Hot Air Peddled in Russell City

San Francisco Call, Jul. 25, 1912

Full Text:

Owner Tells Equalizers What Happened to His Tract When Boom Collapsed

OAKLAND, July 24—What happens when a boom city collapses was explained by Fred J. Russell in pleading with the board of supervisors today to reduce assessments on Russell City property. He asked to have the lots assessed at $20 each Deputy Assessor Hedemark said:

"You have a sign up now advertising these lots for sale at $100 and you have sold a great many of them for $300.

“You have to pay a pretty stiff price for salesmanship when you are selling something for more than it is worth," said Russell. "Right now they are selling more hot air in Russell City than anything else at any price."

Russell said he had 
turned over the balance of the tract to other agents on the theory that the agents thought Russell would sell many lots on the installment plan and that people would "lapse on their installments and then the lots could be sold again, thereby making a good profit.

Russell explained:

" got rid of what was left at $20 a lot.  The speculator who took them will have to get $20 more clear profit to make any money on the venture, his salesmen will charge 35 per cent, his advertising will run way up, and to make money he will have to get $100 apiece. But they are not worth that as city lots. I tried to borrow money from the banks on the tract and they told me the lots would be worth far more as a ranch than as suburban property. I know that $20 apiece is fair value for those lots."

Hedemark was arguing strongly against a reduction when appraiser Assessor Horner said that he wanted until Friday to make another inspection of the lots, as he recognized much of truth in what Russell had said. The board gave him the additional time.

To view a PDF copy of the article, click the link below: