March 9, 1912





RECORD   AND   GUIDE





487





on real estate have been increasing so
rapidly as to constitute a grave burden
upon its proprietors. Of late almost all
the increase in real estate values has been
swallowed by the larger taxes. The city
needs urgently some other source of in¬
come. Tbe personal property tax is a
broken reed. A tax upon rents would be
the most equitable way of obtaining ad¬
ditional revenues, but sucb a tax is im¬
practicable, and might drive many New
Yorkers to New Jersey. A tax on busi¬
ness generally would probably do tbe city
more harm in diminished trade than it
would do good in increased taxes. There
remains a tax on those kinds of business
which cannot be transferred, and the idea
looks not only practicable but equitable.
The State is already taxing one New York
business which cannot be transferred,
the business of selling stocks and bonds
on commission, and it has done so with¬
out any essentia! harm to the economic
interests of the city. The municipality
may well seize other analogous sources of
revenue.

All the classes of business mentioned
above benefit particularly from the fa.ct
that New York is a metropolis and col¬
lects buyers from all over the country,
and their business can easily be adjusted
to the increased burden. In the long run
the tax will in large measure be shifted
to the consumer, and the particular con¬
sumers, who patronize the hotels and the
theatres will be willing and able to pay.
Of course there will be an initial period
of distress, during which some loss might
fall on the hotel keepers, etc, themselves,
but if the tax were allowed to reach it.'j
full force only gradually, such losses
should not be heavy.





The Week in Real Estate.

The market tbis week laclved the spec¬
tacular features which have been com¬
mon for the last month or more and deals
involving $1,000,000 or over were scarce.
On the other hand, the recently displayed
tendency toward a wider field of activity
still persists; this week's sales were well
distributed throughout many sections,
nearly all classes of property except tene¬
ments being included in the list. Quite a
number of private houses on the West
Side found new owners, the Pennsylvania
section showed signs of a revival of in¬
terest, a plot on Fifth avenue was ac-:
quired as the site of a flne residence and
even Harlem eanie forward with several
interesting reports. A number of good
sized leases were closed and several big
building loans reported.

Altogether tlie market displayed fur¬
ther signs of returning confidence. While
one still hears many complaints by bro¬
kers that real estate is uncomfortably
quiet, the fact remains that the number
of sales reported is nearly as large as in
the corresponding weeks of last year and
the year before and the quality of tlie
whole is equally as good if not better.

The Pennsylvania left zone, which has
been rather inactive of late, came to the
front again this week with a series of
deals on 29th and 30th streets, all made
by the Realty Holding Co. and involving
an amount of about $2,000,001). The lar¬
gest of- these concerned the plot at 115
to 131 West SOth street, having a front¬
age of about 240 feet. The buyer will
probably parcel it off to builders for im¬
provement with loft buildings. The prop¬
erty was formerly owned by .St. Phillip's
Church and was given in trade last year
for a row of flats in Harlem.

While the private house market has
been extremely poor for some time past
there has recently been some plot buying
on Fifth avenue and the streets adjoin¬
ing above oOth street, by wealthy indi¬
viduals .for the purpose of erecting pri¬
vate residences. The latest purchase of
this nature has been made by Justice
James "W. Gerard and tbe site selected
was a 40-foot plot between 94th and 95th
streets, on Fifth avenue. Another mid-
town deal involving nearly ."^00,000 was
the purchase of the Laurelton Hotel at
147 West SSth street, by H, M. Swetland,
who already owns several hotels in tbe
Times  Square section.

More than the usual number of private
houses were disposed of on the West Side
this week, some being bought for occu¬
pancy and others for improvement. The
largest transaction reported from this
district was an exchange of equities in¬
volving about $1,500,000, in which the
eight-story apartment house at 315 West
99th street was given for nine lots at the
corner of Riverside Drive and 141st street.

The best block on 125th street, that be¬
tween Tth and Sth avenues, was brought





into prominence again tliis week by the
announcement that a prominent clothing
concern from Wisconsin bad acquired a
lease of a large plot on tbe north side^of
the street, running tbrough to 12Gth
street, and would open a big establish¬
ment tiiere in tlie near future, I-Iarlem
is also to bave another lai^ge theatre at
Tth avenue and 116th street, , The soutb¬
west corner was bought by a newly form¬
ed theatrical syndicate and the iiouse to
be erected there, it is said, will rival any¬
thing now existing in that -part of the
city.

No great volume of business was closed
in the Bronx, but indications all point to
a fairly active spring market. Piot buy¬
ing by builders is most in evidence but
investing buj'ers are few and far between.
The loaning institutions have plenty of
money for good operations in this bor¬
ough, especially along the line of the
subway, and this fact will no doubt exert
considerable influence on selling m the
next few months. Plans are on foot for
widening, regrading and making other
improvements to lT4th street, and this
promises to become one of the important
thoroughfares of the future.

The situation in Brooklyn remains prac¬
tically unchanged, but the miore satisfac¬
tory outlook for a speedy settlement ot
the subway problem is causing brokers
to take a hopeful view of future pros¬
pects. What selling there is. is confined
largely to the buying of dwellings or plots
by homeseekers and very little investment
purchasing is going on. Some activity
exists on the Park slope and there is a
certain continuous demand for property
in the vicinity of the Atlantic avenue sta¬
tion of the subway. The city completed
negotiations tiiis weelt for the purchase
of two houses at 49 and 51 Court street
to be used as part of the new addition
to the Municipal Building. It is also
planned to acquire the balance of the
block front between Joralemon and Liv¬
ingston   streets   for   the   same   purpose.

The near approach of spring is having
its effect in Queens and real estate is be¬
ginning to liven up rapidly. The flrst
week in March brought out more applica¬
tions for building permits tlian were filed
in the entire month of February. A
great impetus has been given to this bor¬
ough by the prospect that the Interbor¬
ough proposals will be adopted and oper¬
ators in all sections report that since
these were made public tbeir inquiries for
property have increased nearly 100 per
cent. It is reported that in Long Island
City alone nearly flfty manufacturing
concerns from Manhattan are seeking lo¬
cations at the present time. Acreage out¬
side of Queens is also in demand and a
ready market can be found for farm
lands at reasonable flgures. The largest
suburban deal was reported from Hicks-
ville and involved the purchase of 123
acres for a development on the "Little
Farms"   plan.

Consumers of building materials may
expect a slight summer delivery atlvanco
in prices as a result of the English and
impending American coal miners' strike.
A shortage in this fuel has resulted and
the price is rising in the eastern market.
But this should not occasion any alarm
on the part of prospective operators as
there is plenty of material in stock to
meet all spring requirements and most
manufacturers have a sufficient stipply of
coal on hand to keep their mills and fac¬
tories going for a month or two.

Portland cement will probably feel the
effect sooner tlian any other material.
Large quantities of coal are used in its
manufacture and, although many mills
have stocked liberally, the fact that
cement has been sold for a year or more
at such a close mill margin, makes it
quite probable that an advance of from
three to flve cents a barrel will shortly
be announced. Present quotations are
$1.25  to  .fl.33,  dock.  New York.

In the conimoii brick fleld much of the
burning is now done with soft coal and.
inasmuch as the plants have been closed
down all winter and it is still impossible
to get boats to the plants, these manu¬
facturers are resorting to railroad ser¬
vice to lay in their supplies. This is
much more expensive than buying coal at
tidewater and, if the strike continues in
England and the American miners also
go out. it is not without tile bounds of
possibilities that prices will remain near
the winter quotations even w^hen the
brick making season reopens. Present
prices are $G.T5 to .?T.25 for Hudsons and
$7  for  Raritans.

Varnisli makers are not very directly
affected by the scarcity of coal, but are
more concerned with conditions in the
coke market. This fuel is also scarce
now and there are indications that with
a larger demand from steel and iron mills
and furnaces, the supply will be seriously
curtailed, especially if tlie anthracite
mines become involved.

Building   managers   also   will   bave   to





look to their supplies of coal, if they
would avoid paying much higher rates.
Coal authorities here say tbey are swamp¬
ed with orders and that adverse weather
conditions have caused railroad conges¬
tion, and a scarcity of freight cars mak¬
ing deliveries very uncertain.

The sand situation in New York is stiil
very unsatisfactory. Some of this mate¬
rial is coming in but the available supply
is still so scarce as to practically pro-
liibit concrete work and brick laying even
would weather conditions permit of out¬
door work. Current prices to old cus¬
tomers range from 45 cents up, accord-
to dockage. Quantities required has
practically no influence on price. It is
a case of getting sand under any condi¬
tion in almost every corner of the Metro¬
politan  district.

The situation as regards the supply of
clay, for manufacturing, has not changed.
Continued cold weather and snow has
kept tlie frost in the clay breasts and
delivery dates are not guaranteed by
either   rail  or boat.





President   Miller's   Part   in   the   Subway
Agreement.

Editor of the Record and Guide;

One must be considered presumptuous
to attempt to amplify an editorial of the
Record and Guide, therefore I cannot but
feel I would be untrue to my fellow Bronx-
ites were I to remain silent when a paper
of the standing of the Record and Guide
comments so favorably on the work of
Mayor Gaynor, President McAneny and
President Willcox. as it did in its article
in the issue of March 2d. entitled "The
Subway Agreement," but without giving
any credit at all to Borough President
Miller.

Mayor Gaynor from the very flrst has
insisted that no solution of the transit
question would have his approval unless
it was a comprehensive one and reasona¬
ble in its comprehensiveness. In this
stand he had behind him at all times
President Miller.

When the vote was taken on July 21st.
President Milier with President Gresser
voted against the report of the committee
in its determination to give the contract
to the B. R. T., in the event of tbe Inter¬
borough failing to accept the terms offer¬
ed. The failure of the Interborough to
accept made tiie better offer of two weeks
ago possible.

This, however, was not the most im¬
portant of Mr. Miller's contributions tow¬
ard solving- the transit muddle. When it
was stated that the Interborough could
not possibly take the contract for the new
system on the terms laid down without
impairment to the present contract (the
city reserved the right to take over the
extensions any time within ten years), it
was President Miller who prepared a
brief on the legality of the proposed
method of recapture, suggesting sucb
legislation as would be necessary to pro¬
tect the bondholders of tbe present sub¬
way, which legislation will permit the
segregation of the East .Side and West
Side legs.

I have pointed out two distinct acts
of Mr. Miller as a member of the Board
of Estimate and Apportionment which es¬
sentially contributed to the disentangle¬
ment of the vexatious transit situation,
and which will in effect prove a large
factor in the betterment of the transit
facilities of the greater city and rebound
immeasureably to tlie credit of Cyrus C.
Miller as a far-seeing public official.
ROBERT   L,   MORAN.

No, TOO Morris Park avenue, March S.





Would Tax Floor Areas in High Buildings
Editor of the Record and Guide:

I have several communications from
business men's committees favoring the
passage of the Sullivan-Brooks Bill. This
measure, as drawn, seems to rae absurd,
and I hope that you will use your best
endeavors to prevent its passage. There
would be some sense in it if it contained
a rider at the same time, limiting tlie
height of buildings in New York City to
IW ft., and placing an additional tax on
the floor area of buildings now existing
above that height, tliis tax to represent a
just charge on the owner for the light,
air. sewerage, flre department, and gen¬
eral congestion caused by these buildings,
which is certainly a proper charge, for
the public have to foot the bills occasioned
by tbe over-loading of all the different
lines of public service maintained by them,
and it seems to me that this service—-
where it is used to the extent that some
of the present high buildings in New York
require of it should certainly receive a
just payment in return.

W.   H.   BROWNING.

New   York,   March   T.