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April 7, -1900.
JiECORD AND GUIDE.
5^r
,. ^ ESTABUSHED^MARpH21ii>1868.
B[Jsl^fessA^to Themes or GEjJERil WitRfai.;
PRICE PER YEAR IN ADVANCE SIX DOLLARS.
Published every Saturdai/.
TELEFIION-E, CORTLANDT 1370.
CommunlcattoDS should be addressed to
â– C. W. SWEET, 14-16 Vesey Street.
/. T. LINDSEY, Business Manager.
go further. Manufacturers can best encourage a revival
of building industry by making the cost less and the records of
the Deiiartment of Buildings for the current year, showing as
tliey do such a large falling off in the number and value of plans
filed, suggest that it is to their interest to do so.
1
••Entered at the Post-OtfiGe at New York, N. Y.. as second-class matttr.-
Vol, LXV.
APRIL 7. 1900,
No. IG73,
THAT railroad stocks and shares should be the favorites
among buyers of securities to-day is the restilt of a fact
long apparent to which we have persistently directed attention,
namely, the comparatively small amount of railroad bnilding
that has been done iu the past ten years or more. Low rates,
and the perfected organizations of the big roads, made the laying
out and construction of small ones for independent operation
improfitable, and the restriction of construction that neeessarili'
followed has given the existing roads all the benefits of the
great increase of business that has occurred throughout the
country in the past four years. When the meaning of this fact
is fully understood the returns of earnings now being made by
the railroads throughout the country are not at all surprising,
though very gratifying. The buying of stocks and bonds predi¬
cated on the railroad industry follows as a raatter of course
whenever the conditions of the money market in any way favor
it Taking Poor's Manual for 1899 as a guide, we find that the
number of miles of railroad operated in 1870 was 52,922; in 1880
this had increased by 40,340 to 93,262, and in 1890 still further
by 73,392 to 166,654; in 1S98, the last year for which figures are
given', there had been an addition of 20,156 miles to the last
quoted total. Looking further into the figures we find that iu
the flve years from 1893 to 1898 the annual average increase was
less than 2,000 miles to compare witb a yearly average increase
of more than 4,000 miles from 1870 to 1880 and of more than 7,000
miles from 1880 to 1890. "While the ratio of railroad extension
has been decreasing, population and commerce have been in¬
creasing by leaps and bounds. Not only has railroad extension
. been restricted in the past decade, but the conditions at the pres¬
ent day discourage competitive building. The process of con¬
solidation has nowhere had such play as among the railroads,
so that every section of the country is practically controlled by
a* big organization whose existence threatens disaster to any
â– other that should attempt to invade it. Among the systems them¬
selves there has grown up a policy of respect for a rival sphere
of operations and influence that reduces the prospects for new
lines to the necessities of the systems themselves and goes a long
way to insure the stability of railroad investments in this coun¬
try. The reduction of the bonded capital account through reor¬
ganizations ought to be taken into account, too, especially as
more directly affecting tbe values of bonds that were left stand¬
ing. But the most potent agent in producing the present quota¬
tions for railroad securities of all kinds was the limitation of the
railroad mileage until the growth of the carrying trade o£ the
-country tried its capacity. As to the movements of the stock
market, it may be said, in spite of the realizing that has been
conspicuous this week, that earnings will inevitably tell on se¬
curity values and they give more sign of swelling than of con¬
tracting. -, ,,
-—^—â– —â– *-------------------------------------- _ ^__
IT is gratifying to note that there is some easing off of the
prices of building materials. It will be seen, by reference
to the quotations given in other columns of this issue, that this
week has seen a drop of fifty cents in bricks, fifteen cents to
twenty cents in cements, and fifteen cents in lime; one to two
dollars in spruce lumber, and a dollar in iron. Lath, it must be
noted, increased somewhat, and there is yet no indication of a
decline in the prices of plumbing and hardware supplies. Still,
there are concessions enough to make builders thankful. These
are doubtless due to the let up in building operations, which
itself was partly due to the high prices for constructional mate¬
rials, and it remains to be seen whether a revival in the former
would not cause the latter to go back to recent figures. It is
reasonable to infer that they would not, but rather that the
reaction from the extremely high prices which has begun will
A Waiting Market.
CHEAPER MONEY AN ENCOURAGING FEATURE,
THE brokerage business displayed rather more buoyancy the
latter part of the week than it has evidenced for some
time past. Outside support, indeed, continued to be limited al¬
most exclusively to the buying of private houses. But the pro¬
fessional element, encouraged by the cheapening of money which
is giving renewed life to the stock market, is gradually begin¬
ning to resume operations. A number of building sites were sold
for improvement, chiefiy with elevator apartments, although one
or two went to private persons who purpose to erect residences
for their own occupancy. Several plots of low-priced land in
the Bronx were disposed of for improvement with one
and two-family dwellings, a kind of housing for which the
current demand appears to be sufficiently strong to warrant pro¬
duction on a comparatively large scale. Trades occupied the
principal share of attention, including as they did several of
considerable popular interest. In some of these transactions
builders exchanged improved property for lots and a modicum
of cash, enabling them to project new construction work. One
downtown parcel was bought by a wholesale drug house, who will
erect on the site immediately a modern building for their own
exclusive use. A manufacturing concern purchased in the name
of an agent a holding in West 12th street, which will be reim-
proved with a factory building as soon as the concern's contract
in respect of their present leased quarters expires. Viewed with
reference to normal standards, however, the week's dealing was
meagre in volume, and very much restricted in scope.
The attitude in real estate is one of hesitation and expectancy,
and this attitude is especially noticeable in the renting market
Eor business property. Very few long term leases are asked or
granted. Some small advances in rents are obtainable. But
owners require larger incomes than are now available to com¬
pensate for increased taxes, and anticipate an adequately com¬
pensatory rise in rents by next spring. Tenants, on the other
hand, are generally considering the necessity of securing en¬
larged quarters. In these circumstances neither landlord nor
tenant is disposed to bind himself for more than a year. The
feeling that rents wil! presently take a decided upward turn is
general, and the first substantial indication of a realization of
this expectation is all that is required to restore activity to im¬
proved property, That improved property, including premises
which are not of the most recent construction, is more exten¬
sively employed than for years past is evident to the most casual
observer. It is suggestive, for example, that while the past
quarter, as compared with the flrst quarter of 1899, the plans filed
for new buildings show a decrease in estimated cost of 58 per
cent., the plans for alterations show an increase of 11 per cent.
The present is undoubtedly a transition period. The movement
which has spent itself in unimproved property has not yet
gathered headway in improved real estate. Investment realty
lies next in the line of activity, but when it will be reached de¬
pends upon the conjunction of too many forces to make pre¬
diction of any value.
ANOTHER important building will, doubtless, soon excite
the active attention of architects and builders now that
the Chamber of Commerce has secured the million of dollars of
subscriptions they required before attempting to purchase a site
or build the home they have desired for so many years. It is
interesting to note within what a small circle the Chamber has
made its temporary homes during its existence. Prom the south¬
east corner of Broad and Pearl street to the same corner of
Nassau and Cedar street is not far to travel in 132 years. The
latter point was attained, it is true, by a detour to Wall and
Water street, but as we have said the circle of movement was
very restricted. This circle, however—or semi-circle rather, be¬
cause the Chamber has never crossed Broadway—is the one that
has held fast since the foundation of the city tbe most influential
financial and commercial interests of the community, and, as it
has been the banker and merchant who have mainly composed
the Chamber, its abiding place within their midst is explained.
The interesting question now arises whether the Chamber in
these days of rapid transit can go out of this wonderful area, or
whether its affiliations with the financial district will keep it
there in spite of the high cost of land?