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Real estate record and builders' guide: v. 27, no. 682: April 9, 1881

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Real Estate Record AND BUILDERS' GUIDE. Vol. XXYII. NEW YOEK, SATUEDAT, APEIL 9, 1881 No. 682 Published Weekly by The Real Estate Record Association TERMS: OIVE YEAR, in advance.....$6.00 Communications should be addressed to C. W. SWEET, 137 Broadway. J. T. LINDSEY, Busmess Manager. The rates for fire insurance are hardening and the companies are now doing a more profit able business than for many years past. This is as it should be. It is not best that any necessary business be car¬ ried on at a loss. We are, however, ap¬ proaching a time when conflagrations are frequent, for it is a noticeable fact that the close of the last renting quarter in the year is marked by a relatively great number of fires. Why this is so, needs no explanation to the fire insurance companies. There is a great deal of building going on throughout the country, and this naturally adds to the demands made upon the fire insurance com¬ panies. There is nothing to warrant any diminution of rates, and, while there is no reason to expect a return to the charges made during inflation times, the companies at present in existence, whose character is well e8tablished,*'need have no fear but that the growing business of the country and its increased wealth, with the new buildings in course of erection, will give them a con¬ stantly growing custom at remunerative figures. FOR SPECULATIVE INVESTORS. We have repeatedly pointed out the possi¬ bilities for investment in Southern State securities. J t is certain thafc some time or other the more progressive and growing of the Southern States would seek to rehabili¬ tate their credit and would make composi¬ tion with their creditors. The cerisus shows that the growth of the South in popu¬ lation has not been behind the rest of the country, while the $6,000,000 bales of cot¬ ton produced during the past season tells the story of the potential wealth of that sec¬ tion of our country. All of the Southern States are not under a cloud financially. The credit of Georgia is deservedly high and the state bonds of Texas are far above par. And now Tennessee comds to the front as a debt-paying state. Six months ago the evidences of her state debt were sold for 30 ; to-day they are worfch over 70. This has naturally attracted attention to the securi¬ ties of Louisiana, North and South Carolina. Virginia and West Virginia, all of which have recently advanced in price, and with good reason. The great railway interest of the country has its ramifications all through the South, and the urgent call for state aid to local improvements will bring home to the intelligence of the defaulting states the necessity for confidence in state financial honor at the money centres. The Chesa¬ peake (fc Ohio, the Louisville & Nashville, the Chattanooga, the Chicago, St. Louis & New Orleans, and the other minor roads through the South are having their influ¬ ence upon the states they pass through, and it is as certain as anything in the future that every Southern state will seek to have its credit restored, so that it can borrow money for new local improvements. Of course there is a choice, and investors would do well to give the preference to those ■tates in which the need for local improve¬ ments is the greatest. Louisiana and Ar¬ kansas are such states. Virginia, in due time, will doubtless come to the front again in vindication of its state honor, but its recent course has not been satisfactory. It is the cotton and sugar growing portions of the South which have been most prosperous, and Virginia doubtless has not profited by the good times as much as other states. Still, Richmond is a growing city, and the new railroads are vitalizing portions of the Old Dominion heretofore inert. The day is coming when there will be a flood of white population to Virginia and North Carolina. The securities of both those states must gradually, but surely, appreciate. A GOOD TIME TO BUY. So far there has been no " boom" in real estate. There have been a greater number of transactions than formerly, there has been a moderate advance in prices, some specu¬ lative purchases have been made, but there is as yet no speculation proper in the real estate market. The sales of the past week tell the story. Unimproved lots can be bought at moderate prices, and houses can be secured at figures which will give a hand¬ some return in rentals. In other words, the condition of the market is wholesome, and such as ought to attract prudent people. That the time wiU come when prices will be high and speculation rampant, every one, acquainted with the market, looks for con¬ fidently. Indeed it was supposed that the commencement of the speculation might show itself this spring ; but while dealers have done a very fair business, and the num¬ ber of conveyances have increased to higher figures, there has been no evidence of fever- iahness or unusual excitement. Of course, the lots which everybody want¬ ed have advanced largely in prices ; where building has been active and the location very desirable, the figures obtained in 1870 and 1871 have been reached. But although the population of the city has increased twenty-eight per cent, since that time and local improvements, then projected, have been since completed, weU placed lots can be purchased north and west of the park at much lower figures than were asked and paid ten years ago. There has been an apparant large advance in some locations within the past three years. There has been a handsome ad¬ vance^ in improved property within that period; but it is safe to say that three-fourths of the real estate in New York to-day, is much cheaper than it was from 1869 to 1871, and yet in the meantime our elevanted road system has been put into operation. True, those were paper money times ; but securi¬ ties on our Stock Exchange are very much higher to-day than they were twelve years since. For the first three months of 1881 the in¬ crease of conveyances over 1880 on this is¬ land was only 93; while there was an actual decrease in transactions in the annexed dis¬ trict of 62. But the property sold during that three months for $11,519,000 more than the property purchased in 1880. Of course, this does not give the figures accurately on account of the great number of nominal transfers. It is mischievous to legitmate business to give the impression that there is any unusual activity or speculation in real estate. We are, it is true, building more houses. Two thousand and sixty-five were erected in 1879; 2,252 were completed in 1880, and we believe that over 3,000 houses will be constructed during the course of the present year. Even these figures do not tell the whole story, for the buildings erected comprise many vast apartment houses, some of which accommo¬ date twenty and thirty families each. Our population increases far more rapidly than the means to accommodate them with homes; but the price of labor is steadUy rising, and the working people will not only be able to pay better rents, but wiU demand better ac¬ commodations. From a variety of causes, building materials have not advanced, so there is ^ large margin of profit in the con¬ struction of new houses for we live in'' bull" times, and all prices, including rents, will yet largely advance. There has been a good deal of resistance to the increase of rents in aU save the very rich and choice districts. People who have made a great deal of money, speculatively, have not only paid liberal prices for well located residence property ; they have also submitted to a large advance in rents. There has been a moderate advance for the houses occupied by the middle class ; but while the laboring classes have been actively employed, they have resisted an advance in rents on the ground that they were not better paid. But it will be found that skilled artisans, indeed, all classes of working people, are not only fully employed, but have recently had such additions to their wages as would enable them to live in more comfort. The outlook is promising. This island wiU have 400,000 more people in 1891 than it has to-day. By that time the vacant spaces along the line of the elevated roads and north and west of the park, will be covered with new buildings. There is a margin of from ten to two hundred per cent, in tmimproved city property. The person that buys to-day is siu-e of an investment which will not depre¬ ciate by the lapse of time. There is one department of our city government worthy of aU praise. We al¬ lude to the fire department. It does its work so efficiently and quietly, that our property holders do not realize all the good it is doing. All our older citizens remember the riotous and inefficient volunteer depart¬ ment which the present system replaced. A fire, then, was a noisy affair. The bells clamored, the engines were dragged by men, fires were frequent, riots common and much of a corruption of our city politics dates from the old engine houses. " BUl" Tweed was the foreman of "Big Six," and a sur-