Columbia University Libraries Digital Collections: The Real Estate Record

Real estate record and builders' guide: v. 79, no. 2047: June 8, 1907

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June 8, 1907 RECOIID AND GUIDE II01 3"' Hsisj^iaee, Db6t£0 10 Re*,lEstate.SuiLDif/G AR!^iTE(nvi^,Hous£aloibDeo(HfHoil, Bi/sh/ess Atb Themes of CEitoytl Itfttup*!^ PRICE PER YEAR IN ADVANCE EIGHT DOLLARS 'Pttbtished eVers Saturday Communications should be addresBod to C. W. SWEET Madison Square: 11-15 East 24th Street Telephona, 4430 Madison Square "Entered al ihe Post Office at Jfeio York, N. Y.. as second-class matter." Copyrighted, 1907, by The Record Sc Guide Go. Vol. LXXIX. JUNE S, 1907. No. 2047. INDEX TO DEPARTMENTS, Avertising Section. Page. Page. Cement .......................vii Lumber .......................x^ Consulliug Engineers ..........vi Machinery..................viii Clay Products ................xvlii Metal Work ...................xv Contractors and Builders.......iv Quiek Joh Directory............xx Electrical Inlerests............ix Real Estate..................xl Fireproofing...................ii Rooters & Rooflng Materials, .xix Granite.....................xvi Stone.......................xvi Iron and Steel.................x Wood Products ................xx THERE is little to be said ahout the action of the stock market during the week. Advances and declines have been succeeded by recoveries, tbe latter in some in¬ stances leaving some stocks with net losses. As bas been said before in this cohimn, it is difficult to say what tbe trend of the market is. There are encouraging and discouraging features, but it would appear on tbe whole tbat there are more reasons for taking a favorable view than the reverse. Crop scares are no longer a factor, and whether Mr. Harri¬ man will be called ou by tbe federal government to answer- certain questions as to "deals" of questionable character does not seem to be worrying WaU Street to any great extent. That great financial centre not only discounts everything, but it also quickly forgives and as easily forgets. Trading of any magnitude bas been confined chiefly to a few of the high-priced speculative issues, especially Reading and Amer¬ ican Smelting. As to th'e latter, a controversy is still raging as to whether the Guggenheims promised a ten per cent, dividend a. year or not. Certain it is that the company has placed all of its stock on an S per cent, basis:—the former rate was 1. There is much disappointment in consequence. It is said authoritatively that while the earnings of the com¬ pany might justify a dividend rate of 10 per cent, the man¬ agement preferred to lean on the side of conservatism. It was felt that this was not the time to raise dividends to a higher point. Wall Street considered that the reasons given were both good and sufficient. The earnings of the United States Steel Corporation still continue phenomenal, but the price quoted for both the common and preferred do not reflect the prosperity of the company. The stock has acted very well since the March trouble and did not suffer in proportion to other issues subjected to forced liquidation. In connection with this matter it is interesting to note, that according to the Iron Trade Review, the May shipments of ore from Lake Superior ranges in May made a new record and indicate that 40,000,000 tons can be shipped easily this year. The continued gold shipments to Europe are not causing any concern, and are having little or no influence otl the market. It is conceded that they were necessary to balance international trade and flnancial condition?. The exportation of the yellow metal has not affected the New York loan rate for call and time funds, so that other things being equal building and real estate interests should have no difficulty with proper security in obtaining funds for legitimate purposes. A dull stock and money market are looked for dui'ing the ensuing three months. COMPTROLLER METZ is undoubtedly right in protesting against the high prices which the city is obliged to pay for the land it condemns, but the Record and Guide doubts v/hether tbe system will be improved by merely seeking to discipline the commissioners. The truth is that the diffi¬ culty of ascertaining a fair value, particularly for vacant property in New York, has enormously increased of late years. The public records have become of comparatively little use as a guide to values. The consideration is uni¬ formly omitted from the deeds, and the consequence is that it is only the speculators and brokers who operate in a given vicinity that are thoroughly familiar with values in the neighborhood. The prices which property brings are mat¬ ters of private rather than public record; and they have been withdrawn from public record precisely for the purpose of concealing values and in this way giving the professional operator an advantage over the investor and the tax-assessor. There can be no doubt that the public iuterest is prejudiced by this practice, as well as the interests of those men who invest in real estate. The tax assessor cannot prove what level values have reached, and Le naturally prefers to under rather than over appraise a parcel of property. On the other hand, when the city is purchasing instead of assessing property, the interest works the other way. The values in condemnation proceedings are determined largely by the testimony of local brokers, and it is to the interest of local brokers to make such values as high as possible. Thus the city and the public interest loses in both cases; and as long as existing conditions prevail, it is surely inevitable that it should lose. The difficulty of securing disinterested testimony as to the value of real estate has enormously increased, and the city has taken no steps to protect Its In¬ terests in the matter. We are unable to discover any good reason why the grantee in every real estate transaction should not be obliged by law to file with the Tax Depart¬ ment a sworn copy of the coutract whereby the parcel was originally transferred. The information contained in such a copy would be accessible only to the assessors, and ttr commissioners in condemnation proceedings. Then, per-i haps, there would be less evasion of taxation and fewer extortionate prices paid by the city for real estate. Charter Revision. THE Legislature has passed the bill bestowing on the Governor power to appoint a commission to revise the charter of New York City, and presumably the project for a new charter will be submitted to the Legislature at its next session. That the charter can be modified to ad¬ vantage is manifest, but it is to be regretted that the call for revision bas not been accompanied by some more definite statement as to the direction which the revision ought to take. Both the Governor and the Mayor favor revision, but neither of them has indicated the specific amendments which, in his opinion, should be incorporated in the re¬ vised instrument. The consequence is that no oue can predict with any confldence just what kind of a changeling the commission is likely to bring forth. Moreover, public opinion seems to be, as usual, singularly indifferent as to the nature of the instrument whereby the people of New York are ruled. The newspapers do not discuss the ques¬ tion, and there is no consensus of opinion as to the princi¬ ples which should determine charter revision. The chief consolation is that Governor Hughes is likely to appoint an able and well-informed commission, and that the members ex-oJficio, viz., the Mayor and the Comptroller, can be trust¬ ed to use their influence in favor of desirable amendments. The provisions in tbe existing charter which have worked least well have been those referring to the Board of Alder-, men and the borough presidents. The Board of Aldermen has been shorn of its most important functions by legislative enactments. The Board of Estimate has thereby obtained almost exclusive control over important street openings, over franchises, and the functions remaining with the Board of Aldermen are inconsiderable and could easily be dis¬ tributed among the otbei' organs of the city government. It is merely a superstition in favor of a local legislative body which prevents the Board of Aldermen from being cut out of the charter entirely, and if it were dispensed with the city would save a good deal of money and would be much better off than it is at present. There is no evidence, however, that this superstition in favor of a local Legisla¬ ture which has been deprived of all important powers of legislation will not continue to prevail, and the best that can be expected is that no changes will be made proposing to bestow any increase of power on the Aldermen. But in respect to the borough presidents, it is very probable that the project for a new charter offers radical changes. The existing system of allowing an official elected by the popu¬ lation of one borough to spend money which is levied on the whole city and to have a voice iu the governing board of the whole city has not worked well. There can be no doubt that the borough presidents should become exclu¬ sively administrative offlcials, and like other administrative officials, responsible to the Mayor, The present method of electing them by popular vote has simply tended to make them irresponsible. The actual record of a borough presi-