The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-09-20
THE REAL ESTATE MARKET
LONG ISLAND DEALERS FORM A
PERMANENT ORGANIZATION.

WIN OppOse Fraudulent Lot booming and
Promote Legitimate suburban De-
yeIOpmen Some pain speaking at the
Mig Realty Convention In BROOKLYN.
Some good should come Of the plain Ian
Ruage heard at the two days convention OF
Long Island real estate men, which closed
yesterday. Representatives OF the Long
Island Railroad called attention to the
sillegitimate" operations by which small
investors are induced to buy practically
worthless lots at high prices, usually on the
instalment plan. In some instances ac-
cording TO President Peters, farm land
ffty and sixty miles from the city has been
cut up into twenty foot lots and sold TO
people OF narrow means who have been
argued into the belief that their purchases
will presently double or treble in value
Mr.. Peters gave warning that the Long
Island Railroad will not in any way assist
swindling operations Of this nature. Such
f~rankness on the part OF a railway officer
may not have been altogether unexpected.
II required some courage, however, for real
estate men to point out elements OF
In the Long Island boom, as was done nota-
bly, by H. Stewart Mcknight, who depre-
Gated the ndiscriminate lot buying that
10 Just now In progress.
Disintereeted observers have long felt
that some Of the methods used in exploit
ing suburban Long Island must eventually
result not only in loss to investors, but in
lowering the quality Of prospect We building
improvements there. Thousands OF lots
have passed into the hands Of city wage
earners whose occupation and means will
not permit them to build either for their
own occupancy or for investment. The
lots are in ~neighborhoods too far from the
centre Of population to he in genuine de-
mand for building sites in the next ten
or more years. Though located in remote
suburbs without sewers or paved streets
they have been laid out in dimensions Of
20 by 100 feet, dimensions too small even
for modern tenements. and absolutely
unsuited for suburban homes.
These remote Long Island lots have been
sold on the instalment plan at enormously
inflated prices compared with acreage
values. To their present owners they
would not now realize what has been paid
for them. and they will shortly have to
meet the competition Of a practically I'M
limited supply Of cheap and in New Jersey.
This wholesale distribution Of lots that
can only bring disappointment to buyers
expecting a rise must tend, though unjustly
TO discredit the better grades Of property
on Long Island. There are few suburban
neighborhoods 50 adv~antageously situated,
or that lie within a reasonable committing
distance on Long Island. The committing
region there has three big and rapidly
growing industrial centres to draw popu-
lation from, namely, Manhattan, Brooklyn
and Long Island City. There can be no
doubt about the future Of legitimate real
estate operations on Long Island.
1t is important. however, hat public
support should not be alienated through
distrust e~ngendered by questionable enter
prises. For this reason il is encouraging
10 note hat the convention adopted meas
ures TO form a permanent organization
which will be known as the Long Island
Real Estate Exchange, in order to oppose
"~unscrupulous land spectators and inn
sharp practice"