Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1889-05-11
A LIVELY INTEREST.
The Real Estate Market Holding Its
Own and a Great Deal More.
GOOD DEMAND AND BRISK TRADING
New Methods of Production Necessary to
Cheaper the Price Of Iron.
FAILURE OF THE BAKER OIL WELLS

The real estate business is surprisingly
active for the season, and bids fair to be
lively issue all summer. At the beginning
OF April fears were expressed that alter the
moving period the market would reach the
top and begin to weaken, but the present
activity in this line of trading shows that
those who held these pessimistic views were
false prophets. The fact is well recognized
by business men generally that there is no
better or safer investment than land at
fair valuation, and with this feeling upper
most, it is sheer folly to talk of depression
either in demand or prices. AT present
there is pronounced inquiry for large
properties, and several parcels of this de-
scription have recently changed hands at
Shadyside, Oakland, Diamond street and
elsewhere. Some of these were In whole or
in part unimproved and will be sub-divlded
and put on the market.
= Prices paid for these properties were by no
means extravagant, but entirely within keep
ing with the facilities, improvements and other
requisites for comfortable living acquired by.
the purchasers. The fact is that except in
few cases involving important business prop
erty, for which there was more or less competi-
tion, fancy prices, as commonly understood,
have seldom been exacted. But few proper
ties have been sold within the past year that
would not bring a higher figure If put on the
market now. This shows that, while values in
many instances were pretty steep. they were
not above the views of men who were able to
recognize good thing when they saw it. These
considerations lead to the conclusion that the
real estate interest of Pittsburg is in no dan
ger of a collapse, but, on the contrary, affords
every evidence of being in a healthful condi-
uon and destined to an expansion to be meas
ured only by the amount of available property
in and about the city.
While there has been no reduction in the
price of iron here in consequence OF the recent
cut made by the Thomas Iron Company, values
are less steady in sympathy with the movement.
Following are the views of leading Pittsburg
broker on this subject, as expressed to The
DISPATCH representative yesterday: "The
Thomas Company made the cut as matter of
self-protection against the Southern makers. I
think the effects of the reduction will be local,
from the fact that the step was taken to hold
their trade rather than to extend it. II they
shall be able to supply their customers they
will be doing well. The general trade will have
to look for other sources of supply, the same
as it has been doing. The cut will hold good
for year, no matter if iron advances SIS a ton.
In the latter event the Thomas Company would
reap no benefit from the advance, but other
concerns would. 1t has been stated that the
cut would put many of the furnaces out of
blast, but 1 do not look for such a result-at
least, not at present. Stocks must be worked
up before shut down movement can take ef-
feet The reduction may hold prices on their
present level, but do not look for CORE
spending drop all along the line.
"Looking to the future of the iron business.
one thing seems certain-a lower range of
prices. With the raw material in great abun-
dance in almost every State and Territory of
the Union, and especially in Pennsylvania,
can see no reason why iron should be held at
its present figures, low as they are by COM
parison with former years. Either this must
be done or production must be kept within the
demand. There are several ways of bringing
this about One is a reduction in freight rates.
AS it is the railroad companies are getting
more money for carrying ore than the furnace
men are getting for their product; that
is their profits are larger. Then we
must devise cheaper methods of produc-
ton. I don't mean that wages should be
reduced, for they are low enough, and in many
cases too low, considering the axacting nature
of the work; but cheaper fuel must be found
and more direct processes devised for turning
out the metal Under the system now in vogue
Lney say IL S uanuleu 0nLlT6ly 100 mucn; Gno
relations between the furnace and the casting
department are too distant; the metal should
be run into the mold from the furnace. This
would quicken, and, therefore, cheaper, the
process of manufacture and make it possible
to sell iron at prices which now seem impos-
sible. All these improvements will come in
time, and when established, the consumption
of iron will be increased to degree that will
require large addition to the milling capacity
to turn it out in sufficient quantities to meet
the demand"
1t will be interesting to Pennsylvania oil pro-
ducers to learn that the wells at Baker, on the
Caspian Sea, according to a gentleman con-
nected with the trade there, show a rapid
diminution in production, and the phenominal
gushers are such only for very short time.
Some of the most famous have ceased to pro-
duce in paying quantities, and it is his opinion
that the time is not far distant when only
pumping wells Of small production will remain
in the Russian fields. Nor is the held of the
extent generally supposed, as experimental
work has demonstrated that the area is circum-
scribed. Another interesting fact not hereto
fore known here is that the oil in the Baku
fields is in pools Or as is termed there in pock-
!.