Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1913-08-06
P. 0. PURCHASER
WILL GET BARGAIN
Official Says $4,000 interest
Loss More Than Offset by
Value Increase.

With the Newark Postoffice bill in
the hands of President Wilson for ap-
prevail after successfully passing all
the other steps. Postmaster Book mas
received numerous inquiries regarding
the terms of sale of the present led
eral building and site.
The postofIice bill in its present
form provides that the local post
office and site must be sold for at
least 81, 800, 900 and various business
men and real estate operators who are
interested in the property are anxious
to know under just what conditions
the building is to be sold.
Under the provisions of the bill, the
property must be sold and suitable
deposit made to bind the contract, be-
fore the site for the new building can
be purchased. The entire amount
necessary to defray the expense OF
erecting the new structure and pur-
chasing the site must be derived from
the proceeds of the sale of the pres
ent postoffice.
"Nigger in the Woodpile."
This provision, it is feared, will be
the niger IN the woodpile, Tor IL
will mean that the purchasing price
of the post office must be put up
and the government allowed to oc-
cupy the building, rent and interest
free. until the new structure is COM
pleted The only stipulation is That
the purchaser will be given clear
and free title of the building within
two and a half years after the pur-
chase Is made.
Whoever purchases the building
" " I 8
100000 in interest money" one of
The postal officials from washington
explained today in speaking of the
matter, "but the question is, will not
that amount be more than made up
by the increased value OF the prop
erty at the time the purchaser final
ly does take title to it?''
With the completion of the pro-
posed Public Service trolley terml-
nal and the abandonment of the
Morris Canal, which must eventually
come to pass, the value of the post
office site will take big jump ana
will practically equal the land value
of the property at the four corners.
Less Traffic at -Four Corners.
When asked his authority for this
statement. the postal official ex-
plained that the completion of the
new terminal would mean great
reduction of the traffic at the -Four
Corners" which really is the sole
purpose of the propoSed terminal and
plans.
land so valuable there he said,
land when you transfer any of the
traffic YOU decrease the land values
there and increase them in the neigh
borhood where the traffic Is sent,
which means that the value OF the
postotfice in five years will be great
ly increased. Aside from this the
general increase in all Newark real
estate which all dealers acknowledge
will also be enjoyed by postofiice
property.
but Just how do you expect to sell
the building and how are the pay
ments to be nader" asked the scribe.
with the signing of the contract
for the purchase of the property a
suitable deposit to be designated by
the treasury department must be
made. Then within a certain period,
thirty days perhaps. or some time be-
fore the actual purchase of the new
site. the entire $4,000. which is the
maximum amount for new site, will
have to be paid by the purchaser.
the postoffice expert said.
Payments as Low as Possible.
After that l figure that the other
payments will have to be made ac-
cording to the arrangements for pay
ment which are made between the
contractor and the treasury depart
ment. The treasury department / can
assure you will make every effort to
have these periodical payments made
as low as possible
The statement that the purchaser
will stand to lose at least $4,000 in
| interest is figured on a purchase price
of exactly $1,SOO,000, the minimum
amount the bill provides for.
1t is reckoned that the purchaser
will lose two years interest on the
| $S00,000, because that payment must
| be made before the site can be pur-
chased. That will amount to $4,000
at per cent. The other 900 is in
terest on the $1000,000, which, it is
estimated, the purchaser will have to
lose. although large part of the lat
ter amount will be paid at the last
instalment. That is, according to the
| figures sent up from Washington.
Local real estate men place the
value of the present postoffice site al
from $1.500.000 to $2.2O0,0o0, and state
that it win probably increase in value
90 per cent, IL the proposed improve
J ments are completed.