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Real estate record and builders' guide: v. 33, no. 845: May 24, 1884

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May 24, 1884 The Record and Guide 559 THE RECORD AND GUIDE. Published every Saturday. 191 Broadway, N. Y. TERMS: ONE YBAU, in advance, SIX DOLLARS. Conununications should bs addressed to €. W. SWEET, 191 Broadway. J. T. LINDSEY, Business Manager. MAY 24, 1884. It will be good news to real estate dealers tbat the Governor has signed tbe bill to appoint a commission to prepare and report to the next Legislature a series of measures to facilitate and lessen the expense of transfers of titles of real property. It is now to be hoped tbat the Governor will appoint a competent commission, and one which will not procrastinate. The work has all been done to hand by the very admirable Land Transfer Association, of which Mr. Dwigbt H. Olmstead ia the pre:iident. That gentleman and hia associates have gone over the ground thoroughly. Tliey have pre¬ pared in advance the necessary enactments, and have consulted with the lawyers who know most about the law relating to real property. Next winter should see this desirable reform fully con¬ summated. Real estate ought to be as good a collateral in bank as government bonds, and it would be were it not for the preposter¬ ous impediments now in tbe way of the consummation of every real estate sale. It is understood that the Real Estate Exchange will sug¬ gest to tbe Governor the names of a number of weU-known lawyers from which be can select the right kind of a commission. The Exchange should endorse no lawyer without tho distinct under¬ standing that he will be ready to report at the opening of tbe next Legislature, ----------e---------- Jay Gould and Cyrus W, Field are doubtless anxious to settle the dispute between the Manhattan and Metropolitan companies, but are not probably in a position to accept Sylvester H. Kneeland'a proposition. He is willing to sell the stock of tbe Manhattan Com¬ pany for bonds, bud tbis is no time to raise money for any such purpose in WaU street. Field's counter proposition was simply absurd. By a peculiar kind of book-keeping he tries to make out that the Metropolitan earns less than 1 per cent., and then be offers to pay 8 per cent, whenever the Metropolitan earns that amount. In other words, he offers just nothing at all. To adjust tbis mat¬ ter satisfactorily, the whole dispute should be left to arbitrators. The courta so far bave done nothing but prolong litigation, and add to the exorbitant bills of the lawyers. In the meantime the stockholders suffer, and iniportant real estate interests nortb of tbe Harlem are injured because the connections whicb ave to be made witb tbe Suburban Rapid Transit, tbo Nortbern New York, and other existing and inchoate lines of travel cannot be effected until the elevated system is worked as a unit. It will ba a relief when the present Houae of °Represent atives passes out of existence. The economies on tbe part of the Government demanded by Messrs. Randall and Holman are of a kind to make the United States a laughing stock for other nations. We are potentially tbe richest and most powerful nation on earth, yet here ia tbe most important committee of Congresa cutting down tbe incidental expenses of tbe State Department for rent, stationery, postage stamps, telegrams and the like from ^85,000 to $15,000. Twenty-seven consulates are reduced and twenty-one abolished. Tbere are to be no missions to eix minor countries, and tbe usual appropriation for tbe care of indigent American sailors abroad bas been cut off. In short everything is being done to degrade us in the eyes of other nationa so as to save some $350,000 to a treasury whicb bas annually over a hundred millions surplus. The comic papers ought to make these cheese-paring economists as ridiculous in the eyes of the country as their official acts are contemptible. Tbs time is coming when there ought to be an understanding among tbe well-to-do classes in tbia country. They should take the government away from the control of the small lawyers and poli- tioiana wbo cater for the votes of the day laborers. Funds ahould be raised by voluntary subscription to pay our public servants decent salaries both at home and abroad. Our ministers should liva in equal state with those of other nations. Every Senator and Representative in Congress should have a house of his own, and not be forced to live in cheap lodgings. Every Governor should have a State house, and the Mayor of New York ought to occupy the finest house in tho city and have a salary large enougb to enter¬ tain distinguished strangers within our gates. The day of small ecouomies has gone by, and looking after the "cheese-parings aud caudle-ends" should be left to such "hole and corner" statesmen as Samuel J. Eandail and William S. Holman. During the panic of last week there was a notable increase of investment purchases of good stocks. There are plenty of people with means who know when securities are being given away, and hence in every panic there are purchaeera ready to buy stocks aud bonds outright and take tbem away from the market. Capitalists of large means not only do tbis, but tbere are liter¬ ally tens of thousands of persons of limited resources, wbo are willing to take cheap stocks representing good properties, and keep them as a permanent investment. Hence it was noticed on the tape that quite a large number of the twenty aud twenty- five shares were quoted, but in every case the purchasers of small lots were forced to pay frora a half to !i per cent, more tban those wbo dealt in the regular hundred-share certificates. The Stock Exchange ought really to encourage these small investors. Tbey are very numerous, and the aggregate they aro willing to spend in ready cash is always a decided relief to the market in the money pinch. But in making a hundred shares the only delivery these small investors are discriminated against. It is with difSculty their orders are filled, aud tbey are forced to pay more than other purchasers. In^London ten shares is the regular delivery, and hence there are tens of thousands of investors there who avail themselves of panicky times to add to their holdings. The same is true of Paris. In none of the large cities of Europe are tbere any places corresponding to our " bucket" shops. Oper¬ ators with limited means here are driven to these nefarious insti¬ tutions, because purchasers of small lots are at a disadvantage on tbe Stock Exchange. The bucket shop would disappear from New York were tbe small buyer to bave the same advantages as tbe large purchaser on the New York Stock Exchange. Nothing puts an end to a panic sooner than the appearance of permanent investora in the street. Tbey pour a steady stream of cash into tbe place where it is most wanted. It ia strange that this matter bas uot received more attention from the Stock Exchange, At present tbat institution discriminates against the small investor, who should rather be encouraged, and keeps alive the bucket shops, nearly all of which are as dishonestly conducted as the skin gambling dens, ..-------------»-------.^—_> The Proximate Cause of the Trouble. AU the financial editors aro giving their theories of the recent disturtance in Wall street. Bradstreet's thinks it is due to moral causes, and was precipitated by illegitimate methods of doing busi¬ ness. The Financial Chronicle, which is never bappy outside the facts it gives, say it was a mere stock panic, and that the general business of tbe country is all rigbt. Tbe Chicago Tribune, wbich often has very wise acticles, declares tbat the country is prosperous, and that the trouble in Wall street was a mere local disturbance. But are not these views all superficial ? We know, aa a matter of fact, that after the exceptional prosperity which began with the enactment of the silver bill in tbe spring of. 1878, and ended with tho drought of 1881, there followed a period of liquidation which has continued without interruption to tbe present time. Why we were prosperous up to that date is easily accounted for. We had immense crops, while those of Europe were deficient. The cost of production waa light and profits were large. Our cur¬ rency waa doubled in amount by reaumption. Since 1381 our crops have been relatively poor, pricea of agricultural products low, and our profils very small. Then we have built too many railroads and overproduced all kinds of manufactured articles. In four yeera from the date of tbe last census we have increased, it is true, over 13 per cent, in population, but in tbe meantime we have increased the mileage of our railroads nearly 40 per cent., and an expert authority asserts that in the four years ihere baa been an increase of 50 per cent, in many of the industries which supply our population. While we have enormously increased oar capac¬ ity to produce manufactured goods, our consumptive power is not much greater than it was four jears ago. In 1880 there were 575 people to a mile of railroad. Three and a half years later there were only 466 to every mile of road. Doea not this tell the story of the immenae depreciation of securities representing properties where railroad buUding has been most active? With 40 per cent, more of stocks and bonda representing our transportation system the roads them¬ selves have lesa businesa relatively than they bad four years ago. Who can wonder at tbe shrinkage in Union Pacific, Denver, Northern Pacific, and indeed in all the stocks which hav© depreciated in value ? and wbo will say tbat the end has come even yet? It is also to be noted that while we have added so greatly f o our manufacturing facilities we consume about as much of foreign gooda , aB ever. There is no market for our productions abroad, due to I