Columbia University Libraries Digital Collections: The Real Estate Record

Real estate record and builders' guide: v. 73, no. 1879: March 19, 1904

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March 19, 1904. RECORD AJVD GUIDE 60^ I BUMlfESS AI^ThEUES Of G£ltot^- IlfTO^d ?JUCE PER YEAR IN ADVANCE SIX DOLLARS VabUshad eVerg Saturday Communications should be addressed to C. W. SWEET, 14.16 Vesey Street, New Yorh S. *. LINDSEY, Buslneea Manager Tolephono, Cortlandt 81S7 "SWered af the Post Office al Neui York, N. T.. as aecond-class matter." Vol. LXXIII. MARCH 19. 1904. No 1879 ""T^HE strength oi the stock market during the past week -^ makes one inevitably wonder wiiat the result would have been in case Justice Brewer had found the Northern Securities Company to be a reasonable instead of an unreasonable business combination. If the market, that is, behaves as it does after a comparatively unfavorable decision, how would It have behaved in case the decision liad been decidedly favorable? As a matter of fact, however, the decision was more favorable than was feared by the large financial interests. The intermediate posi¬ tion of Justice Brew.er leaves them, for the time being at any rate, well protected against blackmailing suits and affords a reasonable certainty that the corporate structure reared by the great railroad systems in the past decade do not in all proba¬ bility transgress the ultimate interpretation of even such a (irastie statute as the Anti-Trust Law, It looks consequently as if these interests were supporting prices with more zeal than' they have at any time during the past few months. The advance in prices has been due apparently to steady buying on the part of such interests assisted by the covering of short contracts of pro¬ fessional speculators. How far the upward movement will go and how long it will continue under existing conditions, it is difficult to guess; but on the whole it does not look as if much of a bull speculation were possible during the present spring. It is improbable that the public will be coaxed into any consider¬ able buyiiii'g; and just now financial conditions do not favor any speculative movement, which would tax the lending powers of the banks. What the leading interests wish to accomplish prob¬ ably is the restoration of a better tone to the market, so that railroad and other corporations can float the securities which they are obliged to issue on more favorable terms. The general situation, however, is undoubtedly improving, and should en¬ courage a conservative advance in prices. The iron and steel trades are picking up; the railroads have pulled through a most disastrous winter; the prices of commodities are falling; the winter wheat prospects have inproved; and the prices of good stocks are exceedingly low. Of course, the situation comtains many weak points, necessititing caution; but there are good rea¬ sons to look forward with some confidence toward better times. X PTER their experiences of last summer, it is no wonder ^~^ that people interested in real estate deals and building operations, have visibly flinched at the danger of a renewal of the labor troubles. It is not to be expected as long as the situation remains uncertain in this essential respect that the many new real estate and building projects which were heaving in sight, will be vigorously pushed. Rather, we may expect, in case the tear is not mended in a few weeks, almost a complete paralysis ot important business; but there is every reason to suppose that the tear will soon be mended. After a lean sum¬ mer and a winter in which the weather almost suspended outside work, the mechanics are in no position to adopt a stubborn at¬ titude. In the mean time, however, it must be expected that the increasing activity foreshadowed by the news of last week will be temporarily checked, and that everybody who can will play a waiting game. Even, however, under existing circumstances two announcements of importanice were made during the week. Of these by far the more interesting was the sale of the old Broadway Tabernacle property at the corner of Broadway and Thirty-fourth street. Just what will be done with the prop¬ erty by its new owners has not been divulged; but it is im¬ probable that the purchase has been made for speculative pur¬ poses. It is a very expensive parcel to hold for resale, because it yields little or no income, and eats up a great many thousand dollars a year in interest and taxes. It has probably been pur¬ chased with some definite dispositioin In mind; and it is possible to make a pretty fair guess as to what that disposition will prove to be. A hotel Is most improbable, because there are enough hotels, either building or to be built in New York City. It is not likely to be an office building, because on the whole the office space available in that part of the city is rather iu excess of the demand than under it. In all probability the purchase has some connection with the retail trade, because Greeley Square, as we remarked elsewhere in this issue of the Record and Guide, promises to become very much the most im¬ portant up-town business center, and Thirty-fourth street very much the most important cross-town street. This neighbor¬ hood will be more convenient to more people than any other neighborhood in the city—particularly in case a Thirty-fourth street subway is constructed, and a tunnel connection made with the New Jersey trolley terminals. It is interesting to note also that although there has been such a comparative absence of speculation in high-priced real estate, prices of such property really seem to stiffen rather than show any signs of weakness. The other important item of news, viz.. that the Engineering Building is to go through, calls attention to the fact that dur¬ ing the next year or two. whatever the fate of regular commer¬ cial building, there will be a gi'eat deal of money spent on semi- public or public buildings, which are erected independently of ordinary business reasons. A FTER a year or more of patient effort under somewhat ^^^ discouraging conditions, the Municipal Art Society has suc¬ ceeded in having a Public Improvement Commission appointed by the Mayor, Inasmuch as the expenses of this commission are paid hy the city, its work will bear a certain official stamp; but obviously the, extent to which the recommendations will have a permanent influence upon the future plan of New York and the disposition of its new buildings, will depend upon the moderation and good sense shown by the commission in its re¬ port. It is all very well to prepare comprehensive schemes for the improvement and embellishment of a great city; but such plans, no matter how lively the paper approval when first pro¬ mulgated, are always subsequently confronted by inertia or the active resistance of special interests. Even in Washington, where the problem was comparatively simple and the. report of the Park Commission universally acclaimed, an executive de¬ partment of the United States Government is already proposing to situate its new building in absolute defiance of the plans of the commission. Obviously the difficulty of actually realizing any such comprehensive plan will be much greater in New Yorlc than in Washington; and no project cf street revision, and the rest will have a ghost of a chance, unless it almost imposes itself by its adequacy to the immediate practical requirements of the growing city. New York is not a national or even a state capital. It is an industrial city, whose rapid and enormous growth and peculiar location have made its problems of inter¬ nal communication more than usually momentous. At the pres¬ ent time these problems have not begun to be solved; but upon their solution depends the future prosperity of the city and the well-being cf its inhabitants. This is the condition which makes the work of the commission necessary, and which affords it its great opportunity Lo be useful. As to the rest of the programme, such as civic centres and the like, they are pleasant things to talk about; but they should not be emphasized in the report. In the present state of public opinion and municipal finance, the problem cf making a better looking city out of New York must be dealt with very gradually. If the commission will help to make it a better organized and more convenient city, the ques¬ tion of good looks may be left for subsequent and more aus¬ picious consideration. THERE is no occasion for any undue apprehension or de¬ spondency over the bricklayers' strike, which is now unfortunately tieing up work on so many important jobs in Man¬ hattan. That the situation has its serious aspects is undoubt¬ edly true; but that this particular strike means the death of the arbitration agreement and the failure of the whole reorganizing movement in the building trades is untrue. No doubt the bricklayers have broken the agreement; but they had a plausible excuse for so doing, because of an incautious action on the part of the Mason Builders' Association. There is no reason as yet to suppose that a little patient negotiation and self-restraint will not straighten out the complication. Strong pressure is being brought to bear upon the bricklayers to induce them to return to work and not to imperil the arbitration agreement; and. provided no precipitate action is taken, it may well be suc¬ cessful. On the other hand, in case it is not successful there is no doubt as to the course which the employers will be obliged to adopt. They wilt have to repeat their tactics of last year and shut down on construction work absolutely until they bring the bricklayers to terms. Any indication of weakness at the present time would be suicidal, and would simply place the