70





The Real Estate Record.





any improvements that may be  attainable  in
form or substance.

THE TABl'LATED COSTS OF nL-lLI)IXO.

^Four-storv House—,

2:.x65.    aoxm.  l().8.\ti5

Brown stone work.............   2,600       2,000       L.'iOO

Iron work.....................,      2.''j0          -.JOO          175

Framing labor only............      275         'J-i's         200

Plastering work........  .......   1,'XO      1,000         800

Roofer's work..................      .3,50         :i00         '250

Furnace work..................     4.50         .175         :550

Stair work....................      7,50         7(10         600

Gas fitting.....................       125          03          80

Bells and tubes.................      V25         l-i5         110

Glass, plate....................       1,50         100          75

Glass, sheet...................       125         100          S5

Glass, fancy...............___      100          75          65

Plumbing.....................    1,600      1,500      1,-100

Sash and skylights.............      115           1(5           75

Hardwood doors, first storj-...       175         100         ;i.50

Pine doors....................      'lOO         'iib         175

Blinds, inside and outside.....      275         225         175

Blue  stone  coping,   sills  and

water table..................      100          90           75

Flagging sidewalk..............      275         2-25          175

H.irdware,  locks and   bronze

work.........................      400          .300          250

Hardwood mantels...........      300          -250          200

Jlirror frames and cornices___      700         500         ,350

Marble mantels................      lOO          IOO         100

Grates and facing.s............      350         ;i00         2,50

Range.......................        ,55          55          .55

A'estibule tiling................        65           7,0           40

Mirror plates...................      000         500         ■■100

Painting............ ..........      :i5il          :J0O          rioO

JIarble hearths for wood man¬
tels...........................        50          50          50

Bear yard work, grading, sod¬
ding and flagging.............      200         150         100

Ehimb waiters................       60          60          60

Wainscoting...................      600         400         -250

JIason Work-
Excavating................      750         600         350

Bricks.....................    1,000         750         700

Labor.......................   1,000         650        500

Base and  rough  building

stone....................     300         200         -200

Lime, cement and sand___      700         .550         500

Carpenter Work-
Beams, flooring and stud¬
ding.....................   1,200      1,000         850

Labor......................    1,750      1,550      1,350

Coarse hard ware.......___     300         -250         300

Trimmings.................   1,-250         950         850

Total.........................§21,720  $17,570   gl4,570

LOT ACCOC>T.

Priceoflot...................815,000  Sl-2,000   §10,000

Interest, si.v per cent, one year

on priee of lot..............      900         <-20         600

Six months on cost of house...      650          5-25          450

Surveyor's fee..................       15          15          jq

Taxes..........................      200         160         130

Total lot account............ §16,765   §13,420  §11,100

INCIDENTALS.

Architect's fee.................    §250       §250       §250

Counsel's fee ..................      150         150         150

Insurance.....................       iS          20          15

Coal............................        25          25          20

Permits—gas, sewer and water       40          40          40

Watching....................       50          50          50

Brokerage......................      400         350         250

Total incidentals.........    §940       §885       §775

RECAPITULATION.

Cost Of house.................§21,720  §17,570   §14,570

Lot account................... 16,765     1-3,420     11,190

Incidentals...................      940         885         775

Grand total..................§39,4-25   §31,875  §-26,5-35

Add for builder's profit about

tenpercent.................   4,575      3,125      2.465

Askingprice.................§44,000  §35,000  §29,000

FIXAXCES.

It is a self-evident proposition that in building
for permanent holding or investment, either a pri¬
vate ow-ner or builder is obliged to sit down first
and calculate the cost, to be sure of ready money
and available resources out of which to defray the





expenses of such an undertaking. If these are
deficient the venture must end with a mass of
unliquidated indebtedness—the natural forerun¬
ner of bankruptcj', unless compulsory sale of the
property should avert this result. Although such
provision is absolutelj'- necessarj- in the case cited,
it by no means follows that a speculative builder,
who is building for iiiiiiiediate sale, requires to
be eiiuallj- stocked with money or resources. The
great elasticity of the credit system in building is
probablj'- the secret of its attracting so many ir¬
responsible and veuturesoiue persons, and of the
resulting disgrace which too often atttiches to the
business through multiplied insolvencies. If two
conditions could be positivelj- and reliably' as-
sm-ed, to wit, the prompt and profitable sale of
building productions and the strict honest)- of the
builder in applj-ing the proceeds of such sale to
the payment of his debts, the building busincivs
might be considered of all the smoothest and eas¬
iest going. AVe will endeavor to illustrate oiir
statenient by an example.

We will suppose a builder buys a lot for Sl,5,000,
the whole of the purchase money being left on
teraporarj- mortgage; we will say the builder
then prot^eeds to erect a structure at a cost of
§-3.5,000, making his total outlay at the end of the
job .*^0,000, We will aver that, with a prompt
and meritorious sale of the improved property
following its completion, such an eiitet-pri.se could
be comfortably carried through with a capital of
five thousand dollai-s. This eiLsy state of building
finances arises from the cumulative character of
the work and gradual maturing of indebtedness,
the [whole cost being spread over the period
occupied in building, usually nine or ten months.
The early payments are small and scattering, and
fully two-thii-ds of the whole outlay can be easilj'
deferred until after completion.

The five thousand dollars cash capital of the
builder will easily enable him to discharge claims
for wages aud first payments on principal con¬
tracts. When the building is nearly completed
w-e will assume that he is able to procure a loan
on first mortgage of twenty-five thousand dollars.
This gives him an addition to his ready capital
of ten thoustmd dollai-s, which he can apply to
the cancelling of debts incurred prior to that time,
and then becoming urgent. With the prompt
sale of the property, we will say at cost or with
a profit, he is immediately reimbui-sed with the
fuU amount of his outlay, and has the where¬
withal to discharge all claims growing out of the
transaction. This is not only a truthful and fair
statement of the [financial operation of the busi¬
ness, but it is a case of common occurrence in a
city where choice improved property is so readily
salable. When conducted bj- a clear-headed and
skilful builder, even though provided with only
a moderate share of cash capital, such a thing
as financial embarrassment in a building ope¬
ration should be scarcely known. The troubles
that do arise in this business are occasioned
either by the failure of prompt sale, or by
a sale that fails to realize the first cost. In
other cases troubles arise from the arrant dis¬
honesty of the master builder, who fails to apply
the proceeds of the enterprise, realized by
mortgage or by sale, to the prompt discharge of
the building debts. The tendency of builders to
expimd their business unduly and unwarrantably
is another source of financial trouble. The
limited capital that might be amply sufficient
for a small undertaking is totally inadequate
for one of double or quadruple the size.
The comparative ease with which any
builder in good standing can carry on a small
enterprise is often a temptation for him to em¬
bark in schemes which carry him entirely beyond
his depth. For the purpose of these larger and
more hazardous enterprises the builder is tempted
to resort to the questionable expedient of accept¬





ing building loans; and as these are apt to ex¬
haust tlie profits of a job at the start the builder
is quicklj- brought face to face w-ith the condi¬
tion of insolvency. The facility with which
builders obtain credit, antl the indulgence w-hich
sub-contractors and material men are apt to ex¬
tend in the matter of final iiaj-ments, lead to the
reprehensible practice of ctirryiug over tailings
of accounts from job to job, instead of promptly
settling the accounts of each job at its close. In
this wtiy a volume of floating indebtedness is
created .which proves extremely embarrassing
when tho builder finally reliiuxuishes business, or
is sudtlenly called upon to liquidate his affairs.
Some buildei-s cherish for yeai-s a delusive idea of
their complete solvencj- until it is rudely di-s-
pelled by their being brought face to face with a
mass of floating indebteduess that has been prac-
tictillj' ignored.

It is too much, perhaps, to expect that buildei-s
of the American type will confine their ventures
within conservative bounds. In jirosperous
seasons the readiness of sale of well executed
properties affords such a stimulus and encour¬
agement as are apt to deterniine an active builder
in pursuit of schemes of the greatest magnitude.
The healthiest precept to impress upon our New
York buildei-s is that they should train themselves
to rely upon their own resources; or, if outside
help is required, that such assistance should be
derived from disi-ouuts at banks under conditions
which we have heretofore outlined, or else from
some prudent and considerate banker who would
gauge bis commission for the accommodation thus
afforded according to the actual risk incurred.
This risk in the case of cautious and intelligent
builders operating cleai-ly within pnident bounds
would be reduced to the lowest appreciable one
and should thus entail an outlay for banker's
commission of the most moderate kind.





MINING.

It is now about a year since mining began to be
investigated by our Eastern capitalists, as they
were naturally forced to look for other means of
investment for capital through the immense
shrinkage in values of railroad properties, aud
the comparatively poor prospects they exhibited
of any capability to pay dividentis. When the
promoters of mining schemes first began to talk
on the subject, they were laughed at, and re¬
garded in the light of crtxzy impostoi-s, and the
most tempting schemes were kept in a toi-jiid con¬
dition through want of capital to develop them.
The celebrated Ontario mine, of Utah, when first
put on the Stock Exchange, last March, at tho
very tempting price of §20 per share (pai- value,
§100), was regarded with [suspicion, and six
months passed avi'ay, during which time the mine
was yielding in the neighborhood of §175,000 iu
bullion per month, and about §550,000" in divi¬
dends, without any marked rise in the stock. At
last, however, seeing that the bullion returns were
still kept up, there w-as some slight activity in the
shares, and they are now quoted at between §30
and §'31, a figure which gives the purchaser at least
thirtj--five per cent, on his investment. A number
of other mines have since been brought before the
public, and although some, in the hands of thieves,
proved diastrous to the rash speculator, a number
of them have prospered by the support of tbe
public, and ai-e paying good dividends to the
stockholders. There have been some' i-ather rep¬
rehensible cases of washing mining stocks to a
figure above their real worth; but, as a i-ule, the
public have left them cai-efully alone, and they
have gradually declined to their proper values.

The following is a statement of the prices of
mining stocks at the Exchange this week:

Opening Highest Lowest Closing
American Consojidated lOJ^     ""'





American Flag......... 10

Bertha and Edith.





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