Los Angeles herald., 1908-03-29

44fYfFE&Hl ReleS, as warranted ny the
l$ H2 present outlook In the real
III R estate market, is most prom
ising and this conclusion can
- easily be reached by any per-
son giving this matter prop
er thought and due consideration.
The value of real estate in any city
depends largely upon what improve
ments one can put upon the same, and
what rent can be secured therefor.
This Is especially true of business.
semi business. industrial. manufacture
ing or close in. well-located property,
for flats or apartments, and at the
price at which this class of property
e. now held in Los Angeles anyone can
buy it. improve it and secure a net
rate of interest on total investment of
from to II per cent per annum, and
this without any question as to the
future increase of the value of the
ground, which increase Is sure to fol-
low, as night does day.
OF course, there are other commodi-
ties besides real estate, and many of
them. but l don't believe there is an
other as stable as the EARTH. In my
opinion 1t Is 1T"
Causes of Recent Panic
In the recent disturbance, "a So
called panic" evidently brought about
by overcapitalization or corporations of
various kinds and the overheated pace
at which the various lines of business
were being pursued viz watering
stock manufacturers couldn't fill
orders, adding, to plant, increasing ca
pacity, real estate values pushed up
all over the land, labor scarce wages
high. price of the necessities of life
high. as well as all classes of material,
stocks and bonds soaring. Result-a
tightening in the money market. Then,
virtually, corner on same by two
men of the United States, and. Incl
dentally. to add to their holdings and
TO save any interests they might nave
in Jeopardy, they furnished something
like mere pittance of 25.000,0 900 in
cash in twenty-four hours, and by so
doing were credited with being modern
saviors of the twentieth century type.
But be this as it may, | am sure a
reaction had to come, and | think this
disturbance came at very opportune
time. when there was no shortage of
crops or pestilence abroad, and for the
last few months everything has slowed
up some,' and we are still taking ac-
count; reaction and liquidation are
now with us.
/ merely recite this to show that the
one commodity. and the only one that
l know of, that anyone could borrow
money on since the disturbance was
real estate. Its values are not SO va
cillating as ctocks, bonds, securities or
otL II commodities. In other words, 1t
isn't altogether hand made, nor al
together corporation ridden or con-
trolled. and ii is the one commodity
that can't very well be cornered.
Great Increase in Values
Real estate and climate are the most
v,-luable assets of our city, and al
though values have risen very rapidly
within the past seven years, our in
crease in population in the city and
tributary territory, / think, fully war
rants the increase. Some of our busi-
ness property has increased in value
tenfold or more since 1900, and our
residence property has increased three
fold or more. Yet, with this increase.
our highest priced business property is
reckoned at $4,000 per front foot, which
equals the sum of 100000 for a lot of
fifty feet frontage, by usual depth of
$50 feet, and our best residence lots
at about 500 per front foot. Our popu-
lation in 1900, which was 1O2,479, is