Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1889-12-04
APENN AVENUE DEAL.
Business Property on That Thorough
fare Brings Big Money.
IMPORTANT B. & o. IMPROVEMENT.
The Company to Widen Its ROadbed Be-
tween HazelWOOd and Laughlin'S.
SIDE STREET PROPERTY Ar THE TOP

The feature of the local real estate market
yesterday was the sale by Black & Baird OF
Penn avenue property at prlce approxi-
mating $4,000. They refused to give the
exact location, but left it to be inferred that
it is between Sixth and Tenth streets. A
large mercantile house will be erected on
the lot for the purchasers own use.
He is one of the most prominent bu siness
men Of the city, and that he did not buy for
| speculation is shown in the fact that be
proposes to improve his purchase and occupy it
himself.
Owing to the great increase of freight traffic
on the Baltimore and Ohio Railroad, the COM
pany has decided TO add 20 feet to the east side
OF their track from q little above Hazelwood
station to the Pittsburg junction road, at
Laughlin's. This addition to their track facil-
tiles has become imperative by present inter-
ference with passenger trains, which has for
some time been cause of much complaint
from patrons Of the road. The plans for the
Improvements are being put into shape, and
work will be commenced at an early date.
This Improvement will give the Baltimore
and Ohio ample facilities for the prompt trans
action OF all its immense passenger and freight
business, without either interfering with the
other to cause vexatious delays. It will also
stimulate building at Hazelwood, where num-
Der Of houses have already been started, and
many others will be next spring. The natural
beauty and advantageous location Of this place
are attracting attention to it as one of the most
desirable residence districts around Pittsbure.
The few business failures which have oc-
CURED in different parts of the country within
the past few days possess no particular signih-
canoe. The end Of the year always brings to
the light many weak spots in business which
had been tided over somehow, and the weak
concerns go to the wall. This is an illustration
Of the survival of the Attest, These failures,
or the most Of them, resulted from mismanage-
ment. Some of the concerns that have been
overtaken by disaster attempted to do a 81, ,000-
600 business on 100000 capital. This sort of
commercial slight of hand contains the
elements of its own undoing.
The conditions of trade, as reflected in care
fully collected reports from all sections of the
country, are encouraging in the highest degree,
and give rich promise Of continued activity
throughout the winter season. There may be
failure here and there, but business rests upon
too substantial a basis and is too profitable to
warrant anticipations of any serious reverses
where correct methods have been pursued.
Those who succumb will owe their misfortunes
to their own mistakes, and cannot justly attrib-
ute them to outside influences. A vessel that
sinks in calm weather shows some inherent de-
feet. A man who fails with good cash de-
mand for his goods or products should look to
his methods for an explanation.
1t is the opinion of several prominent real
estate brokers in this city that property on side
streets has about reached the limit of its pro-
dunfiva nd fhat =
tempt to enhance its market value would end
in disappointment.
In illustrating this proposition, one Of the
gentlemen referred to said yesterday: People
live on side streets because they have to and
not because they want to. Houses are gen.
orally of an inferior class, and rents are lower
than on the more fashionable thoroughfares.
They are largely occupied by men getting
moderate salaries, say from $500 to 81 900 year.
They pay rental varying from so to SIS
month. This is all they can pay without an in
crease of income, which seldom happens, and
when it does, the tenant at once seeks a more
desirable location. Twenty or $50 month is
therefore, the utmost that owners Of this class
Of property can hope to realize. 1t nets them
or per cent, very handsome income from
the investment, but not large enough to justify
extravagant prices for their property.
II had man come to me the other day who
owns house on a side street in the lower part
of the city. He had been getting S27 a month |
for it. but wanted to raise the price to SS0 |
asked him what business the tenant was in and |
what his income was. He said he was a clerk |
and earned about $500 year. Do you think, 1 |
asked, that he can stand an advance of S3 a |
month"; The owner didn't know but thought |
he could Well, he cannot, said, and If you |
raise the rent you will drive him out, and your
house may remain empty for months. for men
of means will not want it. and those of small
incomes can't afford to pay what you ask. You
had better let him alone, or better STILL If he is
a good, careful man, reduce the rent to SIS |
This will encourage him, ana he will stay with
you.
''The property in question-house and lot-is
worth about 5000, and yet, with its productive
capacity limited to $500 or 1924 year, the
owner is asking $4,000 for it. A capitalist
wouldn't even look at it at those figures. This
incident shows that the exalted ideas of some
Of our property owners have nothing substan-
tial to rest upon. 1t is not difficult to get big
price for property that is susceptible OF de-
velopment that will increase its productive
but 1t is quite different in the case of
property on side streets and alleys. where the
limit in both of these respects has been
reached. A house so located and bringing in
$500 year has fixed commercial value, and
any attempt to boom it must necessarily fail,
unless it should be wanted for a special pur-
pose. For these reasons think prices for the
class of property in question have about
reached the top, and are more likely to decline
than advance.