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March 4, 1905
RECORD AND GUIDE
455
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BUsatessjuiDThemes Of GeiJer^ ll^itRpi.
PRICE PER YEAR IN ADVANCE SIX DOLLARS
« published eVery Saturdas
Communlcationa should be addressed to
C. W. SWEET, 14-16 Vesey Street, New YorK
J. T. LINDSEY, Businesa Manager Telephone, Cortlandt 3157
••Entered at the Post Office at Neio York, N. Y., as second-class matter."
Copyright by the Real Estate Record and Builders' Guide Company.
Vol, LXXV.
MARCH 4, 1905.
ONE is beginning to get the impression that speculation In
stoelis, as well as some lines of regular business, is being
conducted on a dangerous basis. It looks for instance, as if the
steel and iron industry instead of enjoying a comparatively long
period of large and remunerative business was in for another
"boom," which would inevitably be succeeded by another severe
reaction. It is a pity that not even the good intentions of the
leading interest can prevent this basic industry from passing
from one extreme to the other. Something of the same kind
Plso seems to be taking place on the Stock Exchange. The
speculation is getting out of control and is bringing in a period
not of wholesale and slow advances in prices, but a period of
wild fluctuations, which will unsettle the confidence of the gen¬
eral investor. The speculative spirit is against becoming domin¬
ant, and unless checlied, may bring upon the market a severe
set-back. In the meanwhile, however, everything looks ex¬
tremely prosperous; and there is no cloud upon the horizon.
The financial magnates have almost all of them left the city,
and this fact implies that they are not looking for squalls just
cow. A man may still buy good stocks with some confidence;
but he wants to keep a sharp look-out.
THERE has been no apparent diminution during the past
week either of the speculation on "Washingtcn Heights or
of the general business. The total number of transactions re¬
ported Is even larger than usual, amounting to about 425, of
which all but a few over 40 are of Manhattan property. Out of
tbe 375 Manhattan sales, ahout 175 consisted of property, on
Washington Heights. This total :s about the same as the total
of the week before; but there are some indications that the
movement has a tendency to subside. The business transacted,
although still entirely speculative, has been rather more sub¬
stantial than it was during the previous weelt. The danger of
the situation consists in the fact that a great deal of vacant
property has passed into the hands of weak buyers, who cannot
afford (0 carry it, in case prices recede, or builders do not take
it off their hands. At all events there has certainly been enough
speculation for the present, and as high a range of values estab¬
lished, as building prospects warrant. While tbis movement on
tbe Heights dominates the situation, an excellent miscellaneous
business is also being reported. Thus omitting the transactions
on Washington Heights entirely, there were 200 sales of Man¬
hattan property announced during the week against 153 for the
corresponding week last year. These sales included some 33
private dwellings against only 22 for the analogous period in
1904. A very widespread and wholesome demand exists for
this class of property, w^hicb is all the more conspicuous because
it is sustained quite without the aid of operators and speculators.
Among the miscellaneous transactions of the week, two tenden¬
cies may be noticed. One is the interest which Is beginning to
be shown in property between 23d and 34th sts, 4th and Madison
avs. This will be tbe next section of the city, which will be
taken up by the builders of lofts and warehouses. Another in¬
teresting announcement is the plan of Messrs. Flake & Dowling
to improve the corner of Broadway and 72d st, with a business
building. This looks as if, as has been frequently pointed -ut by
the Record and Guide, Broadway was bound to get in the
future, whatever increase there was in tbe amount of business
transacted on the West Side.
TTNDBR the title "Light in Some Dark Places," Mr. Theo-
*-' dore Starrett has reprinted in pamphlet form the contribu¬
tions, which he made to the pages of the Record & Guide dur¬
ing the past winter, together with certain additional material.
Our readers are no doubt tolerably familiar witb the burden of
Mr, Starrett's indictment of what he believes to be the current
abuses in the New York building trades; but it will not be
wasted time for even the most determined of Mr. Starrett's op¬
ponents' to read his several articles in their collected and ex¬
panded form. Mr. Starrett is sincere; he is well-informed;
and he is above all extremely interesting. There are a good
many people, who claim to know a good deal more about writ¬
ing than he does, but who cannot infuse into their language a
tithe of the force, which he infuses into his language. He writes
well, both because he believes in his message, and because hia
intellectual vision is clear and lively. Furthermore, no matter
whether a man does or does not approve Mr. Starrett's
criticism of the contemporary condition in the building trades,
we must all agree that in working for the free employment of
outside union labor and outside capital and talent in the build¬
ing business of the city, he is working for a righteous cause,
and one which must prevail.
TN another column will be-found a statement by the comptrol-
-^ ler of the provisions of the bill, which he has caused to be
introduced into the Legislature, advancing gradually the date at
which real estate taxes are collectable. There is no dispute
about the desirability of the object, which this bill Is called
cpon to pfftr.t. At tho present time it costs the city about $1,
500,000 each year to pay interest on the money which is bor¬
rowed to anticipate tax receipts, Mr. Grout's purpose is gradu¬
ally to reduce this expense. He has had other bills introduced
tor this purpose in the past, but they failed, because they were
not drawn in a matter calculated to meet all legitimate objec¬
tions. The present bill is the outcome of this experience In deal¬
ing with the matter, and if passed, will help at any rate to re¬
duce the interest charge on borrowed money. If Mr. Grout can
succeed in carrying this reform, it will only be another evidence
of his business-like and efficient management of his department.
THE RECORD AND GUIDE has received during the past
week a number of communications, of which the follow¬
ing is a fair example:
Editor Record and Guide:
I read that in a decision rendered by the Court of Appeals and
written by Judge Werner, that a modern apartment house doea
not constitute a tenement house. I would like you to inform me
whether the Tenement House Commission has any jurisdiction
over apartment houses. Builder.
There should be no misunderstanding about this matter. The
decision of the Court of Appeals, to which our correspondent
refers, has absolutely no bearing upon tenement house legisla¬
tion or upon the legal definition of a tenement. From tbe point
of view _of the Tenement House Law and of the Department
charged with executing that law, a tenement house is any build¬
ing, which provides living accommodations for three families
—no matter whether the building is situated on Cherry st and
houses four families or is situated or. 5th av and houses 300 fam¬
ilies. The law defines a tenement for its own purpose, and that
definition has nothing to do with the popular distinction between
apartment bouses and tenements. The decision of the Court of
Appeals concerns merely the meaning of the word tenement, as
contained in certain covenants against their erection on a speci¬
fied area; and the meaning in tbis case depends not upon a legal
definition subsequently or even previously made, but upon the
employment of tbe word tenement at the time the covenant was
drawn—a use determined both by its popular usage, and by the
purpose, which apparently prompted the establishment of the
restriction. It is necessary that this should be clearly under¬
stood, because certain statements in the daily newspapers might
encourage the builder of an elevator apartment house to be¬
lieve that his building would not be a tenement in the eyes
cf the law, whereas such It is and such it will remain.
CONTROLLER GROUT is right about the Board of Aldermen.
That board as constituted, is not only a useless, but a bale¬
ful part of the machinery of local government in New York City;
and it is natural that a man lilte Mr. Grout, who Is interested
primarily in the administration of the city's affairs according to
business methods and on business principles, should be moved to
f^peak plainly about the matter. Actual experience of the opera¬
tion of the revised charter since 1902 has shown clearly that the
framers ol that instrument made a grave mistake in attempting
to restore to the Board of Aldermen important administrative
functions. In every other respect the constitution of the City of
New York approximates to that of a private corporation. The
Board of Estimate has functions corresponding to those of a
Board of Directors, and the Mayor functions corresponding to
those of a Pj-esifJent, TJje Board of Estimate Is really tlie re-