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Thousands Expected To Attend Bessemer Sales
City To Make Gala Day Of Land Auction When 264 Parcels Of Real Estate Owned By Defunct Banks Will Be Sold From Block
Bessemer will have its biggest business day in several years next Wednesday when 264 pieces of real estate owned by the defunct City National Bank of Bessemer and First National Bank in Bessemer are sold at public auction.
With attendance prizes of several hundred dollars and other attractions announced, the auction is expected to draw a crowd of several thousand, according to Edgar M. Elliott, receiver for the banks.
The property, Mr. Elliott said, consists of business, industrial and residential parcels, ranging from the cheapest type to some of the best residences and choice business sites, including the City National Bank Building.
Terms are one-third cash, one-third in 12 months and one third in 24 months, with 6 per cent interest charged on deferred payments and 5 per cent discount allowed for cash on the deferred payments.
In charge of the sale is Britt Davis, of Florence, who stands six feet, two inches in his socks, weighs 215 pounds and cajoles the prospective buyers with a booming voice which, trained at mule auctions in the old days, now employs its cadences to help national bank receivers retrieve varying dividends for hopeful depositors.
Mr. Davis, retained by the comptroller of currency, who is in charge of disposing of real estate held by failed national banks, has auctioned more than a million dollars worth of property since March 1, he says, when he started out at Decatur.
"And what has surprised me about this business," he confides, "is that although only one-third is demanded in cash, the cash payments have averaged 87 per cent. It proves there is money in the country, if attractive investment channels are offered.
"We are now off the gold standard and the bogey of inflation is causing many people who used to keep their savings in a sock to put it into land or real estate, which at present values represents the ultimate in safe investment.
"Down in Greensboro not long ago I conducted a sale and one wealthy man bought a major share of the property at a sum running high up into five figures. He later explained he didn't know just what his dollars might be worth some time hence, but that he knew what the land would be worth."
Mr. Davis has conducted sales in the last three months at Florence, Greensboro, Hartselle, Gadsden, Decatur, Florala, Eufaula, Dothan, Enterprise, Samson and Eutaw.
"I believe Comptroller O'Connor is doing a big service to real estate owners to see that this distress property no longer is allowed to hang over the market but is put back into the hands of private owners," Mr. Davis says.
"When this work is completed for national and state banks the real estate business will see a revival that will help the general prosperity.
"For a long time there was a tendency to hold distress property for real estate to 'come back.' But the existence of such property prevents the come-back. Depositors in failed banks meanwhile suffered an additional loss because the property was allowed to go down.
"Almost without exception the depreciation has been greater than the rise in the price level.
"I may be looking at it from the point of view of a man who wants to make the sales, but I am convinced that one of the reasons the failed state banks have not followed the example of the national banks in selling their real estate is because the state banking departments are more or less in politics and like to keep the property to make management or legal fees for political favorites.
"In many cases the depositors are not concerned as the property was mortgaged by the bank to the Reconstruction Finance Corp. at more than can be realized on it now. In such cases the Government is the one that pays for the political favoritism."
Mr. Davis himself believes in real estate. Although only 47 and a bachelor, he is looking forward to the time when he can purchase a fertile farm in the Tennessee Valley and retire.
