June 8, 1907





RECOIID   AND  GUIDE





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Hsisj^iaee,





Db6t£0 10 Re*,lEstate.SuiLDif/G AR!^iTE(nvi^,Hous£aloibDeo(HfHoil,
Bi/sh/ess Atb Themes of CEitoytl Itfttup*!^

PRICE   PER   YEAR   IN   ADVANCE   EIGHT   DOLLARS

'Pttbtished eVers Saturday

Communications should be addresBod to
C. W.   SWEET

Madison Square: 11-15 East 24th Street

Telephona, 4430 Madison Square

"Entered al ihe Post Office at Jfeio York, N. Y.. as second-class matter."
Copyrighted,   1907,  by The  Record Sc Guide  Go.





Vol.  LXXIX.





JUNE S,  1907.





No. 2047.





INDEX TO DEPARTMENTS,
Avertising Section.

Page.                                                Page.

Cement  .......................vii Lumber   .......................x^

Consulliug Engineers   ..........vi Machinery..................viii

Clay Products ................xvlii  Metal  Work   ...................xv

Contractors and Builders.......iv Quiek Joh Directory............xx

Electrical  Inlerests............ix Real   Estate..................xl

Fireproofing...................ii Rooters  & Rooflng Materials, .xix

Granite.....................xvi Stone.......................xvi

Iron and Steel.................x Wood Products ................xx





THERE is little to be said ahout the action of the stock
market during the week. Advances and declines
have been succeeded by recoveries, tbe latter in some in¬
stances leaving some stocks with net losses. As bas been
said before in this cohimn, it is difficult to say what tbe trend
of the market is. There are encouraging and discouraging
features, but it would appear on tbe whole tbat there are
more reasons for taking a favorable view than the reverse.
Crop scares are no longer a factor, and whether Mr. Harri¬
man will be called ou by tbe federal government to answer-
certain questions as to "deals" of questionable character does
not seem to be worrying WaU Street to any great extent.
That great financial centre not only discounts everything,
but it also quickly forgives and as easily forgets. Trading
of any magnitude bas been confined chiefly to a few of the
high-priced speculative issues, especially Reading and Amer¬
ican Smelting. As to th'e latter, a controversy is still raging
as to whether the Guggenheims promised a ten per cent,
dividend a. year or not. Certain it is that the company has
placed all of its stock on an S per cent, basis:—the former
rate was 1. There is much disappointment in consequence.
It is said authoritatively that while the earnings of the com¬
pany might justify a dividend rate of 10 per cent, the man¬
agement preferred to lean on the side of conservatism. It
was felt that this was not the time to raise dividends to
a higher point. Wall Street considered that the reasons
given were both good and sufficient. The earnings of the
United States Steel Corporation still continue phenomenal,
but the price quoted for both the common and preferred do
not reflect the prosperity of the company. The stock has
acted very well since the March trouble and did not suffer
in proportion to other issues subjected to forced liquidation.
In connection with this matter it is interesting to note, that
according to the Iron Trade Review, the May shipments of
ore from Lake Superior ranges in May made a new record
and indicate that 40,000,000 tons can be shipped easily this
year. The continued gold shipments to Europe are not
causing any concern, and are having little or no influence
otl the market. It is conceded that they were necessary to
balance international trade and flnancial condition?. The
exportation of the yellow metal has not affected the New
York loan rate for call and time funds, so that other things
being equal building and real estate interests should have
no difficulty with proper security in obtaining funds for
legitimate purposes. A dull stock and money market are
looked for dui'ing the ensuing three months.





COMPTROLLER METZ is undoubtedly right in protesting
against the high prices which the city is obliged to pay
for the land it condemns, but the Record and Guide doubts
v/hether tbe system will be improved by merely seeking to
discipline the commissioners. The truth is that the diffi¬
culty of ascertaining a fair value, particularly for vacant
property in New York, has enormously increased of late
years. The public records have become of comparatively
little use as a guide to values. The consideration is uni¬
formly omitted from the deeds, and the consequence is that





it is only the speculators and brokers who operate in a given
vicinity that are thoroughly familiar with values in the
neighborhood. The prices which property brings are mat¬
ters of private rather than public record; and they have been
withdrawn from public record precisely for the purpose of
concealing values and in this way giving the professional
operator an advantage over the investor and the tax-assessor.
There can be no doubt that the public iuterest is prejudiced
by this practice, as well as the interests of those men who
invest in real estate. The tax assessor cannot prove what
level values have reached, and Le naturally prefers to under
rather than over appraise a parcel of property. On the
other hand, when the city is purchasing instead of assessing
property, the interest works the other way. The values in
condemnation proceedings are determined largely by the
testimony of local brokers, and it is to the interest of local
brokers to make such values as high as possible. Thus the
city and the public interest loses in both cases; and as
long as existing conditions prevail, it is surely inevitable
that it should lose. The difficulty of securing disinterested
testimony as to the value of real estate has enormously
increased, and the city has taken no steps to protect Its In¬
terests in the matter. We are unable to discover any good
reason why the grantee in every real estate transaction
should not be obliged by law to file with the Tax Depart¬
ment a sworn copy of the coutract whereby the parcel was
originally transferred. The information contained in such
a copy would be accessible only to the assessors, and ttr
commissioners in condemnation proceedings. Then, per-i
haps, there would be less evasion of taxation and fewer
extortionate prices paid by the city for real estate.





Charter Revision.

THE Legislature has passed the bill bestowing on the
Governor power to appoint a commission to revise
the charter of New York City, and presumably the project
for a new charter will be submitted to the Legislature at
its next session. That the charter can be modified to ad¬
vantage is manifest, but it is to be regretted that the call
for revision bas not been accompanied by some more definite
statement as to the direction which the revision ought to
take. Both the Governor and the Mayor favor revision, but
neither of them has indicated the specific amendments
which, in his opinion, should be incorporated in the re¬
vised instrument. The consequence is that no oue can
predict with any confldence just what kind of a changeling
the commission is likely to bring forth. Moreover, public
opinion seems to be, as usual, singularly indifferent as to
the nature of the instrument whereby the people of New
York are ruled. The newspapers do not discuss the ques¬
tion, and there is no consensus of opinion as to the princi¬
ples which should determine charter revision. The chief
consolation is that Governor Hughes is likely to appoint an
able and well-informed commission, and that the members
ex-oJficio, viz., the Mayor and the Comptroller, can be trust¬
ed to use their influence in favor of desirable amendments.
The provisions in tbe existing charter which have worked
least well have been those referring to the Board of Alder-,
men and the borough presidents. The Board of Aldermen
has been shorn of its most important functions by legislative
enactments. The Board of Estimate has thereby obtained
almost exclusive control over important street openings,
over franchises, and the functions remaining with the Board
of Aldermen are inconsiderable and could easily be dis¬
tributed among the otbei' organs of the city government.
It is merely a superstition in favor of a local legislative
body which prevents the Board of Aldermen from being
cut out of the charter entirely, and if it were dispensed with
the city would save a good deal of money and would be
much better off than it is at present. There is no evidence,
however, that this superstition in favor of a local Legisla¬
ture which has been deprived of all important powers of
legislation will not continue to prevail, and the best that
can be expected is that no changes will be made proposing
to bestow any increase of power on the Aldermen. But in
respect to the borough presidents, it is very probable that
the project for a new charter offers radical changes. The
existing system of allowing an official elected by the popu¬
lation of one borough to spend money which is levied on
the whole city and to have a voice iu the governing board
of the whole city has not worked well. There can be no
doubt that the borough presidents should become exclu¬
sively administrative offlcials, and like other administrative
officials, responsible to the Mayor, The present method
of electing them by popular vote has simply tended to make
them irresponsible.    The actual record of a borough presi-