The San Francisco call., 1909-10-23
MONEY ATTRACTED
BY LOCAL REALTY
Rebuilding of San Francisco
Inspires Confidence of Con-
servative Capitalists
By E. MYRoN WOLF,


The insurance department. OF the
state of California has been very close
ly observant of the rebuilding of San
Francisco and the reason is obvious
Following the great destruction by fire
in 1906 the attention of all insurance.
men throughout the United States was
focused on San Francisco.
The Office of the insurance commits
sioner of California was daily visited
by parties in interest, by those who
had lost by fire and by leading insur-
ancemen from all parts of the country
Every phase Of material San Fran
cisco was, naturally enough, discussed.
The question of liability for loss
from any particular cause and the
large number of communicating fires
which ragged simultaneously became
objects of daily consideration. What
ever this department could do to Sc
cure justice and to promote cOnserva-
lively all interests that were bound up
in the welfare, present and prospective,
was attempted with earnestness, If not
with entire success.
NEW ERA OF CONSTRUCTION
Downtown San Francisco and the
other sections through which the
flames ragged were made easier prey
by the composite construction of the
city. There were buildings which
were erected in the early ffties; there
were structures of the more modern
period. all jumbled together. The.
older and cheaper structures had long
been considered by underwriters to be
menace to their more costly and
more modern neighbors. Events
in ro-
gard were justifiable, for the dire event
showed them to be correct.
We have entered into new era Of
construction. The most costly huild-.
ings and the most costly contents for
such buildings are found in the busi-s
ness sections of the city, both whole.
sale and retail. Such was the fact, of
course, before the big fire. and such
will always be the fact. The physical
characteristics of San Francisco, espe-
cially the steep grades which rise from
one plateau to another, naturally bar
the business districts within certain
easily accessible areas.
EXTENSION OF BUSINESS
There has been naturally an extern
sion OF the manufacturing, whole
sailing and warehousing sections. The
region which lies south of Market
street and extends toward the bay of
San Francisco on the south was one of
those most earliest populated, Tens
of thousands OF houses were in that
section and the Rincon hill residential
part of the city, still retains some OF
its old time spiendor.
+ In the thousands OF houses were re-
siding families of whom many had
been: there for generation The
covetous eyes of men of business were
cast in that direction, for as the trans
portation companies secured terminal
facilities of large size in the region
of the south shore of the bay and as
manufacturing spread it's Industrial
structures southwark, 1T was easy to
be foreseen that the manifest destiny
of that part of San Francisco was to
become the home of business of many
sorts, in which warehousing and
manufacturing might predominate.
IMPROVEMENT FASTENED
The sudden clearing Of this compara-
lively fiat part of the city only
hastened the day when its lands would
be covered by costly structures. What
would have taken many years to ac-
complish in the slow progress of bar
ter and sale of lots was brought about
at once. But there never has been in
many years any large amount OF fiat
land available or open near the centers
of business and there never could be
any greater area unless it were ex-
chief attention of the underwater is
and will be directed toward what win !
remain In history as ''the burned dis
trict." 4
That which was infammable in that
dlstrict in high degree has been sup
planted by that which is, relatively,
nreproof An assurance of permanency
resides In this fact, which is an inn |
portant factor in determining the fu- |
lure relations of San Francisco, not !
only TO the underwriters, who have
proved to be such an important factor
IN an emergency. but also an asset in
the real income paying value OF land, |
taking period of years together.
MANY FINE BUILDINGS
Mark the spIendor of downtown
business streets in comparison to
their former state. Not many days 90
a party of prominent capitalists were
observed going through Grant avenue.
They were attended by strangers, evi-
IDENTIFY men of intelligence They were
calling attention, with evident pride. /
to the fine buildings which line that
thoroughfare on both Sides To the
thinking man the rebuilding of Grant |
avenue. the rebuilding Of Market
street. of Kearny street, OF O'Farrell !
street, of many other streets on the
present scale is doubly significant. |
The businessmen of San Francisco in |
tend largely because they foresee large
ly the future of San Francisco. Their
demands for superior accommoda tions
and the willingness of owners of San
francisco realty to invest liberally
in the required improvements on the |
guarantee of long time leases Indicate
that the holders Of real property share |
the large expectations of the men of |
business.
LARGE LOANS On REALTY
This Office is naturally in touch with
the underwriters, and their views are
quite we'll known. The attention of
everybody has been attracted bv the
lending of large sums of money in san
Francisco by prominent Insurance COM
panies on the security of local realty. |
Confidence, therefore, is not entirely
local. but is entertained by those who
are conservative and wffo, by the con-
ditions surrounding them, are com
PEELED to be conservative in their in
vestments. Every large loan that is |
made in San Francisco by an eastern
insurance company involves a discus
sion of the conditions here, of the new
construction, of the spirit of the peo- |
pie, of the promptness with which /
trade has revived and OF, the expansion
of business which might be expected
from seaport located as this is. in |
view of the Panama canal and the gen