Tag Archives: speculators

Van Nuys — a Viewing

A new series applying history’s tire-iron to the rusty Hub of the Valley

Millard Sheets, 1965. HSFC Bank on Van Nuys Boulevard, now BofA

PART ONE: ‘WHEN ALL THIS WAS FARMLAND’

In the photo below, the sun-baked middle ground is today’s Van Nuys. Van Nuys is unusual in America in that the historian can’t sanctimoniously intone in the opening paragraph “For time immemorial People of the Ancient Ways called this land home, at one with Nature’s Ways.” Nobody called Van Nuys “Home” until Isaac Newton Van Nuys. And for the Tongva, the Chumash and the Tataviam who lived in the surrounding hills, the way to be at one with Nature’s Ways was to hot-foot it across the Valley as fast as you can in the dry seasons; and avoid it completely during the dangerous wet times when it swamped and Tujunga or Pacoima Wash could rampage. Of the two pleasant spots where natural wells and pools spring up, and the Indians had mixed-tribe rancerias, neither of them is Van Nuys. One was Encino [Siutcanga]; the other of course was San Fernando [Achoicomenga], where the Mission was built. But Van Nuys belonged to the antelopes. When the Indians were almost gone and the Mission was secularized the Valley was heavily ranched. Gen. Andres Pico took his interest in San Fernando and the northern half of the Valley, and his brother Don Pio Pico, the last Californio governor who had signed the original grant in 1846, by the 1850s had somehow come to own the southern half himself — including the cattle-tramped hardpan we call Van Nuys, that nothing in the middle:

Don Pio Pico, executing rights from a complicated chain-of-title victory from the Land Commission, sold his half of Rancho Ex-Mission San Fernando to the Yankees because beef prices had collapsed. Around 1865, the 15-year Gold Rush boom waned, then busted. The days were bygone of Valley rancheros driving thousands of cattle up to San Francisco and Sacramento to be slaughtered for twenty-dollar beefsteaks. The problem of a sudden oversupply of lowing stock solved itself, when a searing drought gripped the Southland, leaving the Valley full of cattle bones by 1868. The land sale was pervaded with ironies; Col. Fremont had made the Mission the headquarters for his California Battalion, and across these very plains had ridden in triumph to receive the sword of capitulation from Gen. Andres Pico, who claimed the Mission and its lands for his own. In 1848, Pico capitulated to save the Californios’ ranchos. Now the Picos were selling theirs off to the Yankees. But Pio Pico was the wiliest California land-jobber of them all. Realizing a profit from the switch of allegiances to Norte America, even so land could be liquidated legally, was their triumph. Pio was was certainly shrewd enough to realize a Hotel on the Plaza would bring steadier returns, and more genteel social connections, than running stock on the hoof. It was a brilliant trade for Pico, one of his canniest bets, for it kept him in good credit. It was also a decisive investment in downtown Los Angeles; the first moment when the dusty pueblo earned any notice at all in the world. Pio Pico put the Merced Theatre in back of the Pico House, with a door to the lobby; and put Jules Harder in the hotel kitchen; and made LA a city on the map.

1880s: the combine and twenty-mule team.

And it was a great deal for Van Nuys, who was the partner responsible for actually running the farm operation. Lankershim had tried dry wheat farming for a couple of seasons but had busted. Van Nuys said he could do it, and he did; with true Yankee luck, the middle of 1870s when he experimented brought some good El Niño rains, and by the 1880s Van Nuys was harvesting boatloads of grain with Lankershim’s capital, and shipping it overseas at a branded premium. Thus it was a great return for the San Franicsco investors, too. Lankershim had found this land destroyed by heavy cattle ranching and failed to work it; it was Van Nuys who made it into a productive monocrop that brought other wheat farmers to make fortunes here too. He was one of the greatest farmers who ever lived.

But who was Isaac Newton Van Nuys? He wasn’t the founder of Van Nuys, but it was named for him when he sold in 1909. (The town was founded in 1911). Speculative towns are usually named after the developer’s signature on the front of the check, not the farmer’s name on the back. Significantly, also, the name ‘Van Nuys’ is practically the only one of the developers’ original town names not to have changed; meaning, Van Nuys never actively voted to change its identity, as did social-climbing Toluca to Lankershim to North Hollywood, or Zelzah to Northridge, or Marian to Reseda, or Owensmouth to (the equally unappealing) Canoga Park. In the next part we’ll take the man, and his name, and his Life, in View, to glean what civics lessons we can.

Link

Seems the rent IS too damn high. Not really because of supply and demand;  because all the incentives in the system inhibit supply and demand, by keeping Mom and Pop  and Junior out of the economic game. This serves the purpose of removing from the city as much real economic activity as possible, to encourage further residential speculation on gentrification. Making cities simultaneously expensive and non-productive makes little sense; it distorts and defeats their evolved historical purpose. The issues raised in the article are not just New York problems, of course, or even very new problems.

The economist and urban theorist Henry George ran for mayor of gilded, tenement-rotten New York; in fact, the 1888 run (against Teddy Roosevelt!) ended his amazing life. (P.S.: he didn’t win.) But George was (modestly) born in a sweet brick cottage in businesslike, bustling, no-nonsense Philadelphia, in a neighborhood with some of the most tightly-packed and competitive streets America had at the time. Philly’s plain Quaker veneer barely hid or mitigated the fact that it had the widest yawning chasms of inequality on the continent. For most of his life, George and his hungry family chased the American dream as scrambling rent-hoppers, desperate for a situation – any! – wherein covering rent, subtracting food, equaled the security of something left over. He finally had his “Road to Damascus” epiphany while riding past acres of empty ranch-land costing $1,000 an acre on the old road (Mission?) to San Francisco during the Gold Rush. (In a Franklinesque flourish, George found his fame and fortune as a printer and newspaperman in the boom town of its day, and like Ben, his ideas and civic-mindedness grew out of, and up with, his adopted city.) 

George realized laws valuing non-productive land more highly than productive land; laws that let landlords hold properties vacant as “rent hostages”; or tax codes that encourage decent, desirable, cheap buildings to dilapidate to slums; laws encouraging red-lining to shake out old tenants for richer ones; laws that cheat tenants of the rewards of their own improvements; these laws are inefficient; they are laws that work to hollow out cities and drive off civilization.

Like Felipe de Neve, the founder of Los Angeles, Henry George looked at California, and came to a very sophisticated understanding: that cities were economic engines, where simple nearness (neighborliness) reduced time and money, and increased diversity and wealth. George invites us to consider a “Vast Plain”, perhaps a well-watered one, backed by mountains, with a fine southwest-facing slope down to a cool ocean bay. Upon it huddles a lonely farm family. They’ve managed a few improvements, maybe a little family village of a main casa, some cottages for the kids, and out-buildings here and there. They are infinitely rich in material and natural potential, since they can do whatever the heck they want to squeeze substance from as much land as they like. Yet they are infinitely poor in substance, by definition, not civilized. Imagine then another family or three or four showing up in ox-wagons. Our farmers would be crazy to run them off the land as competitors. instead, they’ll invite civilization, if they’re wise, and share the benefits. They’ll beg the newcomers to come and live near them and help them, trade seeds and stock lines. Trust, equality and co-operation, bring leisure and progress. Running next door to borrow some sugar; racing downtown to meet the ship at the dock, then back to the exchange to bet on the price; buying your calico wholesale from the merchant; merging your barn with your neighbor’s garage to make one big warehouse you both own and rent out to others who need it more than either of you, Density and diversity have inherent advantages in productivity. This leads to efficiency, frugal conservation of materials, increased leisure, and a community rich in public and private wealth.  

We can have civilization, or we can have real estate.

New York’s vanishing shops and storefronts: ‘It’s not Amazon, it’s rent’