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Real estate record and builders' guide: v. 75, no. 1940: May 20, 1905

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May 20, 1905 RECORD AND GUIDE De^tiD to RE^LEsTAji.BuiLDifJb Afi&KrrEeTui^,HousnfiaBpEO(H^nDiti Bi/sniEss Aifo Themes of GEjteRiVjKTEflfST* PRICE PER YEAR IN ADVANCE EIGHT DOLLARS ■ Published every ^Saturdap Communlcationa ahouid ne addressed to C. W. SWEET, 14-16 Vesey Street, New "Vorfc , Tolephono, Cortlandt 3157 "Entered at the Post Office at Ncm York. JY. Y.. as second'-claai matler." Copyrieht by the Ronl Estate Eoeord and Builders' Gnido Company, Vol. LXXV. MAY :1U. ll)U5. THE Stock Market has this week, which -wil erators frora attempting to force received another black eye pretty well discourage op- prices up any higher for the present. The decline was started partly by the fear that the former "community of interest," in the Northwestern railway situation would be suc¬ ceeded by an active lack of community; and it was assisted by reports of crop damage and the possibility that it waa not merely a lull in the iron business, which -was threatened but another famine. It looks as if the danger from all the causes mentioned above had been exaggerated; but whether or not, the professional speculator has again been compelled to throw over his holdings; and he is not likely to take them on again in a hurry. There are undoubtedly forces at work in the present market, which are extremely difficult to estimate, and which counteract the good general outlook. In one way or another confidence has been undermined, and -while the undermining has not gone far enough to bring about an active and prolonged selling movement, yet it undoubtedly intensifies every noticeable decline in prices which occurs. The waters are troubled at pres¬ ent; and it may be sometime before prices will again rise steadily or much; but nothing has happened as yet to make a cool-headed man distrust the general situation. LAST week the Record and Guide suggested that the sale of the Park & Tilford property on the Plaza might have a reactive influence on the neighborhood of 34th SL and Bth Ave; and the suggestion was justified by the rumor published during the week that Park & Tilford had purchased the Tab¬ ernacle property. It is true that the rumor proved not to be true; but the admission is made that negotiations have been underway. Whether they do or do not result in a sale, it is an extremely interesting fact that a firm such aa Park & Tilford are looking for a site in this particular neighborhood. It must mean tbat along with other retailers of that neighborhood, they are proposing to abandon their store on Broadway south of 23d St,, and to seek a site in a more central location. If such is their purpose (and it is natural that they should want to leave 20th St, and Broadway) they could not have a situation better suited to their business than one on Greely Square. It will be the most accessible point in New York, not only from all parts of Manhattan, but from New Jersey and Long Island; and a flrm lilve Parlv & Tilford has many accounts among suburban residents. Indeed, a store on Greely Square would probably be intended more for the hotels and for the suburbs than for Man¬ hattan residents, because the latter are supplied chiefly from the establishments on 72d St. and the Plaza. If the purchase ia consummated, its effect will be still further to Increase the specu¬ lative excitement in the 34th St. neighborhood. The other im¬ portant piece of news of the week concerns the block front on Park Ave., between 40th St, and 41st St,, which is said to have been practically sold for hotel purposes. This may or may not prove to be true; but the price reported does not seem to be particularly large—viz., $53 a square foot for oae corner. It indicates that the demand for business locations on Park Ave. must become still more exigent, before the handsome residences on that avenue between 40th and 34th Sts., can be dislodged. Residence property on the avenue has sold at higher prices than the one named above, although, it must be admitted, under somewhat exceptional circumstances. Nevertheless, In case a railroad terminal is established near 32d St. and Park Ave., it seems inevitable that Murray Hill will eventually have to suc¬ cumb to business—not only because property in the vicinity will become more desirable for business, but because it will be¬ come less desirable- for residence. laying 1th 'T^HE Rapid Transit Commission has acted wisely In layl -I- out a four-track Subway across 34th St., connecting w a tunnel to Long Island City; and this action, although it ap¬ parently favors the Metropolitan interest is as a matter of fact merely a consistent application of the policy adopted of encouraging competition. To have specified a mov¬ ing-platform for 34th St,, would have been to exclude competition. Only one company could have bid for a moving-platform, whereas both of them can bid for a four-track Subway. Mr. Belmont can have it, in case he will pay enough for it. So it is with the tunnel from 34th St. under the East River. Apparently the Metropolitan Company has aalced that this route be laid out; but it it gives the Metropolitan-New Haven-Pennsyivania combination an opportunity to compete with Mr. Belmont's 42d St. tunnel to Queens, it also gives Mr. Belmont a chance to compete with the Pennsylvania's 33d St. tunnel to Long Island City. The liveliness of the competition, which is going on between the two interests even at thia early stage of the business inevitably suggests a question as to how long it will confine. The system of new routes laid out by the commission has been framed particularly for the purpose of taking advantage of the competition; but what if the two com¬ panies should come together at the last moment and divide the spoils? Stranger things have happened. Indeed, hitherto com¬ petition among street railway companies has always proved so disastrous to both parties that eventual combination has been the inevitable outcome, and it is for thia reason the Record and Guide has always believed that the commission should possess, as a reserve force, the power, if necessary, to construct and even to operate a Subway with municipal funds. At the present time it can refuse to make a bad bargain; but it has no power of ef¬ fectually flghting a combination of the competing rapid transit interests, which would seek to obtain the franchises for less money than they are worth. WHEN the methods and purposes of any particular business have a tendency to become professional, they also have a corresponding tendency to become secret, because secrecy, and the existence of special information in a few hands which it implies, is an important asset of the professional operator. Thus the increased professionalism, which has invaded the real estate business in New York has been accompanied by the with¬ drawal of information concerning property which was at one time freely granted. Time was when the prices, at which a parcel of real estate sold, were almost always expressed in the deed, whereas at the present time it is always omitted except when there is some legal reason for including it. More recently another practice has become popular with a number of important money- lending institutions, which tends still further to diminish the value of the public record; and this practice concerns mortgages. Of course the amount of the mortgage cannot be withheld; but the rate of interest and the date of its expiration can be in¬ serted in the bond instead of in the mortgage, and in this way can be made diflScult of access. Certain money-lending com¬ panies have adopted the practice, because it checks the activity of mortgage brokers, who when a mortgage expires tempt the borrowers with the offer of more money, or perhaps, a lower percentage on the money. Some other institutions object to it emphatically, because It withdraws from the public record facts vitally affecting real estate titles. It is improbable that the opposition will avail to diminish the practice, because it has been adopted only after careful coosideration, both of the prac¬ tical and legal objections, which can be urged against it. But it is difficult not to sympathize with the people who are making the objections. The interests of the owner of real estate, and of real property as a form of investment, demand that the record should contain as much as possible, instead of as little as pos¬ sible. IN tt list of suggestions recently addressed to the Rapid Transit Commission by the City Plan Com¬ mittee of the Municipal Art Society, the following item appeared: "Arcaded Subways should be provided under congested streets such as lower Third Ave., 14th St.. 23d St.. 34th St- and 69th St,; the convenience ot entrance to trains will thus be facilitated and abutting property enchanced in value by th© additional street frontage obtained. An Interesting ex¬ ample of this construction Is to be noted at the Subway station adjacent to the 23d St. entrance of the Interborough system." The shops on the Subway level at 23d st and 4th av are cer¬ tainly an interesting example of an "arcaded Subway"; but it may be doubted whether in this instance the "abutting prop¬ erty" has been enhanced in value by the innovation. The Rec¬ ord aad Guide has watched experlmeiLt cacefuUy, because if