Columbia University Libraries Digital Collections: The Real Estate Record

Real estate record and builders' guide: v. 76, no. 1954: August 26, 1905

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August 26, 1905 RECORD AND GUIDE 341 mm. .^ .^ ^ ESTABUSHEO^ k^^Z"^^ 1868. BiTsnfess Alto Themes OF GejIer^I Wteh^sj., PRICE PER YEAR IN ADVANCE EIGHT DOLLARS TttbUsfied every Saturdag Communications should db addreaBed to C. W. SWEET, 14-16 Vesey Street, New York Telephone, Cortlandt 3157 "Entered at the Post Office at Ne^o York. N. Y.. as second-class mailer." CopyriBht by tho Real Est.ita Record and BaildeTs' Gaida Company. Vol. LXXVI. AUGUST 20, 19U5. No 1954, Cement ................ xxv Clay Products ........... xxiv Contraclors and Builders., vi Fireprcofing ............ ji Granile ................ xiv Heating ............... xx Iron and Steel .......... xviii INDEX TO DEPARTMENTS. (Advertising Section.) Page Law ............. Machinery ....... Jletal Work ...... Slrne ............ Quick Job Directory Real Estate ...... Wood Products . ... Page viil V xxii xxiil xxvi X xxii ONE interesting characteristic of the current Stock Market is the increased evidence of general buying. The pari:ici- pation cf the non-professional public in the market is still com¬ paratively small; but it is growing larger. It is characteristic of these uon-professional speculators not to begin buying until prices are already pretty high, and apparently prices have reached by this time the necessary stage of exaltation. It should be added, that as soon as this stage is reached, specu¬ lation for still higher prices becomes more dangerotis. The bankers and the professional operators, who accumulated stocks late in the spring and early in tke summer will sell them to the public, and will then wait to see how far the buy¬ ing movement will go. If it goes too far they can turn around and sell the market in anticipation of the inevitable reaction. But at present such a turn of the tide is still distant. There are some disturbing factors, such as the negotiations at Ports¬ mouth, but each succeeding weelt seems to add something to the excellence of the business situation in this country. One would, indeed, suspect the chorus of hopeful anticipations, which come from the financial pages of the daily journals, were it not that tlie situation really seems to be as good as it is generally considered. The question is: What use the railway financiers will make of this prosperity during the coming year? It is incredible that tkey will allow it to pass without some considerable distribution of new securities. REAL estate brokers report almost universally that the demand for house-room is quite as good as it was last year, and that there will be very few vacancies at the end of the renting season. This applies quite as much to the higlier as to the lower grade of tenements. Tenants in elevator apartment houses are showing less disposition than usual to move, because they realize the dilficulty of securing other ac¬ commodations. At the same time there is not so much talk as there was last year of increases of rent. Landlords are not obliged to make concessions in order to tempt tenants; but the great increase in the number of tenements and apartment houses under construction has restored a more normal rela¬ tion between the demand for house-room and tlie supply. Builders still have every encouragement to continue construc¬ tion on a large scale; but if the present rate of building is continued for another year or two, it is safe to say that the supply will run somewhat ahead of the demand. During the current year almost $60,000,000 will be spent upon new resi¬ dence accommcdations in Manhattan, about $25,000,000 in the Broux, and about $40,000,000 in Brooklyn. Speaking roughly, $125,000,COO ought to build enough house-room to accommo¬ date something like 200,000 inhabitants, which is assuredly a larger number than will be added to the population of New York City during the same period. Of course, this enormous mass of construction was intended to meet a deficit, as well as to accommodate the current increase; and for that reason we can believe that it can be wholesomely continued for at least an¬ other year. But it cannot be continued indefinitely, as to the in¬ crease of population, for which house-room has to be consSruct- ed, that is a matter which it is difficult to determine. About lOO.¬ OOO inhabitants are supposed to be added to the population of New York every year; but it is entirely possible that the State enum.eration will show a larger increase than anyone has guessed. The^. in addition, living accommodations have to be provided for the 10.000 or 15.000 people who are un¬ housed every year by the encroachments of various Itinds of business upon space formerly occupied for dwelling purposes. All tilings considered, the number of new inhabitantns for wliom houses have to be built each year is probably over 125,- 000; and it wiil soon be 150,000. New York builders have plenty of work cut out for them. Organization of the Real Estate Interests. FDR many years the Record and Guide has been insisting upon the necessity of a thorough organization of the real estate interests. There was no association of property owners which conld speak with complete authority in the name of real estate, and which could support its declarations with a sufficient weight of influential opinion. Some of the existing organizations serve useful purposes and accomplish excellent work in protecting the interests of the owners of tenement houses or those oE the property-holders of particular districts. The Board of Brokers, also, is a representative and valuable association, which serves not only the special inter¬ ests of real estate agents, but also in some measure those of the whole real estate fraternity. But its membership is not sufficiently large and representative to speak with authority in the name of the taxpayers of New York City and the State. The consequence was that when legislation was proposed at Albany, as it is during every session, which deals with real estate and mortgage taxation, the real estate interests suffered from inadequate representation; and hills were passed, at the dictation of the Republican machine, that served still fur¬ ther to increase the amount of taxation whicli real es¬ tate is obliged to bear. The new association of property-owners, which has just been completed, should meet this necessity. It is the out- com.e of the mortgage tax law. the passage of which at the last session of the legislature convinced large property-owners and their representatives of the necessity of more efficient representation. It has obtained the support of practically all the important corporations and individuals whose interests are vitally connected with real estate. The names of the gentlemen who have joined the association include the officials of the title and mortgage companies, those of the important real estate trading and investment companies, and those of the agents and trustees of the large estates. In addition, of course, many large individual property-owners and operators are interested in the association. It is proposed to make it a permanent organization, with paid officials and a local habi¬ tation. It starts with every prospect of a long and useful career. The name of the association, viz., that of the "Allied Real Estate Interests," has been happily chosen, because it suggests the broad scope of its purpose and policy. It is not an organ¬ ization of the property-owners of New York City, but it will seek to rally to its support the real estate interests of the whole of the State. This idea of making it a State organiza¬ tion is both new and admirable. A merely local association would not have anything like as much influence a"t Albany as an association with a membership scattered throughout the whole of the State; and there is no reason why such a mem¬ bership should not be obtained. Legislation affecting real es¬ tate taxation concerns the property-ovifner of Buffalo and Rochester as vitally as it concerns the property-owuer of New York City. All are alilce interested in the repeal of the mortgage tax law, and in the prevention of any similar pro-. :cct of double taxation, and all should be united for these' purposes. Of course, an organization, such as that of the Allied Real Estate Interests, would avail little, provided it confined its activity to protesting against unwise and unfair measures of taxation. Its most important function will be the dissemination of correct ideas in relation to taxation, with particular ref¬ erence to the tax system of New York State. The difficulty up to the present time has been that the tax policy of the State has been dictated by considerations of party expediency and local interests, rather than by any wish to obtain an equitable and economical distribution of the tax burden. The Republicans, under the leadership of Mr. Odell, have deemed it good policy to relieve real estate entirely of the general State tax, and to raise State revenues exclusively from special taxes. For a whi'.e this policy was apparently very popular, because the special t:;::es were levied upon comparatively few people, and upon a comparatively narrow range of interests. But recently the attempt to obtain as much revenue as tlie