The Birmingham age-herald., 1911-04-21
GEORGIA WILL TURN OFFER DOWN Believed Mansion Property
 Will Be Held MONEY LOOKS GOOD But the Legislators See Scheme of Candler Behind the Effort to
 Secure Property Owned
 By the State

Atlanta, April 20-tSpeclai.)-IHere IS d positive belief that the legislature will emphatically turn down the proposal looking to the disposition of the execu- tive mansion property on Peachtree street, which was approved by the legisla- tive committee. and will be reported fav- orablv to the general assembly at its coming session.
 A 99-year lease, with a steady income, is a mighty good thing, provided the in come is big enough-commensurat with the propertys value. But 1t is recalled in this case the lessee proposes to take the property free of all taxes, through which the states loses approximately 5000 a year for the period through which the lease is to run.
 To recapitulate the proposal, B. M. Grant Sr Co.,, real estate agents here, rep resenting some person unknown, agree To pay the state s12,O0o the first five years, s15,Oo0 year for the 10 years following, slS,O00 a year for the next 10 years ana s22. GOO a year for the remaining portion of the 99-year lease.
 Putting the present value of the prop erty at $351, ,0O0 the highest cash price of fered, the committee proposes that the state shall accept for the property 3.4 per cent rental the first five years, 4.25 per cent the next 10 years, 5.1 per cent the next 10 years and 6.2 per cent thereafter. without taxes. These percentages are all based on the present value of the prop erty and not upon such increases as It
 f<. ff,,,n
 Considering that the tract, 140x4Oo on central corner, is the most valuable avail able property in the city today. and considering, too, that several 9S-year leases have been made at better prices, location and size of property being kept in view. this looks like very small rental for the state to get out of the prop erty.
 That there Is big money in it for the man who gets the lease at this price there is no question.
 It was natural for the committee to prefer lease proposition to one for sale outright. because if the property is sold the money received from 1t would have to go into the states public property fund, which can only be used for paying off the public debt. But if it is leased the rental can be used for general purposes. However, the legislature has found no trouble in the past in spending the pub lie property fund for general purposes, and there Is no reason to see why 1t should do so in this case. About 10 years ago the question first came up. The state had about $3O0O0O in the public property fund and wanted to use it for general purposes The problem was finally solved by using this money to pay off interest on the bonded debt, and using the interest money for general expenses, which is one way of beating the devil around stump. This disposition of the money was up- held by the state supreme court.
 This digresson is simply to show that the state might have used the proceeds from the mansion in any manner 1t might see fit However the committee thought 1t would avoid trouble to accept lease proposal and has so recommended.
 The committee declined to give out the other bids or the names of the bidders except to say that the highest cash price offered was $351 900, which is more than $25O0 per front foot, and further that there was another lease proposal at nigner figure, but carried with 1t the privilege of purchasing the property for $401, 100 at any time during the lease period, plus $ovve for each year during which the option lapses. In other words, if the bidder did not choose to exercise the option until the tenth year he would then have to pay for the property $451. 100
 There is little doubt that 10 years from now the property will be worth consider ably more than S500,000, probably $750.0oO If the rate at which values are moving in Atlanta keeps up for any length of time tba latter value will be reached, in fact before the 10-year period elapses.
 It will be seen, therefore, what inter- esting possibilities there are in the prop erty for anyone who can succeed in get ting 1t for 99 years at from S.4 to pei cent of its present value.
 The Asa G. Candler or Coca Cola inf1u- ence is supposed to be behind the move ment to acquire the mansion site for bus. mess purposes. MT. 'Cander owns one half of the block in which the property Is located, and 1t is natural that he should desire to get control of It. But If he figures in the lease proposal approved by the committee the fact has not yet come to light.
 The committee received no offer of g substitute mansion site which it would consider, SO will lea e the question of
 new executive residence, in case the pres ent one 10 disposed oi up to the legis' Ia