Columbia University Libraries Digital Collections: The Real Estate Record

Real estate record and builders' guide: v. 65, no. 1673: April 7, 1900

Text version:

April 7, -1900. JiECORD AND GUIDE. 5^r ,. ^ ESTABUSHED^MARpH21ii>1868. B[Jsl^fessA^to Themes or GEjJERil WitRfai.; PRICE PER YEAR IN ADVANCE SIX DOLLARS. Published every Saturdai/. TELEFIION-E, CORTLANDT 1370. CommunlcattoDS should be addressed to ■ C. W. SWEET, 14-16 Vesey Street. /. T. LINDSEY, Business Manager. go further. Manufacturers can best encourage a revival of building industry by making the cost less and the records of the Deiiartment of Buildings for the current year, showing as tliey do such a large falling off in the number and value of plans filed, suggest that it is to their interest to do so. 1 ••Entered at the Post-OtfiGe at New York, N. Y.. as second-class matttr.- Vol, LXV. APRIL 7. 1900, No. IG73, THAT railroad stocks and shares should be the favorites among buyers of securities to-day is the restilt of a fact long apparent to which we have persistently directed attention, namely, the comparatively small amount of railroad bnilding that has been done iu the past ten years or more. Low rates, and the perfected organizations of the big roads, made the laying out and construction of small ones for independent operation improfitable, and the restriction of construction that neeessarili' followed has given the existing roads all the benefits of the great increase of business that has occurred throughout the country in the past four years. When the meaning of this fact is fully understood the returns of earnings now being made by the railroads throughout the country are not at all surprising, though very gratifying. The buying of stocks and bonds predi¬ cated on the railroad industry follows as a raatter of course whenever the conditions of the money market in any way favor it Taking Poor's Manual for 1899 as a guide, we find that the number of miles of railroad operated in 1870 was 52,922; in 1880 this had increased by 40,340 to 93,262, and in 1890 still further by 73,392 to 166,654; in 1S98, the last year for which figures are given', there had been an addition of 20,156 miles to the last quoted total. Looking further into the figures we find that iu the flve years from 1893 to 1898 the annual average increase was less than 2,000 miles to compare witb a yearly average increase of more than 4,000 miles from 1870 to 1880 and of more than 7,000 miles from 1880 to 1890. "While the ratio of railroad extension has been decreasing, population and commerce have been in¬ creasing by leaps and bounds. Not only has railroad extension . been restricted in the past decade, but the conditions at the pres¬ ent day discourage competitive building. The process of con¬ solidation has nowhere had such play as among the railroads, so that every section of the country is practically controlled by a* big organization whose existence threatens disaster to any ■other that should attempt to invade it. Among the systems them¬ selves there has grown up a policy of respect for a rival sphere of operations and influence that reduces the prospects for new lines to the necessities of the systems themselves and goes a long way to insure the stability of railroad investments in this coun¬ try. The reduction of the bonded capital account through reor¬ ganizations ought to be taken into account, too, especially as more directly affecting tbe values of bonds that were left stand¬ ing. But the most potent agent in producing the present quota¬ tions for railroad securities of all kinds was the limitation of the railroad mileage until the growth of the carrying trade o£ the -country tried its capacity. As to the movements of the stock market, it may be said, in spite of the realizing that has been conspicuous this week, that earnings will inevitably tell on se¬ curity values and they give more sign of swelling than of con¬ tracting. -, ,, -—^—■—■*-------------------------------------- _ ^__ IT is gratifying to note that there is some easing off of the prices of building materials. It will be seen, by reference to the quotations given in other columns of this issue, that this week has seen a drop of fifty cents in bricks, fifteen cents to twenty cents in cements, and fifteen cents in lime; one to two dollars in spruce lumber, and a dollar in iron. Lath, it must be noted, increased somewhat, and there is yet no indication of a decline in the prices of plumbing and hardware supplies. Still, there are concessions enough to make builders thankful. These are doubtless due to the let up in building operations, which itself was partly due to the high prices for constructional mate¬ rials, and it remains to be seen whether a revival in the former would not cause the latter to go back to recent figures. It is reasonable to infer that they would not, but rather that the reaction from the extremely high prices which has begun will A Waiting Market. CHEAPER MONEY AN ENCOURAGING FEATURE, THE brokerage business displayed rather more buoyancy the latter part of the week than it has evidenced for some time past. Outside support, indeed, continued to be limited al¬ most exclusively to the buying of private houses. But the pro¬ fessional element, encouraged by the cheapening of money which is giving renewed life to the stock market, is gradually begin¬ ning to resume operations. A number of building sites were sold for improvement, chiefiy with elevator apartments, although one or two went to private persons who purpose to erect residences for their own occupancy. Several plots of low-priced land in the Bronx were disposed of for improvement with one and two-family dwellings, a kind of housing for which the current demand appears to be sufficiently strong to warrant pro¬ duction on a comparatively large scale. Trades occupied the principal share of attention, including as they did several of considerable popular interest. In some of these transactions builders exchanged improved property for lots and a modicum of cash, enabling them to project new construction work. One downtown parcel was bought by a wholesale drug house, who will erect on the site immediately a modern building for their own exclusive use. A manufacturing concern purchased in the name of an agent a holding in West 12th street, which will be reim- proved with a factory building as soon as the concern's contract in respect of their present leased quarters expires. Viewed with reference to normal standards, however, the week's dealing was meagre in volume, and very much restricted in scope. The attitude in real estate is one of hesitation and expectancy, and this attitude is especially noticeable in the renting market Eor business property. Very few long term leases are asked or granted. Some small advances in rents are obtainable. But owners require larger incomes than are now available to com¬ pensate for increased taxes, and anticipate an adequately com¬ pensatory rise in rents by next spring. Tenants, on the other hand, are generally considering the necessity of securing en¬ larged quarters. In these circumstances neither landlord nor tenant is disposed to bind himself for more than a year. The feeling that rents wil! presently take a decided upward turn is general, and the first substantial indication of a realization of this expectation is all that is required to restore activity to im¬ proved property, That improved property, including premises which are not of the most recent construction, is more exten¬ sively employed than for years past is evident to the most casual observer. It is suggestive, for example, that while the past quarter, as compared with the flrst quarter of 1899, the plans filed for new buildings show a decrease in estimated cost of 58 per cent., the plans for alterations show an increase of 11 per cent. The present is undoubtedly a transition period. The movement which has spent itself in unimproved property has not yet gathered headway in improved real estate. Investment realty lies next in the line of activity, but when it will be reached de¬ pends upon the conjunction of too many forces to make pre¬ diction of any value. ANOTHER important building will, doubtless, soon excite the active attention of architects and builders now that the Chamber of Commerce has secured the million of dollars of subscriptions they required before attempting to purchase a site or build the home they have desired for so many years. It is interesting to note within what a small circle the Chamber has made its temporary homes during its existence. Prom the south¬ east corner of Broad and Pearl street to the same corner of Nassau and Cedar street is not far to travel in 132 years. The latter point was attained, it is true, by a detour to Wall and Water street, but as we have said the circle of movement was very restricted. This circle, however—or semi-circle rather, be¬ cause the Chamber has never crossed Broadway—is the one that has held fast since the foundation of the city tbe most influential financial and commercial interests of the community, and, as it has been the banker and merchant who have mainly composed the Chamber, its abiding place within their midst is explained. The interesting question now arises whether the Chamber in these days of rapid transit can go out of this wonderful area, or whether its affiliations with the financial district will keep it there in spite of the high cost of land?