Columbia University Libraries Digital Collections: The Real Estate Record

Real estate record and builders' guide: v. 61, no. 1579: June 18, 1898

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June iS, 1898. Record and Guide 1065 tail. Busii/Ess juto Themes Of GEiiER^L Ikto^m., PRICE PER YEAR IN ADVANCE SIX DOLLARS. JPublished every Saturday Tblbphonx, Cohtiandt 1370- Communications should be addressed to C-. W. SWEET, 14-16 Vesey Street. J. 1. LINDSEY, Business Manager. "Entered at the Post Office al New Tork, W. T., as second-class matter.' Vol. LXI. JUNE 18, 1S9S. 1,570 THE failure of a plunger on either side of the Atlantic has had the effect of checking operations in tlie Stock Market. Of the Leiter failure, with which we are most concerned, all thj-t can he said at present is that it could easily have been worse; but, as the public knows nothing of the terms hy which a judicial wind-up was prevented, it is not possible tO' say whether or no there are evil consequences yet to arise from it. Of the opera¬ tion in which the younger Mr. Leiter was engaged, it may be said that the manner of its conclusion, so far- as he is personally concerned, is pretty generaUy approved. Corners are not liked even in speculative circles, and the individual who wants every¬ thing in any particiUar direction is apt to make enemies. The Hooley failure in London only affects us indirectly, but it also aliords the moral that the individual should confine his ambi¬ tion within reasonable limits. If these failures have had a bad effect, the announcement of the war loan has had a good one, with the latter more permanent in its influence than the former. This operation may draw attention away from the Stock Market for a little while, but its uUimate effect cannot fail to he good. The War Revenue Act, as a whole, will serve another purpose besides that of putting the Government in funds for carrying on the war, it will put an end to the deficiencies hetween receipts and expenditures, which have heen so marked a feature of the Treasury returns for a long time past and which made bond issues necessary from time to time; and otherwise complicated the situation. Only a great reverse of some kind can materially affect the public confidence at this time, and of that there does not seem any likelihood whatever. The appearance of the Ger¬ man fleet at Manila raised some serious fears of political com¬ plications early in the week, hut it appears that Germany is only getting into position so that if Uncle Sam's hat blows off she can recover it for him and claim a reward. ONE of, and perhaps the most important question discussed abroad just now is that of Indian currency and the proposal to give it a gold basis. As the largest producer of silver in the world the United States is also' directly interested in this ques¬ tion. As far as can be judged from what appears in the press, the advocates of a continuation of the silver basis modified to meet new circumstances, have the best of it. Their position is supported, by the difficulty and expense that would attend the creation and protection of a sufficient gold reserve and the un¬ certainty that exists as to the success of recent adoptions of the gold standard by countries not financially impregnable. Italy, Spain and other European countries are gold in name only; in Austria, Russia and Japan the gold standard is still an experi¬ ment whose success may be reasonably doubted in the last two. Like the Parliamentary system of government, which everyone desires, the gold standard does not seem to suit all nations. It is very donhtful whether in India it would prove anything better than the expensive luxury it is in Japan. In GO years India has imported Rx 146,685,000 in gold and coined Rx 2,414,000; in the same period her importations of silver amounted to Rx 375,067,- 000 and her coinings of that metal to Rx 354,446,000. These metal importations represent net favorable Indian trade balances in the period mentioned, and the proportions" of the two metals coined ought to show the direction of the natural demand for currency. The country seems to have gotten along very well, with an an¬ nual increase in the silver currency of from Rx 5,000,000 to Rx 6,000,000 untii five years ago, when the mints were closed to the free coinage of silver, since when there have been frequent money panics with discount rates become normally high. At present the figure is about 9%, and has been 14%, as compared with a normal rate of 6% in times when there were no restric¬ tions on coinage, SUCH facts as have become public relating to the recent sale of Astor property on Avenue A and side streets tend to show the progressive development of values of improved prop¬ erty on Manhattan Island. Withoutgoing back to the period when the tract in question was rm-al in character, some very striking increases in value can be shown. Generally it appears that ground rents have heen about doubled in each of the last two periods of 20 years and, as rates of interest have heen very much reduced in the same time, it may be taken for granted that the value of the freehold has much more than doubled. We are given to understand that the tenants of the property on the north and south sides of 4111 and Sth streets and on the east side of Avenue A have the privilege of renewing their leases. On the streets the ground rent for a renewal of 20 years is to be $750 a year and on the avenue for a renewal of 10 years $950 a year. The old leases on the streets, which are about to expire, were for 20 years at $375 a year. On the avenue leases were made 50 years ago at $175 a year, running for 20 years; for a renewal for a second term of 20 years the ground rent was $375; a second re¬ newal was made for 10 years at $950 per annum, at which rental tenants have the privilege of renewing again for 10 years. These ngures apply to the property released back to the Astor estate by Mr. Morgenthau under the new agreement. Whether they ap¬ ply toother Astor property in the same section we dO'not know. The representatives of the .^.stor estate maintain a not unnatural reti¬ cence regarding their business toward others than princip'als iu their dealings, a policy about which no one has any right to com¬ plain; but, presumably, they will not make flesh of one and fowl of another. During the period covered by the flgures pTe- viously given, many of the leases have changed hands, the orig¬ inal holders receiving quite large prices for their rights. A striking example of the growth of value in this section can be instanced in the northwest corner of Avenue A and 7th streets. This parcel was leased 39 years ago for 20 years at $300 a year, At the end of that time a renewal for a like period was obtained at $600 a year, and we are informed that the asked price for the fee to-day is $40,000. As value takes time to grow, the tenant has had a good thing, even if the landlord is now the beneficiary of the increment. As in connection with the late sale it was re¬ ported that tenants on the unsold portion of the Astor property in this section were to have the option of renewing or purchas¬ ing, it may be well to state that we hear that the latter portion of this report is not correct, the estate not considering it de¬ sirable to sell parcels here and there and have its own hold¬ ings thereby scattered, which would be the result of such a policy. OUR objections to the suggested change in the plans for the new Hall of Records are fully sustained by the opinions of two of tbe three experts on whose recommendation the design of Mr, Thomas was selected, which will be found in another col¬ umn. The architect, whose judgment, as Prof. Ware very prop¬ erly points out, ought to control, has been on record for some time as opposed to any change in his de¬ sign. There is another objection that ought to have weight, and that is the addition of five stories to the building would convert it into a veritable skyscraper, and tend to stultify the position of the city toward the whole question cf the limitation of the height of buildings. Section 43 of Chapter 378 of the Laws of 1897, more co-mmonly known as the Charter, authorizes the Municipal Assembly to regulate and restrict the height of buildings in this city. The Council will certainly, sooner or Jater, be called upon tO' exercise this authority. What position will the city authorities be in to pass upon this im¬ portant question if they are at the same time putting up a building of immoderate height? The Hall of Records as now d-3- signed with nine stories and mezzanines will be as high as a twelve or thirteen-story ofiice building; the addition of five stories would leave it few rivals in height in its vicinity, and would, moreover, practically force upon the city a policy of ap¬ proval of high buildings before the Municipal Council has had an opportunity of deciding whether they ought to exercise the authority to fix a limit conferred upon them by the Legislature. IT is beginning to be seen now that the Jingo proclamation with which the war started, that Havana would be taken within thirty days, needs "extension," like a hastily made note. How much extension, is the question. We must all confess that events so far have tended in some measure to justify the warn¬ ings and fears of our conservative advisers who cautioned us at the outset that war with Spain would prove to lie a longer and more complicated affair than the Jingo imagined, Cuba is hardly yet invaded, and the task does not become less arduous or costly the more it is studied by the military. The insurgent army, if we may believe Washington statistics, has turned out to be so small a body of men that no wonder people are rubbing 1