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Real estate record and builders' guide: v. 69, no. 1788: June 21, 1902

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June 21, 1902. RECORD AND GUIDE, 1135 DEvi)TE2 TO I^L Estate . BuiLDlf^G ^^ttzcture J^ousbIoid DEOOijnDit BusitJEss AfiDThemes of GErten^.tiitERgsT. ?aiCE PER YEAR IN ADVANCE SIX DOLLARS "Published eVers Saturdag OommuntoatlaiiB sbould be addressed to C. W. SWEET, 14-16 Vesey Street. New YorK . §, v. UNDUE y, BoelDess Manager Telephone, Oortil&ndt Sl*7 'Entered ol the Post OSice at New Tork. N. T.. aa second-class matter.' Vol. LXIX. JUNE 21, 1902. No. 1788 ALL that can be said of the Stocli Marlcet is that during the week there has been some good buying along conservative lines—that Is, among sure dividend payers and bonds in good credit. This buying is explained by the necessity that will soon -arise of providing a use for the July disbursements. It is earlier than usual because it is becoming more difficult than ever to in¬ vest money satisfactorily and profitably. Pool buying has also been a distinctive feature. Generally speculation, however, ■Is small and as a result that side of the marliet is very dull and ■commission brokers are complaining. The influence of the coat ■strike on general business has not made itself apparent as it must do if the strike lasts much longer. The general feeling is that it will not, but that it will end as the steel strike of last year ended by the failure of workmen in allied fields to respond, with •something more than sympathy and assistance in money when ■appealed to. For this reason the announcement of the calling ■of the convention of the bituminous coal miners failed to create alarm. For all that, the situation is an unsatisfactory one, and the struggle is likely to last and grow more bitter aa time goes on. Therefore, development in business or advance in prices unless explained by special causes, have the appearance of being .forced and unnaturaL THB serious and regrettable mishap that befel Major Shaler in the Rapid Transit tunnel has not only created much sympathy for tbe victim in building circles, but is also arous¬ ing criticism of the plan of work. It is claimed by practical men that, as a general proposition all rock cuttings under which trains have to pass ought to be protected by brickwork, and that this rule applies especially in Manhattan Island where the rock is fl;aky and seamed and in which "faults" often occur. A letter tak¬ ing this ground will be found in another column, and the subject is one that ought to be taken up without delay. If there is any danger of a repetition of the accident referred to, the tunnel should be protected with a brick arch as boriug goes on. It will certainly not do to wait until a disaster occurs involving a train load of passengers, if there is any need to take preventive measures. F all the best British securities. Consols have suffered most during the period of the Boer war. This is not surpris.ng since tbe British Government have been borrowers in the market during that time of about $320,000,000, mostly in Consols. The difference in price between, now and three years ago is thirteen points, while the decline in Indian and Colonial loans" has not been more tban flve points. One investment railroad stock fell off thirteen points from special causes, but others in this class have felt the temper of the market in a much smaller degree. At the same time Industi'ials suffered, even those issued on the business of providing war supplies; but the greatest suiferers ■were the stocks of steamship companies. In all this may be seen natural commercial consequences rather than the influence of the political events of the period referred to. It ought to be in¬ ferable also, that so soon as the liquidation consequent on the cessation of war expenditure is over and the capital engaged in providing for the wants of the government is released, that gilt-edged securities will appreciate. The relative position, the great sea-carrying nations are to take as a result of the Morgan shipping coup is occupying attention. In Great Britain steps are being taken to meet the American combination and in Ger¬ many attempts are being made to show that the latter cannot pay. In this connection a very pessimistic estimate of the prob¬ able financial results of the combination has appeared in the Frankfurter Zeitung. It is understood that this estimate eman¬ ates from a financier very near one of the great German lines. He compares the probable earning capacity of the company with the actual results obtained by the two German lines for several years past, as follows: The company, having a capital of about $700,000,000, must earn $70,000,000 a year in order to pay a divi¬ dend of five per cent, and write off five per cent, which latter is regarded as the lowest possible allowance for depreciation of steamers. But in order to obtain so favorable a result, the Trust, having a tonnage of about 700,000 tons, will have to earn, roughly, $25 per ton yearly. On the other hand, the two Ger¬ man lines, having for several years past an average of about 900,000 tons together, have only been able to earn about $12.50 per ton. It is regarded as quite impossible that the Trust, with its 700,000 tons, should earn twice as much as the German lines with their 900,000 tons. The Real Estate Situation. The sales reported this week cover almost all sections of th« city from the jewelry district down town to almost the upper end of the Bronx, including also all classes of property from old buildings to the most modern and up-to- date apartment houses. In the latter class Is The Work the Barnard, at the corner of Central Part of the West and 71st street; Mr. Kight built thU Week. house for sale, and the pity Is, that after sev¬ eral years of hard work incidental to th« handling of a big proposition of this kind, th» best he could do was to trade it for a little cash and a lot of out- of-town property. Considering the fact that nearly all the West Side apartment houses which have been disposed of recently, were traded for out-of-town equities (?) and a little cash in each case, one is led to ask where is the investor and why don't he buy these properties that show such a big return? A sale of more than usual interest and one which tends to draw atten¬ tion to 6th avenue, north of say 45th street, is that by Judg* Dugro of the northeast corner of 6th avenue and 54th street, at an advance of ?29,000 over the price paid recently at auction. Property on this avenue has not yet been affected by the bij advance in prices that has takea place on 7th avenue and Broad¬ way, and while the L road may be a great objection at present it will not be long before electricity will be substituted for the present motive power, and then the whole avenue north of 42d street will become available for apartment houses or hotels, which do not appear to be affected by the L road; the one at 58th street and 6th avenue, it is said, is more than half rented al¬ ready. The week's news hardly seems complete without the an¬ nouncement of a new apartment hotel or theatre; there is one of each this week; the theatre will be built by B. F. Keith, on 39th street, near 6th avenue, and the apartment hotel, strange to say, is not in the Longacre Square district, but on 77th street, just east of Columbus avenue and opposite Manhattan Square, a remarkably good site for such an enterprise. The Orleans, at Columbus avenue and SOth street, facing the square and the L road, is said never to have a vacancy. The decision of a prominent cloak house, now at Broadway and 12th street, to erect a bnilding, and open an establishment on Slth street, is interesting both because of the old situation, which has been vacated and the new situation which is to be occupied. The removal of an- The Northerly Other large firm, from a location, which forms Movement of a part Of the llth street shopping district is Betail Trade, strongly suggestive of the inevitable transfor¬ mation of that region from being partly a re¬ tail and partly a wholesale district into a dis¬ trict devoted almost exclusively to wholesale business. A num¬ ber of large retailers are hanging on to their shops on Broad¬ way, south of 14th street, and on 14th street itself; and doubtless they will continue to do so for many years to come; but it looks as if in the long run they would be forced to move. We do not believe that either the New Jersey trolley terminal at Hudson and Christopher streets, or the express subway station at 14th street and 4th avenue, will exercise a sufficiently strong influ¬ ence to counteract the obvious tendency toward the concentra¬ tion of tbe retail trade further north. The removal of R. H, Macy & Co. alone means that from 25,000 to 40,000 people, that are now brought daily to 14th street on shopping bent, wil! not hereafter throng the streets, and spend some of their money in other places. We have no doubt that stores, such as Wana- maker's and Hearn's will be obliged in the end also to move, and to leave the vicinity of 14th street and Broadway and 5th avenue to the wholesale dealers. Such large shops cannot afford any but the very best locations. They must be central on the penalty of becoming merely local shops, and of losing the prestige that attaches to an unexceptionable central location. It loolfs now as if 14th street would be too far south and that one firm after another would have to follow ^