RECORD  AND  GUIDE





129





ESTABUSHED'^M.íJ\ca21!^1868.
DbÔĩED TO ftíA.L ESTAJE,BU1L0IJÍG AFfrfnzeTUIÎ.E .KaUSEtíOlDDEGCIĨtAnotf,

BtrsotessAítoTHaíEs'of'GEilEH&lllíiERfsi^

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Communications  should ,be  addressed to

C. W. SWEET

PablisAed Etíery Solardag

By THE RECOBD AND GriDB  CO.

President,  CL.INTON W.  SWEET                     Treasurer, F. W. DODGB

Vice-Pres.  & Genl.  Mgr,, H. W.  DESMOND        Secretar?, F. T. MILLER

ĩíos.  11  to  15 East 24tli  Street,  New  York  City

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Copyrighted,




1007,   by  The




Record




&




Guide  Co.















Vol.




LXXX









JULY 27.




1907.














No.




2054.







INDEX TO DEPARTMBNTS.
Aãvertising Sectlon.

Page.                                               Page.

Cement   .™^"!'..............xiv Lumber   ....................xx

Cousulting EEgÍneers  ...........v  Machinery   ....................vi

Clay Products   ...............xviíi   Metal Work   ...................xv

Contractors   and   Builders......iii  Quick Job Directory............xx

Electrĩcal Interests   ...........vii   Real Estate   ....................ix

Fireprooflng  ...................il   Roofers & Roofing Materials. .xix

Granite   ......................xvĩ   Stone   .......................xvL

Iron and Steel  ...............viii   Wood  Products   :.............xxi

THOSE stocks knowQ as Harriman securities have been
the feature of Wall Street transactions this week.
frequently aggregating about fifty per cent. of the total
business of some days. In addition to the buoyancy and
activity o£ Unĩon Pacifĩc and Southern Pacific there has also
been considerable trading in Atchison, Reaãing, St. Paul,
Pennsylvania and Northern Pacĩflc among railroads, while
industrials, too, have been in demand. These were chĩefly
Amalgamated Copper, United States Steel, American Smelt-
íng and New York Airbrake, the latter making a large gain,
said to be owing to purchases for controĩ. The executive
committee of the Southern Paciflc met on Thursday, but it
will probably not be known until next month as to whether
there will be au increase in the dividend. It is currentîy
reported that it will be at a 6 per cent. rate and perhaps 7
per cent., but Mr. Harriman on being asked was non-com-
mittai. As has beeu pointed oiit in these columns before,
the earnings of the Harriman roads for the fiscal year o£
1906-07 are so great as to warrant the maintenance of the
Union Paciflc dividend at 10 per cent. and the expected in-
crease, in the dividend on Southern Pacífie. All this in
spite of obvious manipulation in order to bring the price
oE Union Paciflc to such a level that the convertible fours
can be disposed of profitably by the underwriting syndicate
with which the firm of Kuhn, Loeb & Co. is identifled. The
object is certainly a perfectly legitimate oue as Union Pacific
is the largest holder of Southern Pacific and there can be
no question as to the enormous value and growing future
of these properties. The market generaliy has been o£ the
usuaĩ summer character with the better feeling, spoken oE
during the last two or three weeks, stil! maintained, One
reason for this may be, in the abseuce of any extended spec-
ulatĩon on the part of the public, that while this is not likely
to be a bumper crop year there is certain to be quite enough
of wheat, cotton and corn to go round, notwithstanding the
sinister forebodings- aud prophecies in the early part oE the
season. There is little change in the money situatiou.
What may be said of it is favorable and encouraging to real
estate and building interests, for call money has ranged from
2 to 3 per cent., while time money has been well absorbed
from 4% per cent. to 6 per cent., according to the period.





BROKBRS aud reaĩ estate operators in New York are
stated to be somewhat concerned about the outlook
íor any considerable real estate activity Suring the coming
seasoii. The number of transfers recorûed each week are
only about half as numerous as they were a year ago, while
the amount of money loaned on Manhattan real estate has,
since July Ist, been less than halE what it was during the
corresponding period in 1906. They are beginning to ask
whetber this comparative stagnation will persist, or whether
a revival will take place in the winter mouths? It looks
to the Record and Guide as if the real estate mai'ket would
remain quiet for at least auother eighteen months, and there
can be no doubt that such a period of comparative  quies-





cence is just what is needed for a condition of continued
vitality. No good reason can be alleged for any considera-
ble speculative movement in Manhattan and Bronx real gs-
tate for some time to come. Eoth local and general condi-
tions are opposed to such a movement. Money will remain
tight for many months unless a severe contraction in busi-
ness takes place, and a severe contraction in business would
do more to hurt Manhattan real estate than will the persist-
ence of tight money. Every improvement in means of com-
munication during the next few years will benefit Long
Island and New Jersey ratber than Manhattan and the Bronx,
and a large fraction of the Increase in population which has
hitherto lived in Manhattan wíU go to the other boroughs.
Untii the effect of this alteration ín conditions can be
gauged, it would be unwise to indulge in any considerable
building movement on Washington Heights or at ĩnwood,
Real estate operators and owners shouĩd be content during
the near future merely to hold the large gains o£ recent
years. The existing dullness has not been the result of bad
renting conditions, and it has not issued in any decline în
prices. It is merely a natural reaction after a period of
excited and profitable activity. Any attempt to resume or
to force a renewal of the recent active trading could on!y
result badjy for its perpetrators. The best way for real
estate operators and owners to keep what they have is, for
the time being, to eschew any attempt to make much more.
Up to date the existing leveĩ of prices is secure, but such se-
curity would vanish in case they were advanced much
further, or any considerable amount of new building under-
taken.





TtĩB peculiar situation of the stocĩĩs o£ the Interborough-
Metropolitan Company may well be a matter oE gen-
eral înterest to the inhabitants of New York because of the
efEect oE this situatîon upon the credit of the company and
its ability to make improvements. The preferred stock,
which pays dividends at the rate of five per cent., and only
a Eew months ago was selling at almost 80, is down to 45,
and shows little disposition to recover. It is quoted at some
seven points less than its low record during the March panic
and pays over 11 per cent. dividend upôn its current price.
This is an extraordinary condition for a street railway stock
which possesses such enormously valuable franchises. It is
true that the dividend paid on íhe preferred stock Js not
earned, but the deflcit for the current year is much less tban
it was during the preceding year, and probably during the
course of a few months it will be wiped out entirely. The
earnings of the elevated roads and the subways are increas-
ing with great rapidity, and next fall the Brooldyn subway
will be coutributiug a substantial increase to the totals. Tlie
combined system has exhibited quite as much earning power
as was expected when tlie merger was consummated, and at
that time it wae believed that the dividend on the preferred
stock was assured. No doubt much of the decline which the
stock of the company has suffered has been due to the con-
stitution of the new Public Utility Commission, and to the
fear that the commission will insist upon improvements in
service which will be costly to the company. But it is im-
probable that any increase in service which the commissiou
may order will seriously affect ĩts net earnings. Such im-
provements can be made with safety only on the surface
lines, and the margin oE possible increase is not very large.
In another respect the constitution qî the new commission
will be at least for a while a beneflt to the Interborough-
Metropolitan Company. The building of new subways, either
in competition or in connection with the existing subways, is
thereby indefiniteiy postponed, and this postponement will
for some years be of grêat help to' the earnings of the exist-
ing company. During the next few years the cars oE the
Interborougb-Metropolitan Company will, owing to the eE-
fect oE the New Jersey and Loug Island tunnels aud bridges,
carry a comparatively smaller proportion of long-distance
passengers and' a comparatively lai-ger proportion of proflta-
ble short-distance passengers, and without auy new expendi-
ture of capital it will reap the advantage oE all the increasc
in traflĩc in Manhattan and the Bronx. Doubtless the bene-
flt from this laek oE competition will not last Eor more than
a few years, because after that time the service of the com-
pany will begin to break down from its owu inadequacy; but
for a while at Jeast the company is likeiy to obtain an un-
usually large increase in net earnings. From every point
of view, it is to be hoped that the public will soon appre-
ciate the strength of the company's situation' and that its
credit will be restored. It cannot serve the people of New
York in an efficient raanner so long as it is able to raise
new supplies  of capltal  rmly at an enormous expense.