Omaha Daily Bee Newspaper, December 5, 1909, Page 11

. A '{IIEI.Y REAL ESTATE COSSIP Omaha Exchange’s Series of Addresses Has Made Good Start, THOMAS ON FIGURING VALUES The Omaha Real Estate exchange got off with the right foot in respect to the serles of addresses which are being given at the weekly meetings. There has been no beat- ing about the bush by the speakers so far and members of the exchange have learned many things. One of the best of the series has bsen the talk by W. H. Thomas on “Methods of Ascertaining Cublical Contents and Commercial Value of Bulldings,” which 18 given in full as follows: There is an immense waste of capital in the bulldings comprising the business dis- trict of & city. It is found in badly de- signed bulldings, top-heavy bulldings, bulld- ings where severe shrinkage has occurred in the ground value and the expensive buflding constructed upon cheap ground. In a residence district it Is found in the expensive dwelling In an undesirable loca- tion that is worth little more than the cheap cottages surrounding it. Bulldings properly located, planned aid constructed may suffer from two causes, physical decay and decline in net rents. I might enumerate a number of causes, but they would eventu- ally lead to net rent, which we all admit 15 the basis of value in real estate. Richard M. Hurd, author of “Principles of City Land Values’” states that “effec- tive demand makes values, not Wuildings. A bullding ix but a chattel or servant, a medium through which the owner derives a net income from the land. A majority of new bulldings are properly planned and | located and yield the net income that their | ~jocalities entitle them. Others are properly | plauned, but i1l adapted to thelr locations, and are financlally unsuccessful, while others are more favorably located, but so badly planned that their net rentals cover- ing a period of years fall to justify thelr erection. Problem Somewhat Complex. To ascertain the valu€ of bulldings is an interesting problem, since they differ in age, design, character and quality of con- struction. There are two methods for asce taining the value of bulldings. One is to capitalize net rents and deduct the value of the land from the groes capitalized value. The other Is to obtain the cubical contents and ascertain the cost from current prices of labor and materials for each class of building at & certain value per cuble foot The unit of value per cuble foot that mi be determined upon as representaftve of the cost of various types of bulldings is the result of experience. The average frame house consisting of six to elght rooms costs from 13 cents to 15 cents per cublc foot, depending upon the interfor finish, system of heating, quality of materials and workmanship; the better class of frame dwellings from 1 to 22 cents per cuble foot; store bulldings, two to three | storles, ordinary construction, from 12 to 16 cents per cuble foot; five stories, tending to | fireproof, from 16 to 2 cents per cublc foot: | office buildings, stéel construction, from 30 to 5 cents per cublc foot. By the latter method only the structural value of a new building may be ascertained. That of an older building may be found by deducting physical deprectation from its cost, The percentage of depreclation per annum in various buildings Is as follow. 5 - [ ] ’ Per Cent. Ordinary frame residence.. Cheap brick office buildings. Higher class frame residences. Higher class brick residences. store Higher class bulldings Steel construct: estimated .. Cheap frame workmen's cottag to$ A further and serious depreclation may occur from change in style, arehitecturc and new methods of ronstruction. Ascertalning the cublcal contents of & building is & simple problem when the’ di- mensions are known. The first requisite nd office of the property as a whole, say $200,000. The bullding is carefully inspected and it 18 decided to be worth % ocents per cublo foot, which multiplied by the dimensions may give a value of 150,000, but the gross ocapitalized value of the property is but $200,000. The land value of §100,000 is de- dueted from the oapitalized value of £200, 000, leaving a commercial value for the bullding of $100,000, one-third less than its cost or A shrinkage In its commercial value of $50,000. Two Sample Caleulations. As a further illustration I submit the figures In connection with a cheap one- story building valued at $4,250 and those of a more expensive bullding valued at $72,000, both lots of equal dimensions and value: Cheap Exp'sive Bullding. Bullding. Gross rents S165120 § 530 Expenses 12,500 Net rents.. $12.700 | Or § per cent ol 211,066 Deduct bullding 72,000 $204,416 $139,656 A difference of $64,750, Assuming that the lots are of equal value ground | and deducting the value of the under the cheaper building of $204,41¢ the gross capitalized value of the ex property of $211,666, we a merclal value for from discover expensive bullding of $6470. It is not often that conditions are favorable for a test of this kind, but a number of them are found in cities of the United States Another method suggested s to estimate the cost of a bullding per rentable square | foot (not cubic foot). From the rental value per square foot is deducted the oper- atng expenses, giving the net rental value per square foot of the building. By ap- Plying this method to the first and second stories and each additional story thers. after, an economic check may be found to the erection of additional stories. In closing, 1 desire to say that in my opinfon one of the most Important prob- lems confronting the owner of city land is to know how to properly improve it His alm should be to so plan his improv: ments as to gain the highest possible net return from the ground. There is a limit to the amount of money that mav be ex- pended in improvements in order to secure this result. After the limit is reached all additional money expended is a waste of capital. Sales of property continue to out-of- town people who are buying either for investment or who are coming to Omaha to live. Rudolph Templen of Kingfisher, Okl., has bought two six-room cottages at Twentleth and Manderson from D. M. M. Loomis for £ Another deal afso consummated by George & Co., 18 the sale of two lots in Oak Chatham at Twentieth and Laird to Lara- mie, Wyo., men for $30 and $500. George & Co., report purchases of lots in Dundee by Carl A. Mortenson, Di Robert E. Esklidson, Anna P. Sipe, A. Pinkerton and Eliza Cann. The following sales were George & Co. Myrtle Smith reported by to Walter | Hazleton, lot in Oak Chatham; house and lot, 2006 Maple street, from Harvey Y. Readinger to John R. Kinsey, $3,650; lot in Clark Redick addition to Emma C. Norton and Howard S. Brooks to W. A. Chapman, house and lot at 2602 Brewster, for investment, $3,100, NOTES OF VARIOUS DEALS Ch lenevw Helghts F' Sixty-Four Purchasers of Ome or More Lots in Recgat Time. Sixty-four purchasers of lots in Charlesew Helghts are reported by the Real Estate Title-Trust company. That is sixty-four names of purchasers, but most of these people bought more than one lot in the addition. The list includes these: Orin J. Thompson, 2 lots; C. B. Patrick, 1 lot; John Schmidth, 2 lots; Harvey H. 4 lot y'hen is to obtain the dimensions of the building. All estimates of the cubical con- 2 # should be based upon accurate meas. urements of the heighth and size of the ex- act area covered by ducting alr shafts, light openings that may be found In arriving af the actual net rentals from property it Is essential that all of the ex-| penses be deducted from the gross rentals. The expenses consist of regular taxes, av- erage cost of paving, insurance, pairs, water, heat, light, janitor service, elevator, | collggtion of rents and an estimate to cover | ble vacancies, all of which vary in different classes of bulldings. The item of repairs should not be under- estimated. Al rental agents understand the tendency on the part of owners of property to underestimate the cost of re- | " pairs. Unless all expenses are deducted | from gross rentals net rents may be too wells or othor L} \ high. Therefore, appraisements based thereon may be to & certain extent unre- liable. 1 would submit the following as repre- | senting the percentage of expenses that may be charged against gross rents: MOme, two and three-story retail stores....... . 14 to % per cent ! Wholesale buildings.. 15 to 28 per cent | Residences .................... 20 to 3 per cent | Apartments, non-elevator... 3 to 45 per cent Apartments, elevatos | Otfice bulldings ... 40 t0 60 per cent Another important factor to be considered | is the capitalization rate, which is the rate | of interest a community may be contented | with when investing in various classes of | property. High class property justifies a | lower capitalization rate than the cheaper ! and less desirable grades. Value of Land Import of Course. | appralsing Improving retall property it Is essential to keep in mind | always the value of the land, especlally | when the commercial value of a building | is below its structural value. When net| rents pay the current rate of Interest on both the land value and the full structural value of the bullding, the result is a well | balanced property. The bullding is prop- erly planned and suited to its location and needs. The owner has succeeded in draw- ing from the land the highest possible net | return. A further increase In net rent would enhance the value of the land, but ‘um have no effect on the bullding, ullding can never be worth more than it would cost to replace it.” Where there is & gradual decrease in net rents there | Is & corresponding loss In ground value. When the shrinkage in ground value de- cliney 1o & certain point a less occurs in the commercial value of the bullding The shrinkage in value of an expensive bullding is discovered at a higher point in the downward scale of net rents than in the cheaper bullding, thus Indicating a greater risk of capital in expensive build- in This condition may continue until 7% per cent or more of the value of the bullding is lost. To ascertain the value of & bullding at this stage we must neces- sarily know the value of the land, and by deducting the value of the land from the gross amount as capitalized, which is based on the lower net rent, we discover the ex- tent of the loss or shrinkage in the com- merclal value of the bullding. Agaln we find an expensive or badly bullding (n & cholce location. Tts fRaws are capitaiized showing the value | 40 to 55 per cent . |4 Smith, Gertrude Lovgren, 2 lots; John R. Haussener, 1 lot; Frances Lov- gren, 1 lot; John Klug, 1 lot; Carl John, son, 1 lot; Jesse Mapes, 2 lots; Oscar lots; John.Lovgren, 1 lot; Mathlas lots; Minnie W. T. Reynolds, 4 lots; Archie Harrison, 2 lots; BE. B. Hayz- the bullding, after de- | lett, 2 lots; Laura Lindstrum, 2 lots; Leo | Seale, 1 lot; Leo LaGreco, 1 lot; Charles Deutsch, 2 lots; Harry N. Fuller, 2 lots; I. O. Gorham, 4 lots; Frank Bieker, 2 lots; B. K. Kyle, 1 lot; N. M. Godfrey, 2 lots; Mr. and Mrs. A. Jordan, 6 lots; Ellis R. Anders, 1 lot; Emory Anders, 1 lot; Mrs. Fredrick K. Smith, 2 lots; Ivor Keholm, § lots; Sarah Garrity, 1 lot; Gin- | seppe LaGreco, 1 lot; Bdward L. Binkley, 4 lots; Walter R. Britton, 1 lot; Frederick I. Hubbard, 3 lots; Ignasio Caito, 2 lots; J. H. Boetel, 2 lots; George Wesserschnidt, 3 lots; J. H. Crouch, fots; W. L. Edward lots; Ina D. Edwards, 4 lots, Forrest Everly, 2 lots; Peter Michaelson, 3 Iot: Myrtle McCandless, 1 lot; Carl Bratt, 3 lots. G. M. Durr, 1 lot; Mary E. Miller, 2 lots, Howard L. Hammand, 1 lot; Mrs. E. Leggit, 1 lot; James Watson, 2 lots; Henry Miller, 4 lots; Sarah Jane Shepard, 2 lots; arah E. Hammond, 1 lot; Mrs. Maggle Mason, 2 lots; J. W. Peck, 2% lots; W. B. Gordon, 2 lots; Sofia Gibson, 2 lots; Nels Michaelson, 2 lots; Kate Sneed, 1 lot; L. C. Weaver, 3% lots; C. J. Roath, 2 lot F. W. Parr, 1 lot; Mrs. T. W. Kelly, 2 lots; William Doss, 1 lot. Son’s Blood Fails to Save Mother Transfusion is Resorted To as Last Recourse, but Mrs. Charles E. Smith Dies. As a last Charles E. transtusion hope to save the life Smith, 2419 Seward street, a of blood was resorted to at the Omaha General hospital, but In vain Mrs. Smith never rallied from the shock of an operation performed earlier in the of Mre day and digd at 2% o'clock Saturday morning. The blood was taken from Daniel R. Smith, 24 years of age, son of the patient Mrs. Smith was operated on Friday morn- | ing for a tumor. As the hours passed and she showed no signs of rallying it was decided to transfuse dlood ¥ato the patient's body. The son asked that the blood be taken from his veins and the! transfusion from arm to arm was made. Mrs, Smith was 45 years of age and be- | sides her husband,and son, Danlel, is sur- vived by a daughter, De'la Rosetta 14 yoars of age have been made, mith, No funeral arrangements A native of Baltimore, Md., Mrs. Smith | lived for twenty-three years, prior to three years ago, in Custer City, 8. D. Her falling health necessitated thelr removal to Omaha. During her entire residence in this city Mre. Smith was In very poor health, belng afflicted with a tumor which caused her much pain and suffering. —— Take Warni Don't let stomach, liver nor kidney trouble down you, when vou can quickly down them with Electric Bitters. Wk, For sale by Beaton Drug Co the expensive bullding of §1,260, showing a waste of capital in the i THE OMAHA SUNDAY BEE: DECEMBER 5, 1909. 'NEWS OF THE SY HOME BUILDER | DESIGN NO- 286 ART HUR «CoC, ARCH n'E.CToM i KITCHEN | W= & mio-o ROOM |o-e'x10-e CLOSET AUSEN NEAPOLIS, MINN. CTHAMBER 18~6"'x10-0’ CHAMBER 15-8 x) (-0 SECOMD: L 00 One often hears a Homebuilder boast of how much he was able to save during the construction of his house through exer- clxing rigid economy from first to last. 1t the saving has been made through con- structing the home in a systematlc man. ner and obtalntug good prices in fair com- | petition with a careful selection of all men and materials, the homebuilder is justi- fied for the pride he takes in the applica- tlon of good business principles. But if | the saving has been accomplished throush | a feduction in the quality of materials | and through obtalning the cheapest men | to do cheap work, regardless of thelr | reputation or ability, the saving of pennles in this manner will often mean dollars wasted ip‘subsequent repalrs. Many houses ullt te” sell furnish good illustrations to wherd the saving of pennles means a waste | of dollars. A poor quality of lumber is| used throughout the bullding, the bullder knowing that plastering on the inside and | painting on the outside will cover It up. | Single studs are used around openings In- | stead of double studding. A poor grade of | plaster Is used, composed of sand and water | more than anything else. When the work is complete the whole house Is painted up in nice shape, but with a cheap quality, of | paint which only lasts In good condition for the house to be sold. A man buying | such a house soon finds that he has a| big repair blll for the repairing of plas- tering, replacing doors that have gone to | pleces, plumbing repairs and countless other Items, to say gothing of having most of the paint burned off of the house and the hause entirely repainted. Thero are two things that every house- | builder must always bear In mind. They | are, first, that the best man is the cheap- | est man, from the architect who plans his home clear through the construction of his home to the painter, and that the best ma- terials are by far the cheapest, in the long run. The reason one basement floor lasts | %0 much longer than another without re- ipahn is that the one has just a little more sand used’in the mixture to save cement. The reason one cellar floor Is damp, caus- ing a constant decay of everything in it, including the partitions, Y that the home- butlder thought it too exvensive to put a coat of cement on the outside of the wall, The reason that it takes twice much fuel to heat the house as compared with his nelghbor's house of the same size may be due to many causes, one of them being & poor heating plant, another being his in- experienee in handling it, but often it is cauged through little neglects in the constyuction of the house, such as omit- ting the-eam-fill, between the joist in the basement, od papering on the outside of the sheathi under the siding and careful | workmanship around the window frames, cornice, ete. The reason his paint peels off | is because he bought it from a dealer at | half the price ancther dealer asked him | as | more for what he supposed to bhe the same ma- terial without Investigating the relative quality of the paints. The reason his mill- work comes to pleces, such as casings, doors, bullt-in sideboards, mantels, ete., is because he let-the mill-work &t the lowest | price he could get for it to irresponsible pevple, who furnished him green or wet lumber for his finish. The reason his roof ks, spolling the celling decorations on the second floer, is because he hires some high school boys to do the work after | school hours Instead of employing experi- | enced men for the performance of this | part of the work | " There can 'be & ‘big difterence between | the way the heatng plant and plumbing | system 1s installed in & house. One con- cern will send mere boys to do the work | it. Another will send competent workmen with considerable experience, who work for their employer the year areund, who aye anxious o Increase their employer's repu- tation for good work, realizsing that it is movey in thelr uwn pockets. In & hot| Getting Best Results in Home Building Arthur C. Clausen, Architect. ——————————————————————— | $h0uld be constructed on the outside walls, . THE BEE’S PLAN BOOK || Through an arrangement with Ar- thur C. Clausen, architect, the read- ers of The Omaha Bee can obtain a || copy of his beautiful book, | “TEE ART, SCIENCE AND SEN- || TIMENT OF HOMEBUILD- NG, | for One Dollar. | This book contains forty-six chap- ters ana 200 illustrations, printed on heavy enameled paper, with cover stamped in gold. It deals with the practical side of homebuliding, giv- ing complete informaton on the pianning and designing of every kind of home. ‘There is nothing more practical than making the home ar- tstic, bullding it on sclentific lines and to insure sanitary conditions and warmth. The author of the book alms to give the intending home- bullder advice on subjects such as buying the lot, planning the home, letting the contract, choosing the || materials, etc. Problems about front doors, windows, stalrwa. fire- places, exteriors, interior finish, etc., are taken up in detall and treated with good common sense. Nearly all questions that could be anticipated® are answered and the book should prove a great help to those who are about to plan a home. It is pro- tusely illustrated. Send all orders to Arthur C. Clausen, 113-57-38 Lumber Exchange, Minneapolis. water heating plant especially, it is quite necessary to have everythimg put in in the most practical and most workmanlike manner in order to get the best results. All the pipes should drain back to the plant and as few turns in the pipes made as possible. Every bend in the pipe means friction, and the more friction the slower the water runs. The imit of a man's means very often |lasting qualities. | economical. | 010 mother earth baked to withstand the decides the material with which a house whether it should be of masonry or frame A masonry wall is unquestionably a more durable construction and therefore more A perishable material must be cheap, indeed, If it is less ex- pensive in the long run, than a more durable substitute, but wood construction is not cheap under the prevalling prices of lumber. The difference between the cost of @ brick house and a frame house is about 10 per cent, but the increased expense of insurance, heating, painting and the repairs will bring the total cost of a frame house up to that of a brick house in about twelvs years. A brick house Is more saleable for the reason that it is more attractive. Its beauty is not skin deep, but at least four inches deep of good heat of the hottest sun and with a fine- ness of textiire which makes it impervious to other climatic attacks. Painted-over woodwork furnishes only a very thin pro- tection, which sooner or later must be renewed. Brick properly baked will not disintegrate when frosted as is the case with many kinds of stone Having al- ready been burned In the kilns It will withstand the hottest fire even under the severest test of alternate intense heating and sudden cooling with water. Wood | will rot when damp, and will “dry rot" when excluded from the alr. When one considers the cost of a brick or cement house, compared with the cost of a frame house, he should stop to think twice be- fore buflding a frame house at the present time. “Penny wise and pound foolish” is responsible for most of the poorly con- | structed wrecks of homes, some of them | not over ten or fifteen years old, which | dispoll the appearance of every residence | district. Tt is well to look out for the pennies, but it is both expensive and un- | wise to apply the penny principle too rigidly without due consideration for the | Prince Gets Twelve Years and Lewis ‘ive | Two Negroes Are Sent to the Peni- tentiary by District Judge Sutton. Albert Prince, colored, was given twelve and one-half years in the penitentiary by Judge Sutton for his murderous assault upon Detectiye M. J. Sullivan at ihe Antikol salooh the night of November 1 Willlam Lewis, another colored man, ceived five years. Lewls was convicted of a statutory eharge. Prince wished “to beg Detective Sulli- van's pardon.” “I hope,” said Prince, “he will recelve my apology, as It would have been the same If my own iather had stood before me. | was drunk and did ot know what 1 was doing.” Prince pleaded for a light sentence. the court favored this, and it is the words of County Attorncy ended Prince’s chance. “This certaluly seems to me a ing for severity,” said the county cutor. “I congratulate you, Prince Sutton, “that you are not here to receive the death penalty. Considering that you fired four bullets wnto Sullivan’s body you 1t unitkely, English se call- prose- said Judge who have little experience and no heart in | are lucky not be in a worse predicament [the Shakespearean characters. than you are. | Willlam Lewis' charge up Sen Juan hill July 3, 1896, helped him somewhat with the court, who referred to Lewls' military service. Discusing the cave Judge Button said: | “The law ought (o protect young children | and especlally young girls far better than | it does property.” | The colored foster mother of Emma | Kruse, heard sentence pronounced. was the only woman present in the room and the mysterious white pair followed the trial were not at hand HAMLET AHEAD OF HIS TIME court | who | Jumes Young, Lecture) Declares Shakespearean Charact Almonst Prophetie Pel “A Ratlonal View of Hamlet” was th subject of a lecture by James Young at the Orpheum this morning, given comp i- mentary (o the teachers of the public schools of Omaha, women of Omaha. Mr. Young took the position that Hamlet was the most popular of the Shakespear- ean dramas and one that appealed to the lawyer, poet, preacher and orator. His analysis of the character of Hamlet was that Hamlet was far in advance of the tme in which he lived, that simplicity was the keynote of his character, and that the governing motive of his life was great “mental agitatlon” rather fhan Insanity or even melancholy. He held also that Shakespeare's conception of Hamlet was | that he was a great, free, moral a_eat and of 4 noble mind not o'crthrown. The speaker conceded that thie character of Hamlet was one that had afforded more controversy and eriticism than all other of | ministers and the club The G Hand, | removes liver inaction and boel stoppage | with Dr. King's New Life Pills, the pain- less regulators. Zc. For sale by Beaton Drug Co. | ¢ % is the fire-proof substitute for the inflammable wood lath. It Prevents Cracking and Falling of Plaster on Walls and Ceiling. Adopted by the U. S. Govern- ment and used everywhere in all good buildings. Write for circular. NORTHWESTERN EXPANDED METAL CO. 84 Van Buren Street, CHICAGO nii P v ,uw[" ; and can duplicate any Press Brick manufactured in the world Save You Money Hydraulic-Press Brick Co 330 Bee Building. Let us show you sample: also *Uniform Heat and Cleanliness, too, Commends an Electric Flat Iron to 'you. . It's Cheaper and Better and saves lots of walking — Gives people who wuse them more time for their talking." Omaha Electric Light and Power Company M. C. A. BLDG.—BOTH PHONES “The Conquest .. Prairie” ~ —_— Latest masterpiece in oil by Irving R. Bacon, which won high honors for him at Munich last year. Eourt of the Bee Bldg | ALL LOVERS OF ART ARE INVITED TO INSPECT THIS MAGNIFICENT PIOTURE. CLUBBING OFFERS -$600) Our Price - 150 L7 onry both one year. 8.750 $6.5 10ur Price t ONLY Regular price for both one year. 35——601 $4.60 Daily and Svnday Bee.............,$6.00 McClure’s Magazine .....o000000... 1.50 Daily and Sunday Bee....... Woman’s Home Companion .. Regular price for | Daily Bee (without Sunday).........$4.00 McClure’s Msgazize .......cc000... 150 Our Price ONLY Regular price for both one year. 3—7]—0 $6.50 THE OMAHA BEE OMAHA, NEB.