August 1,1891





Record  and  Guide.





145





In 1870 Parliament passed a bill requirine the tramway companies
to sell their franchises to the local authorities, if the latter so de¬
sired, after the expu-ation of twenty-one years of operation. Under
the terms of this act the County Council will be able to purchase,
after August llth next, all tbe tramway systems which were laid
down^in 1870. Every disposition exists, apparently, to take advantage
of the provisions of tbis measure, and in this the local authorities
are supported by the public press. The authorities have no inten¬
tion of working the tramways themselves; they are expressly de¬
barred from so doing by the terms of the act in question; but the
duty of tbe councillors to tbeir constituents and to the traveling
public demands (so it is held) tbe exercise of their power of pur¬
chase. The franchise can then be leased to a company under stipu¬
lations that will cheapen tbe service. The task will be complicated
and difficult, for two reasons. The local authorities have the power
to purchase only such tramways as have been constructed twenty-
one years. Many of tbe companies which were in existence pre¬
vious to 1870 have since made many additions to their systems. In
the second place, there is some doubt as to the legal method of
estimating tbe value of tbe tramways to be purchased, the wording
of tbe statute being far from explicit. The interesting aspect
of tbe whole matter is, however, the unanimity of opinion as to tbe
desirability of tbe County Council makthg the purchase, and
so securing to the public what increase ensued in tbe value of
the franchise. We do a great deal of talking about rapid transit in
New York, but if any proposition is advanced for the municipality
to own a system of transit, it is stigmatized by officials and editors
as " undemocratic," a practice which unnecessarily and foolishly
makes Demociacy inseparable from tbe exploitation of tbe public
by private companies. We are shortly about to sell in this city a
franchise tbat ultimately will be one of tbe most valuable in the
world. Tbe terms under wbich tbe Commissioners will offer have
not as yet been divulged, even if tbey have been decided upon; but
for all it is said about the matter this valuable function may be
sold in perp°tuity without any voice being raised in very loud and
strenuous objection.





Fashions ia Finauce—and Beal Estate,

WE spoke last week in these columns about " Fashions in
Finance," pointing out the tendency which speculation
has to perambulate among the many different securities and com¬
modities that are witbin easy touch for the investing public. At
one time it may be railroad bonds and shares that are tbe fashion,
"industrials" at another, or it may be petroleum certificates or
mining shares. Western mortgages were the "rage" for a time,
and real estate for some years past has held a prominent place in
public favor.

This fact of the flow and ebb of speculation from point to point
raises an important question for our readers, who are particularly
interested in disderning how far it may reasonably be expected that
just as investment drifted from tbe Slock Exchange, forsook the
giddy allurement of pipe-line certificates and the plump percentages
of Western mortgages so will the recent fat years in real estate be
followed by lean ones. Indeed tbere are not a few who believe that
already we are on the verge of meagte and unsatisfactory times.

This question cannot be answered fully in a word. Confining
our remarks to New York City we find that there bas been
this year a marked but not a remarkable decline in activity
in real estate, compared with either 1890 or 1889, a decline
attended by characteristics which enforce the admission that
in the present outlook there is nothing that confidently
promises immediately brisker times. Now, no doubt some part
of the enormous transactions in real estate of Jlie past few years
has been the result of oneof those "fashions in finance "of which we
have spoken. Speculation has been allured by ample promises,
kept abundantly at first. But the fulfillment of each brought dis¬
appointment for others nearer, so that to-day in certain sections of
the city speculation has been much overdone. Confidence and
capital have been sown broadcast in an imprudent and not seldom a
reckless manner, and as fortunes cannot be^ grown like crops it
would not be at all wonderful if some of tbe speculative ventures
now at sea turn out to be unprofitable, or suffer disaster on a
" reef of visionary gold," and if, consequently, the financial fashion
which hitherto has favored real estate should depart for a time
for the Stock Exchange again, or for thp oil market, the far West,
or for any other promising field.

In what condition will this departure leave us ? In tbe stagnant
state of the Stock Exchange; or the hopeless condition of tbe oil
market? With many, fear hovets about this point; but it ought to
be obvious that nothing of the kind is to be anticipated, for real
estate is differently circumstanced from Stock Exchange and other
similar securities. In the tii'st place, speculation pure and simple—
and tbat it is tbat follows most closely the " flnancial fashions "—has
nothing like the same predominance in real estate that it bas in
dealings on tbe Stock Exchange. There is as constant a demand,
apart from all speculation, for realty as for butcher's meat; because
every year there is a certain increase in population which holds





pretty steady despite^the temporary ups and downs of business; and
this additional population has not only to be housed, but provided
for in factories, stores, municipal buildings and school houses. The'
builder comes as surely as the doctor in the increment of population.
And more than , ipeculation, more tban financial fashion, it is this
increment which is the foundation of activity in real estate. About
the constancy of this increment in the metropolis no one is likely
to have doubts.

There is still another fact to be considered : New York is now a
pretty big place, too big to move like a wheel—all together. Of
late years ~*e have seen that activity in one section does
not mean activity in all other sections, nor, conversely,
that dullness affects all parts at the same time. For a few years it
istihe East Side that is " booming ;" propertj there is in demand,
prices advance, building becomes active. By the time the " move¬
ment " has spent itself another bas commenced, it may be ou the
West Side, in Harlem, " down town " among the old office build¬
ings, or it may be a new section is developed, as in the case of the
Mercantile District. Tbere is always some section of the city that
offers opportunities to tbe wide-awake speculator, whose footsteps
are soon followed by the "crowd." New York is really a congeries
of cities, and nothing short of a serious national depression can so
affect real estate that there will be dead dull times in every part.
Relatively dull times we may have, but there will always be a
steady demand for real estate such as does not obtain with any
other commodity that flnancial fashion has so far taken bold of.





Our Newspapers,

A CORRESPONDENT asks us whether we are not greatly mis¬
taken in saying that the first page of one of the leading New
York daUies was recently given up almost entirely to news about
criminal and quasi-criminal events. He affirms tbat he reads the
papers a great deal, but has not observed any such dire condition of
affairs. Well, our correspondent cannot be very observant, or his
memory is at fault. Let him turn for example of the truth of what we
said to tbe Sun of Monday last. The Sun surely is one of our "lead¬
ing dailies." It is edited by agentleman who holds ano insignificant
place in American scholarship, and the paper lays some stress in a
modest way upon tl.e purity of the English printed in its columns
and upon its circulation. Certainly, it is read daily by tens of
thousands of our " best people." Let us see what news this editor
thinks his readers are interested in ; and for the purpose of dis¬
covery we will glance at the head lines on the flrst page of Mon¬
day's issue.

The first column and a-half is given to ''Cable news from Ger¬
many—Debts of the Emperor William and his son—Frederick was
generous, but William II. was extravagant—Both in the hands of
usurers—Herr Paasoh to be sent to an asylum—Rupture in the
Social Democratic Party—In Heligoland—Abs tbe champion wrest¬
ler—Krantz wants to be the official executioner again." Abs and
Krautz ! What would an intelligent nation do if it did not have
the cable to keep it informed about these worthies? Tbe head lines
on tbe remainder of the second column read: " Fifty excursionists
killed—The talk of Palis—Anarchists begin a fight;" "Special favors
to the Harrison family." The third column is devoted to : " Death
faced him each way—Lawyer Newcombe chose to risk it by tbe
surgeon's knife," wherein an operation for cancer in the stomach is
minutely described. In a measure, tbe reader is prepared for tbe
fourth column, tbe head lines on wbich are ; '• Renter forgot to—
He won't say what—bis dog bit into a cop's check trousers"—"Dead
in an empty coal-bin—Suicide because be put the savings of a life
time in a poor business"—"Who killed Frankeloso—Suspicions
tbat Cotta did it, and intended to elope with his victim's wife"—
"Shot himself in the breast"—''Identified by Mrs. Brigham"—
"Upset of a stolen boat"—"Almost killed by a mastiff."
Ghastlier yet is the fifth column, which begins witb
big letters: '' He hacked tbem to death." After this
come: " She said she shot him ; a wife's attempt to
shield her husband, who killed a man over five cents "—" An Ocean
Grove arrest"—" Lost his life in a land slide "—" A siucide's body
identified'"—and '' Died on a load of ha/." Following this mass of
bloody, or perhaps we should say putrid news, what is given on tbe
sixth column is an unsatisfactory descent toward decency: " A
sailing party missing"—"Col. Conger at Bar Harbor''—"Blaine
holds the reins ; tbe Secretary takes a drive of an bour over the
country roads"—"Miss Warden's assassin" — " Earthquake in
Indiana"—" Hesuapped the unloaded gun"—" Strikers threaten''—
"Mr. Gould at church in the Rockies"—" President Harrison's
callers." Tbe news on the seventh aud last columns is more of a
family character—reflections as it were from the fireside : " Mrs.
Mackey has left him ; but the Rev. Joseph Mackey says he has
done no wrong"—"Eloped on a sloop; it was the plan of the
young woman, who thought it would be inexpensive "—"A steeple
struck during church service'"—" Inspector (toben in hard luck."

Now, we would like the Sun or our correspondent to inform us
what there is in this mass of gulter news and trivial personalities
worth one second's attention of intelligent, not to speak of educated,