>er 22, 189c





Record and Guide





57t







BtrsDtets AibTiiEKEs Of Cijto^ iHlcit^Td

PRICE     PER   TEAR     IN   ADVANCE     SIX   DOLLAR

Published, every Saturday.
Tklefhons,                                              Cobtlant>t 1370.

Communlcatlona should be addressed to

C. W. SWEET, 14-16 Vesey Street.
■J. 1. LfNDSEY, Business Manager.

"Entered at the Post-Og ice at A'eto York, K. Y., as second-etass matter."





Vol. LXII.





OCTOBER 22, 1S98.





1,597





EITHER a gold importing raovement, or a heavy buying of
grain in this market for foreign accounts, is apt to be ac¬
companied by the selling of our securities from abroad. When
both come together the selling is inevitable. This explains the
present attitude of London toward our security market. It is
brought about by the mechanical relations of the money to the
security market, and does not indicate the possession of unfavor¬
able opinions of the securities sold by the sellers. But it is one
of the things that help to bring about reactions. Of late years
we have always stood well under our securities, taking them
easily when sent from abroad, but a return in continuous stream
must have a more or less depressing effect, and when, as now, n.
natural reaction from unduly high prices is in progress, must as¬
sist and hasten such a movement. The condition of the mon^y
market abroad, to which reference is made in the succeeding
paragraph will bear watching, as it will directly influence thfi
volume of securities that will be returned here, and consequently
the nature of the movements of our prices. The election can¬
vass in this State is being watched with close attention from
Wall Street, where there is not likely to be any disposition to or¬
ganize or support movements to put up prices until the decision
of the electorate is given on the issues raised.





WHEN, last December, Sir Michael Hicks-Beach uttered
his threat of war unless the trade door was kept open
in China, the world thought it meant something, because Sir
Michael was supposed to be ultra-conservative, not merely in
party, but hy personal disposition also. As the "door" was shut
in his face, and no war followed, of course, he lost credit as a
hearer of defiance, and that fact explains why the security mar¬
kets were so little affected hy his bellicose speech of last Wednes¬
day. The present British Government has shown itself so
remarkably desirous of avoiding the resort to arms that the sus¬
picion will arise that they know that France will withdraw Mar¬
chaud from Fashoda, but want to have such credit as is to be ob¬
tained among jingolstics for browbeating. The markets become
nervous, not so much because they are deceived by this simula¬
tion of fierceness, as because they know it is a dangerous game
to play. The point of safety in the game for the British Govern¬
ment is probably, that the attention of France will soon be di¬
rected toward German ambition in Syria, a country that France
has for a century looked upon as destined, sooner or later, to be
her own prey. The German Emperor is not making a merely his¬
trionic visit to the Sultan and to the Holy Land; nor is his journey
inspired by purely religious sentiment, any more than was his
action in China last winter. There is a worldly policy underly¬
ing itall.and that is the strengthening of the German influence and
enterprise in Turkey's Eastern dominions, and later in Persia.
This is a movement that Great Britain is likely to favor in ex¬
change for German support in Egypt, and because she would not
object to see Russia occupied by a rival at Teheran, and, conse¬
quently, less able to act at Candahar, or to keep her gigantic
shadow threatening northwest India. If such is the wish of the
two Powers, Germany can eventually occupy Southwestern Asia,
while Great Britain retains Egypt permanently, and is strength¬
ened for further action in the Far East. Whatever may be the
actual outcome of current political happenings, it is easy to see
that the world has not been so satisfactorily divided up that any
of the great Powers can go to sleep on their gains, and if we wish
we can have a scare almost every week of our lives, because the
opposing parties are likely to come into at least diplomatic con¬
flict as often as that, so extended are the lines of influence and so
numerous the points ot possible conflict. Notwithstanding their
prominence, politics are less responsible for the nervousness of
the European markets, than the growing scarcity of money. Tlie
great and general industrial activity has made large demands for
some years on supplies of money, and their supplement by the





autumn requirements, mainly agricultural, has drawn attention
to the extent to which capital has been absorbed. All the great
national banks have recently increased their discount rates, and
as corporate securities benefited by the plethora of money in
times of industrial and commercial depression, they must be ex¬
pected to suffer now that capital bas been drawn, and continues
to be drawn, away into its most legitimate channels of use.





THE STOCK EXCHANGE'S PURCHASE.

TNTERESTIKG as the purchase by the New York Stock Ex-
i. change of the Western Union Building, on Broad street, is iu
a general way, it is particularly so as an opinion, from compet¬
ent sources, cf the stability of realty values in this city at a time
when a gccd deal of doubt, unreasonably, we think, seems to
prevail on that subject. The facts relating to the purchase are
given in our usual column for such matters. Here it may be of
service 10 point cut how the opinion mentioned may be inferred
This purchase embraces a comparatively modern building and a
plot of land 47.lx82x50.4xS7.3, or 4,122 square feet. The purchase
price is reported at $825,000. The building was originally esti¬
mated to eost $125,000; the actual cost was probably a good deal
more, and it is fair to assume that its value now is equal to the
estimated cost. If this is so, it would leave $700,000 as the pri^e
paid for the land, or $ie9,S2 per square foot. The flrst impulse is
to compare this with the square footage price, $330.70, paid for
the southwest corner of Broad and Wall streets; but a moment's
consideration will show that this comparison is not a fair one.
The corner in question was a small one, 508 square feet, bought to
square out a plot of considerable extent previously acquired by
the buyer, to whom it possessed an unusual value, he being de¬
sirous- of erecting a large office building—afterwards built, and
now known as the Wilks Building—which, without this small
parcel, would have been deprived of its most valuable part for
renting purposes. The Wilks Building occupies, however, a plot
of 5,527% square feet, which, purchased in four pieces, cost alto¬
gether ?899,000, or at the rate of ?1G2.G4 per square foot. It is
fairer to compare the Stock Exchange's purchase with the Wilks
purchase as a whole, and it will be seen that the differing degrees
of desirability of the two parcels being considered, the result
directly favors the idea that land values in Manhattan continue
to increase.

A still more equitable comparison is furnished by the Com¬
mercial Cable Co.'s purchase of 1895. This is an irregular plot of
7,536 square feet, having frontages on both Broad and New
streets, immediately adjoining the Stock Exchange's purchase ou
the south, which, however, fronts only on one street, and both
are interior plots. In points of area and frontages, the Cable
Co.'s plot has superiority, yet its per square foot price was only
$149.22, as against $169.82 for this week's purchase. It was re¬
ported at the time of the purchase that payment was largely in
stock of the Cable Company. By this comparison, we have an
advance of $20.60 per square foot in three years, with the earlier
a stock and the later a cash transaction.

It may be said that the purchase was necessary to the Stock
Exchange; because, if that institution is to spread, it must be
in a southerly direction, growth northerly being forbidden by
two large modern offlce buildings. This overlooks modern op¬
portunity to spread aerially by means of steel construction.
Whether contrasted with the Wilks' purchase, or the Cable Com¬
pany's, the transaction allows of deductions favorable to realty
values. In considering this purchase, its investment phase must
not be overlooked. The ground rent paid by the Western Union
Company is $32,000 a year; consequently, the Stock Exchange will
receive nearly 4% per annum on their investment, so long as the
lease runs, which is until 1903, and at the end of that time will be
in a position to secure even a larger return. As a matter of fact,
at the end of their term the Telegraph Company will have paid in
rentals and in the cost of the building they put up nearly as much
for the twenty-one years' use as the Stock Exchange now pays
for the fee. Doubtless, the returns on the building to the Tele¬
graph Company give them a profit, and allow the formation of a
sinking fund for the building. If these inferences are correct,
and there is no reason for supposing they are not, they tend to re¬
veal the reasons that have made downtown office building so ar-
tractive a form of investment for some years up to the present
one.

To what we have said may be added this: The Stock Ex¬
change's purchase is especially a satisfactory one, in view of the
fact that it was made by a body of shrewd business men on tbi?
best of technical advice. Not only will this transaction directly
benefit the district it occurred in, but the indirect benefit to the
realty market will be very considerable, in affording that striking
and Imposing transaction without which no season is considered
a good one. There Is a good deal of sentiment in this idea, but
something practical also. The little people, who have no meana
of forming a judgment, or who think they have none, generally