Columbia University Libraries Digital Collections: The Real Estate Record

Real estate record and builders' guide: v. 59, no. 1525: June 5, 1897

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Record and Guide ESTABUSHED-^ M.HRPH aiVr^ 1868. Dev&tid to ftm. Estate. SuildiKg %c>(iTECTin^E.KousEi{ou3DEeQilAiiorf, BtJSI^/Ess Atto Theiaes of GeHer^I- Wterj si .. PRICE PER YEAR, IN ADVANCE, SIX DOLLARS. Publislied every Saturday. Tblephonk, _ . . . . Cortlandt 1370 OommunloationB sbonid be addresBed to C. W. SWEET, 14-16 Vesey Street. J T. LINDSEY, Businesa Manager: "Entered al ttie Posl-offlee al New Yorli, N. Y., as seeond-class mailer." Vol. LIX. JUNE 5, 1897. No. 1,525 NEW BUILDING LAWS. The Record and Guide will publish a new edition of the New York Building Laws and ordinances as soon as official copies of several recent laws can be obtained from the Secretary of State's office. Those who are familiar with the manner in which our previous editions of the building laws have been compiled know what to expect—a handy volume, with headings and mar¬ ginal notes, full indexes and colored engravings. This is a complete and standard work, edited by William J. Fryer, and is invaluable to architects, builders and others interested in building oper¬ ations. The new edition will bring the building laws up to date, together with the Greater New York Charter provisions, which latter take effect next January. Orders for the new publication may now be sent in to the Record and Guide, Nos. 14 and i6 Vesey Street, New York, and deliveries will be made at the earliest day practi¬ cable. SECRETARY GAGE'S "optimism" lias affected Wall street, lienee tbe best advaut^e seen on tbe smallest buying for some time. Tbis is fairly justifiable. Cabinet ministers do not go around tbe country simply expressing tbeir own individual views; tberefore, recent statements by Mr. Gage regarding prob¬ able action on tbe eurreucy question bave vQcy properly beeu accepted as pledges of the administration. Hearing notbing from tbem, tbe public began to tbink tbat election financial pledges were not to be redeemed, and it must be confessed tbat tbe administration received a good mauy bints aud some sbarp prodding before tbe promises of tbe candidates were renewed by tbe officials. However, we bave now a distinct assurance tbat tbis vital matter will be taken up at tbe opening of tbe reg¬ ular session of Congress, and we know also tbat, witb busiuess improving as it is and confidence maintained, tbere is no dan¬ ger in tbe delay. These facts warrant more response tban bas yet been given tbem. Tlie appointment of a currency commis¬ sion meantime to liii-li views and obtain tbe information Con¬ gress may naturally require would be a good tbing and serve to clincb the nail Seeretai"y Gage has driven home. Tbere are good features coming to light every day, wbich now will bave their proper influence. The declaration of a dividend on St. Louis and San Francisco first preferred, and tbe moral certainty that Atchison adjustments will receive some return in October, is proof of the soundness of tbe reorganization of tbe two prop¬ erties on wbich tbey were issued and suggests the likelihood of otber reorganized properties achieving similar results, besides the no less important fact tbat a large section of the country, tbe Southwest, that bas been severely bandied by providence for some years, bas come onto better times. This has larger im¬ portance tban its influence on the securities of Southwestern railroads. "KT EGOTIATIONS for peace have settled down to a busi- i-jI- ness basis, and however much the pride of Turkey bas been raised, and bow much more than ever it is necessary to handle tbat country delicately, it is obvious that tlie Great Pow¬ ers are going to say what the terms of settlement shall be and both parties will have to abide by tbem. Tbe preseut is probably to set a precedent for dealing witb all tbe troubles ihat are sure to arise In that continually boiling political pot, tbe Southeast of Europe, and if tbe "Eastern" question is never to be settled, machinery has beeu created for dealing witb difBcuIties as tbey arise wbicb is likely to be elfective, and which every reasonable being ought to hope will never get out of order, Tbe improvement in business that began wben it was seen tbat Greece could not maintain its policy of iuaraenability to tbe wishes of tbe Powers continues, and the public are be¬ ginning to show confidence again in uew issues and ventures. Tbe success of tbe recent Japanese and Canadian loans is proof of this, as well as the sigus of revival of speculation in American rnilroad shares on the European exchanges and bourses. The "Sky Scraper" Problem. THE number of old buildings in the course of removal on lower Broadway pointedly reminds people tbat the sky¬ scraper is no longer an isolated affair. It is tbe common thing now. Tbe ordinary eye has become so used to the twenty stoi-y foot-rule that now any building below that standard seems wil¬ fully diminished. The fact is the builders' dariug innovation of a few years ago bas already become a commonplace. It is only the specialist that appreciates, as time goes along, tbe full force of the many and growing problems wbich the high building is cre.iting. We have heard something already about tbe Aesthetic Prob¬ lem involved in tbe high buildings, and the Sanitary Problem also has received fitful attention. Other troublous aspects are coming slowly iuto view. One of tbese, of particular interest for our readers, is of economic import, aud concerns tbe effect wbich the tall building bas had, and will yet bave, upon real eslate. At present one can do very little moi"e than ask questions wbicb cannot be definitely answered. It is perhaps reasonably certain tbat, in itself, as an investment, the office building, uu- d-^r normal conditions, has not yet been a financial success. It may bave "paid" large insurance companies and other coi-pora- tions wbo need a great deal of floor space for their commercial transactions,' if not in cash profits then in tbe publicity which the buildiug bas created. Obviously, in the future, this pub¬ licity will be harder to obtain. Indeed, iu Chicago, a short time ago one of the banks created quite a furore by erecting a struc¬ ture of one or two stories. In addition to tbe case of the cor¬ porations, tbere are no doubt otber cases where the tall build¬ ing has paid in a way—that is, with the possessors of land ac¬ quired at a low price or under some special circumstance, as by will, etc. The main question, however, as to whether the sky¬ scraper erected under normal conditions upon land purchased at current average prices pays, must, we believe, be answered, for the present, in the negative. What will happen in the future is another question, and upon it hangs a number of other ques¬ tions wbicb ought to receive the close attention of those who seriously study real estate. It is quite clear that real estate in New York cannot be uni¬ versally and immediately improved witb tall buildings. If tbese structures rose one by one at tbe call of current demand for ac¬ commodation it would be well, but plainly tbis regulated pro¬ gression is impossible. Owners of less highly improved property could not afford to accept tbe conditions which would thus be iuiposed upon tbem. We see that the majority of people like the "modern tbing." They are attracted by the big building with its modern show, running water, running elevators, and other forms of perpetual motion. The real estate agent, besides, is not idle. He attacks tenants in the older properties on behalf of tbe new buildings, and so the owners of five or sis story stinic- tures on valuable lots cannot remain inert. How are they to protect themselves? Suppose tbey cut rents. Clearly this means a lower net rental, and a lower rental meaus lower profits, and lower proflts meaus a depreciation of their real estate. More- OTPr, the lowering of rent will react, more or less, as conditions warrant, upon the rates obtained in tbe taller buildings. To¬ day, it is said, some of tbe sky-scrapers are feeling the compe¬ tition of the very low rents now required in the older buildings which the modern structures a short time ago depopulated. Apparently, conditions are against owners of old property obtaining an income commensurate with the value of their real estate. There is, we know, a great deal of this semi-unimproved real estate in tbe city to-day which is scarcely earning running expenses. Again, then, what are tbe owners to do? Build and thos intensify the existing competition, or hold on to what they have and be satisfied with little or no income. Upon either horn of tlie dilemma appareutly real estate would suffer. It must also be remembered that tbese conditions are intensified by the fact tliat real estate is districted. Trades and profes¬ sions are localized, so that a deficiency of accommodation in. L