Real  Estate   Record





AND BUILDERS' GUIDE.





Vol. XXVII.





NEW YOEK, SATUEDAT, MAT 21, 1881





No. 688





Published Weekly by The

Real Estate Record Association

TERMS:

ONE TEAK, in advance.....$6.00

Communications should be addressed to

C. W. SWEET, 137 Broadway.

J. T. LINDSEY, Business Manager.

The changed condition of the times is
shown by a leaf from the history of one of
our leading law firms. This firm, which
does a very large business, many years
ago advised their customers to iiivest in
mortgages on West Side unimproved prop¬
erty. Relatively large sums went through
their hands into these West Side lots, and
when the panic came their clients found
themselves without an income, and with
discredited mortgages on their hands, which
they were forced to foreclose. The clients
being rich men, they very generally bought
in the mortgaged property, but the account
was heavUy against them up to within a re¬
cent period. The remarkable fact now
comes to light that eveiy one of the persons
who foreclosed has made a handsome ad¬
vance upon his original investment. It is
believed the average is as high as 25 per cent,
profit. Of course aU of them have not yet
sold, and those who hold on will probably
double their money. But we have no doubt
the history of this flrm is that of many
others. The mortgages were given during
and subsequent to the war and were based on
paper values. Yet, notwithstanding that
fact, every mortgagee who foreclosed, and
had the grit to hold on to his property,
made a very handsome percentage on the
transaction. After all the secm-est invest¬
ment of money is in a mortgage on real es¬
tate in or near a growing city. As we have
said, the property foreclosed was situated
west of Eighth avenue, and between Seven¬
tieth and One Hundred and Tenth streets.
And yet prices have hardly begun to advance
in that region.





A stranger, visiting New York for the
first time, would be struck with the im¬
mense amount of buUding and repairing
which is now being done. Not only are
there thousands of buildings going up in the
newer part of the city, but in every one of
the old neighborhoods antiquated edifices are
being replaced by new ones, while there is
an unusual amount of repairing going on.
This is true, not only of all the leading
avenues, but also of the side streets, and is
as true of the poorer as ,^of the richer parts
of the city. There is an unusual demand
for all classes of mechanics, masons, plas¬
terers, plumbers, carpenters and the like.
All the fancy employments about houses,
such as decorators, fresco painters and
fancy fumitm-e men are unusually busy for
this time of the year. In view of this ex¬
traordinary activity in building, and all that
appertains thereto, it is remarkable how
deserted the Eeal Estate Exchange appears
to be. The conveyances keep up, as om- lists
show, but the auction sales are neglected,





and exceUent property is offered without
bidders. There.must be a change forthe
better before long.





WILL THERE BE A SUMMER BOOM?

Of course we mean in real estate. Specu¬
lators were certainly disappointed in there
being no advance in prices during March,
April and May of this year. Realty of all
kinds, while in a wholesome condition, has
shown no evidence of any excitement.
True, the Record for the last • four weeks
shows by its list of conveyances that the
number of transactions has been much
larger than usual at this time of the year.
Another reassuring fact is that the transac¬
tions were not forced. They were the free
purchases of investors from people who
were not compeUed to sell. But the prices
of this spring show no advance over those of
last fall, while there has been a marked de¬
cline from the quotations in the winter and
spring of 1880. Not only improved lots, but
house property has been selling recently at
veiy moderate figures.

May not this coming summer show a de¬
cided change for the better in prices and the
number of transactions ?

Perhaps.

Dealers do not look for anything of the
kind, and there wUl be a general surprise
should outsiders come in the real estate mar¬
ket and bid property up. Yet stranger
things have happened.

We hve in stirring times, when specula¬
tion is rampant and speculative investors
are seeking new openings for their surplus
funds. Within six months of this year
nearly .$700,000,000 of 5 and 6 per cent,
government bonds wiU have been refunded
at 'd)4 per cent., but probably $90,000,000 to
$100,000,000 wiU be disbursed to those who
prefer to use their money in other ways.
This Byi per cent represents the rate of in¬
terest people are willing to take for the best
appreciated government obligations. It fol¬
lows that any railway security which is sure
for 8 per cent,, ought to sell for nearly 200, and
that a certain 6 per cent, would be reason¬
ably cheap at 140, Hence, on the street it
is confidently predicted that New York Cen¬
tral will see 175 this summer, and Lake
Shore 150, It is easy for the reader to look
over the stock list and pick out the
bonds and stocks which pay 5 per
cent, and over. He can add a third
to the present figures, and the price wiU not
seem extravagant before next August.
This forecast is predicted upon the present
state of things continuing. We may have
war. Jay Gould may die. Washington
may share the fate of Lisbon, and be en¬
gulfed in an earthquake. But, unless some
such monstrous event should occur the com¬
ing summer wfil see the highest prices ever
known on^our_Stock Exchange,

If this is so, a movement in real estate
wiU soon be in order. House property will
rise to figures that wUl not pay more than
five per cent. There are a class of investors
who cannot live on the proceeds of a three





and one-half per cent, government bond, and
it is they who will bid up the price of im¬
proved realty. Productive farms wiU also
be in demand, whUe well located, unim¬
proved real estate ought also to be much
more firmly held.

Theu, there may be a surprise in store for
New York. Cyrus W, Field is back. Sup¬
pose he should get up a combination be¬
tween the elevated road people and the out-
of-town raUroad magnates, with a view to
making the World's Fah- a gi-eat success.
He is a man of ambition, energy and pluck,
and it would be a feather in his cap if he
should succeed where Ulysses S. Grant has
failed. But the certainty of a; World's Fair
anywhere on this island, would add a value
of twenty-five per cent, to all up-town prop¬
erty. It will not be long before Mr. Field's
decision is made known, and should the
World's Fair project go through, nothing
can prevent a very decided movement in
real estate during the coming summer.
But whether there is or not, anyone who has
spare money cannot do better than iuvest in
property on this island.





OUR ELEVATED ROADS.

Matters are reaching a crisis in our eleva¬
ted road system. From the legal proceed¬
ings and the statement made by oflicers,
there is every reason to believe that the Man¬
hattan will default on the payment of the
leases next July, in which case a receiver
will probably be appointed. This, however,
would not necessarily break up the Manhat¬
tan lease, for the defaulting company has
ninety days grace in which to make good
its contracts, and undoubtedly some provi¬
sion will be made to keep up the present or¬
ganization. But to do this, two things must
be done. The Metropolitan and Elevated
companies must consent to a lower rate of
interest than 10 per cent., and the city must
reduce its extravagant taxation from one-
half to two-thirds of the rate at present
asked. WhUe it is true the manipulation of
the stocks of the elevated companies has been
discreditable, stiU the elevated roads have
treated the traveling and busiuess public
better, as it turns out, than the latter de¬
served. Their charter gives them the right
to charge 15 cents above Fifty-ninth street!
they have never asked more than 10 cents-
The company has voluntarily increased the
5 cent hours. The roads themselves fumish
the cheapest, swiftest and most luxurious
system of inter-mural travel of any in the
world. In return, the roads have been de¬
nounced by the press, and the public is unan¬
imous in demanding that they should be
taxed out of existence. Indeed the taxation
is monstrous, and unless partially or entirely
remitted, wiU put a stop to the further ex¬
tension of the elevated system in New York-
As the press and the public have made up
their minds not to be satisfied with the ele¬
vated roads, the latter must look out for
themselves, and if a receiver is appointed,
he must run the trains in the interest, not of