so he can
watch and care for it. There are excep-
ions TO this rule. but real estate is a thing
that has to be watched and cared for and
that is always done better by a resioent
owner"
Mr.. Spann said that there has been a re-
rka and steady increase in realizes
tate values on Washington street. between
Illinois and Pennsylvania. and on Pennsyl-
vania street. between Washington and
Ohio. To illustrate this he said that Spann
& Co. in March. sold the building now oc-
cupied by the Emerson Shoe company 10
two local men for SIS. 900. and they have
since been offered So, 900 for il.
1--WE are selling to-day to George E.
Feeney,' said Mr.. Spann, "a vacant lot
opposite the Statehouse for $4,000. 1t is 221e
feet front and 1876 feet deep
Mr.. Spann said he had seen property on
Market street, between pennsylvania and
Delaware. increase in value in the past
fifteen years from $500 a front foot TO 5000
a front foot. The site OF the Law building
was bought by Frank Maus Fauvre from
the Connecticut Mutual Life Insurance
Company for about $4,000 or $4,000, and
sold TO the building company for $4,000
cash and $4,000 in stock or the company.
Real estate on Washington street. be-
tween Pennsylvania and Illinois. according
10 Mr.. Spann, has increased In value about
40 per cent. in the past fifteen years.
After the famous panic of 1873 real-estate
values shrank TO almost nothing and a few
local investors were far-sighted enough to
appreciate their opportunity and buy liber-
ally of the deprecated property. One of the
most successful Of these men was NJ. II.
Spades. He purchased the Windsor block
from George +. Bissell. representing a large
the small sum Of $l25.0 200. That was In 1876.
To-day the block cannot be bought for
$500. eco. Mr.. Spades bought from Mr.. Bis
sell, in 1877. the Russell and Bugbee block.
on Massachusetts, avenue, between East
and Liberty streets. for $1,000. and sold 1t
| last year for SOS, 500. He has since made a
number Of fortunate investments In local
real estate and In every instance his belief
that the growth OF the city would appreci-
ate the value Of his investment has been
! fully justified.