The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1910-01-17
INSANE REAL ESTATE VALUES.

INSANE REAL ESTATE VALUES,
The Gate City has had occasion, and
good reason, to utter protest severa
times during the past week agains
the folly of putting fictitious values
upon Keokuk real estate because Of
the prospective development of ths
water power, The inevitable effect Of
inflated values, as has been pointed
out, will be TO drive elsewhere fac
tories seeking location here. Unless
suitable sites can be purchased at rea
sonable prices industries which should
give employment to labor in Keokul
and add to the population, Importance
and prosperity of this city will become
factors in the upbuilding of Montrose
Fort Madison, Burlington. Canton
Quincy and other neighboring cities
and towns This is not mere opinion
1t is foregone conclusion, and it is
recognized by all who have given the
subject the thought it deserves. The
business community in particular has
a vital interest in this matter and is
deeply stirred UP over it, A leading
Main street merchant writes The Gate
City as follows on the subject:
To the Editor of The Gate City:
A number of times lately has ap-
peared in your paper reference to in
sane prices" on real estate having the
effect of preventing factories locating
here. The greatest benefit Keokuk
will realize from the building of this
great power is in the locating In this
immediate vicinity of factories to use
it which will employ numbers of work
people. All these additions which are
being planned to the city will not find
purchasers unless there are people
to live in them and these people can
come only if there is a demand for
them created by the locating of such
factories.
From all that can be learned, some
thing like one-half of the power to be
developed at first is already contract
ed to distant parties and the line
which will conduct this power to them
passes cities which can easily connect
with it and which will Use nearly one
half of the balance of the power. By
running line north practically all of
the balance OF the power developed
can be sold within a distance of fifty
miles, and if the cities north and
south of US will go after factories as
they have always done, where will
Keokuk be? We will have the addi-
ton to population of the men required
to care for the plant and possibly one
or two small concerns employing a
few people.
1t seems to me that this is very
critical condition and requires decis-
i've treatment If we are to receive the
benefit from the building of this great
power that we should. Certainly the
Water Power company will prefer to
sell power at hand rather than to con-
struct conducting lines, but they will
expect the people of Keokuk 10 do
their part in getting the factories here
and let them receive their profit from
the permanent result of such incre-
ment of population rather than in the
sale of land for locations, and if We
fail to rise to the occasion we will
find that before the completion of this
project that practically all the power
developed will be contracted for and
we win be in the same condition as
before its building. Our additions
will remain unsold and our city will
go on in the same old way.
In connection with insane real es-
tate values" comes the matter of rent
ais. Residence property rentals have
been steadily increasing for the past
eight years and are now on very fair
basis. Although business property
rentals are in some cases low, nothing
can give more value to this property
except an increased amount of bust
ness for the occupants of the build
ings, and abnormal advances in such
rentals at this time can only deter
business expansion. A case has come
under notice in the past few days of
a certain Main street property, which
has been renting at s45 per month";
and | am certain that the occupant
has paid a fair percentage of his re-
ceipts for rent,--of which the owners
notified the tenant that $50 per month
would be expected in the future
Without doubt Keokuk merchants may
expect if the condition is handled
properly. steady increase of bust
ness and | am certain that all Of them
will be very glad TO pay an increased
1Snldi pIOpDIIlOHdlp LO Inc iHCISdSe III
business, but such increase must come
slowly, and any such attempt at ex-
tortion can only result to the disad-
vantage of the city.
There can be no doubt but that Keo-
kuk is at the most critical period of
its history. Now is the time when
the future of the city will be made or
married, and everyone. owner, renter,
seller and buyer, should work for the
permanent interest of the place.
MERCHANT.
The matter of rentals Is not less
important than that of the valuation
of property AS yet there is absolute
iy no excuse for any increase in rents,
and there will not be any excuse until
an increase in population and larger
volume of business create an actual
and active demand for store rooms
and residences. Our correspondent
states the case exactly when he says
in speaking of business property that
nothing can give more value to this
property except an increased amount
of business for the occupants of the
buildings" AS yet there has been no
increase in the amount of business
and there is nos likely tn no any ma.