Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1889-03-10
TRADE IN GOOD FORM.
Business Men Inclined to the Belief
That the Worst is Over.
BIG CHANGES ON WOOD STREET.
Rise and Fall of the Greatest Real Estate
Boom of Modern Times.
NEUTRALITY-SUSPICIOUS. IN THE CRAZE

Business the past week. afforded encour-
aging indications Of improvement. The
volume of transactions was larger than for
the previous week, and prices were steadler
for all staple commodities The specula-
tive markets were moderately active, but in
several lines prices were not maintained.
This was especially true of petroleum,
which closed weak and 1sS cents lower than
the opening Monday morning. In local
stocks the features of the week were ad-
vances in Westinghouse Electric and Switch
and Signal, and depression in gas and traction
shares.
There was greater activity at the banks. Iron
manufacturers reported more inquiry and a
decidedly better feeling. Real estate of all
kinds was in active demand and values were
fully maintained. In short trade in all branches
was of satisfactory proportions for the season,
with good prospects Of steady enhancement.
I'VE have passed the worst was the general
sentiment of representative men.
According to a weIl-authenticated report
some radical changes will soon be made on
Wood street, from Virgin alley to Liberty,
which will not only improve the appearance
but add materially to the value of business
property on that thoroughfare. Details of the
projected improvements are wanting, but, ac-
cording to the statement of THE DIsPATcH's
informant, the Arrott, Penn Bank and
National Bank of Commerce buildings are to
be raised two or three stories, the upper floors
to be fitted up for offices. When remodeled,
the Penn building will be occupied by the
German National Bank.
A number of other buildings are to be
worked over so as to put them in line with the
other improvements. In fact, if the report be
reliable and all the plans carried out, as is
probable Wood street, within the limits indi-
Gated, will before many months undergo such
complete transformation that old habitues
will hardly recognize it. While these improve
ments will be of especial benefit to Wood
street, they will be of more or less value to the
entire city. by setting praiseworthy example
of enterprise and local pride-to say nothing of
their bearing upon business and real estate.
At recent meeting of the Chicago Real
Estate Board a new scale of commissions was
adopted, the salient features of which are
herewith given. 1t Is Of equal interest to
| agents and landlords and shows that the claim
! in some quarters that Pittsburg rates are
higher than elsewhere is unfounded:
For negotiating and making leases where rents
are not collected by agent-stores and business
on account Of first years. rental per cent.
Where term exceeds two years. add for each addi-
tional year per cent. Residence property, on
total rent for term Of lease, ~ per cent. When
building is occupied by stores and flats it shall be
considered in all cases as residence property.
Ground lease, term less than Is years, on total
rent covered by lease ~ per cent; where property
is subject to reapprasal during life of lease the
charge is to be computed for the full term on basis
of the first five years. rental. Ground leases ex-
Tho nF
erty at date of making lease ~ per cent; If more
than one appraisal is mentioned In the lease then
the percentage is. to be figured on an average Of
the appraised values specified.
Where tenant has q privilege for renewal"
expressed in lease it is to be understood that the
owner of property shall pay commission for
said renewal at the same rate as though the lease
when first written had covered the whole time.
This commission is to be paid at the time of the
renewal. Where agent collects the rent-it is
understood that when the collection of the rents
on property is not left with the agent for q full
year he shall be entitled to charge at the rates
specified herein '1for negotiating and making
leases where rents are not collected by agent. ~
For negotiating and making lease, in addition to
| amount expended for advertising. g. The owner
is to pay for all advertising connected with rent
| ing the property. For renting and collecting ~
| to per cent, according to amount.
For making sales on real estate--On sale for
g. 900 or less, per cent On sale for So 900: On
| 2k per cent. On sale exceeding 80, 000 ~ per
cent. For the payment Of taxes-On unimproved
property on amount Of taxes paid, ~ per cent
On improved property on amount of taxes paid, 1
per cent. No charge to be made less than g. Dis
| bursements-In the management of property the
agent shall be paid on disbursements for janitor
service coal, and all expenses except insurance,
| taxes, interest and repairs, ~ per cent. Loans
On real estate loans ~ per cent shall be charged
and in addition thereto the attorneys fees for
| AsAro n.
$50
A Pittsburg gentleman, who has Just re-
turned from San Diego, CAL, yesterday gave
| THE DISPATCH representative some details of
| the rise and collapse of one of the most re-
| markable real estate booms of modern times.
| About two years ago new town called Cor
! onado was laid out on a scale of great magni-
| tude on Coronado Beach in San Diego Bay, near
the city of San Diego. Everything seemed
| propitious for the success of the enterprise.
The completion of the big hume by which an
abundance of water for domestic and irrigating
purposes was to be brought to the EN-
| bryonic city was a strong factor in
| its favor. The Hotel del Coronado was
erected on the beach at cost of 81, 500, ,OOO The
projectors undertook to co their own plumb
| ing, but soon gave it up and employed Pitts
burg man to finish the work. He charged s., 900
for the job. Everything was on an immense
scale. The hotel company soon sold S3000,0 600
worth of lots. The demand for them was so
enormous and the struggle to get in first so
great that as high as S150 was paid by many in
dividuals for good places in the line of strug-
Cling humanity. Lots that had before been
considered almost worthless brought fabulous
prices Extensive public and private works
were projected on all sides.
The excitement lasted for some time, but
| finally reaction set in. The boom had run its
course. There was not enough of money or en-
thusiasm to keep 1t up. Values dropped to
zero. The hotel company was heavily in debt.
Lots could hardly be given away. A Pitrsburg
capitalist holds mortgage for $40, 900 on one of
the best blocks in Coronado. 1t would not Sell
for half the amount if put under the hammer.
Hundreds of people were financially ruined,
and hundreds of others so badly crippled that
| it will require years for them to make up their
losses. Scores of people who went there with
IS, 900 or $4,000 had to borrow money to defray
their expenses home.
MOVING UP.