Manufacturing follows similar lines to wholesaling, the production of articles of great weight or bulk and small value seeking the waterfronts or railroads away from the centre of the city, both for economy in handling the product and because requiring a large area for a low utilization they must have cheap land. The manufacture of light articles of high value or that which consists of the final combination or finishing of products seeks the wholesale or retail stores which form their customers. In such manufacturing the seller seeks the buyer and sells ,by sample, so that a location with an advertising value is not imperative, but the requirement of constant visits to customers and the ability to supply small articles quickly, cause such manufacturers to pay considerable rents.
Memphis levee, showing use of waterfront where marked changes of river levels occur. Absence of docks prevents localizing of river business, and resulting effects on city structure.
In general the basis of the distribution of all business utilities is purely economic, land going to the highest bidder and the highest bidder being the one who can make the land earn the largest amount. We may note that the better the location the more uses to which it can be put, hence the more bidders for it.
On the other hand, the basis of residence values is social and not economic - even though the land goes to the highest bidder - the rich selecting the locations which please them, those of moderate means living as near by as possible, and so on down the scale of wealth, the poorest workmen taking the final leavings, either adjacent to such nuisances as factories, railroads, docks, etc, or far out of the city. Certain features appear to attract the wealthy in selecting their residence districts, among these being nearness to parks, a good approach from the business centre, not too near nor yet too far, a moderate elevation if obtainable, favorable transportation facilities, despite the fact that the rich ride in their own carriages and automobiles, and above all absence of nuisances. Having selected a district the wealthy make it their own by erecting handsome residences, making good street improvements, restricting against nuisances, and finally and of chief importance living there themselves, the value of residence land varying directly according to the social standing of its occupants. The main consideration in the individual selection of a residence location is the desire to live among one's friends or among those whom one desires to have for friends; for which reason there will be as many residence neighborhoods in a city as there are social strata. In securing a home in a good residence section a man secures safe, healthy and attractive conditions for his family to live, under, and in the smaller cities, desirable social life, these social considerations explaining the strong pressure in all cities towards the best residence sections. The contrast should be noted that business property is selected by the man from an economic standpoint, and residence property by the woman from a social standpoint. Social growth and pressure is upwards from class to class, all ranks being continually recruited from below - as well as dropping members from time to time - and the ultimate aim in residence, location is to be as close as possible to those of the highest social position.
Where residences contain more than one tenant, whether tenements, flats, apartments or hotels, the basis of value is economic and conforms closely to the principles governing business property. The hotels of various classes seek locations similar to the retail stores of the same classes on convenient traffic streets which advertise them. The highest class apartment hotels seek locations on or near such traffic streets as run through or near the fashionable districts, the rents being dependent both upon fashion and on the character and service of the building. Below this grade the. various classes of flats seek locations for the convenience of their tenants, tending to draw nearer and nearer to their tenant's places of business, until finally we reach tenements crowded among the factories where their occupants work.