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Record and Guide
ESTABUSHED-^ M.HRPH aiVr^ 1868.
Dev&tid to ftm. Estate. SuildiKg %c>(iTECTin^E.KousEi{ou3DEeQilAiiorf,
BtJSI^/Ess Atto Theiaes of GeHer^I- Wterj si ..
PRICE PER YEAR, IN ADVANCE, SIX DOLLARS.
Publislied every Saturday.
Tblephonk, _ . . . . Cortlandt 1370
OommunloationB sbonid be addresBed to
C. W. SWEET, 14-16 Vesey Street.
J T. LINDSEY, Businesa Manager:
"Entered al ttie Posl-offlee al New Yorli, N. Y., as seeond-class mailer."
Vol. LIX.
JUNE 5, 1897.
No. 1,525
NEW BUILDING LAWS.
The Record and Guide will publish a new
edition of the New York Building Laws and
ordinances as soon as official copies of several
recent laws can be obtained from the Secretary
of State's office. Those who are familiar with the
manner in which our previous editions of the
building laws have been compiled know what to
expect—a handy volume, with headings and mar¬
ginal notes, full indexes and colored engravings.
This is a complete and standard work, edited by
William J. Fryer, and is invaluable to architects,
builders and others interested in building oper¬
ations. The new edition will bring the building
laws up to date, together with the Greater New
York Charter provisions, which latter take effect
next January. Orders for the new publication
may now be sent in to the Record and Guide,
Nos. 14 and i6 Vesey Street, New York, and
deliveries will be made at the earliest day practi¬
cable.
SECRETARY GAGE'S "optimism" lias affected Wall street,
lienee tbe best advaut^e seen on tbe smallest buying for
some time. Tbis is fairly justifiable. Cabinet ministers do not
go around tbe country simply expressing tbeir own individual
views; tberefore, recent statements by Mr. Gage regarding prob¬
able action on tbe eurreucy question bave vQcy properly beeu
accepted as pledges of the administration. Hearing notbing
from tbem, tbe public began to tbink tbat election financial
pledges were not to be redeemed, and it must be confessed tbat
tbe administration received a good mauy bints aud some sbarp
prodding before tbe promises of tbe candidates were renewed
by tbe officials. However, we bave now a distinct assurance
tbat tbis vital matter will be taken up at tbe opening of tbe reg¬
ular session of Congress, and we know also tbat, witb busiuess
improving as it is and confidence maintained, tbere is no dan¬
ger in tbe delay. These facts warrant more response tban bas
yet been given tbem. Tlie appointment of a currency commis¬
sion meantime to liii-li views and obtain tbe information Con¬
gress may naturally require would be a good tbing and serve to
clincb the nail Seeretai"y Gage has driven home. Tbere are
good features coming to light every day, wbich now will bave
their proper influence. The declaration of a dividend on St.
Louis and San Francisco first preferred, and tbe moral certainty
that Atchison adjustments will receive some return in October,
is proof of the soundness of tbe reorganization of tbe two prop¬
erties on wbich tbey were issued and suggests the likelihood of
otber reorganized properties achieving similar results, besides
the no less important fact tbat a large section of the country,
tbe Southwest, that bas been severely bandied by providence for
some years, bas come onto better times. This has larger im¬
portance tban its influence on the securities of Southwestern
railroads.
"KT EGOTIATIONS for peace have settled down to a busi-
i-jI- ness basis, and however much the pride of Turkey bas
been raised, and bow much more than ever it is necessary to
handle tbat country delicately, it is obvious that tlie Great Pow¬
ers are going to say what the terms of settlement shall be
and both parties will have to abide by tbem. Tbe preseut is
probably to set a precedent for dealing witb all tbe troubles
ihat are sure to arise In that continually boiling political pot, tbe
Southeast of Europe, and if tbe "Eastern" question is never
to be settled, machinery has beeu created for dealing witb
difBcuIties as tbey arise wbicb is likely to be elfective, and
which every reasonable being ought to hope will never get out of
order, Tbe improvement in business that began wben it was
seen tbat Greece could not maintain its policy of iuaraenability
to tbe wishes of tbe Powers continues, and the public are be¬
ginning to show confidence again in uew issues and ventures.
Tbe success of tbe recent Japanese and Canadian loans is proof
of this, as well as the sigus of revival of speculation in American
rnilroad shares on the European exchanges and bourses.
The "Sky Scraper" Problem.
THE number of old buildings in the course of removal on
lower Broadway pointedly reminds people tbat the sky¬
scraper is no longer an isolated affair. It is tbe common thing
now. Tbe ordinary eye has become so used to the twenty stoi-y
foot-rule that now any building below that standard seems wil¬
fully diminished. The fact is the builders' dariug innovation of a
few years ago bas already become a commonplace. It is only
the specialist that appreciates, as time goes along, tbe full force
of the many and growing problems wbich the high building is
cre.iting.
We have heard something already about tbe Aesthetic Prob¬
lem involved in tbe high buildings, and the Sanitary Problem
also has received fitful attention. Other troublous aspects are
coming slowly iuto view. One of tbese, of particular interest
for our readers, is of economic import, aud concerns tbe effect
wbich the tall building bas had, and will yet bave, upon real
eslate.
At present one can do very little moi"e than ask questions
wbicb cannot be definitely answered. It is perhaps reasonably
certain tbat, in itself, as an investment, the office building, uu-
d-^r normal conditions, has not yet been a financial success. It
may bave "paid" large insurance companies and other coi-pora-
tions wbo need a great deal of floor space for their commercial
transactions,' if not in cash profits then in tbe publicity which
the buildiug bas created. Obviously, in the future, this pub¬
licity will be harder to obtain. Indeed, iu Chicago, a short time
ago one of the banks created quite a furore by erecting a struc¬
ture of one or two stories. In addition to tbe case of the cor¬
porations, tbere are no doubt otber cases where the tall build¬
ing has paid in a way—that is, with the possessors of land ac¬
quired at a low price or under some special circumstance, as
by will, etc. The main question, however, as to whether the sky¬
scraper erected under normal conditions upon land purchased
at current average prices pays, must, we believe, be answered,
for the present, in the negative. What will happen in the future
is another question, and upon it hangs a number of other ques¬
tions wbicb ought to receive the close attention of those who
seriously study real estate.
It is quite clear that real estate in New York cannot be uni¬
versally and immediately improved witb tall buildings. If tbese
structures rose one by one at tbe call of current demand for ac¬
commodation it would be well, but plainly tbis regulated pro¬
gression is impossible. Owners of less highly improved property
could not afford to accept tbe conditions which would thus be
iuiposed upon tbem. We see that the majority of people like
the "modern tbing." They are attracted by the big building with
its modern show, running water, running elevators, and other
forms of perpetual motion. The real estate agent, besides, is not
idle. He attacks tenants in the older properties on behalf of
tbe new buildings, and so the owners of five or sis story stinic-
tures on valuable lots cannot remain inert. How are they to
protect themselves? Suppose tbey cut rents. Clearly this means
a lower net rental, and a lower rental meaus lower profits, and
lower proflts meaus a depreciation of their real estate. More-
OTPr, the lowering of rent will react, more or less, as conditions
warrant, upon the rates obtained in tbe taller buildings. To¬
day, it is said, some of tbe sky-scrapers are feeling the compe¬
tition of the very low rents now required in the older buildings
which the modern structures a short time ago depopulated.
Apparently, conditions are against owners of old property
obtaining an income commensurate with the value of their real
estate. There is, we know, a great deal of this semi-unimproved
real estate in tbe city to-day which is scarcely earning running
expenses. Again, then, what are tbe owners to do? Build and
thos intensify the existing competition, or hold on to what they
have and be satisfied with little or no income. Upon either
horn of tlie dilemma appareutly real estate would suffer. It
must also be remembered that tbese conditions are intensified
by the fact tliat real estate is districted. Trades and profes¬
sions are localized, so that a deficiency of accommodation in.
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