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Real estate record and builders' guide: v. 70, no. 1790: July 5, 1902

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July 5, 1902. RECOBX) AND GUIDE. ^^ ^ ESTABLlSHID-S$?WARpH2l*?^!8B8, DEVtrnD ID RffL E>T«E. SuiLDIflG A^rTECTUI^ .HoUSOJOU) DEQOHUlDtl. Business AltoThehes Of GEiteR^. iKTCRgsT. PRICE PER YEAR IN ADVANCE SIX DOLLARS Published eVerg Saturdag Communlcatlana should be addreased to C. W. SWEET. 14-16 Vesey Street. New YorK J. T. LINDSEY, Bualneaa Manager Telephone, Cortlandt 3157 "Entered at he Pos Ojjic^ at JVe'o Tori, X. I'., a.s seeo)id-:io_s matter.' Vol. LXX. JULY 5, 1902. No. 1790. IN the sky as presented to the habitues of Wall Street, there are a dozen or so of fixed stars and an occasional meteor. The first are represented by those securities that have been large¬ ly absorbed either for investment or control, whose floating frac¬ tion can easily be manipulated up or down and whose continued prominence gives the appearance of strength to the market that the daily press never fails to point to. The meteors are such issues as Colorado Fuel which rise or fall so quickly, that the observer from the tape has not breath enough left to take a'dvan- tage of their movements before they are, so to say. out of sight. Outside of these kinds of securities there is a gradually lowering of values which is quite discouraging to holders, and in general the situation is in every way like that that follo-ws a boom. Ob¬ stinate holders, who will not see that the procession has gone by refuse to sell until, one by one they are forced to do so. Owing to the general prosperity and the cheapness of money the process Is a slow one, but it is liquidation all the same. The first of the month passed easily in the money market, but there are signs of growing interior demands, and the possibility and probability of early gold shipments. With speculation light these facts ought not to affect rates materially. Attention must be fixed on the crop situation for the next thirty or sixty days, and action in both the security and grain markets will depend mostly upon the government reports. We say for thirty or sixty days because if the weather conditions are not very favorable to the crops this month, the course of speculation will be determined in the shorter period; and, as it is, indications point to a final enhancement of the values of grains with corresponding depreciation in these of railway and industrial securities. ONE of the interesting anticipations of the European markets is of the immediate flow of gold from South Africa in vol¬ ume sufficient to make the Rand again an important factor in the money market. The first supplies are expected to relieve the re¬ lations between London and Paris, which, at present, create a call for gold from the latter on the former. This incident gives some interest to the estimates of the value of the gold in the Rand. John Hays Hammond thinks there are £600,000.000 worth within practicable mining depth in the central section alone and accepts the estimate of Hatch & Chalmers of £200,000,- 000 for the eastern and western sections. This makes say, $4,000,- 000,000 for all. The time within which this enormous wealth can be extracted is a difficult problem to decide, but Mr. Hammond says, [hat if called upon to express an opinion, he would estimate the future duration of profitable operations on a large scale in the Witwatersrand district at less than 25 years. This is a compara¬ tively small period for an output of such indicated magnitude, because the figures predict an annual average production over the 25 years of $160,000,000, all practically increase of the world's gold production. Tothis would have to be added the increases else¬ where, because it is not to be supposed that this form of develop¬ ment will be restricted to South Africa; so that altogether there is presented a picture of added wealth that must have an in¬ fluence on values of all kinds of property, at present inestimable, but which cannot fail to be very far reaching in its effects. Re¬ garding the present commercial situation cf Europe, the reports give an uncheering picture. The little spurt that was experi¬ enced early in the year has exhausted itself and judged by labor statistics, liquidation has not yet completely run its course. Not only are there more people unemployed than was the case last year, but wages have been reduced in several important lines. Among the incidents of the week in the financial markets is a strengthening of the price of silver, in which article there may be some speculative opportunity if the proposal to allow China to pay the indemnity in it is adopted; because, not only would China then not be a seller of silver in order to obtain gold, but she would have to be a buyer in order to meet the indemnity in¬ stalments in silver. Estimates of the June gold output of the Rand are for 150,000 oz. against 138,602 oz. in May, worth approx¬ imately and respectively $3,000,000 and $2,760,000. The present movement began with 31,936 oz., worth, say, $638,720. The Real Estate Situation. The dealing in the private sales market this week is about what could be expected for a holiday week, but which can make very flattering comparisons with corresponding weeks in other years. There is not much to be said of the in¬ dividual transactions made public. No, 196 Structural Broadway, which has been secured by a Steel a Market builder, was done so in a trade, whereby he Factor. gets rid of something he does not want, and is thereby enabled to go on building,a mechanical operation not uncommon, but which has a good effect upon the situation in the long run, and creates opportuni¬ ties for doing more business. It is reported that he will erect a twelve-story building on the site of his new acquisition, and more than likely that is his intention. He may, however, be compelled to wait six or eight mouths before he starts, as it is absolutely impossible to get structural steel in less time from the mills in this country. We know of a $200,000 sale of lots in the mercantile section which fell through from this cause. When the building loan operator found that steel for the operation could not be ohtained until next February, he refused to make the loan. There are also a number of operations now under way which are held up for the same cause—one being on 64th street, east of Columbus avenue, and another at the northeast corner of Lexington avenue and 49th streets. Another interest¬ ing transaction brings into discussion the important thorough¬ fare that his hitherto been so prominent. No. 414 Fifth avenue is reported sold for the third time in a few months, title in no instance having passed until Wednesday, when the New York Realty Corporation filed a deed. It has been held at $350,000. but is understood they have now sold for $315,000; compared with other prices in the same neighborhood, this appears to be a very reasonable price. A sale is reported this week on 110th street (Cathedral Park¬ way) which has some interest beyond the ordinary. The prop¬ erty sold is a plot 50x70.11, 125 feet west of St, Nicholas avenue. The rest of the vacant property on the block is held by two owners. The street between Fifth Cathedral ^"'^ Eighth avenues has only two improve- a e ra mgnts on it, being held back by its entire in- way. accessibility, it being almost without exception, the most inconvenient location in Harlem at the present time, as far as transportation is concerned. The property owners, however, expect much from the L station now nearing completion at Eighth avenue, and much more from the rapid transit station at St. Nicholas avenue. Considering the fact that it is opposite Central Park there is no reatLii why it should not be improved with apartment houses as good, if not better, than those on Central Park West. In fact, the suggestion has been made that it will be built up with hotels, and one such enterprise being at the present time under nego¬ tiation covering a plot 200 feet front. The projectors figure that if started now it will be ready about the time the tunnel is completed, aud from its almost ideal location for such an enter¬ prise would be a success from the start. It appears pretty certain that the tax-rate for 1902 will not be lO'Wer than that of last year, namely 2.31, although the matter cannot 'be decided until the contribution of the general fund is known. By this time, of course, the actual valuations of real and personal property have been calculated. That there is to be no reduction in the tax rate The is not surprising notwithstanding the prom- Tax Rate ises or suggestions to that effect made from of 1902. time to time. The budget fixed by the outgo¬ ing administration and the last one under the charter of 1897, seems to have pretty accurately gauged the wants of the city and little change could be made in it. It is a pity that we cannot have our reduced rate, because it would have helped real estate that is not in line to receive benefit from the great movements that have been so beneficial elsewhere. In the outlying and dull sections a prospect of re¬ duced expenses would have helped along many negotiations which must now stand or fall by whatever merits the properties may have, irrespective of the hope of a reduced tax rate. Where demand is good and business lively, the past three or four years has proved, a point or two in the tax rate makes little or no difference in transactions.