Tin: OKtCOH SUNDAY JOURNAL. iO...Ui:l), LUi.'U.'.
j..:
If
CEflSUS
IL BE TAKEN;
10
SHOV GROWTH
Portland Realty Board Backs
Plan , to Learn Facts About
City's Progress During the
Past Six Years. .,
NATIONAL MARKET FOR
TRADE LOANS
An innovation bas been . started in
r alt y circles of Portland, backed by
the Portland realty board and promot
ed by -Arthur I.lstreet. former manage
ing editor of Collier'e Weekly and edi
tor of "the Pandex of the Press, the ef
fect of which, veil prohably .he.nation
wide hameiy, the taking of a real
tate census of the city. "
Thla-eenswe -wtlt- -be--?omprUnive
report of the development of the .city
the last six years and Will be prac
tically a stock taking tank, that will
.give an accurate 'synopsis of the real
estate . situation In Portland. ;
In connactipn'with the work thai is
being dpnej In Portland, Mr. Street said:
"I am preparing a comprehensive study
of the realty development of the city
far 'the past si years, practically the
entire period of realty development
' aine the. Lewis & Clak exposition, ana
ending December 31, 1912.
To Show Complete Beoord.
'I have searched the records for the
past seven years, hut as yet have pre
, pared no final totals, t have 20,000
card Index records. One of tho ob
jects of this research Is to determine
what class of people have come to tha
city recently' and what sections ihe
have located in. This first step of the
work will deal exclusively with resi
dences, and I have divided these Into
several , classes, namely, those which
have cost less than ttDOO, leas
- than - -2600, 4es than 13500, less than
'$6000. Jess than 110,000 and over, $10,
000, This also includes flats, apartments,
: otela and lodging houses.
"I have found that 85 per cent of
the dwellings erected ftf'that time have
cost $2500 or less, and that in the past
three years there has a been, a notable
increase in the numher of dwellings
costing1 more than' $3500. This can be
taken as a good indication of the pros
perity of the city.
"One of the most important features
of the work will be to show the density
of improvements and the Comparative
number of Improved pieces to the un
Improved sections. If one section has
too much vacant land, the burden is
then -greater on tha transportation com
pany, and the sewer systenij as it com
pels the transportation company to op
erate at a. 'loss through the section and
I. makes the assessments for sewers
too high On the few people who have to
pay for Its extension through the va
cant sections. By having this data in
proper shape, realty dealers can make
an effort to build up these sections with
,. eat profit to themselves and to the
investors. , . ' . '
"The distances of certain districts
. from the canter of the city and the ex-
can be determined 'at ,a glance by the
tables that will be prepared," .
Mr. ' Street has bieri in PoHBsnd for
- six months and' hair been working" on
this census for the past 'three months.
In that time he. has completed the
study of all additions to the city; of
vhich the initial letter is "A." - Thh
plan will be followed out until all parts
of the city have been covered. Mr.
Street- came- here te make a study of
i!.e ec -lomlc conditions of the. whole
Pacific coast
lie has prepared a formula, based oi
the population of the United States, by
which he has determined that the Pa
cific coast states west of the Rocky
mountains should have a population of
, 83,000,009 people.and that they are des
tined to have that number. That the
Panama canal will produce this great
influx of people is the contention , of Mr.
. utreet, . and. an Immigration fourlimes
greater than has ever before been ex
perienced is predicted.
Gives Density of Population,
Referring again to the work of se
curing this data, Mr. Street said that
of the ST districts on which he al
ready has figures, the density of im
provements range from 2 to 66 per cent.
In Alkln's addition to East Portland,
which lies between Holladay and Haw
thorne avenues, the density of improve-
", mcnt is 73 per cent of the number of
lota. In Albina, the development Is 74
per cent. In Aitamead the percentage is
fcut 3 and in Alta Vista it is'J.S per
cent In Annabel, the average let 86 per
cent - In the rich addition of Ardmore,
. where the new dwellings have aver
aged in cost $8878, the development is
1 per cent
'The relative cost of buildings tn
. Alnslee place Is $8500, in Aiken's addl-
, t'on S4SS0 and in Alta Vista $5200. Over
2U0 homes .have been erected in Albina
. in the time mentioned and the average
tost ,is $2667; in Albina Homestead,
there have been 105 homes, at an aver
age cost of $2278, and in Arbor Lodge
ihere have been 59 homes at an aver-
. age cost of $988.
"One of the important results of the
investigation will be to show whether or
. not Portland has made proper provis-
ions for the increase of population."
American Commerce and In
dustry Handicapped for the
,JWant -of Modern . Credit
."System. .. . ......
BY GEORGE W. SEMMOXS,
President of the Simmons Hardware
: " Company of St. Loufs.
Commerclfil jwper Is our Btaple bank
able security, it pla"y exceedingly
important part in our great credit struc
ture, and so is one of the most potent
factors in our 1 prosperity. It speeds
faster the wheels of industry. Through
It, expentlan In the volume of business
la made possible, in many cases it en
ables the Introduction of our products
abroad, thus being of Invaluable assist
ance in keeping our trade balances on
the "right side of Ihe ledger. 'M my opin
ion,' it is eo valuable a contribution to
buaiuesaJflterafita-Jhat Its .sewlll con
tinue steadily to increase and to
broaden. .
generally speaking; bank loans --may
be divided into two classes: Loans on
paper secured by stock exchange coUa-t-eralrand
on eommeral .laper, ecurd
by one or( more names. Each of these
classes may 'be subdivided into paP'
payable on demand, and ions or short
time paper. '
The paper secured by stocks and
bonds is.' as a rule, not used in com
merce and industry, but in speculation.
It is one of the evils of our present
banking system that under it Idle bank
funds flow to New York to be loaned
there on call, with stock exchange secur
ity. And It ia oho of the 'system's cry
lug justices to the American business
man that loans secured by stocks and
bonds are Cheaper in this country than
loans which go to furtherthe opera
tions of commerce and industry. The
reverse holds true In Europe, There,
commercial paper commands the lowest
rate of interest, as It should. The merchant-receives
accommodation more
cheaply .-than the. speculator. .
Currency Based on Commerce
1 1 '
George W. Simmons, president of the
Simmons Hardware company of
St. Louis.
hue mm
ISllWTEDCy
IIIE
New Hotel Building-Is
EE
Downtown' Building Activity
Shows That City. Is on:
- Qnimrt FHeie nf Prcntritv I
J. Fred Larson . Declares. ,
ha reouired
to fill Its need, to Its city correspondent -profit
tor rediscount.
tower Interest Sates,
Eut by establishing .a broader market
for such paper, interest rates would be
lowered in this country. If the market
were still further broadened, to become
international as well as national in
sflnpe, Interest rates obviously would be
still further lowered. The American
merchant would have to pay less tor me
it is
"Portland real estate men and mer
chants are not as optimistic as they
ought to be," declared J. Fred Larson,
president of the Portland Realty board
and a member of tha firm -of Umbden
stot.lt & Larson, j
In reviewing the realty situation in t
Portland, and the prospects tho City
has, relative to' the realty market, "Mr,
Lai-son has the following to say;
Ait there- fa- ens -businessdepending H
for success and profit on general con
ditions it Is that of real estate, selllng
it and getting in the collections.
"There Is nothing mysterious about
the business, the, real estate operator
must supply desirable' lota at prices
and on terms that attract, and whether
or not the lota are desirable and the
prices and terms attractive depend upon
general conditions.
"Lots will not be purchased for In
vestment or speculation unless the pur
chasers convince themselves that the
denmml is at, or will increase to u
point that the lots can be resold at a
nanitni nf.cHKH.rv for his business.
borrowed caol
This gross disadvantage to American taJ n)UBt mteT jnto the expense of con
business arises from the fact that we
have no broad rediscount market for
commercial paper, such as ia the foun
dation of European credit machines.
Abroad, this market forms the basis of
note Issues. Our note issues are bond-
secured, and the daily adjustment of
the demand and supply of money pri
marily results Irt aft increase or decrease
of call loans on stock exchange collat
eral;
If there is pronounced contraction and
liquidation, then stocks and bonds are
dumped onto the market, which sags
under their weight Disturbances are
inevitable. JIow much- nor logical
would be' note issues based on commer
cial paper, which depends for liquida
tion, not upon the narrow confines of
the stock market but upon the day to
day consuming power of the entire na,
tlon? - v if
The commercial paper arising out 'ot
my business, and out of most other in
dustries, runs from thirty to ninety
days. It may be based upon tne actual
shipment of goods or it may be based
solely upon the commercial standing of
the man who maker It In the first
instance, it is likely to be two-name
papers The manufacturer or merchant
WHP mi ... daraarul .the
promissory note of the merchant to
whom he sends It and to whom he gives
a credit, say, of 60 days. When h
receives this note, he may indorse It.
and then discount it at his bank. Or,
he may draw on the second merchant
at 80 days'' sight, in which case the
second raerphant accepts it by writing
across its face the word "accepted,"
with his name arid the date; and It then
become an instrument convertible into
cash by discount
Credit for .Productive Industry.
In either of these' cases, we have" two
name caper, based on actual goods in
transit from the producer to the conA
sumer, and dependent for payment, in
the last analysis, not merely upon the
commercial integrity of the men Who
made it, but upon the ability of the pub- j
ic to consume the goods it represents.
In the case' of one-name paper, the
wisdom, of a bank granting a loan de
pends upon what it knows of its 'client
If the total amount desired is moderate
in comparison with the client's total
assets, and especially in comparison
with hl current receipts, it' is a good
loan. There Is none safer. It should
bo understood that the selection by
banks of such paper should be careful
ly made. They aust have the facts
about the business of the concern ask
ing the loan. Usually banks have a
bureau of information devoted to this
purpose, called a credit department,
thoroughly posted as regards the com
mercial paper offered to it.
This department may, in some in
stances, call for a full statement of the
concern's business, or may even employ
outside accountants to go over its books.
It may,, if it sees fit, demand to know
whether the loan required is based upon
an actual commercial transaction, and
may demand evidences of the transac
tion. It is oftert found advisable in cases of
large loans on commercial paper to split
,the loan into a number of "notes," which
are sold by note broktrs to different
banks. If not infrequently happens that
a sme.ll bank will buy four or flve'pleces
of well known commercial paper in this
way as an investment for idle funds;
and In that ease, if some unexpected de
mand Is made upon the bank, so that It
needs funds promptly. It will send as
ducting every large business. If Inter
est rates are increased, the cost mustbe
increased of every article into whose
production or distribution the use of
borrowed capital enters.
The lower interoal rates prevalent in
England and on the continent give mer
chants and manufacturers there an un
mistakable advantage over their compet
itors in the United States. England's
unrivalled monetary system and her low
rates of interest to industrial enter
prises are large factors in her commer
cial supremacy.
The Panama canal, opening vistas of
new business opportunities to America,
is on the verge of completion. Will we
permit it to become an added help to
foreign nations, or will we, by adopting
a scientific banking system, iquip our
selves to reap full advantage of it?
That ia a question for the people of the
United States to answer. It should be
answered before the canal is completed.
The answer should be in the form
and, expert remedial
of competent
legislation
Commercial loans Paid in 1907.
Commercial paper already has proved
of such value to us that not to broaden
Us field Is folly. It is now liquid within
certain tiw, being qonvertihio into
cash with more or tees ease in times of
industrial confidence. And even in
times of stress it has demonstrated its
wor,th. i
I was Immensely impressed with this
during the panic of 1907. At that time
we had large outstanding commercial ac
counts, which, although they were not
secured by commercial paper, were
closely akin to It. We simply stopped
buying goods; and as we had always
paid cash for everything, we had nothing
but current expenses to meet. At ma
turity of our current accounts, those
who could not pay in full would send us,
say, one half, and a little later another
remittance and so on. I apprehend that
not two per cent of the commercial pa
per floating at that time went unpaid,
or was renewed.
It is readily apparent that commercial
paper bridges the Interval between the
production and the consumption or
goods, and gives the merchant or manu
facturer ready funds for the continuance
of his business, without waiting for the
purchaser or consumer to whom he has
extended "30, 80 or 90 days' credit, to
make payment. Further than that, it
encourages him to use his money more
freely in tha way of experiments in im
proved methods and improved machin
eryfeeling confident that he can be
safe from financial embarrassment in
to doing. I know of a case In which the
manufacturer of one of the important
products of the country so Improved his
processes as to reduce the cost fully one
third. This was. made possible solely by
the fact that, through the use of com
mercial paper, the manufacturer was
enaBled to get the money with which
experiments were made to devise there
tofore unknown mechanical appliances.
A National Credit Bureau.
Commercial paper is so important a
part of our Industrial fabric that I be
lieve the American Barkers' association
should establish some- kind of a bureau
of Information to scrutinize .the bust
nece of tho concerns issuing 'it. In this
way a great deal of reliable Information
could be placed at the service of those
desiring to invest In such paper partic
ularly banks information not only as
to the concern's assets and current re
ceipts, but as to the extent of the lonns
Lots will not bo purchased for
homebullding unless the purchasers are
permanently located In Portland and the
future looks promising. To my mind ft
sure sign of general business condi
tions Is activity In downtown building,
the development of business property.
"If ttiere is Utile or no development
In the business district of any city, the
condition of business generally, in that
town, is not encouraging. On the other
hand, if tho development is marked,
then optimism and enthusiasm should
prevail.
"The men who erect big stores, new
office buildings, warehouse!, are men
who are close to the fundamentals of
business. They usually know what they
are doing. Certainly those new build
ings would not be erected unless the
demand justified.
'Consider, in this connection, the new
buildings of all kinds erected in Port
land's business district the past year
and consider, in addition, those planned
for the present year. -
-Go a step farther and consider that
the prosperity of tha tenants of these
new buildings depend on greater popu
lation, greater general business activity,
then realize that Portland's population
Is increasing; that each month's fig
ures show that business is increasing
und it is apparent that the builders of
these new buildings are conservative in
their optimism, also that the optlmistio
nal estate operator is just as con
servative and sure of his ground.
"There is less vacant surfaoe in tha
city's limits than a year ago, the pop
ulation has increased and the number
of lots unsold smaller. '
"We have taken stock as It were, wa
find our shelves a smaller number of
lata and what Is more important we
find we cannot dupltaate these iota ftt
Fine Structure
t . - v, , -
I . , '
- ' ; -" It
I " s ' "
S if f-! - irTs -1 1 i' B
1 I ' : I I i ? ! Z i ' 1
III I
jiLHlliUiUl
mm
Realty Board Will Devote Wext
Meeting to By-laws Dis
cussion. . i
View of the rccentjy completed Will&rd hotel, erected by the Shasta In
vestment company, at Park and Morrison Btrpets. This 13 a aeren
story structure, wtiteh cost In the neighborhood of $150,000 and la
one of .the latest and most substantial Improvements on Morrison
street. The building was constructed to allow the adluion or taree
more stories If needed. Ilurley-Mason company were tho builders
and Doyle, Patterson & Beach were the architects.
NEW REAL ESTATE DEALS
MADE IN PAST WEEK
An important realty deal that was
announced during the past week was the
purchase by J. H. Tipton . from M, C
Davis of a lot at the northwest corner
of First and Clay streets, Improved
with a two-story frame building, for
a consideration of $45,000. Mr. Davis
took in exchange 25 lots in Meadow,
hurst and a new eight-room home in
Hollywood.
During tha week .the exchange ofa
half block on Belmont and East Eigh
teenth street for a block of ground
opposite the city hall at Walla Walla,
a 3?0-aore tract near Oregon City and
two lota in Yale addition to Portland
was made by T, 3, Leonard to the OreT
the same price real estate values are if??," ePa The deal Involved
going up. In face of these actual con
ditions, it seams to me that our. real
estate men and merchants era not op
timistic enough.
"We are growing as fast as any thar
town in the country; our future Is Juat
as oertain, out our growth will pa
greater and our future more satisfying,
if every one will forget the disappoint
ment that a few weeks' quiet Business
has caused; and instead, observe tha de
velopment that is going on on a.il sides
become convinced that the develop
ment will continue and benefit all.
"In other words, every one do their
part to boost and help the growth and
make the spirit of Portland prosperity
something that Is on every one's lips,"
New Bank Building at Astoria Will Be Beautiful Structure
"""uIai-W-W' 'it IX. v ' If
extended to it from various sources.
Commeiclal paper would .then beoeme
the most desirable paper any bank could
buy, so far as regards safety.
I believe that when We have a new
banking system tor we must have one
if we are to avert another panic-r-Jt
win oo perreotiy proper to have some
arrangement under nareful provJslpnf
ana regulations whereby the banks may
rediscount their commercial paper with
a cooperative agency. . This would-provide
them with prompt relief In times
of stress, and would help to prevent
money panics, tsucn a provision certain
ly should be a part of any measure
looking to a revision and improvement
or our present bankintf system.
J. H. NASH TO TAKE
TRIP FOR HIS HEALTH
J. H. Nash, of iU Railway Exchange
building, has just announced the sale to
Philip s, Schneider of a one-story and
full basement reenforced concrete build
ing at Fifty-fourth avenue and Seventy
second street, for a consideration of
12.000. six stores occupy the building,
ana me income is II7B per month.
The building was erected one year
ag,o, and is strictly fireproof. The pur-,
chase was made as an investment Th.0
sale was made on account of the plans
of Mr. Nash to make an extended vieit
in California, and in the east on account
of his health. In the 10 years that Mr.
Nash has been in the city he has ac
cumulated $160,000 through real estate
H? it
m m iiLywrw.iw
iSa jfcJ ss taisiArt(NK
SCHOOL DISTRICT BUYS
LOCATION FOR BUILDING
A deal has Just been closed In tha
office of the Slauson-Cratg company for
saio to Kcnool District No. 3, Mult
nomah county, of an acre tract In Park-
ose, on which is to be erected a new
schoolhouse to accommodate ihs school
cnuaren or that district.
as the present schoolhouse in that
, dmtrlct is tnadetiuate, it was decided to
jtnako a six mill assessment for the
lund of $5400. The pronossd hutitiina
is to ba a four-room frame structure,
so built that additions can ha mii
tiom time to time as the need for it
, occurs. The building will be ready for
1 uccuvancy next ran.
Terspectlve of $40,000 building that Is being erected at Astoria bv Th Rcnndfnavian.4m0rina vhu
1...1U1 ; .,...' . " - " -. JW . Utll V, :.' I
-,U4iuu -.-Mf - a-wMfltff TrwtefMindgrtnrfltf erttonof-Etmr schacur &"SoT or r6rimndrir"1
l ft tWrt HtnMf? WAAHf AMnJ MA.MMAi. (...liJl.... J, . - ... ... . '.. . . l. T,-Y VSB I
" "v ov-J,J i.-u v""ino uuuujiig, toe exterior or wnicn will be nnlahed la gla?ed brick and
ma totta. The -Interior finish will be in mahogany, and" the fixtures win be 'of white . Italian roar
TheJlrst floor will be for bank purposes1, the second floor' for. offices and-the building will bo
(oriftructcd to ttand the addltioa of two stories, lithe business demands, t
DEAL FALLS THROUGH
.. CHURCH $2500. RICHER
One real estate deal that Involved
Tvu,uVU, una epueereq to D almost a
certainly because 12800 had been posted
for an optlonr-feli through -last week
when Otto Goldsmith and associates of
' tors city ratieq to pay the bal-
nmiB uvie lor me tmuarian cnurch nrnn.
enth and yamhlll street,
The balance due was to have' been
paid last Monday, but when it was not
forthcoming the option money wa au,
omatiraily forfcltrd and the Unitarian
.hureh is jlgher 3us that amount.
TO BUILD FINE HOME
IN BEAUIVfONT ADDITION
A magnificent home, to be of the
colonial type of architecture, is to be
erected In Beaumont addition for Dr.
O. J, Griffin, formerly of Beaverton,
and a permit for the structure, which, is
to cost 18000, has been taken out by the
Anderson Construction company.
The house 'a to ba 38x28 feet with a
balcony porch supported by massive
colonial columns at the front and ports
cochere at tho side, extending across the
roadway leading to the garage in the
reir,, .. .
The JnterUr-ef the home has been
designed by Mrs. Griffin, and 'Will "be
one of the most complete and convenient
homes In the city, Construction work
Is to etart at once,
The next weekly meeting of the Port
land R-'fllty Board, which is to be held
next Friday, will be given over exclu
sively io tbe discussion of the proposed
Plans to incorporate the realty, board
for the purpose of giving it a etandlnj
In court. The constitution and By-laws
have already been prepared, and now
only await the approval ot the organl-"
aatlon to perfect tho incorporation.
This was decided, upon Friday after
noon et tiie first regular meetlng.of the
board held this yeaf. One of the im
portant matters that- ame up at the
ntii!g was the rToroniendflUen of the
Art ttratiun--tommitt-.ee f-,th-- realty
bewd that bereafter ach applicant tot
arbitration should sign aa agreements
to abide by th dv!ton ef the arbitrajF I
tion cQ,mnlttee. This matter wea re;
forred to the esecutlv. tjopimlttee. v
Another matter of , imports ruce waa to
unanimously extend-tr- number- of
realty men Of Minneapolis, . who ' ari ,
contemplating'an excursion' to the west,
an Invitation to visit Pnrtlned, end a .
receptinn committee was named-to en
tertain them., "'''
. Among the speakers were Jf. '.1.
Street, Tom Richardson and J N,
Clark. Mr, Clark was the principal
ruker of the day. be baring hem
asked to otak? a talk on observation
he hiid made while in 1oa Angeles.
The greatest thing that I observed
on this trip was the spirit of "boost
that was to be seen- on every hand in
thpt f-ltj', tie said, "Low Angeles is be
ir.g advertised all over the world, and It
is my . firm opinion that a more roti
ctntratfd effort should be made to ad
vertise Portland. '
"I have spent barrels of menpy, on
advertising, portiaps loo nvach, but I
have f'jund that I have never lost a
cent by It ; " '
"Another thing that I have observed.
Is that Portland is riot taking advantage,
of the opportunities. Los Angelea
thinks more of Portland than Portland
era do themselves. Still another thing
Important tn my observations ot Ioa,
Angolcs Is the speedy system of clos-
say. 'I vi M buy.' than he haa algnedfS
hlc name to a note or a contract, and
his money ts paid over. Here it takea
three weeks or a month, and many
dals go asiray in that time.' ( 1
Because an imeprtal ukase Issued by
the czar requires them to give a mili
tary nalute to all army officers, all
the students of the military medlosl
academy at ityctt have gone on striK
The ukase provides among other things
that when students meet an, officer In
a street car they must first ask h)e
permission to be seated.
Pan franelsee broom makers have
received a 19 per cent increase in pay.
PACIflG IRON WORKS
BTBVCTUBA.& STSXI
ABCXXTZCTtrBAX ISOM
, tmmtdiata Delivery
L ' ' Portland, Or..
Are You As Zealous
About the Earning
Capability of Your
Money as You Are of
Your Brain and Hands?
You would jump at an offer increasing your salary two
and a half times at one clip. That is to say, if you were
working now for $100 a month, and along came another
offer for $250 a month, all things being equal, you would
not hesitate, Scarcely any man would. It wouldn't be
policy to do sck - We are here to get all we can, honestly.
If you were as particular how your
money is employed and as zealous about
its power to "earn more money, why
shouldn't you feel the same way. If "a
savings account is earning 4 for yon,
and you knew that the amount of your
balance could earn bette'r than 10, you
would take your money out of the sav
ings bank and Invest it where the 10
was assured, wouldn't you?
It is in this connection that we "take
the opportunity of stating that the tock
of a building company like ours, secured
at-evcry stage of the game by first-class,
gilt-edged mortgages, that has never failed
to pay a dividend every three months,
averaging 10 per cent, is two and a half
times better than a savings account that
earns only 4 per cent.
The stock of this company is just as
safe, far more profitable and just as de
sirable as a savings account. But, be
fore asking you to accept a bare state
ment to that effect, we will ask you to
call or write for our statements, litera
ture and other documents.
Make Your Money Earn Two
and a Half Times as Much
Every dollar of our stockholders' money is invested in
homes, or hoinesites upon which homes will he built, and
all is secured by approved mortgages against tlie lot and
the home for which wo furnish the money to build, If
safety is what y;ou seek, we furnish it. If'it is profit, wo
also provide that. - -
Send for Our Monthly Kcport Issued Wednesday 1
INVESTORS'
ApD TRUST
Builder of Homos ,
407-408 YEON BUILDING, PORTLAND
BUILDING
COMPANY
"I