Columbia University Libraries Digital Collections: The Real Estate Record

Real estate record and builders' guide: v. 73, no. 1882: April 9, 1904

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RECORD AND GUIDE j«i ItairiiOpf^EffrAjE.&JiLoiiJc A^nHn\fn^>{au»EiftiLDDEBiwii(»(t ^tbofESs lib Themes or Gcifaif^, IifiEi@;ij PiUCE PER YEAR IN ADVANCE, SIX DOLLARS Tublished eVerp J'atardap Communications should be addressed to C. W. SWEET, 14.16 Vesey Street, New Yorfc i, V. LINDSAY, BueinesB Manager Telephone, Cortlandt SIST lull has taken place in tenement house trading, owing. perhSpg; to the anti-hight-rent-agitation; but this lull is probably only "temporary. We expect hereafter that the general demand for private dwelling and for business property by business firms will increase rather than decrease. T^ -JWered at the I'ost Offic ■e at New Tork, W. Y., i la seconcl-claia matter." Vol. LXXIII. APRIL 9, 1904. No. 1882. ■^pHAT the advance in prices of the past week in Wall •^ Street shows is that the speculative, the investment and financial community is beginning to recover its usual power of reaction. For months good dividend-paying stocks, the best on the market, have been selling less than a five per cent, basis; while good industrial stocks have been paying as much as ten per cent. Everybody knew that they were really worth more than selling prices; but people lacked either courage or the capital to buy. Many wealthy men and others had lost a great deal of money and felt poor. The future was uncertain. Bus¬ iness might become worse. Confidence was unsettled. Capi¬ talists who could buy were probably quite willing that the uncertainty should continue, so that they could accumulate good stocks at low prices. The turn in the tide came when it began to be realized that the steel business which had felt the depression most acutely was showing unmistakable signs of revival. This turn of the tide was convincingly exhibited by the report of the Steel Corporation of its trade during the first three months of the year, which indicated a progressive in¬ crease of business and profits, and just as the steel stocks led the decline so they have led the recovery. There is no reason to suppose that this recovery will not continue, because the staple products of the country will be sold at good prices, and because the prosperity of the farmers will make the prosperity of the railroads. It is a significant fact that the manufactur¬ ers of agricultural machinery, who, a few months ago were shutting down their works, are now anticipating one of the best years in the history of the trade. *HE week has heen prolific of news encouraging to prop¬ erty owners: but among the most encouraging announce¬ ments is the apparently certainty that the Legislature will really act on the rapid transit bills. The two bills originating in the commission have passed the Senate and have been favorably- reported in the Assembly. The Elsberg bill has also passed the Senate, but at this writing is being held up in the Assembly. The fate of the Elsberg bill is consequently doubtful, and there is also room for doubt about the advisability of making it into- a law. Some of its provisions are excellent, such as the- bestowal of power on the Rapid Transit Commission to operate- a tunnel service, if necessary, but the general effect of the amendments would be to sacrifice the quality and quantity- of the transit service, which could be obtained from private- capitalists to the consummation of very lucrative contracts ou the part of the city. But the people of New> York will profit more from an immediate but considerable increase of tunnel construction under the terms of the Brookiyn contract than it will from a less considerable increase of tunnel construction under a more profitable contract. If the Rapid Transit Com-, mission can get the New York City Railway Company and the Interborough Company both to bid against each other and to agree to huild certain additions to the subway system, the city would benefit so enormously by the early construction of these: tunnels that it could afford to grant comparatively liberal terms. The Elsberg bill, by the restrictions it puts upon the construc¬ ting and operating contract, would correspondingly restrict the disposition of private capitalists to invest their money, and while the commission would have the power to go ahead 'inde¬ pendent of the co-operation of these capitalists, that is an- alternative which should not be accepted, except as a last resort. New subways operated in connection either with the surface railroads or the existing subway would be infinitely more serviceable than an independent tunnel. Consequently it is a good thing that the Legislature will probably leave the hands of the Rapid Transit Commission comparatively free and allow that body to make its own terms with the railroad companies. The situation is all in the city's favor—provided only it is properly managed. THERE seems to be no prospective obstacle to an amount of activitiy in the real estate and building market during the rest of 1904 which will be unprecedented. The bricklayer's strike lias been settled. The scare which it gave to intending build¬ ers will doubtless Unger for some weeks until the dispute has been arbitrated; but the pressure of economic causes making for a substantial and very general activity will be so great that the ill effects of the strike will soon weai- off. General condi¬ tions are better than they have been at any time since last summer, and the prospects for a good business year are ex¬ cellent. The stock market is recovering its tone; money is being loaned more freely than ever; local conditions are all in favor of an exceptionally large amount of residential building and a fair amount of business building. The demand for house- room in Manhattan is sufficient to take up just as many tene¬ ments and flats as builders can possibly erect. The Ffth Avenue movement has not yet run its course and further important developments are impending both on that avenue and other parts of the city. We pointed out last week that the list of new office buildings to be erected during 1904 is already con¬ siderable, and during the past year the list has been Increased by the sky-scraper, which the United States Express Com¬ pany wil erect on Trinity Place. This new building is un- doubtedly one of the many which will be built during the next few years west of lower Broadway-a district which is at present more available than any other for this class of im¬ provement. Nearly all of these new sky-scrapers will be built on the margin rather than near the centi-e of the financial dis¬ trict, for the sufficient reason that there is practically no avail¬ able space left within a certain radius of the Stock Exchange There will be a decided decrease from the average of the past three years in the number of apartment hotels erected but still a good many million dollars will be invested between 23d and 36th Sts, in this elass of building. Then there will be a large amount of new construction by the city and by institu¬ tions of one kind or another. As to the real estate market there is more property now being transferred than during any previous period in its history. During the week a noticeable ASSEMBLYMAN NEWCOMB has introduced a bill, provid¬ ing for an amendment to the tenement-house law which is of the utmost importance to Manhattan builders. Previous to the passage of the new law the most popular type of apart¬ ment house in New York City was a seven-story building, which was being erected in large numbers on the more expensive land throughout the West Side and Harlem. The new law prohibited this class of apartment house, and the prohibition had an unfortunate effect upon building in the better parts of the West Side and Harlem. On land of a certain price, such as that upon upper Broadway, the difference between a six and seven story elevator flat-house corresponds to the diiference between a profitable and an unprofitable building operation; and the consequence is that during the past several years, this important class of land and improvement has been neglected. A good many cheap tenements have been erected and a good many fire-proof apartment houses and hotels; but there have' been comparatively few elevator apartment houses built ap¬ pealing to tenants paying from $900 to $1,500 a year. The amendment proposed by Assemblyman Newcomh, which is identical with a bill drawn last year for a similar purpose, per¬ mits the erection of a seven story apartment house provided the floors are fire-proofed and the beams are of iron. It constitutes a new type of semi-fireproof fiat-house, which is satisfactory to the builders, and in which the friends of the tenement house law acquiesce. The amendment failed to pass last year, but it should certainly be forced through before the close of the present session. It is a desirable and even a neces¬ sary amendment to the law. and will mean the early improve¬ ment of many pieces of property now vacant and the consequent invigoration of the building and real estate business. THE bricklayers' strike has been settled on the only feasible and equitable basis. As the Record and Guide has repeat¬ edly advised, an agreement has been reached whereby all the strikers return to work pending the arbitration of differences; and that strikers have consented to do this is really a triumph for the arbitration agreement. The enormous advantage of this