THE OMAHA SUNDAY BEE: DECEMBER 5. 1000.
TIMELY REAL ESTATE COSSIP
Omaha Exchange'. Series of Addresses
Hat Had Good Start
THOMAS ON FIGUEDTO VALUES
rpr Read GlTla- Taeaaatfal I.
strartlaa aa AaeertalataaT Cafcl
cal Ceateata a Wartfc
f Balllara.
v - The Omaha Real Estate exchange got oft
with tha right foot In respect to the aeries
of addressee which are being given at the
weekly meetings. There ha been no beat
ing about tha bush by the speaJiera so far
anil members of the exchange have learned
many things. One of the best of the series
has been the talk by W. H. Thomas on
"Methods of Ascertaining Cubical Contents
and Commercial Value of Buildings," which
Is given In full as follows:
There is an Immense waste of capital In
the buildings comprising the business din
trlct of a city. It Is found In badly de
signed buildings, top-heavy buildings, build
ings where severe shrinkage has occurred
In the ground value and the expensive
building constructed upon cheap ground.
In a resilience district It Is found In the
expensive dwelling In an undesirable loca
tion that Is worth little more than the
cheap cottages surrounding it. Kulldlngs
- pioperly located, planned arid constructed
rriHy suffer from two causes, physical decay
arid decline In net rents. I might enumerate
a number of causes, but they would eventu
ally lea1 to net rent, which we all admit
In the basis of value In real estate.
Richard M. liurd. author of "Principles
of City land Values," states that "effec
tlve demand makes values, not Mulldings.'
A building Is but a chattel or servant, i
medium through which the owner derives
a net Income from the land. A majority of
new buildings are properly planned and
located and yield the net Income that their
"-Socalltles entitle them. Others are properly
plauned, but III adapted to their locations
A and are financially unsuccessful, while
others are more favorably located, but so
badly planned that their net rentals cover
Ing a period of years fall to Justify their
erection.
Problem learsktl Complex
' To ascertain tha value' of buildings is an
interesting problem, since they differ In
age. design, character and quality of con
structlon. There are two methods for ascer
tainlng tha value of buildings. One Is to
capitalise net rents and deduct the value
of the land from the gross 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 a certain value per cubic foot
The unit of value per cubic foot that may
be determined upon as representative of
the cost of various types of buildings is the
result of experience.
The average frame house consisting of
six to eight rooms costs from 13 cents to 15
cents per cubio foot, depending upon the
interior finish, system of heating, quality
of materials and workmanship: the better
class of frame dwellings from lti to 22 cents
per cubic foot; store buildings, two to three
stories, ordinary construction, from 12 to 16
cents per cubic foot; five stories, tending to
fireproof, from 16 to 25 cents per cubic foot;
offlre buildings, steel construction, from 30
to 60 cents per cubic 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 depreciation from Its cost.
The percentage of depreciation per annum
in various buildings Is as follows:
Per Cent.
Ordinary frame residence ....2 to 3
Cheap brick office buildings 2 to a
Higher class frame residences 1 to 2
Higher class brick residences.... 1 to 1
Higher class store and office
buildings ....1 J
Steel constructed otflca buildings,
estimated Vi
Cheap frame workmen's cottages. 4 to S
A further and serious depreciation niny
occur from change In style, architecture
anil new methods of construction.
Ascertaining the cubical contents of a
building is a simple problem when the' di
mensions are known. The first requisite
ihen is to obtain the dimensions of the
building. All estimates of the cubical con
tents should be based upon accurate meas
urements of the helghth and size of the ex
act area covered by the building, after de
ducting air shufts. light wells or oth-.T
openings that may be found
of tha property as a whole, sar fW.enn.
Tha building Is carefully Inspected and It
la decided to he worth 28 cents per cubic
foot, which multiplied by the dimensions
may give a value of tlSo.Ofln, but the gross
capitalised value of tha property Is but
I2,000. The land vain of Jino.oon is de
ducted from the oapi'eliK'd value of HJOn.-
000, leaving a commercial value for the
building of $100,000, one-third less than It
cost or a shrinksge In Its commercial value
of tno.wo.
Twt Sample Calealetloaa.
Aa a further Illustration I submit tha
figures In connection with a chesp one
story building valued at t4,?:0 and those of
a mora expensive building valued at I72.00O.
both lots of equal dimensions and value:
Cheap Kxp'slve
Building. Building
MEWS OF THE BUSY BOliflE MUMS
Gross rents
Expenses
Net rents.... J...
Or per cent on.
Deduct building .
f 15.120
1,600
$ its
4.2SO
12.1)00
f 12.700
211. i
72.000
, $204,416 $1.19.1.56
A difference of $64. 730.
Assuming that tha lots are of equal value
and deducting the value of the ground
under the cheaper building of $204,416, from
the gross capitalized value of the expensive
property of $211,666, we discover a com
mercial value for the expensive building
of $7,2TiO, showing a waste of capital In the
expensive building of tG4.tT0. 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 Is to estimate
tha cost of a building per rentable square
foot (not cubic foot). From the rental
value per square foot Is deducted the oper
ating 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 there
after, an economic check may be found to
the erection of additional stories.
In closing, I desire to say that In my
opinion one of the most Important prob
lems confronting the owner of city lanl
Is to know how to properly Improve It.
Ills aim should be to so plan his Improve
ments as to gain the highest possible net
return from the ground. There Is a limit
to the amount of money that may 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.
Rales 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
Twentieth and Mandersnn from D." M. M.
Loomla for lVM.
Another deal a(so consummated by George
& Co., la the sale of two lots in Oak
Chatham at Twentieth and Laird to Lara
mie, Wyo., men for $850 and $.
George & Co., report purchases of lota
In Dundee by Carl A. Mortenson, Dr.
Robert K. Ksklldson, Anna P. Slpe, A. G.
Plnitertnn and Eliza Cajin.
The following sales were repotted by
George & Co.: Myrtle Smith to Walter
Hazleton, lot In Oak Chatham; house and
lot. 2006 Maple street, from Harvey Y.
Readinger to John R. Klnsey, $3.6M; lot
In Clark Redick addition to Emma C.
Norton and Howard S. Brooks to W. A.
Chapman, house and lot at 2C02 Brewster,
for investment, U0O.
t it - t ''ZT
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!!!?!': - - ' . 14
i i -lta , -.jilt si . .
NOTES OF VARIOUS DEALS
Caarlesew Heights Finds Mlxty-Fonr
Purchasers af Oae or More
Lots In Hereat Time.
Sixty-four purchasers of lots In Charlesew
Heights 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 Sohmidth, 2 lots; Harvey H.
Smith, 4 lots; 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, i lota; Oscar
Boyer, 2 lots; John Lovgren. 1 lot; Mathlas
Klug, 2 lots; Minnie W. T. Reynolds, 4
lots; Archie Harrison, 2 lots; E. K. Hayz'
lett, 2 lots; Laura Llndstrum, 2 lota; Leo
Seale, 1 lot; Leo LaGreco, 1 lot; Charles
G. Deutsch, 2 lots; Harry N. Fuller,
In arriving af the actual net rentals from lots; I. O. Gorham, 4 lota; Frank Bleker,
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, repairs,
water, beat, light, Janitor service, elevator,
collection of rents and an estimate to cover
potfji'le vacancies, all of which vary in
different classes of buildings.
The Item of repairs should not be under
estimated. All rental agenta 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 renta may be too
high. Therefore, appraisements based
thereon may be to a certain extent unre
liable. I would submit the following as repre
senting the percentage of expenses that
may be charged against gross rents:
. M One. two and three-story
retail stores 14 to 25 per cent
Wholesale buildings 15 to 2S per cent
Residences 20 to 30 per cent
Apartments, non-elevator... 35 to 45 per cent
Apartments, elevator 40 to 55 per cent
office bulldlncs 40 to SO per cent
Another Important factor to be considered
1l Is the capitalization rate, which is the rate
of interest a community may be contented
with when investing lu various classes of
property. High class property Justifies a
lower capitalization rate than the cheaper
and less desirable grades.
alae of Land Important of Coarse,
When appraising or Improving retail
property It Is essential to keep In mind
always the value of the land, espcclally
when the commercial value of a building
Is below Us structural value. When net
ienls pay the current rate of Interest on
both the land value and the full structural
value of the building, the result is a well
balanced property. The building U 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
tuld have" no effect on the building, -as
aivulhling can never be worth more than
It would cost to replace it." Where there
Is a gradual decrease In net rents there
Is a corresponding loss In ground value.
When the shrlnkuge In ground value de
clines to a certain point a losa occurs In
the commercial value of the building.
The shrinkage In vslue of an rxpensive
building Is discovered at a higher point in
tit downward scale of net rents than In
the cheaper building, thus Indicating a
greater risk of capital In expensive build
ings. This condition may continue until
75 per cent or mure of the value of the
building is lost. To ascertain the value of
a building 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 capitalised, which U baaed
on tha lower net rent, we dlecover tha ex
tent of the loss or shrinkage lu the com
mercial value of the building.
" Again we find an expensive or badly
Sid building in a choice location. Its
ruu are capitalised anwlug the value
2 lots; B. K. Kyle. 1 lot; N. M. Godfrey,
2 lots; Mr. and Mrs. A. Jordan. ( lots;
Ellis R. Anders, 1 lot; Emory Anders, 1
lot; Mrs. Fredrick E. Smith, t lots; Ivor
Keholm, i lots; Sarah Garrlty. 1 lot; Gin
aeppe LaGreco. 1 lot; Edward L. Btnkley.
4 lots; Walter R. Brltton, 1 lot; Frederick
I. Hubbard. 3 lota; Ignaalo Caito, lota;
J. H. Boetel, I lots; George Wesserschnldt.
3 lots; J. H. Crouch. S Tots; W. L. Edwards,
4 lots; ina D. Edwards, 4 lota, Forrest
Everly. 2 lots; Peter Mlchaelaon, 3 lots
Myrtle McCandless, 1 lot; Carl Bratt, 3 lots;
G. M. Durr, 1 lot; Mary E. Miller' I lots;
Howard L. Hammand, 1 lot; Mrs. E,
Iiggit, 1 lot; James Watson, t lota; Henry
Miller, 4 lots; Sarah Jane Shepard, 2 Iota;
Sarah E. Hammond, 1 lot; Mrs. Maggie
Mason. 2 lots; J. W. Peck, 2H lots; W,
B. Gordon, 2 lots; Sofia Gibson, 2 lots; Nels
Mlchaelson, 2 lots; Kate Sneed, 1 lot; L.
C. Weaver, 34 Ions; C. J. Roath, 2 lots;
r . w. Parr, 1 lot; Mra. T. W. Kelly, I
lots; William Dosa, l lot.
Son's Blood Fails
to Save Mother
i i
t i
t
Transfusion is Resorted To as Last
Recourse, but Mrs. Charles E.
Smith Dies.
I I LI I J
I TABLE u-.:Nl-D I
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KITCHEN
,,-6-0-0 vm DlNlNG
ROOM .
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E55 v5S i 53
ARTHUR 'OCLAUSEN
ARCHITECT MINNEAPOLIS, MINN.
P 1,11 U
Balcony
1 I FT 1 1 '
I (5 l - chamber
1 j i& '.xio-o' I
B5?1!:L-. i
: chamber I
BATH
r5 I CHAMBER I
0 I 13-axn-o I
EJIPAflEO ETAL
STEEL
PLASTERING LATH
is the fireproof 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.
KORTHWESTERN EXPAKDED METAL CO.
84 Van Buren Strt, CHICAGO
I S "T Fi.OO
Getting Best Results in Home Building
Arthur O. Clausen, Architect.
We IVIaKe Them in Omaha
ami can duplicate any
manurartured In the world also
Save You Money
Hydraulic-Press Brick Co.
330 Bee Building.
Let us show you samples.
As a last hup to cave tlm life of Mrs.
Charles K. Smith. 2119 Seward street, a
transfusion of blond was resorted to at
the Omaha General hospital, but In vain.
Mrs. Smith never rallied from the shook
of an operation performed earlier In the
day and died at 2:30 o'clock Saturday
morning.
Th. blood was taken from l'uniel H.
Smith. J4 years of age. son of the patient.
Mrs. Smith was operated on Friday morn
ing for a tumor. As the hours pusned
and she showed no signs of rallying it
was derided to transfuse blood tnto the
patient's body. The son asked that the
blood be taken from his veins and the
transfusion from arm to arm whs made.
Mra Smith was 4i years of age and be
sides her husband, and son !uniel. U sur
vived by a daughter, Ie la Ilosetta Smith,
U years of age. No funeral arrangements
have been made.
A native of Baltimore, Md., Mrs. Smith
lived for twenty-three years, prior to
thrv. yeara ago. In Custer City, S. D. Her
falling health necessitated their removal
to Omaha. tKiiing her entire residence In
this city Mrs. Smith was In very poor
health, being afflicted with a tumor which
caused her much pain and suffering.
Take Wtrslsi.
Ixm't let atomach, liver nor kidney
trouble down you. when vou can quickly
down them with Eleclric Bitters. 50a, For
sal. by Beaton Drug Co.
One often hears a homebuilder boast of
how much ho was able to save during the
construction of his house through exer
cising rigid economy from first to last. If
the saving has been made through con
structing the home in a systematic man
ner and obtaining good prices In fair com
petition with a careful selection of all men
and materials, the homebuilder la justi
fied for the pride he takes In the applica
tion of good business principles. But If
the saving has been accomplished through
a reduction In the quality of materials
nd through obtaining the cheapest men
to do cheap work, regardless of tht-lr
reputation or ability, the saving of pennies
In this manner will often mean dollars
wasted ip subsequent repairs. Many houses
built te sell furnish good illustrations to
where the saving of pennies means a waste
of dollars. A poor quality of lumber Is
used throughout the building, the builder
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 la used, composed of sand and water
more than anything else. When the work
la complete the whole house Is painted up
In nice shape, but with a cheap quality f 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 bill for the repairing of plas
tering, replacing doors that have gone to
pieces, plumbing repairs and countless other
Items, to sayjothlng of having most of the
pulnt burned off of the house and the house
entirely repainted.
There 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
so much longer than another without re
pairs Is that the one has Just a little more
sand used 'In the mixture to save cement.
The reason one cellar floor la damp, caus
ing a constant decay of everything In It,
Including the partitions, Im that the home
builder thought It too expensive to put a
coat of cement on the outside of the wall.
The reason that it takes twice as much
fuel to heat the house as compared with
his neighbor's house nf the same size may
be due to many causes, one of them being
a poor heating plant, another being his In
experience In handling It, but more often
It is caused through little neglects In the
construction of the house, such as omit
ting tiip-tfeam-flll, between the Joist In the
basement, good papering on the outside of
the sheathing under the siding and careful
workmanship around the window frames,
cornice, etc. The reason his paint peels off
Is because he bought It from a dealer at
half the price another dealei asked him
for what he supposed to he the same ma
terial without Investigating the relative
quality of the paints. The reason his mlll-
i work comes to pieces, such as casings,
I doors, built-in sideboards, mantels, etc.. Is
I because he lefth" mill-work at the lowest
price h could get for It to Irre e.ionnlble
people, who furnished him green or wet
lumber for his finish. The reason Ills roof
k.aks, spoiling the celling decorations on
the second floor. Is because he hires som?
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 a big difference between
the way the beating plant and plumbing
sstem la Installed In a house. One ron
oern will send mere boys to do the work
who have little experience and no heart In
It. Another will send competent workmen
with considerable experience, who work for
their employer the year areund. who are
anxious to Increase their employer's repu
tation for good work, realising that It Is
J money lu their own pockets. In a hot
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, .
I'TII AJtT, OZZHCTB AJTD KOK
TIMXWT Or XOMXBUU.D-
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 homebiilldlng, giv
ing complete Information on the
p.anning and designing of every kind
of home. '1 here is nothing more
practical than making the home ar
tistic, building It on scientific linen
and to Insure sanitary conditions
and warmth. The author of the book
alms to give the intending home
builder advice on subjects such as
buying the lot, planning the home,
letting the contract, choosing the
materials, etc. Problems about front
doors, windows, stairways, fire
places, exteriors, interior finish, etc.,
are taken up In detail 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
fusely illustrated. Bend all orders to
Arthur C. Clausen, 1136-77-38 Lumber
Exchange, ' Minneapolis.
water heating plant especially. It is quite
necessary to have everything 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 aa 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 limit of a man's means very often
decides the material with which a house
should be constructed on the outside walls,
whether It should be of masonry or frame.
A masonry wall Is unquestionably a more
durab construction and therefore more
economical. A perishable material must
be very cheap. Indeed, If It Is less vx
pensive In the long run, than a more
durable substitute, but wood construction
Is not cheap under the prevailing prices
of lumber. The difference between the
cost of a 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 twelve 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
old mother earth baked to withstand the
heat of the hottest sun and with a fine
ness of text lire which makes It Impervious
to other c'imatlo 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 air. 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 building 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
dispell the appearance of every residence
district. It Is well to look out for the
pennlea, but It Is both expensive and un-
' wise to apply the penny principle too
rigidly without due consideration for the
i lasting qualities.
"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 use them more
time for their talking."
Omaha Electric Light and Power Company
Y. M. C. A. BLDQ. BOTH PHONES
FREE ART EXHIBIT
"I!te Coitpes! t Prairie''
Latest masterpiece in oil
by Irving R. Bacon,
which won high honors
for him at Munich last
year.
Prince Gets
Twelve Years
and Lewis Five
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 muiderous assault
upon Detective M. J. Sulllvun at Jie
Antlkol saloon the night of November 1.
William Lewis, another colored man, re
ceived five years. Lewis was convicted of
a statutory charge.
Prince wished "to beg Detective Sulli
van's pardon." "I hope," said Prince, "he
will receive my apology, as It would have
been the same If my own :uUier ha J
stood before me. I was drunk and did not
know what 1 waa doing."
Prince pleaded for a light sentence. If
the court favored this, and It I.' unlikely,
the words of County Attorney English
ended Prince's chance. -
"This certainly seems to me a cae call
ing for severity," said the county prose
cutor. "1 congratulate you. Prince." said Judge
8utton. "that you are not here to receive
the death penalty. Considering that you
fired four bullets into Hulllvan's body you
are lucky not be In a worse predicament
than you are."
William Lewis' charge up San Juan hill
July t 1. helped him somewhat with the
court, who referred to Lewis' military
service.
Dlscualuf the case Judge Euttoo said:
"The law ought to protect young children
and especially young girls far better than
it does property."
The colored foster mother of Km ma
Kruse, heard sentence pronounced. Khe
was the only woman present in the court
room and the mysterious white pair who
followed the trial were not at hand.
Court of the Bee Bldg
HAMLET AHEAD OF HIS TIME ! -
i
James t omta. Lecturer, Declare
KkaktiprirrtB Character Almost
Prophetic Prraoaaa-c.
! e
ALL LOVERS OF ART ARB INVITED TO
INSPECT THIS MAGNIFICENT PICTURE.
"A Ilatlonal View of Hamlet" was til!
subject of a lecture by James Young at
the Orpheum this morning, given comp i
mentary to the teachers cf the public
schools of Omaha, ministers and the club
women of Omaha.
Mr. Young took the position that Hamlet
was t'ie most popular of the Shakespear
ean dramas and one that appealed to the
lawyer, poet, preacher and orator. Ills
analysis of the character of Hamlet was
that Hamlet was fur In advance of the
time in which he lived, that simplicity was
the keynote of his character, and that the
governing motive of his life whs grtat
"mental agitailoa" rather than Insanity
or even melancholy. He held nlso tlut
Shakespeare's conception of HamUt was
that he was a great, free, mors) a e.it
and of a noble mind not o'erthrown.
.The speaker conceded that th'e character
of Hamlet was one that had afforded more
controversy and criticism than all other of
the Shakespearean characters.
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