Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1890-06-02

| nave grown TO appreciate It's ao-
vantages as much as DO the
business frequently know not the value
OF their property as rent producing, and an
instance was given where a tenants rent
had been increased from $500 to $1,000 a
year and part of his room taken from him,
and he still finds it cheaper to pay four and
| one-half times as much than to move. But
the advantage has not occurred solely to
landlords and agencies. The business being
conducted systematically and repairs made
| more cheaply than when landlords were
their own agents, and made with more dis
elimination. People wanting to rent can,
| in an hour, determine what they want from
the information furnished, and frequently
save many dollars in time and much vexa-
tion, compared with the old system of house.
| hunting.
Mr.. Black estimates that the renting done
by agencies has grown 2, 400 per cent in the
last three years. He thinks we will never
reach our full capacity for development un-
til the entire county is taken into the city.
DOUBLED IN VALUE.
Samuel w. Black stated that real estate
| in Pittsburg has on an average doubled in
| value since the last census was taken, while
| in some localities, both for business and res
idence purposes, the advance has been con-
siderably more than 100 per cent, and what
| was termed activity In 1880 would be snail
| paced at present. One great stimulapt has
been the cheapening Of money, caused by It's
| accumulation at this center. People are
buying now who in lormer years expected to
die renters. Capitalists have also found that
| there is an equal and safer return in real es-
| tate investment than in some kinds of man
ufacturing. In this Mr.. Black sees no in
fation, as the investments are made on busi-
ness principles, with a confident expectation
| of good returns and are not speculative, and
| the city is also fast becoming one of homes,
like Philadelphia and Baltimore.
George Johnston stated that the real
estate agency business had mainly grown
since he went into it, IL or 13 years ago, and
yet the then established houses had not been
hurt by the rivalry, but on the contrary,
they had grown, along with their rivals.
Then an agent rubbed his hands and in
dulged in visions of future greatness when he
concluded $40, 900 sale. Now one of $780,,
900 did not elate him nearly so much. In
that time prices have increased 400 to 500
per cent in some localities, notably in the
Second, Third and Fourth wards, almost
uniformly so below Grant street. In that
area, ten years ago, there were properties
that scarce yielded taxes, and some 20-foot
lots that were on the market at $4,000 to
81, 900, and that have since been sold at
$40, 900 to $25, 900. 81 have piece of prop
erty in my hands" said he. that the owner
would have sold at SIC, 900, and he now re-
fuses to take $4,000 ior it. The Hotel
BOYER could have been bought five years ago
for SIS, 900. 1t is now held at $500, 900,
| and the Central Hotel property will now
bring 500, 900 more than it would a year
| ago.
EFFECTS OF RAPID TRANSIT.
Rapid transit, while not injuring the
| value Of downtown business property, has
greatly increased that in the suburbs. This
is especially marked along the line of the
| Central Traction Railway. Lots held at
| $50 foot front, but which could scarce be
given away, will now sell readily at $75 to
$780,"
James W. Drape said: "The growth of
Pittsburg during the last 10 years has been
without parallel in its history. 1t is equal
to that of any 80 years. previous growth.
Other cities grew rapidly previously, nota-
bly, Chicago and other Western towns, but
in this city it was not extraordinary, and
! the bulk of the increase OF the last 10 years
has been in the last five. 1 time it by the
date when I went to Europe. The impetus
was mainly given by the utilization of nat
ural gas. By this an immense impetus was
| given to pipe manufacture, and this in turn
| stimulated all other enterprise. Values
| have kept pace with the increase of popula-
| tion, and much of it is not apparent to the
| casual observer, as it is represented largely
by mortgages made to secure betterments."
Mr.. Drape considered the present busi-
ness foundation good.
John w. Heron, of W. A. Heron &
Sons, said: "No other investors have made
so much money since 1880 as those who,
with good Judgment, put their money into
real estate. The growth of the city has
caused a steady advance. Buyers have
steadily realized profits which have induced
them to reinvest. Improved property has
paid large interest rate during the entire
decade"
MAKES THEM WORK HARD.
Talking of growth, Mr.. Heron said that
IA years ago his father and himself had done
the business entirely themselves, and were
not obliged to work nearly SO hard as at
present, when, in addition to the three
members of the firm, II clerks and book
keepers were employed, and this force is
exclusive of commission workers. They do
not employ them as some houses do,
though they work through them to a
considerable extent. One thing that
adds largely to the bookkeeping department
making all the force of a large bank neces-
W,
who have been attracted of late years by the
promise of good return from investments
here. This clientage is scattered from
Maine to California. These, also, formerly
did such business through lawyers.
Mr.. Heron thinks investments here for
the future promise well on account of the
great growth of capital. Heretofore the
city has suffered for want of it. Owners of
real estate have been crippled, as money
paid better in other business, but now sur
plus capital must have an outlet, and it
has found profitable one. Pittsburg has
not yet appreciated the value of economy in
building. Lots in many parts of the city
are too large, and people are too squeamish,
wanting to live separately. In Phlladel-
phia 16 or IS feet front answers for lots, and
elegant houses are Joined together, and
building is done systematically. Builders
own quarries, brickyards, sawmills and
timber lands and get material at base prices.
There narrow lots save street improvement
expenses, and houses can be sold or rented
cheaper than here. Then capital is and
has been plentier and cheaper in Philadel-
phia than here there being SO many trust
companies who must find SAFE investments
and must give inducements that will at
tract. Accordingly, builder with $1,000
can invest it in lots and houses, costing say
s., 900 to the establishment. As soon as
these are finished he can get 20 time mort
cages each OF So. 500 at low rate of interest
payable in installments of $500 or 81, 900
each per year. This gives him $4,000.
WANT IT IN A LUMP.
Here money lenders refuse to give such
mortgages, and a mans money is tied up
five to ten years. They want their money
in lump. or they think 80 per cent margin
for safety too narrow. In conclusion Mr..
Heron said that from investigation he had
learned that the improyemept of realty gave