Columbia University Libraries Digital Collections: The Real Estate Record

Real estate record and builders' guide: v. 49, no. 1261: May 14, 1892

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May:i4, 1892 Record and Guide. 763 ^ ESTABLISHED VÍ; i ESTABLISHED V?'^ WARPH S\ Otv'oiEl) p F^L EsTME BuiLoif/c ArUitectjke .HoiiscUoLD Degor^tiuiI Biísir/Ess a^ídTheme? of GeHeivI l;jTEi\Ebî PRICE, PER ¥EAR IIV ADVAIVCE, SIX DOLLARS. Published every Saturday. TELKPHONB .... CORTLANDT 1370. CommimicatioDs should be addressed to C. W. SWEET, 14 & i6 Vesey St. J. 7. LINDSEY, Business Manager. "Entered at the Posi-offlce at New York, N. Y., as second-class matter." more than half a year previous. In the absense of any such condition now courage may take the place of timidity for the time being, and the persistenoe remaining, a good deal of fancy work in his particular line may be done by the bear. A good deal has been said of late of London enteriug this market as a buyer, and there have been times when it was made to appear that tliere was a good demand from that centre, but the movement has always been so flashy as to give rise to the belief that that buying in the main was merely a part of operations engineered here. Often when general business is dull, Wall street is active, but that is when the dullneas in general business foUows extreme liveliness, and merchants, manufacturers and others have profits to invest. Novv, accumula- tions of money are large because there has been little or no inclina- tion for enlarging old or taking up new ventiores. Any sharp break will be quickly followed by a rally, as is always the case, but no sustained bull movement can be looked for uatil the bad features of the sítuation have been disposed of. VOL. XLIX. MAY 14, 1893. No. 1,261 CHEAP money and an extensive investment and speculative movement generally go together. At present the low rates for money and the investment part of the movement are apparent, but the speculative is left out. In good bonds there was a reaction from ^the prices prevaili.ng during the January demand, but the losses have all since been regained. Some bonds which have hitherto been regarded as distinctly speculative are changing status and consequently have participated in recent buying. The buying, however, has been of a very discriminative character. There has been, in fact, a careful walking around of properties whose sound ness hasany taint of suspicion, and the best issues of these proper- ties show no advance in price. This attitude ot the buying public is wise, and while of goodly promise for the long run, it has in it so much of caution as to make ic doubtful that the speculative issues will in the near future engage favorable notice. With very few exceptions railroad stocks are selling very much below the highest prices of the year and in some ihe recuperative faculty seems to be so lost that further decline is a certainty, nothwithstanding that the losses for the year are large, as, for instance, in New England, Atchison, Rook Island, LouisviUe & NashviIIe and Northern Pacific preferred. Investment stocks like Northwest, Illinois Central, Lake Shore and Chicago & Alton have recorded recessions which, under ordinary circumstances, and especially were money as cheap and as plentiful as it is now, would make a new advance certain and immediate. There are, however, too many influences, both of special and doubtf ul nature, general and par- ticular, to permit ordinary rules to vvork. The general influences number among them the danger of rate disputes, uncertain crop prospects, damage from floods and the discouraging coudition of general business. The peculiar conditions of certain properties, though not by any means new discoveries, but which are lost sight of in times of activity, have particular prominence in intervals like the present. The falling off in the earnings of Northern Pacific and the probable passing of the dividend on the preferred stock has an unusually depressing influ- ence on securities of a system not at any time received with unalloyed confidence. LouisviUe & NashviIIe, whose dividends have of late been concurrent with the marketing of new obligations, has suffered the natural consequence, and now when earnings fail to proportion themselves to increased mileage, is not one of the encouraging features. It is true that this stock has gaîned somewhat lately when the general opinion of it is most bear- ish, but it must not be forgotton, also, that it has only recovered two points of a ten-point loss since the last dividend was declared. The statement, wholly unoflicial, is allowed to circulate that there will be no change in the quality or quantity of the dividend which should shortly be declared, but this does notprevent those whobase their opinion of auy property on careful study from regarding present quotations with misgivings. A better acquaintance with the working of the reorganized Atchison has shown a good many Iiopes for that property, quite prevailent a year ago, to be unfounded, and created a desire to take it at its true value, namely, one whose splendor is more in the future than inthe present. Another unfavor- able feature is the doubt that surrounds the immcnse Richmond Terminal interests. As the plan has failed to secure the support of the holders of the underlying issues and must admittedly be modi- fied tojineet.their views, whatever form it takes cannot fail to be less favorable to the direct issues of the Richmond Ter- minal Company than the original was. The committee having under consideration the necessary changes have a large task likely to consume considerable time; the Jconsequent doubt and delay are likely to be prejudicial to the general market. The persislence and timidity characteristic of the bear operator have been very noticeable in tlie last month, the former, however, being the least prominent, the latter being aggra- vated by a recollection of the overwhelming promptness of the response of the market ío anything in the shape of good news for ENGLISH Consols, foUowing the movement of the issues ot the chief continental nations, are beginningto recover the ground vvhich they lost recently. For four years past the Bank of Eng- land's rate of discount has not besn aslow as it is now; and it means, of course, that in neither speculation or in generaf business is there any profitable employment for money. Consequently, Consols pay- ing Z^ per cent have become a more profitable holding; and the same is true ot other securities which pay only a low rate of interest. The present is a stage which every market has to pasa through after a severe crisis; and for the next few months, pro- vided the 2 per cent rate is continued, a slow improvement may be expected. The Finance Ministers of Austria and Hungary have entirely settled the text of the currency law and the cur- rency convention. Three bills will be laid before the two Par- liaments—the Currency Act, the Currency Convention and the new statute for the bank. It is announced that the new coins wUl contain 85 per cent of fine silver, and will be about the size of a French franc. Both in Austria and Hungary the crops are already suffering from the dryness of the ground caused by the light snowfalls of last winter. The crops passed the cold weather well enough, but lack of moisture keeps them at a standstill. If the weather is propitious there will be an early harvest. It is said that the Portuguese Govemment has reached some sort of au arrangement with its creditors. The general plan is an assign- ment of an annual sum of $38,000,000 from the Customs revenues for payment of the interest on the foreign debt. The coupons would be paid 50 per cent in gold and 5u per cent in paper, redeemable in thirty years. The creditors of a bankrupt government do not on the whole appear to be as well off as those of the average bank- rupt American railway. Both have to surrender a great deal in the way of immediate return; but the bondliolder in one of our rail- road companies has far more to expect from the future. THIS was the week of great expectations for the opposition to the underground rapid transit railroad scheme, and it has proven to be a week of small realizations. Three or four meet- ings were held, at which Orlando B. Potter produced several " witnesses," whose examinations he conducted in person. There were but two men among them who knew anything whatever about the plan ot the commission, and these, on cross-examinalion by Mr. Bowers, proved better witnesses for the plan than against it. Mr. Potter has taken to a sick bed in apparent disgust over the poor results of his opposition, and was unable to appear at Thurs- day's session. Another meeting wUI be held on Tuesday, when, it is believed, the taking of testimony in opposition will close, and a short day will be set for " summing up." The report will follow closely thereafter, and there seems to be no doubt but that it will be in favor of the construction of the Broadway line. FROM the way in which the institutions located pn Morningside HiII are going about the task of improving their recent pur- chases it is evident that no opportunity will be lost of developing the opportunities that are offered. The plans f or St. Luke's Hos- pital will be obtained by a competition, including some of the best architects in the profession ; and it is reasonable to suppose that the outcome will ^be a building which wiU grace the admirable site that it will occupy. The comparative liberality and fairness of these competitions is one of the moat encouragin^ signs of our present architectural development. It will rest with the author- ities of Columbia, however, more than to those of any other institu- tion to treat their plot so as to add a real arohitectural monument to New York. The grouping and designing of the buildings to be erected by thecollege will be one of the most interesting problems offered to architects for many years. In fact, we can recall no improvement in this city which has offered such great and various opportunities for effectiveness and beauty of design as does this one on Morningside HiII. In view of this fact it is encouraging to notice that the arrangement of the whole matter for Columbia is in the hands of people than whom there are no more competent ia