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About The Sunday Oregonian. (Portland, Ore.) 1881-current | View Entire Issue (Dec. 20, 1914)
TTT13 STTXTAT CRTSGONTATf. POUTLATfU. DECEMBER 20. 1914. " TV0 BIG DEALS ARE FEATURE OF WEEK TWO PROMINENT BUILDINGS FIGURE IN BIG SALES OP WEEK. SALT LAKES' LEASE MARKS BIG PROJECT KNOWLEDGE OF VALUES -NECESSARY ESSENTIAL Ignorant Often Do Property Injustice by Fearing to Place Proper Worth on Realty Because of Lack or Information and Judgment of Market. 8 . Nortonia Hotel Sale for $260, 000 and Royal Arms for $160,000 Noteworthy. . CASH SHOWS IN TRANSFER Properties Exchanged Are' Conspic uous Holdings . and Cause Opti mistic Comment Other Trans . actions Go on Record. - Decidedly the outstanding features of the realty market In Portland dur ing the past month were two large exchange transactions announced origi nally in The Oregonlan Friday which involve the sale of the Nortonia Hotel, valued at $260,000 and the Royal Arms Apartment building, valued at $165,000. The Nortonia Hotel, located on the southwest corner of Eleventh and Stark etreets, is the most valuable parcel .of inside city realty that had been sold for about a year. Through the terms of the deal, virtually completed Thurs day, S. Morton Cohn, a prominent theatrical magnate, sells the hotel to Charles R. Frazier, president of the Crescent Paper Company, and his mother, Mrs. M. E. Frazier. In return for the $260,000 value in the hotel, Mr. Cohn is to receive the two etory brick building on the north east corner of Ninth and Davis streets, several properties in the locality of. East Seventh, East Pine and East Pak etreets and over $100,000 in cash and its equivalent. The Nortonia is a six-story building covering 100 feet square. It was built In 1907 at a cost of $140,000 and was eold in 1911 by M. L. Holbrook and the late R. B. Lamson. with the property for approximately the present sale price. Percy Biyth, now of London sold the land on which-, the building rests to Mr. Holbrook and Mr. Lamson In 1906 for $70,000. Philip Fry, of the Fred A. Jacobs Company, is representing Mr. Cohn and LeRoy Fields, of the realty firm of Fields & Honeyman, is representing Mr. Frazier in closing up the transac tion. $165,000 Deed Christmas Gift. - The transfer of the $165,000 Royal Arms Apartment building located on the northeast corner of Nineteenth and Lovejoy from its builders, D. B. Mc Bride, R. F. Wassell and A. C. Going to R. F. Lytle, a prominent lumberman, who came to Portland from Hoqulam. "Wash., furnished the other large sale told of last week. Mr. Lytle will give the building to Mrs. Lytle for a Christ mas present. For the Royal Arms, Mr. Lytle paid the Royal Arms Company some $55,000 or $60,000 In cash, $50,000 in stock in the Lumbermen's National Bank and gave it title to his . palatial home at East Twenty-second and Hancock etreets, Irvlngton, valued at about $55, 000. It cost considerably over $100 in war stamps to record the transfer of the property at the courthouse. The Royal Arms, completed last August, Is a five-story brick structure containing about 60 apartments. It covers a full quarter block. The building permit covering Its erection called for an expenditure of $100,000. Many Sales on East Side. On the Foster road sale of land in volving $10,000 was made last week by lira. Hattie Tott to E. B. Rutan. An other tract on East Thirty-ninth street was purchased by J. C. Pope from Lot tie Olson for $5000. On Johnson Creek 2.92 acres were purchased by Bronls law DomdrowskI from William J. Par tygis for $3500. In the Jacob Johnson Donation Land Claim near Lents a tract of land was eold by Robert H. "Wall to Robert A. Flemmlng for $800C Sales of lots in Laurelhurst aggregated $5000 and sales in St. Johns totaled $4000. "Now is the time to invest in real estate," said J. J.. Oeder, "while prop erty is moderate in price. Every in vestment made now is absolutely safe anywhere in Portland." William Bain Bayi Home. William Bain purchased of the United States Mortgage & Investment Com pany a house and lot in Rose City. Park for $6000. Two lots in Terminus Addition were eold to C H. Gossett for $1100. Samuel A. Brown made the sale of this prop erty. Sale in Irvlngton Park. Victor Hammar transferred to Mrs. W. J. Wllkins a house and two lots In Irvlngton Park for $3500. Laurelhurst Lots Sold. Frank L. McGuire purchased a lot from Herbert M. Ware in Laurelhurst for $1000. Mary C. Shepherd purchased a lot in Laurelhurst for $1397. W. R. Cochran Buys. W. R. Cochran purchased three lots In University Park, from Helen V. Knappenberg for $1500. C. T. Eaid took title to a lot in Beaumont form the Columbia Realty Company. The Over look Land Company sold to Joseph C. Potter two lots in Overlook, for $1150. Acreage Sale Reported. A tract of land on Johnson Creek was Bold by William J. Pareygis to Brown lslaw Domrowskl for $3500. George E. Weller purchased four lots In the Northern Hill Addition, Lower Peninsula, from Bertha Lehmkuhl for $1000. The Riverside Homestead Company transferred to Minnie Winters a lot in Benedictine Heights for $1483. Tract Sold for $5000. A tract located on East Thirty-ninth Btreet was purchased by J. C. Pope from Lottie Olson for $5000. C. W. Pallett bought a lot in Ladd's Addition form Sadie Gevurtz for $1000. Snnnynlde Home Let. In South Sunnyside Henry Harkson purchased a house and lot from H. Rod stad for $3000. Two lots in Concord Heights were sold by Rev. W. T. Kerr to Harry A. Hampton for $1380. In Tre rnont a house and lot were sold to An ton Stickel by George W. Betts for $1770. . Rose City Park Home Sold. John J. unamBerialn purchased a house and lot in Rose City Park from W. H. Bailey, for $4000. In Portland Homestead A. Leaman Davis sold to C. E. Cunningham a house and part of a lot for $3000. Quarter Block' Brings $3000. A house and two lots in Highland Park, were purchased by M. A. Schuster from Mrs. Delia Fisher for $3000. Mary llsle r eager took title to a lot in Westmoreland from G. A. Olsen. J. II. Aekerman Bays. J. H. Aekerman purchased a lot In Laurelhurst from the Laurelhurst Com pany for $1550. B. F. Keith took title to a lot. in Westmoreland from G. W. Priest. Hartman & Thompson sold two lots In Rose City Park to Edith Hughes for $1600. Peninsula Lots Sold. Kate Goff purchased at Meagley Highland on the Peninsula fractions of several lota from U, Parley Kimball. i . . m - " t : I i "l4tJi T Yfi ' ft f Is f, , - tit- - V i 'T f In l . r4f Pat I I if-C'-' "?V5 js irA "'yf'LZZ for $1050. The Swinton Land Company transferred to Ttllie PUgerrim two lots in Swinton on the-Peninsula for $1000. . . Sales Pile X'p Kast. The realty firm of "Umbdenstock & Larson reports the following sales closed during three or four days last week: To A. D. Hanson, house and lot on East Seventy-fourth street," in Jones more, 12350; to R. M.' Speelmon,, house and lot on Albina avenue, in Cumber land, $3300; Roy Orey. four-room house and lot on Bast Seventy-fourth street, in Jonesmdre, $1500; to B. Z. Walrad, four tracts .in Bristol, near Gresham, and house, 42100; Olive C. Trefren, three-acre tract and house at Pleasant Home, $1650; to J. A. Schmedtmeier, house and lot at Hast Eighty-seventh and Hassalo streets, In Lee Bow Park, $1700, and to L. L, Young, G. W. King r. Astoria Masons May Build. According to unconfirmed reports the Masons of Astoria-have decided to erect probably a four-story brick and mill construction home, covering di mensions of 50 by 100 feet, it is pro posed to use the first floor for store purposes, the second floor for offices and the two upper floors for the lodge and reception rooms. The building, it understood, will cost about $50,000. FARM BRINGS $51,000 TWO OTHER T7MATI LTLA COTJ3VTT DEALS AGGREGATE 365,000. Dr. J. G. Lobb, of Portland, Bays Tract of Land A'efir Hubbard Hermlston Deals Reported. The feature farm sales were reported last week from Pendleton and vicinity. wnere several deals involving valuable farm properties were closed. Dave Bain, well-known rancher of Wild Horse Creek, paid James Nelson $51,000 for the 600-acre Nelson farm neear Havana, on the north side of Wild Horse Creek. Mr. Bain is the son-in-law of Dr. Lleuallen. of Port land, and J. T. Lleuallen, who owns a tract of land at Adams. Two Deals ' Aggregate f 05,000. Justis Wade and wife have sold large tract of land in section 11, town ship 5 north, range 35, located about five miles west of Milton, to Emery Staggs for approximately ,$40,000. For $25,600 Frank J. Beale has sold 1320 acres six miles northwest of Athena to Fay S. LeGrow, of Athena. Portland Doctor Bays Six Acres. Through the realty agency of, Crow Be Pierce, of Hubbard. Dr. J. G. Lobb, of Portland, has bought six acres of beaverdam land in the Dimick tracts near Hubbard. ... ' Hermlston Deals Told. Four small realty transactions were made last week at Hermlston, on which cash was paid for the larger part of the values. Two. five-acre tracts in alfalfa .were sold by B. F. Boyce to F. C. McKenzie and Thomas Fraser for $900 each, and H. L. Wyckoff bought two town lots on which he will build a home. C. G. Stewart bought two lots for the erection of a small cottage. Garage to Go XTp at Once.- - John D.undore has commissioned Architects Camp & DuPuy to direct the erection of a one-story mill con. structlon garage at 555 East Four teenth street. North. The permit, is. sued yesterday, estimates the probable cosi a.t ouju. 'Tnr-Mftrininniii ' i '::'v.'':Jly.,:x-: -- - t S W e-3a , , . CITY BOND ISSUE NEAR BIDDING . FOR C150.OOO WORTH TO , CLOSE TUESDAY. Denominations of 81000. Bearing 6 Per Cent Interest and Payable In 10 Years, WIU Prevail. The fact - that all municipal - and county bonds recently sold In Portland have attracted premiums lends addi tional interest ,to the bidding for the purchase of $150,000 worth of city im provement bonds that will be closed Tuesday - at 2 P. M. by City .Commis sioner Bigelow. These bonds will be issued in denom inations of $1000 bearing 6 per cent interest and payable ten years from date. They will not be sold for less than par and accrued interest. As usual, all bids must be accompanied by a certified check for 5 per cent. Bridge Work May Go Ahead Soon. Morris Bros, submitted the best bid among seven proposals last week for the purchase of the $1,000,000 Interstate, bridge bonds. They offered a premium of $31,000 for the bonds, which bear a rate of 5 per cent interest redeemable at the rate of $40,000 each year. In view of the favorable bids, it Is re garded as probable that the plans and specifications drawn up by the bridge engineers will be adopted soon by the Bridge Commission and bids invited, for the construction work. f 180,000 Bond Issue Up. A Baker election will be held at an early date to vote bonds In the sum of $180,000, the proceeds of which are to be used In the construction of a muni cipal lighting plant. L. R.. Stockman was employed to prepare plans for the plant and J. 1 Stannard is consulting engineer. Soda Spring to" Vote on Bonds. A special election has, been called at Soda Spring, Idaho, for "December 28 to vote on the issuance of $15,0410 worth of bonds for installation of a municipal lighting plant. J. F. Woodall is chair man rf tViA Tftwn Rrtn v NEW BTJXGALOAVS I'LAXXEI Prosperity Here, Says liaurelburst Company Official. " . Paul C. Murphy, vice-president f the Laurelhurst Company, reports that in his judgment the business outlook-is extremely, encouraging and says hts company, is. receiving flattering reports of increases in business from every sec tion 'of the country, including every line of industry. - "The general increase of business throughout the Nation is noticeable. The reports for October Jump far above those of September," said Mr. Murphy yesterday. "Money 1 becoming much easier all over the country. The-loan brokers in Portland all report that they have plenty of money to .loan; but have difficulty In finding good loans. "The foreign commerce for October greatly exceeded that of September. The bank deposits are near the highest total ever reported in the city. The farmers throughout the country are receiving higher prices for their products than ever before. In fact, there is every in dication that, prosperity, is here, . "We feel so much encouraged over the general outlook that we have de cided to re-design one of our largest blocks into 28 building Bites especially for bungalows. The block is admirably located and the new. plan will provide ; -:-:-s:-: :-rr; u j t Mt m immit m a court leading up through the center. with formal gardens and ornamental shrubbery on either side, with a very attractive ornamental entrance on East Forty-first street. "We have expended a great deal of money during the past couple of months in securing plans of some of the most attractive bungalows that have been built on the Pacific Coast, prlnclpall thoee that have been built in Southern California. "It is our purpose to give the people of Portland something that they have never had before,, and from- the in quirles we are receiving from our ad vertising our bungalows are going to make quite a hit. " ' ' Chinaman Makes Investment. Chin Quong, a Portland Chinaman, last week paid Nelson Giles $3600 cash for the frame building covering a 50 by 100-foot corner on East Forty-third street and Hawthorne avenue. The building is divided into three stores. The property Is described as lots 1 and 2, block 3, Hawthorne avenue addition. The purchase was made as an invest ment. The sale was made through the realty office of Benedict Brothers. Two Houses Started in Beaumont. O. L. Ferris and G. E. Maxwell ob tained building permits last week for the construction of two one-story bun galows at 697 and 701 East Forty-fifth street. North, in Beaumont. One will cost $2000, the other $2500. -Ilr. Max well, who drew the plans for both buildings, is also erecting a $3000 bun galow at 40 East Forty-first street. North, In Laurelhurst. FARM SALES ARE MADE DORR E. KEASEY REPORTS DEALS OF FROM $3000 TO ? 50,000. McIowclI Bros. Buy . S40-Acre Ranch - In Grass - Valley Property Is Traded. Wheat ;lry v. Dorr E. Keasey reports having re cently closed the following deals: MclQ well Bros, purchased from C. H. Stockwelv. a 240-acre wheat ranch in Grass. Valleyf or $5000. Samuel Boice- purchased from Milton O. Nelson 10 acres, on the' Base Line road for $4000. - Mrs. Lillian Kurtz purchased from J. R. Haight 160 acres in Clarka..vCounty, Washington, for $5000. - C. H. Stockwell Purchased from G, C. Goldenburg a. modern bungalow on East Thirteenth street for $4000. i McKlnley Mitchell and Charles F. Read, sold to P. A. Cllne the north west corner of Seventeenth and Glisan, on which Is located 11 flats. The price paid was $50,000. Of this $15,000 was casn anu ixi.r. .ituo luauou tit xvw acre stock ranch near Corvallis to cover the balance of the purchase price. . Henry Weiss purchased from George Talbot 50 acres near Gresham for $15,- 000. E. A. Ingalls sold to L. A. Randall the house at 115 East Sixty-ninth street for $4300. G. C. Goldenburg purchased from H. C. Barr three lots in Irvlngton Heights for $3000. "In "addition to the above sales, we have disposed of more than 1000 acres of our Sacramento Valley property in tracts of from 40 to 160 acres," said Mr. . Keasey. "On some of these deals we accepted Oregon properties in part payment. The California properties wer.o aojd at JllO an. acre,- ju Ait, t-quym f h Summer and Abert in Des . chutes Country to Be Worked for Nitrate. $6,000,000 TO BE SPENT Operation of Properties Awaits Legislature's Katlflcation of Action of State Board In Granting Permit. One of the most gigantic private de velopment projects ever put forward In Oregon was initiated last week when the State Land Board granted Jason C. Moore.- head of a New York syndicate, a 45-year lease on Lakes Summer and Abert, in the Deschusets country, for the construction of plants that will manufacture nitrate, potassium, so dium carbonate, bl-carbonate, and other materials obtainable from the rich salts deposits in the lakes. The action of .the state board in granting the leaso must be ratified by the legislature before the leasing com pany will operate the properties. Mr. Moore, who was In Portland Fri day and yesterday, said that the pros pective plant will employ between 3,500 and 5.000 continually, and that it will spend about $6,000,000 on a pipe line, pumping stations, separating plants and machinery warehouses. Mr. Moore will leave Portland this morning for New York to pass the holi days with his family who ultimately will return with him to Oregon. He will be active manager of the plant when it is built as well as a principal owner. It Is understood that the Gould interests are associated- with him in the new Oregon enterprise. Consulting Engineer Commissioned. J. G. Kelley,. who already has done preliminary investigation work; has been commissioned as consulting en gineer on the project. Mr. Moore's at torneys are Sheppard and Brock, of Portland. C. A. Sheppard was largely Instrumental - in urging Mr. Moore to invest in Oregon and to him credit is due that the great wealth-producer and developer is about to be placed in oper ation. It will be one of the greatest plants of its kind in the world. Within 30 days after the legislature lends its in dorsement to the lease, actual con struction of the plant will be Institut ed. The proposed plants are. to be lo cated Bear the Intersection of the Des chutes and Columbia rivers. By the terms of the tentative lease already consummated Mr. Moore has deposited $10,000 with the state to guarantee annual royalties of at least $25,000. $160,000 Permit Obtained. The contracting firm of Boyajohn- Arnold last week took out a - build ing permit for the construction of the two-story $160,000 Shattuck school building on the school block bound ed by Broadway, Hall, College and Park streets. The structure, which is to be of fireproof construction, will be similar to the $160,000 Couch school, now under way at Twentieth and Glis an streets. F. A. Naramore drew the plans. The plans for the $55,000 annex to the Richmond school were filed with the building inspector last week by James S. Winters, who has the general contract for the work, and construc tion will be started as soon as the per mit is granted. O Way Paved For Market Building. To prepare for the construction of the concrete market building to rise soon at the southwest corner of Third and Yamhill streets, a contract was let last week for the wrecking of the frame building now located on the site. Frank Frye, officer of the Frye-Bruhn com pany, of Seattle, who have leased the property for the erection of the build ing, when In Portland last week, an nounced that the building will extend two stories or higher. Plastering Jobs are Up. It has been estimated that the plas tering work on the new Meier & Frank building, for which contracts will be let in the near future, will cost about $140,000. The contract will be let by the Dinwiddie Construction Company, which has the general contract on the building. The Boyajohn-Arnold Company Is re celvlng bids for the plastering work on the University of Oregon administra tion building at Eugene and the Couch and Shattuck school buildings in Port land, each of which is under way. Big WTater Award Made. The Oregon Engineering and Con struction Company of Oregon City, backed by the Willamette Iron and Steel Works, of Portland, were award- ed a provisional contract by the Water Commission of Oregon City last week for the construction of the proposed water system between Oregon City and West Linn. The successful bid was $315,000 for riveted steel material. In case the bond election next month car ries, the contract will be let and the work started at once. Plans were pre pared by Hurlburt & Rands, engineers of Portland and Oregon City. Sewer Bids Up Again. Bids will be received until 8:30 to morrow night for the construction of the proposed East Eighty-second and Willow street sewer, covering which previous bids were, rejected recently. The proposals will be opened at the Council meeting Wednsday. The esti mated cost of the work is $187,616. Movie Theater To Cost SCOOO. The F. E. Bowman Company is pre paring to erect a $6000 moving picture theater and store building .on the northeast corner of East Thirty-seventh and East Caruthers streets, in Swan addition. The exterior will be of DcnU son terra cotta blocks, over a founda tion 40 by 100 feet In area. The work will be done by day labor and it is expected that it will be completed within 40 days. Competitive bids will be received on the wiring and tin work. Plans Drawn for Big Plant. Plans for the new plant of the West ern Cooperage Company, to be built near the drydock in St. Johns, are be ing prepared by L. R. Bailey, architect, and it is announced that construction will start In a short time. The City of St. Johns has completed the roadway leading from the Willamette boulevard, at its Intersection with Pierce street, to the site of the plant, according to its agreement with the Cooperage Com pany, providing the company would lo cate its plant in St. Johns. The cost of the roadway was $6000. It has been named the Rlvervlew ave nue and will serve not only the coop erage plant, but the drydock, and for this reason the Dock Commissioners have been asked to contribute some thing toward the cost of the roadway. The plant. It Is announced, will rep resent an Investment above $75,000 and provide employment for a considerable fprce of men. The plant was considered so important in 'St. Johns that the city assumed the cost of constructing this roadway. , Xnero will be, a mill and dock; ba- BY.' EDWARD E. GOUDET. (Second of a series of three chapters on Portland Mortgages. THE determination of the actual values of real estate is a complex problem that is often essayed lightly and declaimed with the great est assurance by some who are the least equipped with the fundamental knowledge of the elements of such val ues. The result of appraisement by six of these persons, who did not have access to each other, was a variation of more than 100 per cent. Many, without study of each, will I readily place values on several widely separated properties with which they are but slightly familiar. It is well to avoid making loans on the basis of such appraisements. If the lender is not en tirely satisfied that he knows the worth of the security presented, It is wise to seek an estimate of the value from one who, by reason of being in constant touch with Portland real es tate, of having studied the science of appraisement and of being experienced in applying that science, is fully able to offer competent advice. Appraiser's Equipment Necessary. Merely to give an indication of the equipment an appraiser should have, it may be stated that the following are only some of the principles to be used in determining values and availability of real estate from a loan standpoint. There is no attempt made to enter into scientific analysis of appraisement. The subject is much. too large and com plicated to be fully covered herein. Records of sales in the neighborhood under consideration, extending over a period of years, should be before the appraiser. He should be able to de termine which of these sales were be low the real value and which above, and why one piece of ground of the same size alongside or across the street Is of greater or less worth. The value determined by the sale prices should be checked against capi talization, based on the earning power, as It would be If the land were ade quately improved. Capitalization should not always be figured on a basis of 6 per cent net. but on the basis of the proper net return for the improvement suitable to the location. This amended valuation should then be further con sidered in relation to the advancing or declining tendency of the neighborhood and allowance either way be made. The appraiser should know for what kind of improvement the ground is best suited at the present time, whether that improvement is likely to be serv iceable for a long time and approxi mately how long, considering the changing character of neighborhoods, and what is likely to be the future of the location. If there Is a building on the ground he should be competent to estimate what it would cost if erected today, the present depreciation by wear. by being out of date in appointments and the degree of its unsuitableness in kind for the neighborhood, because of any change In the surroundings. Many other things should be weighed, but the above is sufficient to show that it is Impossible for anyone to give a snap judgment of real estate values that would be worth depending upon. Unfair Appraisement Possible. The most unworthy appraisement is that which is purposely made so low as to be unfair to the property, the appraiser lacking the courage to say he does not know the value and at tempting to hide his ignorance behind given amount, which he feels sure must be low enough and which Is really only one-third to one-half of a real value. Reprehensible, also. Is the attitude of some toward Portland real estate values during periods of depression. when there Is no market for its sale. Such temporary hard times have no real effect on intrinsic values any more than do temporary booms. After the excitement and uncertainty of such pe riods have passed It will be found that he worth of Portland real estate re mains tne same na h waa uoiuro nie onset of the abnormal period; that the fundamental bases of resources, popu lation, employment and consequent earning power, are still operating to maintain true worth. Unfortunately, it has been quite im possible in the past to base appraise ments on valuations placed upon port land real estate by the County Asses sor's office. Variations from real val ues, both up and down, have been so great as to make many such appraise- tween the Port of Portland drydock and the Spokane & Portland and Seattle Railway, on a fill 600 by 300 feet, which will bo occupied by the buildings, in cluding a sawmill, dry kilns and finish ing department. Between 300 and 400 men will be employed. The product of the plant will be coopered goods such as staves and heads. Oregon fir, spruce and hemlock from Clatsop County, where the company owns much land, will be used. Gresham School To Cost 25,O0O. The Union High School district,' with Gresham as the center, will erect a high school building on the Gresham site to cost, with the equipment, $25,000. At a meeting of the directors on December 12, a levy of 2 mills was made on the five districts which make up the Union district. This levy will yield $5125. It is planned to issue compound notes bearing 6 per cent interest, running for several years to raise money to erect the building, while the money from the levy will provide the equip ment. However, this is only tentative and another plan may be adopted. The structure .will be brick construc tion, and will be large enough to take care of the wants of the Union district for six years. There are five districts In the union at present, but it is an nounced that several more may join before the new building is finally planned. Portland architects will be asked te submit plans for the school house. C. W. Wells Builds Home. C W.- Wells has commenced a story- and-a-half dwelling on Fortieth avenue between East Sixtieth and East Sixty second streets, to cost $1800. W. H. Smith is the builder. Laurelhurst Home Is Started. Work has been started on a one-story dwelling to be built for the Laurelhurst Company . on East Burnside street be tween East Forty-first and East Forty third streets, to cost $4000. E. L. San born is the builder. J. J. Motzger has started a dwelling on East Sixteenth street between Kil llngsworth avenue and Emerson streets, to cost $3000. Mr. Metzger is his own builder. Milkman Buys and Bnllds. George Lee, of Rockwood. who is op erating a milk route, has purchased an acre of land from Charles Powell on the Section Line road, and is having a dwelling erected on the property. He will move in as soon as it is completed. Frank McCrum Builds Home. Frank McCrum has started a new home on East Thirty-seventh street be tween Thompson and Brazee, to cost $2000. Repairs to Cost 93 The Log Cabin Bakery Company has started repairs on the two-story brick on Ivy between Vancouver avenue and Fremont street, the cost to be $930. The Elevator Supply & Repair Company Is doing the work. $4000 Dwelling Begun. Thomas Vlgars, who erected several residences in the Ladd Addition, has started a $4000 residence on Hemlock street, between Cypress and East Har ments quite Inaccurate. All are hopeful for the success of efforts that are being made to correct this condition. Mortgages Versus Bonds Considered. Railroad, industrial and other cor poration bonds based on mortgages secured on property of various kinds, as compared with' simple mortgages on real estate security, are a development of comparatively recent years. The real estate mortgage supplied the needs of early financing, but as money requirements became larger mortgages -w . alM and were made the basis I. llnita of wscuritv issued against them and cailed bonds. These, becauso of their smaller denomination, enable! those having smaller amounts of money to Invest to participate in tnese loans of magnitude. The principal. If not the only objec tion to the early bonds still remains, being the Inability of the individual investor to control or even to appraiso his security adequately. As time passed. however, and a certain Kind or men saw the opportunities the bonding method opened to them, great abuses crept In. until bonds were Issued of a face value much greater than the most reckless would ascribe to the property covered thereby. Thus the bond, which should be or stable value at par, reached any prico below par that could be obtained. Moreover, tho word "bond" nearly lost its meaning, being applied to almost anything on paper the vendor wished to market, regardless oi wneiner mo issue were based upon a mortgage or not. Mortgages Do Not Depreciate. The first mortgage on real estate, on the other hand, owned wholly and not. In Dart only by the Investor, is not subject to manipulation by anyone and. therefore, does not depreciate in vaiue. It usually provides a higher rate of in terest and the security Is entirely un der control of the Individual investor. Onlv a few years ago bonds were the favorite of those Eastern Investors who leaned toward conservatism, but there was practically no market ior them here. The Eastern attitude has changed and mortgages are In demand, but the Portland attitude, being the right one. has not had occasion to change. There Is no doubt but tnat me well selected loan on Portland real es tate is one of the safest and most re munerative investment securities to be found. . Mortgage Is Llanld Asset. Tt 1 contended that the mortgage is a less liquid asset than the bond; that if the investor wishes to turn his holdings into money, he cannot realize on mort gages as quickly as on bonds. To a certain extent this is true. If the mort gage is of the right sort, however, the difference is only a matter of hours and does not, in normal times, affect the private investor. The comparative virtues are shown when hard times prevail. It lias been said quite truly that if the holder of good first mortgages win then discount his securities to equal the depreciation in the market price or bonds, he will not lacK an lraiuemaw market. Community Bonds Excepted. The above criticisms are not aimed at municipal, county, school and other bonds of governmental character. Thou are of a different class, but are sometimes bought by tho less experi enced investor under a misapprenen- sion as to tno net. in lci j . . . These, as with other bonds, are sold at par or above or below par, accord ing to mamet conditions mm mo of interest at which the issue is of fered. The net yield from such bonds la usually below six per cent and, in common with mortgages on central business property, they are more suit able for the Eastern or foreign In vestor who is accustomed to lower rates of interest than may be expected by the local investor. It should always be borne In mind that the premium paid for bonds must be spread over their actual life and tho yearly proportion of that premium de ducted from the interest rate to show what will be the net return. For ex ample, a six per cent bond bought at 104, or at four per cent above par. ai paid at the end of four years, actualf nets five per cent, less the interest loet on the premium, which is. of cours. paid in advance. Though $104, then, i0 paid for each $100 of face value ol these bonds. $100 only is returned, with Interest only on the $100 rison streets. The foundation has been completed. Work en Chnrch Progresses. Good progress is being made on tho new edifice for the Church of the Lat ter Day Saints, East Twenty-fourth and East Madison streets. Rev. M. J. Bal lard, the pastor, is supervising the erec tion of this building. The permit calls for a building costing $18,000, but with the furniture the cost will be about $25,000. Two $2000 Permits Issued. II. Meier yesterday received the per mission of the city building depart ment to make an excavation for the $35,000 store and apartment building that he Is about to build at 329 Third street. The preliminary work will cost about $2000. C. A. Duke drew the plans and G. Zanello & Son have the contract. The Portland Lumber Com pany took out a permit to erect a wood tank and wood tower at 416 Water street. This work will be done by the Pacific Tank & Pipe Company. American cotton srins are being Installed In South Africa. Director) of Prominent Life Insurance Agencies Members of Life Underwriter Association of Oregon Wm. Goldman, Manager, MANHATTAN LIFi, uregonjan o . ay. H. O. Colton, Manager. MASSACHUSETTS MUTUAL LIFE. Chamber of Commerce lldif. K. L. Harmon, Manager, PE.NN MUTUAL. L.LP&, Northwestern Bank mug. Horace Meckletn. Manager, NEW E.VG1-A.NIJ MUTUAL i-lTE, Xorthwealeru Sank UlOg. Alma. IX Kats, Manager, MUTUAL Lli'E lXSUKANCli CO. OF N. Corbett Bids. ti. M. Slocum, Mgr. RELIANCE LIFE INS. CO.. Piltabnrg, Pa. JOS Morgan bldg., Portland. Or. P. Lockwood, Vice-Prei. and Oen. Mgr. COLUMBIA LIFE & TRUST CO.. . Spalding Bldg. Pettis-Grosamayer Co., General Agents. THE TKAVELUKS' INS. CO., SOa-310 Wilcox Bltlg. T. H. McAUis, Manager, UNION MUTUAL LIFE INS. 537 Sherlock Bldg. CO. John Pauer, Manager, PRUDENTIAL INS. CO. OF AMERICA. Rothchlld Bldg. E. W. Amesbury, Manager, NORTHWESTERN MUTUAL LIFE INS. CO. Northwestern Bank Bldg. Judd Lowrey. Manager. AMERICAN CENTRAL L.-FE INS. CO. 503 Dekuin Biig. Charles J. Little Agency. Inc., Managers V"st) i Oregon IDAHO STATE LIFE INSURANCE CO., Veon Bidg. J'none Main 'AlS. J. "Wm, Johnson, Agency Director, WESTERN STATE LIFE IN3. CO.. 201-2 Northwestern Sank Bids, 2jk