The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1902-03-19
REAL ESTATE
A BRIGHT FUTURE BUSINESS CEN1ERs
Forecast of Real Estate Market by
Lester B. Elwood.
FEW LESSONS OF THE PAST
Mr.. EIvvood Is Chairman of the Real
State Boards Committee on
4' Valuations.

Lester B. Elwood, chairman of the Min
neapolis Real Estate boards valuation
committee, speaks as follows with regard
to values:
To forecast the real estate market of Min
napolis. consideration must be given to the
past as we'll as to the present
During the years from 1880 to 1885 the
growth of this city and the country tribu-
tary to it was phenomenal. The United States
census of 1880 gave to Minneapolis a popula-
ton of 46, 8S7 and the state census of 1885 gave
US 129. 200 inhabitants. Assuming the accu-
racy Of the state census, this was in increase
in FIVE years of 1T per cent, and admitting a
possible oyercount in 1885. we had during
those five years an unGuestioned increase of
more than $50 per cent.
The result could not have been otherwise
than to carry real estate prices above the
level at which they could be maintained. The
result was that prices of Minneapolis real
estate rose to their highest point during the
years from 1886 to 1898, from which time the
market was unsatisfactory and stagnant until
the general business depression Of 1899 gave
to our real estate fatal blow. from which,
except in a very limited area Of our best
, business property or in some isolated and rare
instances it has not recovered.
The extension of rapid transit street rail-
way service has meanwhile made available a
very large area Of desirable residence prop
erty, and the price of residence lots within
the city limits has fallen during the past if-
teen years from 90 to so per cent. while the
recovery from this depression has thus far
been slow and but partial. The greatest de-
! preston, and thus far an almost entire alb.
sence of evidence of recovery, has marked
that large area of residence property most
remote from the center of the city. but even
choice, central residence properties have suf-
fered q depreciation of 80 per cent, from which
the recovery has been slow and as yet but
partial. .
| This depression resulted in very general
| foreclosures of mortgaged properties, having
| no income to meet charges Of taxes and In
|terest and these forecloscd properties, forced
| upon the market by their unwilling owners
| most of them n-resdents-made an immedi-
ate recovery in values impossible
| y More Favorable Conditions. as
Meanwhile the conditions which must bring
about a favorable, change are present on every
| hand, and their effect is already beginning tt
/ be felt, and in marked degree.
The increased production of gold has CO.
+ operated with the natural reaction from the
depressed business conditions Of 1893 and thu
years following, to bring about business con-
ditions of almost unprecedented activity
! throughout the entire country. Our own city
! has maintained a steady and satisfactory
!
per cent greater than it was fifteen years
since. Meanwhile, with this increase Of ou'
| population and a corresponding local growth
| and business development in all directions
cur real estate has not even in the mos
| favorable localities, reached the price Of
1865 except those few choice blocks on Mic,
! oleu avenue lying between Fourth and Eight
| streets and some other isolated instances.
| Meanwhile REIMBURSEMENT has been going
forward by which a very large percentage Of
| the foreclosed properties have passed by sale
from their unwilling owners, to purchaser:
who hold them as permanent investments
/ The fact that final values attach to real es
| tate holdings is again being forced upon the
attention of investors. The development anC
settlement Of this northwestern territory trib
utary to our city has been very marked dur.
| ing the past three to Ave years. and still con
tinues The capital of the country, which
| has been SO largely invested in stocks o.
banks, railroads and industrial combinations
| is now hesitating because Of the enormous in
crease o. these stocks and the high rate al
which they are held, which threatens very
| low dividends and consequent depreciation
I The more conservative holders Of stocks viii
assuredly during the coming two to FIVE years
realize upon these and reinvest in real estate
| wherever it has been unduly depressed
| Railroad Yards Expand.
|
evident purpose of the railroads centering il
| Minneapolis to increase their terminal facili
ties while it can be done at a low cost. This
| purpose appears to be notably evident on the
! part Of the 500, the Milwaukee, the Omaha
the Wisconsin Central the Burlington ant
the Great Northern, whose real estate pur
| chases during the past year have been quite
| ext ensive. .~ l. "
| These purchases and the evident tendency
| of the market have converted many of ou
disheartened citizens and have made then
| buyers instead of sellers. 1t is very rart
| now to meet person who does not express
| confidence in our real estate future, and whel
| that confidence has so much to justify it al
| is evident at the present, it becomes an ele
1 inent of strength. s
| For these reasons and many others whicl
| are not difficult to find, it is very safe to pre-
dict that the real estate Of our city will b.
sought for and sold at advancing prices dur
ing a period which is likely to extend owe
the next ten years.
An East Side Improvement.
The ST. Anthony improvement company ha
Ebeen formed among East Side real estate mel
with $4,000 capital. The officers are: w.
Chute president; l.. P. Chute, vice presiden
and treasurer; Fred B. Chute, secretary. Ere