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Real estate record and builders' guide: v. 50, no. 1276: August 27, 1892

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AugUBt S7, 1892 Kecora ana ^^uiae. 261 ESTÍÆLISHED ^ WAHCH ?I*-í^ 1863. [ OpiílTED ĨO f^L ESTWE . SuiLdIi/g A^,CIÍITECTdR,E .KoUSDÍOLD Dí tJŨfÍí.liCSH, BllSiN'ESS AiĨĩThEMES Of GejJeRaI l;JT£t\£S3 PRICE, PER TEAR IIV ADVABICE, SIX DOLLARS. Fublished eaery Saturda'jf, TKLBPHONBj - - - _ - COBTLANDT 1370. CommimlcatioDS sbould be addressed to C. W. SWEET, 14 & i6 Vesey St J. ĩ. LINDSEY, Business Manager. "Shttered at the Post-offlce at New Yorh, N. Y., as second-class m,atter," VoL, L. AUGUST 37, 1893. No. 1,S76 THE movements of tbe stoclĩ market for tbe laat week bave borne out the theory that a reaction from the bullishness of che laat month was in order. Tbere is a stubbornness on the part of security holders which makes it sometimes appear aa if that theory had no foundation, and that a new advance was every moment just about to begĩn. But a comparison of present prices wíth those of a week ago shows that considerable realizing has already been effected, and events that '■ave tranapired recenily and their influence on stock prices show that more will tollow, In particular it has been noted that the failure of the BufEalo switch- men's strike did not bring any advance in the prices of railroad BGCorities, but, on the contrary, was followed by declines, This is naturally taken as [a sure evidence. that the men who manipu- lated the recent advance seized that as a good opportunity for taking profits, leaving the market to find itti support from euch new buying as the failure of the strike produced, The support which ĩteading received to counteract the effect of Chancellor McGiII's decision wiU be oniy temporary, and the fact that the coal combination has been defeated in the first move of the Stute anthor- ities against it will not help the Coalers, and especially will not help Reading, which bas also to contend against the public disappoint- ment at the results from operating that property under the new arrangement. The decision in the Jersey cotu:ts can hai"dly have taken insiders by surprise ; they would, it is to be presumed, have been more surprised if the Courthad aecepted their contention that the leasing of,the Lehigh Valley and Jersey Central was in no respect whatever a combination or part of a combÍDation toputup theprice of anthracite coal, especially as while the case was being argued and considered at least three advances in pricea had been made as a direct result of the deal, and the,decision was announced on the day that the fourth advance was deeided upon. It is not possible to say how the higher Courts wîll regard Chancellor McGĩH's opinion, but it seems almost impossible to thinĸ tbat an arrangement which controls the largest part of acommodity limited in amouot and so controlait as to give itthepowerto dictate rates to tfie owners ol' the smaller part canbe anywhere regacded asanything else than acom- bination. Beingacombinationitis certainlynotpiu'poseless; what its purpose ĩs a very limited acquaintance with human nature enables any one to judge. Whether it is possible to achieve what the coal companies want without some such arrangement aa that under dis- cussion, in tbe event of tlie final decision being agaíust it, remains to be seen, It has not hitherto been possible to maintain high rates in the anthracite tradiĩ without a consolidation of interests, nor has it been necessary for the larger part of the coal carrying companies to do so. In fact, of the great carriers Reading has been the only one that could not pay divĩdends, although the largest producer of anthracite. If it loses its control of Lehigh Valiey and Jersey Central, the other companies are not likely to go out of their way to make Reading a dividend payer, and some are known to be desirous of preventing it. StiII, if the Reading, Lehigh Valley and Jersey Central stocks are held in the interest of this combination, as it is generally believed theyareheld, they can be held still so as to bring about the same results as the roads combined would have brought about. For instEnce, three individuals may be prevented from carrying on their busi- nesses together in one certain manner, but it would be difficult to prevent those three individuals altogether from conducting tbeir busin6sse& for their mutuiLl interest. This is the case of the Eead- ĩng leaaes in a nutshell, Meautime the buyers of Reading liave in any case been a little too sanguine of results, and chis, together with the Jmown depressing influence of action in the courta, will aSect the stoek. firmer, owing to the announcement that negotiationa are on foot in regard to a Russo-German commercial treaty. Official statements are so far wanting ; but it is known that the Russian Government have appointed their commisaioners, The consummation of a treaty will probably be a task of the greatest difficulty, and the negotiations will be conducted with the greatest discretion and caution, The difficulties of the enterprise aredue to the immensity of the possible advantages of such a treaty to both countries, The idea has been broached in various quarters that the Bussian Gov- ernnient may have entered on negotiations with Germany with tba intention of breaking them off at a convenieut moment in order to create a very strong impression on France ; but thia is declared to be false hy well-informed observers. Russia wants a marketfor her grain produce, and she sees Austrian-Hungarian and even Ameri- can grain is imported by Germany at lower duties of entry than her own produce. Furthermore, Russian loana are practically excluded from the Berlin market, ever aince the Imperial Bank waa compelled to stop making advances on them. It would be a great advantage to Russia If she could persuade Germany to change her policy in that respect. What Germany expects cbiefly ĩs a reduc- tion in the Russian import duties oa iron, coal aodtextiles. If that can be obtained, agreat improvement in trade will be witneased, for the closing of the Eussian market has had a great deal to do with the present stagnation. Next to the financial arguments, Russia's chief object in adopting prohibition was the wish to develop her own industriea, In 1882 the protectionist system waa adopted, and it waa brought to its clímax in l89i, when payment of duties in gold was enacted. In prosperous times Russia would probnbly have adhered to her intentions, but after the famine and all her financial calamities, she may feel compelled to gĩve in. Besides, ahe does not appear to have succeeded in her plan to mtike hetselt independent of the supply of foreign machinery. For, in spite of the high dutiea, the imports of machines were about as lai-ge in 1889 as ihey were in 1883, nor did the production of forged ifon make any considerable progress. Apart from the posaible political effects, the negotiations bave some considerable interest to this country, because it threatens to take away whatever advan- tage we may have ohtained from the recent reduction in grain duties obtained by the present adminiatration from the Germau Government. rriAMMANY wiU probably be able to elect its candidate for -1- Mayor next fall without more than the shadow of ao oppo«- tion. For the first time in many years it looks as if the local Democratic party would not be divîded, So far aa can be aeen now only one Democratic candidate will be placed tn nomination, and under sucb circumstancea a nsmination would be tantamount to election. The Republicans may howl against the wickedness of Tammany as much as they please, but their candidate in a Presi- dential year, even if nominated for the purpose of drawing inde- pendenfc votes, wiU be overwhelmed by a majority very nearly as large as the one which Cleveland will have over Harrison in thia city, The strict divisíon of party lines can result only in ao equally strict dÍYÍsion of the party vote. ĩt will be simply impossible to bring municipal issuea into the cauvaas. The prominent aup- portera of Mr. Cleveland, who are known to be hostile to Tam- many, wiU be obliged for the sake of the national ticket to subdue their wrath and walk amîcably with politiciana whom they bave been deoouncing as public enemiea, Professed Mugwumps can, of course, aupport the Republican candidate for Mayor without doing any harm to Mr. Clevelaod, or probably to Tammany either; but no man who calla himself Demourat will b« able publicly to bolt tha Democratic local nominee, coneequently the time will not be favorable to warfare againet Tammany. Tha friends of the municipal reform movement will probably appreciats fully the weakness of their cause under the circumstancea, and the desirability of waiting two years for a better opportunity to renew their campaign. During those two years Tammany wiU be in complete possession, not only of the New York City government, but probably of the State government also, for under the new apportiontLent tlie Democrats can certainjy carry the Assembly. They wiU be able to pass what legialation they choose; and they , will be able to admioister those laws very much as they please. If their course last winter is any test, they will not faii to use these opportunities to their own immediate advantage and to tlieir ultimate disadvantage. They wiU probably give us eome sort of a law enlarging the sphere of local government; they will probably be very lavish in public improvements, and we shall doubtleaa hear talk of a great many jobs. At all events it is the record which they make duriog these two yeara which will forge the weapons of warfare for 1894. Until that lime New York City is Tammany'a political and financial preaerve. The Wigwam's enemies can but stand aside and wait. AVARIATION in the usual news of duUueBs and depression in tbe European markets comea from Berlin. Businesa ia said to be somewhat more animated in that centre, and prices rather matea of the "coac of living," eome trying to ehow that the necea- "T must be that in "politics" the reasoning faculty playa no - part, The newspapera are hammering away juat now at eati-