January 26, 1884





The Record and Guide,





77





THE   RECORD  AND   GUIDE.

191   Broadway, N. Y.
TERMS:

ONE VBAR, in advance, SIX DOLLARS.

Communications should be addressed to

C. W»  SWEET,   191   Broadway.

J. T, LINDSEY, Business Manager.

JANUARY  26,  1884.

The stock market has again looked sick during the past week,
with aome signaof recovery at the close. But old operators are of
opinion that prices " will not be better until affer they are worse."
In other words, that the natural end of a laear, aa of a buU cam¬
paign, is a break more or less serious. "We will cerfcaiuly have
higher prices, and that some time before April, but not be¬
fore another semi-panic sdch as the market had last August, It is
the remarkahlo ease of money which has saved us thus far, but a
crisis of some sort is apt to occur in all speculative markets before
there is a recovery. Good stocks are iiitricsically cheap, and inves¬
tors can purchase them now without fear, yet there ii danger at
any time of some unexpected disaster driving prices still lower,

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The extensive selling of West Shore bonds was undoubtedly due
to the belief, on the part of large holders like the Astors, that there
was danger the road would get into the hands of a, receiver, iu
which case tbe latter's certificates would constitute a first lien
ahead of tbe mortgage. This view was justified by the history of
the moMSter Rockaway hotel, where the mortgagees lost all their
money, and even the mechanics' billa were not satisfied. Judge
Emott is out with an opinion that the liens of contractors, laborers
and material men do not come ahead of first mortgage bonds,
which is true enough where the roads are solvent, but receivers'
certificates for necessary construction and maiotenance work
have, under the rulings of our courts in equity, the precedence of
any mortgage. Judge Emott is not now on tho bench, and
his opinion has no judicial authority, nor does it meet the state of
facts which has led investors to sell their bonds.





The following table shows the steady increase in city travel on
the elevated and surface roads :

1877.            ISTtt,            1879,            1880.            1881.            18R2,           1883,

H. R. E. 180,034,438 100,953,8*2 142,038,381 360,330,693 14D,050,S08             ..,. 175,091.333

Elevated    8,0ll,eflii    9,356,670  46,946,401   G[),8ei,767   75,585,778   86,36I,OaB   93.124,443





168,935,893 irO,aC9,503 187.963,782 311,333,319 321,636,536             .... 2GB,118,9eG

Fr»m these figures it will be seen that, notwithstanding the
92,000,000 of fares annually collected by the elevated system,
wliich has been in existence less than eight years, that the horae
oars carry 16,000,000 more passengers than in 1877. The travel
on our elevated and surface roads increases in a far greater ratio
than do the additions to our population. When the city limits did
not extend beyond Madison square, the thrifty citizen walked to
his place of business ; uow every new resident is forced to patronize
the elevated or surface roads. The number of those who walk
from their residences to their places of business is lese than it was
forty years since. Those who travel on the aast side elevated are
aware that that artery of our city life ie overtaxed. We must
have additional means of communication between the upper and
lower parts of the city. To solve this problem there is the proposed
Aroade Railway under Broadway, and then there is the cable
system with the elevated roads along the river front. Perhaps
both of these improvements will be needed before the close of thia

century,

------------♦.......—.

The decrease in the price of Northwestern securities, that is,
Northwest, 8t. Paul, Manitoba, &g., is undoubtedly due to the
collapse of the real estate speculation in the regions traversed by
these roads,. Here at the Eas*; we have but a faint realization .of
the excitement which prevailed in the extreme Northwest, diie to
the large emigration and the heavy speculative buying of unim¬
proved lands. Had the advance in these lands continued there
would have been uo such terrific breaks in the Northern Pacifies,
and the chili which haa followed that fever is what accounts for
the lessened interest in Northwestern stocks. The aame depress¬
ing infiuence has been felt west and southwest, but not to so great
an I xtent. A few years will, however, see a revival of this specu¬
lative feeling. Our population is increasing with marvelous
rapidity and the depr^^ssion in our manufacturing industries will
force unemployed workmen to take to mother earth for a living.
The new railway lines will in time help to revive interests iu the
land, for large sections of the latter have thereby been made avail¬
able for aettlement,





Why Not?

The director of the Real Estate Exchange who was interviewed last
week said he would like to see some co-operation between the lead¬
ing exchanges, commercial bodies aud clubs in this city to secure
to New York a more responsible and economical city govern¬
ment. His proposition was for the Real Estate Exchange, through
its General Committee, to iuvite the co-operation of all organiza¬
tions who were interested in the property and the fair fame of the
metropolis. The Chamber of Commerce, the Stock, Cotton, Pro¬
duce, Mining, Metal, Building and other Exchanges have thousands
of wealthy members, all of whom are interested in good munici¬
pal government. Thee, says this director, why should not the great
clubs of New York co-operate to the same end. All the leading
London clubs have political or public objects in view, their social
features being mainly iucidental. The Union League Club haa
taken political action, and the Mnnhattan was organized to do the
same thing. The St. Nicholas Club represents the descendants of
our old Dutch families, and ought to bave some civic pride. These
and other organizations, if they would second the efforts of the
Real Estate Exchange, might change the character of our city
government and greatly improve iiapersonnel.

Thia project might be worth trying. A good deal, of course,
will depend upon the character of the gentlemen who will consti¬
tute the General Committee of the Real Estate Exchange. If they
know w^hat they want, act prudently, and are in earnest, they can
achieve importaTit results. It may be that among the bodies above
mentioned there is no public spirit, and that the wealthy aud influ¬
ential citizens of New York are satisfied to see the present reign of
misrule continue. If they decline to co-operate for public ends it
may be well to consider whether it may not be desirable to open
up negotiations with the various labor unions to aee if the working
people cannot br, iuduced to vote for some better candidates than
those furnished by the small machine wire-pullers in each party
and the corner liquor shops. There has never yet been an effort
made to unite all the best efforts of our city life into one great
organization that would make an honest effort to redeem New
York from the political slough into which it has fallen.





Speculation  Declining.

The feverish speculation of the last lew years is coming to a
natural and not untimely end. Three times as many stocks were
daily sold in 1880 than in 1883. Business is so dull on the Cotton
Exchange that the brokers are trying to lure the public in by
reducing their commissions. The raining boom is over, for the
present at least. The speculation in grain has been active, but the
New York operators find that dealing in Chicago prices is a losing
business. The trained experts of the capital of the Northwest are
more than amatch for the Wall street men who take " flyers " in
wheat, corn and provisions. It is safe to predict that there will he
less grain speculated in by New Yorkers the balance of t' j year.
That siliest of all speculations, the buying and selling of pipe line
certificates, still flourishes, and more barrels of petroleum are
traded on in a week than has been produced since the discovery of
coal oil in Northern Pennsylvania, In this business the Standard
Oif Company holds marked cards. It knows the exact consump¬
tion and production, and handles all the certificates. It is a losing
game to all who deal iu that slippery substance. Honestly conducted
faro gives a far better show to the operator who wishes to " buck the
tiger." The folly of speculating in petroleum will soon be eeen by the
most inveterate gambler, and that will put an end to the over¬
crowded meeting places of the petroleum brokers. Real estate is
in no condition to be operated in speculatively just at present.
When our land transfer laws are reformed aud titles guaranteed,
real estate will be one of the safest things to deal in. It cannot be
"cornered," it always has a substantial and rising value aa the
country increases in population and wealth, and legal impediments,
overcharges and insecure titles out of theway, we might reasonably
expect to aee a great deal of money put into real property. But
the laws cannot be changed until after a long struggle, and hence
there is no present prospect of speculative dealings in realty. The
era of speculation, therefore, is coming to an end, and many per¬
sona who are euiployi'd as intermediaries between buyers and sel¬
lers will be forced to fall back ou some productive employment.
Of course, speculation will again revive, but not until we have large
crops and high prices, and make money in manufactures and com¬
merce.

----------»----------

The deal between the Tammany and Republican Aldermen, by
which a very common liquor dealer was elevated to a high respon¬
sible municipal trust, ought to arouse our citizens to the necessity
for changes iu the machinery of our municipal government.
There is really nothing to choose between the three factions who
make up the Board of Aldermen. They are all and severally a dis¬
grace to our city. For years this paper has held that the only way
to reform our civic adniiuistratiou was to make the heads of depart¬
ments responsible to the chief magistrate of the city and diminish
the power of the Aldermen.    It is gratifying to know that at least