Columbia University Libraries Digital Collections: The Real Estate Record

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March 9, 1912 RECORD AND GUIDE 487 on real estate have been increasing so rapidly as to constitute a grave burden upon its proprietors. Of late almost all the increase in real estate values has been swallowed by the larger taxes. The city needs urgently some other source of in¬ come. Tbe personal property tax is a broken reed. A tax upon rents would be the most equitable way of obtaining ad¬ ditional revenues, but sucb a tax is im¬ practicable, and might drive many New Yorkers to New Jersey. A tax on busi¬ ness generally would probably do tbe city more harm in diminished trade than it would do good in increased taxes. There remains a tax on those kinds of business which cannot be transferred, and the idea looks not only practicable but equitable. The State is already taxing one New York business which cannot be transferred, the business of selling stocks and bonds on commission, and it has done so with¬ out any essentia! harm to the economic interests of the city. The municipality may well seize other analogous sources of revenue. All the classes of business mentioned above benefit particularly from the fa.ct that New York is a metropolis and col¬ lects buyers from all over the country, and their business can easily be adjusted to the increased burden. In the long run the tax will in large measure be shifted to the consumer, and the particular con¬ sumers, who patronize the hotels and the theatres will be willing and able to pay. Of course there will be an initial period of distress, during which some loss might fall on the hotel keepers, etc, themselves, but if the tax were allowed to reach it.'j full force only gradually, such losses should not be heavy. The Week in Real Estate. The market tbis week laclved the spec¬ tacular features which have been com¬ mon for the last month or more and deals involving $1,000,000 or over were scarce. On the other hand, the recently displayed tendency toward a wider field of activity still persists; this week's sales were well distributed throughout many sections, nearly all classes of property except tene¬ ments being included in the list. Quite a number of private houses on the West Side found new owners, the Pennsylvania section showed signs of a revival of in¬ terest, a plot on Fifth avenue was ac-: quired as the site of a flne residence and even Harlem eanie forward with several interesting reports. A number of good sized leases were closed and several big building loans reported. Altogether tlie market displayed fur¬ ther signs of returning confidence. While one still hears many complaints by bro¬ kers that real estate is uncomfortably quiet, the fact remains that the number of sales reported is nearly as large as in the corresponding weeks of last year and the year before and the quality of tlie whole is equally as good if not better. The Pennsylvania left zone, which has been rather inactive of late, came to the front again this week with a series of deals on 29th and 30th streets, all made by the Realty Holding Co. and involving an amount of about $2,000,001). The lar¬ gest of- these concerned the plot at 115 to 131 West SOth street, having a front¬ age of about 240 feet. The buyer will probably parcel it off to builders for im¬ provement with loft buildings. The prop¬ erty was formerly owned by .St. Phillip's Church and was given in trade last year for a row of flats in Harlem. While the private house market has been extremely poor for some time past there has recently been some plot buying on Fifth avenue and the streets adjoin¬ ing above oOth street, by wealthy indi¬ viduals .for the purpose of erecting pri¬ vate residences. The latest purchase of this nature has been made by Justice James "W. Gerard and tbe site selected was a 40-foot plot between 94th and 95th streets, on Fifth avenue. Another mid- town deal involving nearly ."^00,000 was the purchase of the Laurelton Hotel at 147 West SSth street, by H, M. Swetland, who already owns several hotels in tbe Times Square section. More than the usual number of private houses were disposed of on the West Side this week, some being bought for occu¬ pancy and others for improvement. The largest transaction reported from this district was an exchange of equities in¬ volving about $1,500,000, in which the eight-story apartment house at 315 West 99th street was given for nine lots at the corner of Riverside Drive and 141st street. The best block on 125th street, that be¬ tween Tth and Sth avenues, was brought into prominence again tliis week by the announcement that a prominent clothing concern from Wisconsin bad acquired a lease of a large plot on tbe north side^of the street, running tbrough to 12Gth street, and would open a big establish¬ ment tiiere in tlie near future, I-Iarlem is also to bave another lai^ge theatre at Tth avenue and 116th street, , The soutb¬ west corner was bought by a newly form¬ ed theatrical syndicate and the iiouse to be erected there, it is said, will rival any¬ thing now existing in that -part of the city. No great volume of business was closed in the Bronx, but indications all point to a fairly active spring market. Piot buy¬ ing by builders is most in evidence but investing buj'ers are few and far between. The loaning institutions have plenty of money for good operations in this bor¬ ough, especially along the line of the subway, and this fact will no doubt exert considerable influence on selling m the next few months. Plans are on foot for widening, regrading and making other improvements to lT4th street, and this promises to become one of the important thoroughfares of the future. The situation in Brooklyn remains prac¬ tically unchanged, but the miore satisfac¬ tory outlook for a speedy settlement ot the subway problem is causing brokers to take a hopeful view of future pros¬ pects. What selling there is. is confined largely to the buying of dwellings or plots by homeseekers and very little investment purchasing is going on. Some activity exists on the Park slope and there is a certain continuous demand for property in the vicinity of the Atlantic avenue sta¬ tion of the subway. The city completed negotiations tiiis weelt for the purchase of two houses at 49 and 51 Court street to be used as part of the new addition to the Municipal Building. It is also planned to acquire the balance of the block front between Joralemon and Liv¬ ingston streets for the same purpose. The near approach of spring is having its effect in Queens and real estate is be¬ ginning to liven up rapidly. The flrst week in March brought out more applica¬ tions for building permits tlian were filed in the entire month of February. A great impetus has been given to this bor¬ ough by the prospect that the Interbor¬ ough proposals will be adopted and oper¬ ators in all sections report that since these were made public tbeir inquiries for property have increased nearly 100 per cent. It is reported that in Long Island City alone nearly flfty manufacturing concerns from Manhattan are seeking lo¬ cations at the present time. Acreage out¬ side of Queens is also in demand and a ready market can be found for farm lands at reasonable flgures. The largest suburban deal was reported from Hicks- ville and involved the purchase of 123 acres for a development on the "Little Farms" plan. Consumers of building materials may expect a slight summer delivery atlvanco in prices as a result of the English and impending American coal miners' strike. A shortage in this fuel has resulted and the price is rising in the eastern market. But this should not occasion any alarm on the part of prospective operators as there is plenty of material in stock to meet all spring requirements and most manufacturers have a sufficient stipply of coal on hand to keep their mills and fac¬ tories going for a month or two. Portland cement will probably feel the effect sooner tlian any other material. Large quantities of coal are used in its manufacture and, although many mills have stocked liberally, the fact that cement has been sold for a year or more at such a close mill margin, makes it quite probable that an advance of from three to flve cents a barrel will shortly be announced. Present quotations are $1.25 to .fl.33, dock. New York. In the conimoii brick fleld much of the burning is now done with soft coal and. inasmuch as the plants have been closed down all winter and it is still impossible to get boats to the plants, these manu¬ facturers are resorting to railroad ser¬ vice to lay in their supplies. This is much more expensive than buying coal at tidewater and, if the strike continues in England and the American miners also go out. it is not without tile bounds of possibilities that prices will remain near the winter quotations even w^hen the brick making season reopens. Present prices are $G.T5 to .?T.25 for Hudsons and $7 for Raritans. Varnisli makers are not very directly affected by the scarcity of coal, but are more concerned with conditions in the coke market. This fuel is also scarce now and there are indications that with a larger demand from steel and iron mills and furnaces, the supply will be seriously curtailed, especially if tlie anthracite mines become involved. Building managers also will bave to look to their supplies of coal, if they would avoid paying much higher rates. Coal authorities here say tbey are swamp¬ ed with orders and that adverse weather conditions have caused railroad conges¬ tion, and a scarcity of freight cars mak¬ ing deliveries very uncertain. The sand situation in New York is stiil very unsatisfactory. Some of this mate¬ rial is coming in but the available supply is still so scarce as to practically pro- liibit concrete work and brick laying even would weather conditions permit of out¬ door work. Current prices to old cus¬ tomers range from 45 cents up, accord- to dockage. Quantities required has practically no influence on price. It is a case of getting sand under any condi¬ tion in almost every corner of the Metro¬ politan district. The situation as regards the supply of clay, for manufacturing, has not changed. Continued cold weather and snow has kept tlie frost in the clay breasts and delivery dates are not guaranteed by either rail or boat. President Miller's Part in the Subway Agreement. Editor of the Record and Guide; One must be considered presumptuous to attempt to amplify an editorial of the Record and Guide, therefore I cannot but feel I would be untrue to my fellow Bronx- ites were I to remain silent when a paper of the standing of the Record and Guide comments so favorably on the work of Mayor Gaynor, President McAneny and President Willcox. as it did in its article in the issue of March 2d. entitled "The Subway Agreement," but without giving any credit at all to Borough President Miller. Mayor Gaynor from the very flrst has insisted that no solution of the transit question would have his approval unless it was a comprehensive one and reasona¬ ble in its comprehensiveness. In this stand he had behind him at all times President Miller. When the vote was taken on July 21st. President Milier with President Gresser voted against the report of the committee in its determination to give the contract to the B. R. T., in the event of tbe Inter¬ borough failing to accept the terms offer¬ ed. The failure of the Interborough to accept made tiie better offer of two weeks ago possible. This, however, was not the most im¬ portant of Mr. Miller's contributions tow¬ ard solving- the transit muddle. When it was stated that the Interborough could not possibly take the contract for the new system on the terms laid down without impairment to the present contract (the city reserved the right to take over the extensions any time within ten years), it was President Miller who prepared a brief on the legality of the proposed method of recapture, suggesting sucb legislation as would be necessary to pro¬ tect the bondholders of tbe present sub¬ way, which legislation will permit the segregation of the East .Side and West Side legs. I have pointed out two distinct acts of Mr. Miller as a member of the Board of Estimate and Apportionment which es¬ sentially contributed to the disentangle¬ ment of the vexatious transit situation, and which will in effect prove a large factor in the betterment of the transit facilities of the greater city and rebound immeasureably to tlie credit of Cyrus C. Miller as a far-seeing public official. ROBERT L, MORAN. No, TOO Morris Park avenue, March S. Would Tax Floor Areas in High Buildings Editor of the Record and Guide: I have several communications from business men's committees favoring the passage of the Sullivan-Brooks Bill. This measure, as drawn, seems to rae absurd, and I hope that you will use your best endeavors to prevent its passage. There would be some sense in it if it contained a rider at the same time, limiting tlie height of buildings in New York City to IW ft., and placing an additional tax on the floor area of buildings now existing above that height, tliis tax to represent a just charge on the owner for the light, air. sewerage, flre department, and gen¬ eral congestion caused by these buildings, which is certainly a proper charge, for the public have to foot the bills occasioned by tbe over-loading of all the different lines of public service maintained by them, and it seems to me that this service—- where it is used to the extent that some of the present high buildings in New York require of it should certainly receive a just payment in return. W. H. BROWNING. New York, March T.