May 27, 1905





RECORD AND  GTTIDE





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Copyrieht by the Real Estate Record and Builders' Gnlda Company.

Vol,   LXXV.                     MAT   27,   10*15.                     No.   1941,





INDEX TO  DEPARTMENTS.
(--Vdvertising Section,)












«















Contractors and Builders.




Metal   Work   .......




....   xviii





Granile










































THB current Stock Market is one, in. which tlie most astute
operator finds it difficult to fish. It goes off regularly for
a number of days and theu recovers with violence—only to lose
most of its gain the day following. The situation appears to
be som«thing as follows. The public has lost its interest in the
market and the large financial houses do not believe that any
good can come at present from a bull camipaign. They are
unwilling, however, 'to let prices go below a certain level; and
they support the market when there is danger of serious weak¬
ness. But they are equally willing to sell the stocks as soon as
they have checked the decline. It looks very much as if a state
of things something like this would continue to provail until
crop prospects became more assured, and until the puhiic had
time to recover interest in stocks. The scale of prices, however,
is much nearer an investraent level than it was a few months
ago; and good crops, coupled with several raises in the rate of
dividend distribution may justify a bull speculation before the
summer is over. The general situation, while it is by no means
flawless, continues to be one, which on the whole inspires con¬
fidence,

---------------------------♦——■-----------

THE auction market has been particularly active during the
week; and the sales have been sufficion'tly successful to
encourage real estate owners to continue to market their prop¬
erty in this manner. The prices paid for the Bronx lots, offered
by Henry Morgenthau. were uot, indeed, equal to those which
prevailed iast fall in that jieighborhood; hut they were quite
as high as the existing conditions demand. It is always in¬
structive to note how quickly under the prevalent methods of
real estate operation, the wind is taken out of an inflated boom
In any particular kind of property. If the Bronx speculation of
last November had continued, it could only have resulted in
losses to the eventual purchasers, and in delaying the improve¬
ment of large districts north of the Harlem; but no such "boom"
can continue without the active support of money-lending in¬
stitutions; and when that support ■was withdrawn, a more tem¬
perate view of real estate values in the neighborhood, soon
supervened. That is the advantage of professional control of
real estate operations. Something similar happened on Wash¬
ington Heights this spring; and here again prices were pre¬
vented from getting out of reach. The eonsequence is that the
building up of that section, which was momentarily checked, is
now proceeding at a sufficiently rapid rate. It is still confined
to tbe lower part of tbe Heights and it still consists chiefly of
flve-story tenements. Conditions are such that it will probably
retain this character during the coming summer; for builders
will avoid the upper end of the Heights and the Dyckman tract
beyond, until the Subway is actually running in these parts,
Tho general market remains active and strong—^with its activity
and strength well distributed along recognized and useful lines.
There can be no doubt that Manhattan real estate has of late
very much increased its reputation as a form of investment, and
this fact becomes better and better recognized each successive
spring. New York real estate is unique in its small percentage
of vacancies, in the readiness with which it can be sold, and in
the chances of proflt it offers.





REAL estate owners and operators in this city continue
to be interested more than anything else in the question
whether Governor' Higgins will sign tlie mortgage tax bill.
When the Legislature passed the amended bill at his request
iu such a prompt and accommodating manner, it was assumed
that he had made up his mind about it aJid would sign with
equal lack of delay; but now that he is apparently still hesi¬
tating, hope is dawning that he has begun to see the error of
his ways. Whatever action the Governor takes in relatiou to
cne matter, he will come out of it with his reputation for po¬
litical sagacity impaired. If he signs the bill, he will do himself
and his party a great deal of harm, without at the sam(> time
attaining the one benefit expected from the bill—without, that
is, having arranged for sufficient revenue to make up the deficit
in state revenues. On the other hand, in case he vetoes the bill,
his followers in the Legislature will naturally feel aggrieved
at the way in which the Governor has handled t he political and
financial question, raised by the deficit, and at the way in which
he has wasted their unquestioning acquiescence in his policy.
The dilemma is of the Governor's own making; and it is no
wonder he hesitates. There is a possible third course of action,
which it is within his power to take, although there is not very
much chance that he will actually take it He could veto the
mortgage tax bill, and bring up the whole question again at
the proposed special session of 'the Legislature. It is probable
that he could even whip that body into passing a mortgage re¬
cording tax bill by holding over them the threat of cutting down
the appropriations. Whatever the issue of the present situation,
We cannot help believing that in the end the mortgage record¬
ing tax will prevail. It is incredible that the richest state in the
Union—tho state in which money is most actively and fruitfully
used in real estate—will permanently adopt a policy of discour¬
aging active employment of capital in building and real estate
ofierations.

-------•-------

IT is stated that the Harriman and Hill interests have reached
a complete understandiug in relation to the railroad situation
in the Northwest; and if so, we wonder what Mr. Harriman con¬
siders he has gained by his operations in that territory since
May, 1901, The control exercised by Mr. Hill over the Northern
Pacific and the Burlington roads remains as complete as ever,
and there is no way in which the Union Pacific Company can
dispute the control or fight for a larger share of trafnc. without
depreciating the value of its minority stock in the northwestern
roads. Probably Mr. Harriman believes that a fight is no longer
necessary, but in that case it is a pity that he couid not have
reached the same conclusion four years ago. His company has
made money by its purchases of Northern Pacific stock, and Mr,
Harriman has added to the interest of his own life during these
eventful years; but Ihe interests of many other people have been
adversely affected by the episode, and it has not tended to
strengthen public confidence in the wisdom and good sense of
the management of the big railroad corporations. Everybody
connected with the matter seems to have made some kind of a
mistake—except President Roosevelt and the Supreme Court;
and one cannot keep refiecting that essentially the same result
might have been reached four years ago, without auy of the
hullabaloo, which bas filled the air during the intervening time.
-------•-------

IF any further justification were needed for depriving the
Board of Aldermen of its control of railway franchises, it
would be provided by its conduct in respect to the new rapid
transit routes. By refusing to call the necessary hearings on
these routes, it has started in to hold up the city in the matter.
The Board has taken the stand that, if the Governor signs the
bill, depriving them of their authority, the City can have no
additional rapid transit during the coui',se of tiie ensuing litiga¬
tion. The situation created by this attitude is very serious,
and requires delicate handling by the people in authority. It
would be disastrous to New York, in case any further Subway
construction were postponed for a number of years. About the
only interest which would beneflt by such delay would be the
Interborough Company. On the other hand it would be equally
disastrous in the long run to permit the Board of Aldermen to
have any power in relation to Subway transit franchises. The
competition for these franchises is keen; and it requires most
shrev/d and disinterested management to hold the balance be¬
tween the competing interests and obtain the best possible bar¬
gain for the City. The Rapid Transit Commission has been
hoiding the balance very well hitherto; and the public has con¬
fidence that the Board of Estimate would deal with the situation
in an equally judicious manner. But the Board of Aldermen is
subject to underhand influences. Its mombers always seek to
obtain   local,  personal  or  party  advantages   out of franchise