Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1889-12-17
SOME BIG THINGS
Flying Around in Relation to Pros
rective Deals in Realty.
OLD RUMORS AGAIN BRANDED,
What Does Man Pay for When He Pur-
chaseS Lot or a Piece Of Ground?
CLAUS SPREcKELS is ALL RIGHT

A few fresh rumors of big deals in real
estate concentrated op Fourth avenue yes
terday, but they were too feet of foot to be
corraled. A few gauzy facts were also float
ing around. The Connecting Railroad was
looking after piece of land near Glenwood
for siding. A Butler county farmer COM
menced negotiations foE the sale of 200
acre farm, An Oil City merchant was in the
city trying to sell his store. Two other trans
actions of importance were reported to have
progressed so far that they will probably be
closed up by the last Of the week. The gentle
men managing them said: They are the big
gest things we have ever handled"
1t was denied by gentleman whose: word is
law on the subject that the Pennsylvania Rail-
road had acquired foot of ground on Cherry
alley. If there no fire there it is hard to tell
where all the smoke comes from. Still, the
people must believe the denials are made in
good faith.
Quite an interesting question is being dis
cussed by some of the real estate agents of this
city. 1t is this: Where man buys lot or
piece of ground, is its rental value or produc-
tive capacity included in the price he pays for
it? In other words, does he buy it for what il
is or for what he can make ont of it?
In giving expert testimony before an arbitra-
ton board recently prominent real estate
dealer gave it as his opinion that the full
rental value was included in the purchase price,
and that prospective enhancement had nothing
to do with it He held that the purchaser
paid only the amount the property was worth
at the time of sale.
This position seems open to criticism Sub
urban property is not rated as high as eligible
city property. Why? Because it is not so pro-
ductive. Sixty feet front on Fifth avenue, or
any other good street, is worth more than an
acre in any of the outlying districts-nOt be-
cause of the superior quality of the soil or any
other inherent excellence which it may possess
but because its rental value, already great, may
be almost indefinitely increased with the growth
of business and population. There Is a conse-
quential, or aceumulating, as well as present
value, and both should be taken into the &c
count in buying the property.
In acquiring the Schw eitzer property on
Fourth avenue for S12O 900 or 81 000a foot front,
did Mr.. Vandegrift estimate its value at what
it was at the time of purchase, or at what he
thought he could make out of it? If the
former, he paid big price; but if he had in
follow the erection of fine Office building on
it and the improvement of the street. he got
bargain. That man of his business acumen
would pay such large sum for piece of prop
erty without looking into its possibilities of de-
velopment is not to be thought of. He looked
to the consequential as well as the real value,
and seeing that he could make 10 or IL per cent
out of the investment concluded to make it.
The fact is, that nobody acquires land, in
either large sm all quantities, for the sake of
the land itself. He buys it this year because
he thinks it will be more valuable next year.
1t is to him what the mill Is to iron manufac-
turer or the store to the merchants plant to
do business with. 1t may be almost worthless
when it comes into his possession, but he sees
way to make it profitable. If it had no conse-
quential value he would not buy 1t. 1t is not
the land merely that man buys-it is what it
is capable of producing.
EAA
1t is as hard to kill rumor when it once gets
a good start, as it is to kill snake. Rumor had
the Hamilton Hotel property sold last week to
the Americus Club. It was promptly and
contradicted; but that only
it for little while. 1t came to the
surface again yesterday, as fresh and positive
as ever.
To settle the question for good and all. call
was made on Henry A Weaver & Co., who are
agents for the property. These gentlemen
stated positively that the sale had not been
made, that all reports to the contrary were un-
true; that there had been talk of such deal |
but that nothing had been done to carry it out,
aud that all the gossip in connection with it
was premature. 1t might be consummated, but |
there were important difficulties in the way of |
4 successful termination of the transaction.
Charles F. McKenna, ESQ.,. was also seen, |
he H.
adding that, while the matter had been can
Tassed to some extent, no documents had been |
signed and no money paid to constitute |
bargain, and he did not know when there would |
be, If ever Some serious difficulties were in |
he way, and these would have to be removed |
before anything further could be done. The |
,eport of the sale, he concluded, was entirely |
premature. Mr.. McKenna is attorney for the
rrimble heirs.
The Wall Street Daily InUestigGtor contains
he following: The stories current in Wall
Itreet for the past three days, that Claus
Spreckels was trying to sell his Philadelphia
efinery to the Sugar Trust, are falsehoods pure
md simple. We say this adVisedly. There is
10 doubt in our mind that Claus Spreckels will
light the Sugar Trust as long as he owns a dol
ar or has breath in his body His heart and
oul are in this fight, and he will leave no stone
Inturned to win it. The people in this part of
he country do not know him, nor how
borough he is in whatever he undertakes.
borrower, they have not the least idea of his
financial resources. What is generally sup
'osed to be his aggregate wealth is about his
nnual income The music in the Sugar Trust
las not yet begun; when 1t does begin Wall
treet will acknowledge that its strains are the
lvliest they ever listened to.
QUIET CROWD.