December 2, 1899.
RECORD AND GUTDE.
841
ESTABLISHED ^ f^RRPH 81^4^ 1868.
'DE/oTIDToi^E^L[:STWE.IIiU!LDi^'G\r^^flTEeT^JRE,^^OUSEV^OU)DEGQÎÎAT10:f.
, Bt/SltJESSAilDTHEMESOFGElJERftL iNtO^ESl.
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/. T. LINDSEY, Business Manager.
•' Eiaerea a( (Ho Posc-Olfïae ai New Sorte, IV. ï„ as second-ci-ats malteK."
Vol. LXIV.
DECEMBER 2, 1S99.
No. 1G55
—T- HERE is undoubtedly a better feeling pervading Wall Street
1 as a result of the relief from the disquieting suggestions
that a prospect of continued dear inoney creal:ed. The Secretary
of the Treasury has added to the value of his initial step to re¬
move gloomy anticipations Gy extending the time within which
he will receive bonds for rédemption. To this was added this
week indications of an extension of that policy of agreement that
has done so much to help the trunk line situation. It is not sn
much the immédiate effects of this policy ou railroad shares that
encourages the market as the indication its extension présents
of the growing prominence of flnancial to the lessening of rail¬
roading ambition in railroad management. This makes decid¬
edly for the interest of the security holders. The railroad man¬
ager, pure and simple, having the banker between himself and
the security holder, has too often been more anxious to build up
a big business at the expense of a rival than to maKe returns on
the capital entrusted to him; hence the railroad industry, as a
whole, has received less proflt and endured more adversity than
any other in the country, With the banker able to curb the
flghting qualifies of tbe railroad man the future ci the industry
should be much better than its past, The banker can take cooler
views, and must take more prudent ones, as he is in direct touch
with the real owners of the raiiroads, so that, în. so far as he
appears in the management in a représentative capacity for the
latter, his influence will be directed more towards keeping up
than cutting rates, and bonds, and stocks wlll beneflt accordlngly.
Industrials bave not keep up with Raiiroads in the market, but
so soon as they begin making tbeir statements and paying their
dividends at the opening of the new year they will undoubtedly
come into line. Taken with the continued activity in genernl
business, thèse things make the prospect in the security market
quite cheerful.
AMONG the items of news current this week that relating to
the organizatlon of the Alliance Realty Company,
given elsewhere in this issue, is to our mind the
most important. Without référence to the particular aims
and objects of ttiis company, it may be said that the realty
market has been awaiting the development of the principle in¬
volved in its organizatlon. This is, to use a term now of common
application, the mobilizing of pecuniary resources to meet the in¬
creased importance of the article dealt in. The best class of New
York realty is no longer controlled by moderate sums of money.
Every large building represents an investment equal to a consid-
erp.hle f^-tune, and as the demand for increased size grows it wlH
be out of the power of even men of large means to build them, or
the number of these men will be so reduced that they will be
unable to supply the demand. The multi-millionaîre and the
great corporations, not building corporations pure and simple,
bave done their part in showing the way; further progress must,
in the main, come from other directions. The Incorporated build¬
er is not unknown hère; but, except in one instance, that of
the Bowling Green Building, and then only to a limited extent,
we do not recall an instance ln which the public were asked to
subscribe capital for building purposes. It has been the rule thaï
the stock of such enterprises should be subscribed by a few Indiv¬
iduals who reaped ail ;.he beneflt or sustained all the loss result¬
ing from it. As the capital requirements of the industry grow,
however, ît follows tbat it must be sought in a larger fleld. That
Eiich a field is open for stock opérations in realty there can he no
doubt whatever, Under, able and honest management, there is
Lo reason why thîs form of investment should noi be as attrac¬
tive to the large and small investor when represented by bonds
and stock as it has always been ln the forms of mortgages and
deeds, with the added ladvantage that very Bmall amounts of
capital can participate in its benefits, both of security and proflt.
Ihat success is assured for enterprises of this nature wben prop¬
erly launched and managed is proved by lhe popularity of ths
mortgage bonds already on the market, which though paying
cnly a comparatively low rate of interest, are by reason of tho
guarantee cî value back of them, so much în favor that it is no
exaggeration to say that the supply is unequal to the demand.
The Realty MarksL
—p HB week's dealing is in no wise dîssimilar from the busi-
i. ness which preceded it during the summer and autumn
months, The transactions related almost exciusively to residen¬
tial property, improved and unimproved, Some fiats and tene¬
ments were apparently bought for investment, and a number of
private houses, including a couple in select neighborhoods, were
reported sold to intending occupants. But the body of the deal¬
ing, apart from private houses, was of a professional nature—
trades involving new apartments, and purehases of vacant lots
and antiquated premises, The notable authentic transactions
made public during the week are quickly enumerated. The sale
in the 17th Ward, alluded to in this column last Saturday, provad
to comprise some eleven parcels în lst avenue, lst and 2d streets,
wbich were disposed of by the Dubois estate to Joseph L. Butten¬
weiser. Daniel E. Seybel bought eight lots on the north side of
67th street, 150 feet east of Columbus avenue; Charles L. Tiffany
sold six lots on the north corner of 5Lh avenue and 99th street;
Russell Sage sold the north corner of Central Park West and 67tj'i
street, 25x100; A, Colner bcught two new 7-story flats ou the
north side of 32d street, 150 feet east of Sth avenue, giving in part
payment land in Mount Vernon; Christian Loos sold the 4-story
factory at Nos. 223 and 225 West 46th street; Martin Bros, sold
the 8-story apartment house at 40 and 42 East 25th streef Poley
& Sniffin resold for Chas F. Hoffman, Jr., and Francis Ward
tbe 5-story business building at No. 80 Warren street.
The one sensation of theweekwastheannouneementthat a com¬
pany was forming, as an offshoot of the Central Realty. Bond and
Trust Company, to develop part of the latter's real estate hold¬
ings. The new corporation is to be known as the Alliance ReaUy
Company, and is to hâve a capital of $3,000,000. It numbers
mong its directors Henry 0. Havemeyer, James Stillman of tha
City National Bank, Frederick P. Olcott of the Central Trust
Company. Hugh J. Grant, Henry Morgenthau, Frederick South¬
ack and Geo. R. Read, all of whora, except the last mentioned aro
connected with the Central Realty, Bond and Trust Company It
was reported, in this connection, that the Central Realty Bond
and Trust Company has bought the southeast corner of^Broad
street and Exchage place, 31x78.6, from J. W. Stickler; the ad¬
joining lot. No, 29 Broad street, 31x78.1x27x78,6, from C. P. Tag.
and from A. M. Clonney the L-shaped parcel Nos, 31 and 33 Broad
street, and Nos. 54 and 56 Exchange place, fronting 52.S on Broad
street, 46 feet on Exchange place, and running 123 feet deep from
Broad street and 76 feet from Exchange place. This combined
plot, Wlth an earlier purchase, No, 44 to 52 Exchange place it
was said, has been resold to the Alliance Realty Company, which
Wlll erect on the site a fireproof banking and offlce building M.-
Morgenthau declined to give any information as to these re¬
ported real estate transactions, aud other members of the new
company were hardly less réticent, The substance of the reports,
in so far as they relate to tbe supposed purehases cf the Central'
Realty, Bcnd and Trust Company, was antieipated in a rumor
printed in this column some time ago, to the effect that the com¬
pany had secured options on property ia Broad street, Exchange
place and Beaver street. A member of the organizatlon com¬
mittee yesterday confirmed the report that options were held on
property in the neighborhood, and that it was intended that this
property should be improved by the company now organizing
The invitations to subscribe state the aim of the company is t.^
operate in real estate in Manhattan aud Bronx,
It would serve no good purpose to ignore the fact that this has
been a dull November, The increase in constructional tost as an
isolated circumstance, is not sufficient to explain the inactivity
in real estate. Coupled with présent monetary condition, ît ia
unquestionably an important factor. But, as a matter of expér¬
ience, some of the most prosperous building pericds hâve been iu
times of high prices for materials and labor, The determining
influence is the interest rate on money. In ordiuary years the
money which goes to the interior during the crop-moving season
returns în volume to New York, as the financial center, in No¬
vember, when the interest rate falls to the normal level, and real
estate activity is resumed on a large scale. This year the surplus
money which should now be returning to New York has foyad
employment in the greatly expanded industry and commerce of
the interior, There are, of course, other éléments affecting the
money market, but the paramount influence is the circumstani-îe
that the extraordinary expansion of trade and industry îs absorb-