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November 12, 1904
BECORD AND GUIDE
^ey " ESTABUSHED ^ HWRPH Si^'*^ ISGS.
DE/fflEDpi^LEsTAiE-BuiLoif/G AffPifiTEcrnmE.HoiisnioiDDEefflifimtl,
Busitfess Alb Themes Of GEfiER^ ljjTEfVE3T.
PRICE PER. YEAR IN ADVANCE SIX DOLLARS
Tablished etlery Saturday
Communications Bbould be addresBCd to
C. W. SWEET. 14-16 Vesey Street, New YorK
J. T. LINDSET, Business Manager Telephono, Cortlandt 3157
•'Entered at the Post Office al JTeuJ York, N. Y., as second-class matter."
mous, as is the volume of business on the Stock Exchange, but
in real estate it is even more exclusively professional. Inas¬
much as those operators are buying not merely to liold as the
land speculators used to do, but to turn over to builders within
the next year or two, it is entirely possible that an average of
$20,000,000 or more will be spent on new buildings on the
Heights for 1905 and 1906. There is every prospect, also, that
this increase in house-room will be readily absorbed. The icv
crease in population north of 125th st will, of course, effect im¬
portant business changes along the line of upper Broadway and
on 125th St. Stores, banks, and oifices will have to be provided,
as well as restaurants and churches; and all this will swell the
volume of building operations.
Vol. LXXIV.
November 12, 1904.
No. 1913.
APART from Monday and Wednesday, when some little ex¬
citement was natural, the stock market has been behav¬
ing in a wholesome manner during the past week. Heavy buy¬
ing was succeeded by heavy selling, and prices did not recede
as much under tbe selling as they advanced under the buying.
The fact tbat the selling has taken place assures tbe market a
stronger technical position; and, provided conditions do not
change, there is no reason to believe tbat the general trend
of prices will not continue to be bullish. The advance would
not have contiuued during the past month had the imporve-
moBt in business Itept pace witb it; and that improvement is
as conspicuous as evei\ It is particularly conspicuous in those
lines of heavy manufacturing wbich bave been organized
into large corporations; and it looks as if the preferred
stocks of tbe best of tbe industrial companies might
during tbe next year or two attain a sounder position
tban any which they achieved in tbe past. In 1902
tbesc corporations were experiments, and an investor had no
guarantee that they were not capitalized too high to maintain
dividends through a period of very bad business. Well! tbe
period of bad business has come and gone. The w.eaker-of
these corporations ceased to pay any dividends. The stronger
omitted the dividends ob tbeir common stock, but were not
obliged to diminish the dividends on tbo preferred. They will
undoubtedly use another prosperous period to strengthen their
cash surpluses, and so put themselves in even a stronger posi¬
tion to meet some years of relatively meagre and unprofitable
business. Such is certainly tho case with the biggest indus¬
trial company of all—tbe United States Steel Corporation. A'year
or two of really good times would enable it to add twenty-flve
or thirty million dollars to its resources, and so ju-actically as¬
sure its rate of distriljution on its preferred stoclv. The com¬
mon stock will bave to wait until tbe company bas attained au
impregnable financial position. Under such conditions there is
no reason why these preferred stocks should not sell at least
on a &ix per cent, basis.
"y HE agitation against the disfigurement of the Subway
â– ^ stations by cheap and ugly advertising signs continues to
increase in volumo, and to gain in confidence; but it has as yet
succeeded in effecting nothing decisive. One gets tbe impres¬
sion very strongly that some at least of the Rapid Transit
Commissioners and their counsel regard the wbole business
as an unwarrantable interference with the Commission's busi¬
ness by a parcel of aesthetic busy-bodies. In the interviews
with these gentlemen wbich appear in tbe daily papers, they not
only stand resolutely on the contract with the Interborough
Company but they go so far as to declare that they have no
objection to the kind of signs which bave been installed. It
cannot be said tbat this attitude reflects very much credit upon
the discernment of these gentlemen. We can understand tbat
they should be lotb openly to disparage tbe contract for whicb
they are directly responsible. But inasmuch as they represent
the city's interest in the rapid transit system, they should
recognize that such signs are a genuine grievance, and they
should be ready to use tbeir influence towards tbe abatement
of the nuisance. Tbat tbe signs are aesthetic nuisances they
mnst understand, because no advertising has been permitted in
the stations of the Brooklyn Subway; and if they let it be known
that they would do what they could to induce tbe Interborough
Company to surrender the privilege, the public would bave con¬
fidence tbat considering the dependence of that Company on tbe
good will of New Yorkers and of the Commission, the pressure
wonld ultimately be successful. It is certainly absmd to spend a
great deal of the city's money in decorating tbe stations witb
tiles of delicate design and carefully selected colors, and then
to bave the wbole scheme mutilated by aisplay advertisements
in auy kind of color, and witb tbe letters of any size. Although
we bave little faith that the contract is illegal, we hope tbat
since in all probability the irremovable members of the Rapid
Transit Commission will do little to help, the matter will be
tested in the courts. If the Subway stations can be legally
declared to be part of tbe street system of tbe city, it wouid be
an excellent thing in more ways than one.
IN spite of election day the budget of real estate sales con¬
summated last week shows no diminution from the large
totals of the last few weeks. The wbole snm still runs well over
300, and of tbese more tban one-half are sales of vacant iots.
The greater part of tbe remainder consist of fiats and tene¬
ments. In Manhattan tbe transactions in vacant lots and tene¬
ments constitute 150 out of about ISO transactions. It can be
judged conseqtiently bow narrow the market is in otber re¬
spects. It is more restricted even than it was during tbe cor¬
responding week in 1903. A year ago some 30 private houses
were sold, against less than 20 for the past week. We fully
.believe that tbe market will broaden considerably during the
next few months. Tbe public does not yet understand that
the business reaction is over, and that business realities and
prospects are excellent instead of doubtful. The people who
own real estate bold on to it stubbornly enough. The level of
prices established in 1902 has for tbe most part been main¬
tained, while it bas in some cases been advanced. But tbe
firmness of prices partly explains the narrowness of tbe market
and people are not purchasing either for use or investment as
they were two years back, because prices still sSem
high. It is, Lfjwever, to be expected that they will soon do
so and that the good residence and business districts
of the city Vvill receive tbe benefit. For tbe present, bow-
ever, there is nothing doing but lots and tenements. Every
operator and speculator in the city is busy buying and selling
lots in tbe Bronx and on Washington Heights. About l.GOO
lots changed hands during tbe past weeli of whicb about 900
were situated in Manhattan. The volume of business is enor-
NOW that the election is over it is Lo be hoped tbat the city
departments will show signs of increased activity. Tbe
Rapid Transit Commission in particular may yery well show a
little more energy. It is just three yearr. ago this fail that the
need for a lower West Side and an upper East Side Subway
began to be discussed and the matter of selecting routes was
taken up by tbe Commission; and in tbese three years but little
bas been done towards tbe settlement of new routes. Tbe whole
business has not advanced beyond the earliest stages, so tbat tbe
city will bave to wait for another five years or more before it
can enjoy any improvement in its transit system—except such
as can be made by enlarging tbe capacity of the existing ele¬
vated roads. Part of this delay was doubtless unavoidable, and
part of it has been due probably to a natural desire on the
part of tbe Commission to test tbe operation of the existing
Subway before making detailed plans for extensions. But now
there is no longer any reason for delay, and tbe people of the
city will expect some display of energy on tbe part of the
Commission—not only in laying out new longitudinal rapid
transit routes, but in providing sufficient means of collecting
and distributing the traffic wbicb is crossing and will cross the
East River. In this matter tbe plan of tbe Municipal Art
Society for loop terminals connecting the bridge terminals with
each other and witb tbe most important points at which the
traffic originates is undoubtedly tbe best that has been suggested
and deserves more serious official consideration than it has
yet received. The work wbich the Municipal Art Society is doing
in the way of bringing to bear fresh and radical ideas upon the
rapid transit problem of the Greater New York, is excellent
and salutary. The ideas and plans it advocates may not always
be acceptable, but they provide a needed corrective to tbe ex-