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April 8, 1905
RECORD AND GUIDE
739
lull.
â– ^^ â– * ESTABUSHED ^ «\ARPH 21^^ 1868,
DE/o^ED^oRf^LE>TAIz.BmLOl^'G Architecture.KoosEVioiLDEOtflfliaK,
BusiriEss Alio Themes OF GEtJER^l I^TEflfST-
PRICE PER YEAR IN ADVANCE SIX DOLLARS
Published eVers Saturday
Communlcationa Bhould be addressed to
C. W. SWEET, 14-16 Vesey Sireet, New YorK
â– T, icplionn, Coi tl.indt 3157
"Entered at the Post Office at :N'ew York, If. Y., as se.'ond-class matler." ^
Cui^jiifehL by the Real Estate Record and Builders' Guide Company.
Vol, LXXV. APRIL S, 1905. No. 1934.
THE stock market has been buoyant during the past week:
and the leaders in the rise have been the industrial se¬
curities, particularly those connected with the iron and steel in¬
dustries. It has been fore shadowed for some time that Steel
Preferred would sell above par during the current period of
business activity. Tbe facts that the company bad pulled
through a severe crisis, and that for the present its earnings
over tbe dividend on the preferred would go into the surplus—
tbese facts really justify a higher level of values than that
which prevailed in 1902. We sbould not be surprised to find tbe
stock selling at 110 during tbe next few months; and it is a
fair prediction that its fluctuations hereafter will not extend
over so wide a range as tbey have since the fall of 1903. If
the current activity continues for a year or more, and tbe com¬
pany can add $30,000,000 to its surplus, dividends on tbe pre¬
ferred stock should be well assured for a number of years. The
chief danger is really the intensity of tbe existing activity. It
I3 a sort of demand which forces up prices to so high
a point that on the first sign of a reaction people become
scared, and tbe famine follows bard upon tbe feast. Tbe outlook
would be better, in case the consumption was more moderate.
THE real estate market still shows a wholesome balance In
tbe distribution of tbe enormous amount of business.which
is being transacted. Improved as well as unimproved property
of all kinds is selling well; and the existing demand for private
residences should encourage builders seriously to consider tbe
erection of this class of improvement. So far as. vacant property
is concerned, Jerome Ave and the Dyckman tract continue to
receive the major share of attention; and they deserve it. Cer¬
tain parts of Jerome Ave are almost as available for improve¬
ment as "Washiagton Heights, and tbe Dyckman tract is even
more so, because people inhabiting that section will not bave
to descend by elevators into tbe bowels of the earth, so as to
board tbe Subway trains. After the Subway is in operation
north of 145tb St,. It will be found that the development of all
this section will be hampered by the inadequacy of the express
service. An agitation should be started soon for tbe four-track-
- ing of the Washiugton Heights tunnel. Building will soon be
under way both on Jerome Ave. and the Dyckman tract. Sev¬
eral new tenement bouse operations bave also been announced
for Washington Heights; but tbe movement bas neither tbe
volume or the pace in that section which it ought to have. We
understand that prices bave been receding perceptibly on tbe
Heights; but this recession only means that certain weak pur¬
chasers have been obliged to reduce tbeir extravagant ideas
of existing values. It is tbese extravagant ideas, which are prov¬
ing to be the most serious check to the undertaking of a larger
number of building operations; and to have them reduced to a
common sense basis would clear the atmosphere immensely.
Nothing like tbe current level of values can be maintained, with¬
out tbe assistance of a large and steady amount of building; and
the operators most extensively interested on tbe Heights should
protect those interests by encouraging building, particularly in
tbese sections where bouses of a good class are justified.
TOURING the past week, it has developed that Mr.
^-^ John Claflin has purchased the old Henry Clews
property, and that he now owns a plot fronting 150 feet on both
34th aud 35th sts., and containing 30,000 sq. ft. Presumably, Mr.
Claflin has acquired this plot for tbe purpose of making it the
location of a high-class dry-goods store. It is not to be siipposed
that IJcCreery's will be pipved from its present fine location at the
" corner of 23rd St and 6tfc Ave; buf goin§ of the many etpres
in which Mr. Claflin is interested will build on 34th St,; and thia
new improvement added to the Altman store will still further
increase the importance of that street. In fact it is now
definitely established that 34th St. will be tbe busiest and ihost
important cross-town street in New York City. Twenty-third
St.. from Gth Ave, to Broadway will remain an admirable location
for retail stores; but 23rd St, has lost touch with the hotels and
the class of retail trade, which occupies 5th Ave. On tbe other
hand 34th St. will be both more central and more distinctive
and metropolitan. Somebody has said that the Waldorf-Astoria
supplied exclusiveness for the masses. So 34th St, will supply
a more exclusive shopping and business centre for tbe people
who can. afford to pay for it. Moreover, its importance will
stretch from Sth to Lexington Aves; and as its buildings are fur
the most part superannuated, it will be improved with modern
structures which will give it a more spectacular appearance
than 23rd St, can ever obtain. All this is clearly understood
by real estate operators and business men. Althongh very lit¬
tle of it comes out, there are under way many negotiations for
property in that vicinity, wbich are advancing prices still higher.
No less than $5,000 a front foot is being paid for lots on 35tb St.
and almost as much for lots on 36th St. between Sth and Gth
Aves. This fact in itself shows the immense difference between
the future of 34tb St and that of 23rd St. Tbe 34tb St. move¬
ment is carrying witb it a much larger amount of neighboring
property. Other items .of news, as important as the Altman and
Clafiin purchases, may soon be expected.
*" I â– 'HE mortgage tax bill is passed and is now in the Governor's
â– *â– hands. Strenuous efforts will be made to pursuade the
Governor to veto the bill; but after his pronouncement of the past
week, it is wholly improbable that tbey will succeed. The truth
is that tbe real estate interests of this city were caught napping.
At the beginning of the session it was evident that the Republi¬
can leaders would be obliged to fail back on mortgage taxation,
in order to repair the deficit; and the Record and Guide pub¬
lished an explicit warning that such a contingency should be
feared and provided against. But partly owing to the fact the
danger did not appear serious until the last moment, and partly
owing to tbe confusion which existed in tbe public mind between
the mortgage tax bill and tbe mortgage recording tax bill, no
sufflcient protest was made until it was too late. There is a
chance that tbe Governor may be pursuaded that tbe tax will
be injurious to the building and real estate interest and to theRe-
publican party; but the chance is distinctly small. The Repub¬
licans have adopted the tax reluctantly; but owing to a com¬
bination of causes, it will be very difficult for them to revise
their decision. It is merely a matter of expediency with tbem.
The mortgage tax seems to be tbe least troublesome way of
avoiding a reduction of State expenses. EJvery argument which
the Governor has used in favor of the bill applies witb doubled
force to the complete exemption of mortgages from taxation; and
such would be the conclusion drawn, were not tbe action of the
Legislature dictated by the fiscal interests of a few rural coun¬
ties. Tbe mortgage recording tax would raise the necessary
revenue, but it is unavailable because it would disturb the fiscal
arrangements of a half a dozen localities, which collect needed
revenue from the existing property tax. Consequently a tax
must be levied upon everybody, who wishes to build a house
in the State of New York. Tbe leaders at Albany are cons'der-
ing whether tbey cannot diminish the unpopularity of tbeir new
tax by exempting the building and loan asociations; but in that
case they will avoid unpopularity by increasing the injustice
of the tax. There are plenty of speculative companies operating
in tbe vicinity of New York, who supply dwellings to wage-
earners without capital as cheaply as the building and
loan associations do; and tbe exemption of loans made
by building associations would be an unfair discrimina¬
tion against such companies. Moreover, it would hurt tene-
meut-boiiSe property in Manhattan and the Bronx in competi¬
tion, with suburban property. If we are to have a mortgage tax,
let it at least be fairly distributed.
WHATEVER reason there is for caution and oelay in respect
to the new Subway system, no similar reasons bave auy
force in respect to the moving platforms under 23rd and 34th
Sts. These platforms should be laid out as independent routes
in any event; and there is no part of the new rapid transit sys¬
tem which is more necessary. There are no surface cars in the
city, which are so continually crowded as those running across
these streets; and in the winter tbey are also subject to constant
and tiresome delays. Furthermore, the privilege of transferring
^pnj the moving platforms to the Subway arid elevated, foads