The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1893-04-09
\ BAD BARGAIN.
The Mechanics Insti-
tute Is Puzzled.
JOHN CENTER's MARSH LOT.
A Ceaseless Drain of Interest-The
Block Cost Already $4,000,
ard Cannot Bring SIS, 900.

"HOw John Center must laugh 10 his
sleeve at the sale of this property" said
George Cumming. one of the directors of
the Mechanics Institute, yesterday after
noon as he stool with his hands in his
pockets mournfully contemplating the lot
owned by the institute on Fifteenth and
Folsom streets.
1T is a white elephant on our hands and
will be hard TO get rid Of" he continued,
pointing gloonlily to a lot of pools of slug
gish water, a d1lapidated fence. and to
swamp land six feet below the level of the
F0lsom-street sidewalk.
His remark was heard by number of
the directors of tia institute and CALL
reporter, who were there to attend an in
spection of the property. There were pres
ent President A. S. Hallidie and Directors
Oscar Lewis, e. A Malm. Il. Il. Doalan and
George Cummings They will make re-
port at the next meeting IF the board.
X. I. DOOlan. the recording secretary of
the Mechanics Institute. gave the history
OF the lot 10 those who were unacquainted
with it.
ut is about eight years" he said, 'since
this lot was bought from Center for $780,
coo. He owns property all along and about
1t. He even reserved the choicest section
of the lot on the southwest corner of Six
tenth and Harrison streets, but said he
chanics' pavilion was erected on the site
| within certain time. That time has ex-
| plred some time ago, and Center holds on
| to his choice portion Of the lot which is four
| fifty-Varas on Folsom street by TWO on
| Fifteenth.
"When the property was bought the inSti-
| tute directors burro wed the S1C0,C0) and
mor.gaged other property of the institute
that on Pos: siIert and also that OH Larkin
| street, in order to secure the bank. The in
! tereSt was per cent.
Since the institute made this mortgage
not one cent OF the principal has ever been
| paid. So the 100000 stlll stands against
| us. More than this, since the acquisition of
the property the Institute has paid $4,000
In interest foE the money that John Center
has in his pocket We have the lot, but il
has cost us S14i, 600.
The cost is still continuing We are
still laying interest, but not TO the Hibernia
Bank. Last year The bank determined TO
raise the interest TO 81 per cent, but A. S.
Hallidie negotiated with the State Uni
versity. and the regents took up the 500, 900
al per cent
$50 you see. we are still paying interest
and see no way to reduce the principal.
The interest costs the institute just S27 80
day. That is big sum when you consider
what 1t is fO:. The interest amounts TO the
dues OF 1000 OF the members of the inst
tute, or One-fOurth of the entire member
ship. This is a terrible drain and shows
consummate business folly.
at would not be so bad" continued Mr..
DcOlan. IF the lot was Il good and valuable
one and had prospects. But Tho fact is,
though we paid 100000 for 1t eight years
aga. real estate experts tell us we cannot
possibly get more thar $4,000 for the prop
erty. AS We have paid already S44, COO in
interest, and ii we sell and only get S75,-
COO that will be a loss of SOS, coo more, or
net loss Of $4,000 IN a Little over seven
years.
That is why we are pulling over this
proposition, and want to devise some way
by which to get rid of this white elephant
and stop the drain OF S27 80 a day interest.
Something must be done, for he HAYES
street property does not pay for itself, and
the library n Post street is not self-sus-
tanning. The annual fairs have been the
only things which saved the institute. ii
We 10 not have one this year our way will
not br very clear
The unanimous verdict Of the party after
making an inspection of the property was
TINT 1t was a very bad bargain indeed.
President Halli1e, speaking of the lot
said
'Of course this turned ont bad invest
meht. There is no denying that. But
when the property was bought rates were
higher our this way, and the bargain was
thought tn have teen very good one. Ii
turned out otherwise. We thought the
property WAS valuable because it was sup
passed that the business growth OF the city
was trending this way. p 3. Cornwall was
president Of the institute at the time.
II must admit now that, though think
the lot good one, it has been a poor invest
ment, and the question is, What shall we
do with it?"
The members present expressed various
views on thfl subject. Ali admitted that
Tho lot bad not turned out as expected. II
was shown how n smaller lot very little
smaller, and block higher up, had been
lately offered with some improve
ments on IL for $4,000, with
no takers. 1t was also shown that
a lot on the block below, with u 25-foot
frontage, had last week only brought $500,
or about ST. front foot. Yet, in order to
get their money back the institute will have
to realize several hundred dollars front
foot. There are no improvements on the
lot. The oulg street improved on it, bOr-
ders IL Folsom street. Il will cost $1,000
each to improve the other streets surround
lug it. Again. it will cost some thousands
of dollars 10 fill up the Tot to bring it 10 the
level OF the sidewalk.
Director Cumming said he was in favor
OF dividing the block up in small lots and
selling them on easy terms to people who
desire homes. Director DoOlan appeared to
be in favor of getting rid of the 10: by sell
ing 1t outright and building at once on the
Hayes-street property.
The party left the place very much damp
ened by the outlook. A repoTt VIII be
made at The next meeting OF the institute,
and some definite action will probably be
taken.