Omaha daily bee., 1903-03-15
WORK OF REALTY EXCHANGE
Begins with Fight On "OurbItOne" Brokers
and Leads To Tax Reform.
ACTIVITY IN BEHALF OF EXPOSITION
How the Contest for Equality in the
Taxation of Real and Personal
Property was Carried TO
Successful Issue.

DO you know that the Omaha Real Es-
tate exchange, which has come so promi-
nently to the forefront during the last two
years, has a history which can be traced
back into the middle sos? Yet that is none
the less a fact. fer II was organized Sep
TENDER 1, 1886, with the late Alvin saun-
ders as its first president.
The principle OF tax reform was probably
far from the minds OF the founders. for the
original object was to bring the real estate
dealers Of the city into closer and moro
harmonious relation and incidentally to
crowd out what, at that time. constituted
one Of the greatest obstacles In the path
Of progress-the "curbstOne broker" SO 1t
was TO make war upon the "curbstone
broker who maintained no ONCE and sim
ply foraged upon the drippings, taking
whatever commission he could pick up, that
the men who maintained ofices and had
recognized standing in the community, got
together an association of their own. AL
though to keep out the nondescripts the ad-
mission fee was fixed at 800, the early
growth Of the exchange was rapid and the
extinction of the "curbstone' species later
led the way to a reduction Of the entrance
fee to the present hgure-S1O. Up to and
through the boom days the old exchange
was an active factor, but with the collapse
OF the imitation period, 1t sank into quies-
cence.
The Omaha Real Estate exchange in its
present form dates from 1896, when 1t was
reorganized on the eve Of Omaha's awaken
ing from a period OF depression, when all
commercial interests had resolved to mako
a strong effort to revive trade and industry
through the Transmisslssippi exposition.
Called together TO take an active part in
the preparations, the real estate men made
r. A. Benson president of the new ex>
change and adopted the present constitu-
tion. The first work was to assist In
securing state and national appropriations
for the exposition, to promote which a
board Of sixty-seven persons was launched
on a tour through the southwest, with
Texas as the objective point, in the inter-
est OF the exposition. Upon that trip Ne
braska acquired half q mile water front on
Galveston harbor, decided by the citizens
Of Texas to Alvin Saunders in trust for the
state Of Nebraska
Auction Sales Unsuccessful
After the exposition the Real Estate ex-
change again turned its attention to mat
tiers of special interest to the members,
and attempts were again made to establish
. system OF auction sales, which, however,
proved no more successful than the former,
only q few lots being sold at prices so
low as to make the sales f~arcical.
It was in 1900 that the exchange made a
new departure in establishing a reliable
system Of appraisements upon business and
residence property. Values Of Omaha real
estate at this period were an unknown
quantity. Much of the land had not
changed hands since the days Of the boom
and prices then fixed were the nominal
value OF property during days OF depression.
When inquiries for land picked up after the
exposition dealers had no adequate basis of
value to depend upon. They could not ask
the price paid at the last sale, for that
would have been absurdly high, and they
did not dare to fix a value upon a capitalize ..
tion Of the net earnings for a given period,
as in many cases this would have been a
minus quantity. For two years or more
the weekly "appraisement' was a regular
feature OF the exchange meetings, and to a
great extent has fixed the relative values OF
property upon its present basis, a basis, by
the way. at this time below what would
be a capitalization of the net earnings on
the average property OF the class for the
last four or nve years.
Upon the election OF W II. Green to the
presidency in 1901 the exchange became
more widely advertised. Mr.. Green asked
the question. what is The matter with
Omaha? ~ and for a year or more business
men. professional men and property own
ers, in response to invitations. endeavored
to answer this question. These answers
were as diverse as the speakers. but all
stimulated interest In the exchange. For
the time the weekly meetings. then held
each Wednesday in TIE Commercial club
rooms. were chiefly occasions for prepared
addresses, followed by more or less in
formal discussions.
Out OF these informal discussions grew
what is regarded as the greatest achieve
ment OF the organization. In the fall of
1901 one OF the speakers called attention
to the wide difference between the actual
value OF certain personal property and
the valuation placed upon It by assessors.
With some doubt as to the fitness OF the
action the president appointed a commit
tee to investigate he matter.
began I'm Small Way.
This investigation began In a small way
before the county commissioner and was
productive OF no immediate results, as the
owners Of this property. located mainly
In South Omaha, made a showing accepted
by the ~ofhcials. A short time after this
the city tax commissioner, addressing the
exchange, called attention to thu great
discrepancy between the value OF the per
sonal property Of the city and that Of the
real estate. Another investigation com
mittee was appointed, of which F.. d
Wead was chairman and W. G. SehriveI
secretary. The committee hrst ascertained
that the public service corporations were
being taxed In an amount greatly out Of
proportion TO the real estate Of the city
and sought 10 have the corporate assess
ments raised to a point equal to the as
sessment upon real estate-at that time
40 per cent Of the actual value. The tar
commissioner cO-Operated to a certain ex.
tent with the committee and presented e
the Board Of Review assessments upon the
property Of these corporations greatly II
excess of any previously made. The board
however. reduced the assessment TO prao,
tieally the former figures, whereupon w
G. Shriver and George T.. Morton. on be
half OF the Real Estate exchange and II
their personal capacity. died complaints
before the city council as a board OF equal
iEation. The council refused 10 give tn
relief demanded and recourse was had Il
the courts.
Before Judge Dickinson the case wa
tried and resulted in q victory for tn
exchange. Then came a test OF the earnest
ness OF the members Of the exchange
odcers Of the corporations proposed com
promises upon different bases. and for twI
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