February 11, I8«8





Record   and   Guide.





206





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Busittess wfelHEWEs" Of CeSe!^^ lH'i^.^f-n
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Published every Saturday

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Vol, li.





FEBRUARY 11, 1893,





No. 1,800





An illustrated supplement, showing hy statistical tablei the record
of building operations on the West Side during the last two years,
and containing other valuable and interesting m .tter, is published
icith to-day^3 issue of The Record and Guide. Subscribers and
pai-chasers should see that they receive a copy with the regular
issue of the paper.

IT has rarely happened that ao much bad news affecting financial
interests haa been received in any one week, and it bas often
occurred that much less has broken prices more. There has been
tbe laJk of strikes, bad weather interfering with tbe operation of
the Northwestern roads, gold shipments and, finally, the refusal of
both bouses of Congress to take up the co-isideration of the Silver
law with a view to its repeal. The action of the banks in putting
their shoulders under tbe Treasury alarmed more than it soothed,
notwithstanding the almost unanimous indorsement it received from
the daily press. Witb all this the decline in prices was uot only mod¬
erate but vei'y moderate and a prompt rally took place yesterday
afternoon on the mere report tbat the Treasury had met the situa¬
tion until a new Congress assembles by placing 1$50,0(JO,COO of gold
bonds here and abroad. With so much lateral strength it would be
remai'kable if there should be any great break in prices.





^OME Elm street, property-owners fear that they are in danger
^^ of becoming victims and, as nobody hankers for the unpleas¬
ant position of " victim," even to the development of a metropolis,
they have banded themselves together to protest. Assemblyman
Webster became responsible for tbe altar and all the implements of
sacrifice, by introducing Bill No. SOS, which we are safe in saying
isa Tammany measure if, indeed, Mayor Gilroy is not personally
responsible for it. Itmigbt be entitled "a bill to bring improve-
menis greatW needed in New York City within tbe limits of possii-
biiity," but Elm street property-owners regard it as more than tbis.
It provides that tbe city may take possession, after certain official
preliminaries, of any property needed for municipal improvements
mmediate^T/the Commissioners of Estimate and Assessment have
filed their oath. As our readers know, under tbe present law, the
city has to await the confirmation of the Court of
Awards and Assessments before it can obtain possession
of property required and begin work, resulting in
delay which in many cases has run into three and four years and
even longer. Tbe Elm street property'owners feai' tbat under the
new regime which this Webster Bill is intended to establish the
interest of mortgagors in property required by the city will be
sacrificed sadly. Owners of mortgages, tbey contend, realizing
'that their security is impaired and made less valuable, will imme¬
diately proceed to call in their mortgages, and failure to pay wiil
necessarily result in foreclosure proceedings and loss to tbe mort¬
gagor. No doubt there is an element of injustice in tbe Webster
Bill. Particular interests will suffer from time to time. Tbis
possibility of injustice or harshness is apparently inseparable from
the rigbiof eminent domain bowever and whenever it may be
exercised. But it is not always in action, and it will not.be under
the Webster Bill. All will depend upou what view mortgagees
will take of how the property they are interested in will be
.aifected by any municipal improvement. Under tbe existing system
.thereis the possibility thatmortgagors may suffer from tbe action
of mortgagees, and it would not be easy to devise any method of
proceeding that would be quite free from possible objections. It
is nonsense to suppose that with the Webster bill all mortgagees
will always call in their claims, and that all mortgagors will
invariably suffer. However, we feel sure that the city authorities
are not anxious to inflict unnecessary injury on any body, and
probably they would not be averse to any reasonable amendments
to the Webster bill to protect the rights of mortgagors.    Let the





Elm street property owners present their ideas on the subject, but
we would recommend tbat they take no extreme position, for toa
large extent the Elm street improvement depends upon the Web¬
ster bill, or rather the principle it embodies. The Elm street pro¬
ject has been proposed and talked of for decades, but nothing has
been done. A much-needed improvement has been ridiculously
delayed. We now have a Mayor and a city administration tbat is
ready to act, but nothing will be done if the delay
of waiting for tbe present process of condemnation cannot be
avoided. Before the awards and assessments can be determined
Mr. Gilroy's term in the Mayoralty will be ended, and perhaps the
new administration will not desire to undertake the improvement.
Under the Webster Act work could be commenced this year.





THE fight which is now taking place in Brooklyn between the
politicians and the street railway companies is very amusing
and instructive ; but another fight, which is taking place in that
city, is not less significant. It originated apparently in the attempt
of J. Edward Addicks, of Boston, to get complete control of the
various gas companies in Brooklyn. Thia Mr. Addicks is a Dela¬
ware merchant, who went to Boston some years ago, and succeeded
in consolidating all, or nearly all, the gas companies in tbat city ;
and Ihe consolidation was so profitable to himself that he is now
called a millionaire several times over. Doubtless many economists
will tell us that Mr. Addicks, in helping himself so liberally, could
not fail to help the community ; but unfortunately for this optim¬
istic view of things, Mr. Addicks' fellow-townsmen in Boston do
not altogether appreciate his efforts on tbeir behalf. They find
themselves supplied with very poor gas at a very high price ; and
tbey are beginning to grudge Mr. Addicks his millions, and talk
about starting a municipal plant. Mr. Addicks himself, bowever,
has found nothing in the operation which does not deserve
imitation ; and he decided to show how appreciative
be was of the opportunities wliich American cities offer to tbe
■'enlightened selfishness" of capitalists by undertaking a similar
operation in Brooklyn. His plan, as it has been outlined in a
Boston paper, is as follows: Brooklyn is supplied with gas by
eight companies, with $11,000,000 in capital stock and §3,750,000
in bonds. The present net earnings of these eight companies is
about §1,800.000, which allows for about 10 per ceut on tbe stock
issued. He wants to obtain control of the corporations and have
them bought out by a new financing corporation to be known as
tbe Beckton Construction Company. The capitalizalioo of the new
corporation is to be $30,000,000 in stock and §15,000,000 in 5 per
cent bonds, an increase of 237 per cent in the total capitalization.
Of course, Mr. Addicks does not expect tbat he cau pay dividends
on the stock of his new company immediately; but he knows that
tbe consumption of gas iu Brooklyn is increasing rapidly, and that
in a few years his 237 per cent of paper would be quoted in round
figures on the New York Exchange, In tbis way Mr. Addicks
doubtlees espected to double the millions made by his enlightened
selfishness in Boston. So far, however, his plan has not succeeded.
He has obtained control of onlyonesmall company; and his efforts
to extend his power are meeting with fierce opposition. Consider¬
able talk is being had about a "gas war" which is soon to take
place. Itis stated, even, that gentlemen interested in Brooklyn
gas stocks have made an attack on Mr. Addicks' rear by purchasing
a plant in a Boston suburb, which could possibly compete with his
Bay State Gas Company. So the Beckton Construction Company
is having a more] checkered career than the Brooklyn Traction
Company.





THE fight is apparently a very hot one: but we not believe tha
the probable end of the contest is at all doubtful. Like the
fight between the Brooklyn rail" ay companies and the politicians,
it is merely a fight over the spoils. Some generally acceptable
agreement will surely be reached ultimately; and the people of
Brooklyn will be asked to pay tbe expenses. Such is always the
result of "gas wars." The struggle'is too disastrous while it lasts:
and the profits of consolidation and annuity too seductive to be
long foregone. Gas companies, like municipal railway companies,
tend inevitably lowards consolidation, because more money can be
made by a consolidated company than by a number of separate i;on-
cerns. The way in which the consolidation is brought about
differs, bowever, in the two cases. The municipal railway busi¬
ness does not offer very many opportunities for competition. The
tracks of two different companies cannoE be laid in
the same streets; and when they are laid iu parallel
streets, so much of the business is local tbat the comiu-titiou
is of but small importance. It can never act by beating down
prices; it can only take the form of a struggle between the iwo
companies, each to ofi'er tbe better service, and the limits of such a
contest are obvious. Municipal street railw.ays consolidate, not
because warfare is disastrous, but because union is so profitable.
Gas service, on tbe other hand, offers good opportunities for com¬
petition, becauae two or more sets of mains can be laid in tbe same
street, and he.q.a.uEe the battle is necessarily oiie of rates.   c;onf'e-





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