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RECORD AND GUIDE
679
Etofoin) TO f^L EISTWE. BulLDIf/c l^ROtrrECTURE .HoosEiloii. DEQfflifTloH,
Busi(/ess Alto Themes Of GeiIer^I IKter^si.
PRICE PER YEAR IN ADVANCE SIX DOLLARS
Vablished eVerg Saturday
Communications aUouk
C. W. SWEET, 14.16 Ve
e addressed to
y Street, New YorK
Teiophone. Cortlandt 3157
••Entered ai (he Pout Office at Neio York. N. Y.. as secojid-ctass niatter."
Copyrighl by the Real Estate Record and Builders' Guide Company.
No. .I'i33-
Vol, LXXV,
APRIL 1, 1005.
THB real estate ti'ansactions of the -week indicate a wide¬
spread, very well-balanced activity. The somewhat ex¬
travagant speculation in vacant lota- has moderated; and in the
sales- which are now taking place, builders more frequently
figure. These speculative movements appear at times to get
beyond control; but it is extraordinary how quickly they sub¬
side, when prices verge on the danger line. The fact that the
dealers are professionals makes them cautions; and then the
money-lending institutions-soon discourage excessive advances
in prices. There is room for a good deal more building than has
yet been announced in the newer sections; and further specula¬
tion will wait wpon such announcements. In the meantime buy¬
ing is active in every part of Manhattan—on lower Fifth av, on
upper Fifth av and on the side streets. Expensive residence
property is in better demand than for some time past; and many
high-class apartment houses will be constructed. The year is
evidently going to be a very good one for the West Side, as
well as for the newer sections. There is still some hesitancy
in announcing plans for big improvements; but there is every
evidence that these announcements will come with a rush at
a little later date. It looks very much as if builders, who
need any considerable tonnage of structural steel, will have
to engage it soon, or else be obliged to put up with delayed de¬
liveries and higher prices—as in 1902.
A MORE vigorous opposition has been developing during the
â– '*â– past week to the bill taxing future mortgages; but'it
looks as if this opposition bad appeared too late. The measure
has been made a part of the official policy of the Republican
party, and the caucus has been used to whip protestants into
line. The Governor is determined that the new indirect sources
of taxation shall be sufficient to meet the deficit; and at this
late date it would be difRcult, if not impossible, to devise more
acceptable substitutes. Consequently the proposed mortgage and
stock transfer taxes will be imposed, unless the opposition can
be made too forbbiding—which is unlikely. It is unnecessary
to repeat at this juncture the reasons, which make a mortgage
tax both unjust in principle, and inexpedient as a tax upon the
improvement of real estate. In case the proposed tax is de¬
feated, it will not be because of such arguments; it will be be¬
cause the Republican leaders are convinced that their tax policy
is doing their party more harm tban good. Neither sbould
it be difficult to draw up a convincing brief along these lines.
Hitherto the indirect taxes have affected chiefly certain special
interests and classes, such as the liquor-dealers, the corpora¬
tions, or beneficiaries under a will- But almost everybody who
builds a house in the state of New York, particularly if he is
a compapatively poor man and must borrow money, will feel
the burden of the mortgage tax; and the effect of this imposi¬
tion will be to disgruntle them with the party, which is re¬
sponsible for it. The Republican leaders should look sharp
and tread cautiously. They are reaching a point In the de¬
velopment of their policy of taxation which compels them to
offend more people than they gratify; and inasmuch as the
existing deficit is merely the fore-runner of a continuing future
scarcity, they should consider carefully whether they will not
in the end provoke an amount of popular disgust, which will
make the state Democratic for many years.
THIS is a traders' stock market at present, fluctuating chiefly
for professional reasons. When prices go down a few
points, it merely means that stock bought at lower prices can¬
not be sold without depressing values, and when prices run up
it means chiefly that stock sold at higher prices cannot be
bought without advancing them. During the past week it has
been a drawn battle. Business is so good and prospects are
so favorable that the bears can only expect to make a few
points, while security prices are so high that they can hardly
go highef until some new stimulant is provided. The stimulant
may come from a number of sources. There may bo some ad¬
ditional railroad consolidations, or crop prospects may be un¬
usually favorable, or certain railroads may feel strong enough
to divide more money among their stockholders. But we may
feel sure that in one way or another the stimulant will be pro¬
vided, for prices will not be allowed to rest where they are.
There is plenty of stock accumulated at the low prices of last
year, still remaining to be sold, and the hoMers of this stock
will make a market for it- Probably, however, they will not
be able to make such a market until a month or two later.
Real Estate in 1905. The Record of the First
Quarter.
"\T 7" have frequently referred to the unprecedented number of
* * real estate transactions, which are being consummated
at the present time; but now that the first three months of the
year are over, it Is worth while to pause for a moment and see
what the activity really amounts to, and how it compares to
that of previous years. The total number of conveyances re¬
corded during these months, omitting only the last three days,
is 5,011 in Manhattan and 3,418 in the Bronx. The figures for
the corresponding period of 1904 were 4,156 in Manhattan and
1,324 in the Bronx. This is an increase of 25 per cent in Man¬
hattan and about 150 per cent in the Bronx. Taking New York
county as a whole the percentage of increase is about 60 per
cent, so that not only are the totals absolutely unprecendented,
but the ratio of expansion is larger than has ever been wit¬
nessed before in any one year. The mortgage records tell the
same story. Thus the total number of mortgages on Manhat¬
tan property recorded has been 4,738 in 1905, against 3,640 in
1904, while the Bronx mortgages increased from S19 in 1904 tt>
2,590 in 1905, the proportion of increase in this instance amount¬
ing to about 75 per cent in New York County. The amount of
' money carried by these mortgages shows even a larger increase.
So far in 1905, over $131,000,000 has been loaned on real estate
in New York County against only about $66,000,000 for the corre-
fiponding period of 1904, $88,000,000 for the corresponding period
of 1903, and ?89,000,000 for the corresponding period of 1902.
The increase amounts to 100 per cent over 1904, and to about 60
per cent over 1903, which was in this respect a more normal
year than was 1904, It will be seen consequently how phenom¬
enally large the volume of real estate transactions has become.
An analysis of the percentage at which this money has been
loaned on Manhattan property indicates with great accuracy
the character of the business, which has caused this enormous
increase. In spite of the fact that it was difficult to borrow
money on real estate during the first three months of 1904, the
greater part of the increase has not occurred in mortgages bear¬
ing comparatively low rates of interest. Roughly speaking,
there has been loaned at 4 and 4^^ per cent, about $13,000,000
more during the first three months of 1905 than there were dur¬
ing the first three months of 1904. The amount of money bor¬
rowed at 5 per cent is only a few million dollars larger than
it was during the previous year. On the other hand, the mort¬
gages carrying 6 per cent interest are far greater in number
and in amount involved than ever before. About $50,000,000
has been loaned at this high rate of interest against less than
$18,000,000 during the first three months of 1904. and against
only about $15,000,000 for the first quarter of 1903. Thus it
is obvious that the increased business has consisted principally
of speculative transactions. Money loaned at 6 per cent is
loaned, either for building purposes, or to carry through other
more or less risky operations; and the enormous sum. which has
been placed at this figure indicates that the bulk of the increased
business has been the work of operators, who were speculating
in real estate and could pay high for the accommodation they
required.
The filings of the Building Department tell the same story.
The new Manhattan buildings projected during the first three
months of tbe year call approximately for the expenditure of
$24,000,000, a total which is donble that of the corresponding
period of 1904, and larger by several millions than the analogous
figures both for 1903 and 1902. But this increase has taken place
exclusively in one class of buildings. The plans for new busi¬
ness buildings call for about the same sum in all four years—a
sum, varying between $4,000,000 and $5,000,000. The plans for
new private dwellings call for a slightly larger expenditure in