The San Francisco call., 1897-12-10
Blind BIDS
FOR SCHOOL
PROPERTY
Peculiar Figuring on the
Lease Of the Lincoln
Lots.
MORE THAN THE TOTAL RENTAL.
A New Company Formed Whose
Officers Do Not Know
Each Other.
TENANTS MAY HAVE TO SUFFER.
Five Thousand Dollars Capital on
Which to Transact a Half
Million Dollar Deal.

There is something mysterious about
some of the bids for the lease of the Lin
coin School property, opened by he Board
of Education at its meeting Wednesday
night. Real estate experts declare the
buildings are in a most dilapidated Condi-
ton, and when all are occupied at the
highest rental they can possibly bring the
aggregate Will not exceed $4,000 to $4l00
per month. But Notwithstanding this,
one company, that was only incorporated
the day before, bid $4,000 q month for the
whole property for a ten years lease, and
guaranteed to spend $4,000 in improve
ments. at the rate OF $4,000 a year. This
was the San Francisco Real Estate Invest
ment Company, OF which P J. Martin is
president and o. NJ. Tupper OF Oakland is
secretary.
Another bid, that OF J. W. Mcdonald,
was $50 month less than that OF the first
named, bat Mcdonald agreed to expend
only $35, 900 in improvements.
There were two other bids for the whole
property, Sigmund B. Schloss offering 10
take il for ten years at $3.50 a month and
to expend $4,000 in improvements, and
D. Keefe, who was willing to pay $3650 a
month and 10 put in sol 900 worth Of i'm
provements. The other bidders were
tenants, who sought to secure ten years
lease OF the premises they now occupy.
Many ruEOrs were put IN circulation
almost as soon as the bids were opened.
Il was intimated that the proposal was
worded in such a way as TO invite bidders
to make a blanket bid, and that this was
done because certain members of the
board would find it more convenient to
do business with one lessee than thew
would were the property let to each ten
ant.
Ii was also asserted that if one individ-
ual or corporation secured control of the
entire property the actual tenants could
be squeezed" Tor any rental be or II
might see ut to demand, and that there
would be a rich "diyvv" for somebody
These rumOrs do not seem to be borne out
by facts, and it would appear that at least
the San Francisco Real Estate Investment
Company had made its bid Without thor
oughly investiga the matter.
The articles Of incorporation of the San
Francisco Real Estate Investment Com
pany were filed with the County Clerk on
Decem ber e, one day prior to the date set
for the opening OF bids for the Lincoln
School property. Its purposes, as set
forth, are 10 buy. sell, take, mold, own,
lease, hire and otherwise deal in real es-
tate and personal property and to i'm
prove the same, borrow money, mortgage,
pledge or hypOthecate real and personal
property" and to deal in stocks OF cor
porations and other corporation property.
The charter Is for fifty years. and the
principal place of business is given as San
Francisco. The five incorporators who
are also named as the directors for the
first year, are 2. J. Martin, o. NJ. Upper,
c. S. Benedict F. NJ. Meigs ana Frederick
b. Burnell, all OF whom, with the excep-
ton of Tupper, whose residence is given
as Oakland, reside in San Francisco. The
capital stock is $3.50, 900, divided into 10, 900
shares Of the par value of $25 a share
Each OF the i've directors has subscribed
for forty shares, making $4,000 actually
subscribed. On this limited capital 1t is
the purpose OF the organizers to enter into
an obligation with the city calling for a
total expenditure of $4,000 in ten years
not iudlng insurance, which on the
property in question Is 3 per cent.
Mr.. Martin, who IS a real estate deal er
at is Post street, was the only one OF the
five directors seen yesterday, and he ap-
peared to have but vague knowledge of
the company, its officers or the pronertv
it sought 10 gain control of. He contes sed
that he did not even know the names of
his associates, when asked bv representa-.
tive OF HE CALL for information as to
the new corporation, but was positive
they were all men of good standing in
financial circles.
Asked if he had made an inspection of
the property, Mr.. Martin said he had not.
but had been III ed that it was in fairly
good condition, with the execution of tho
plum blng IN some of the buildings. which
he thought could be paired for half of
what his company had guaranteed to
spend for Improvements
The gentleman was of the opinion that
the companys bid was rather high but
the next highest bid was only $50 month
nd
carry out It's agreement. He said that on
Market street rents were holding their
own, but on all the other streets there was
downward tendency. He did not be-
lleVe, however, that the tenants of the
Lincoln School property would be willing
TO stand any increase in their rent
David Rich, mem ber OF the real estate
firm of A. J. Rich & Co., expressed snr-
prise at the bios for The lease, and said if
the highest was accepted somebody wouId
suffer.
Our firm did not bid for the lease -
SAID Mr. Rich, despite statements to the
contrary, but some of the tenants are
customers OF ours and we have a thoronoh
knowledge of the property and eyerv
building upon it. When it was first pro
posed to lease the property for ten wears
myself and brother discussed the proposi.
ton, and We soon concluded 1t was mo-
worth over $50, 900 m onth, but we knew
could not be secured for that amount
The buildings are in bad condition, and
when all are occupied the total rental will
not exceed SAL 900 a month The plumb
Ing is in a fearful state, the roofs all need
repairing, while every building ought to
be painted throughout and the walls
papered or whitened.
The insurance on this property is per
cent, and as the buildings are of wood
and within the fire limits, the loss by fire
of any of them means The rebuilding with
brick or the total loss of revenue. Ifany
OF the buildings should burn any lime
after the lease had run 1our or five years
1t would be useless for the lessee 10 re-
build for the cost would be much greater
than any entail he could collect before the
expiration of his lease.