Columbia University Libraries Digital Collections: The Real Estate Record

Real estate record and builders' guide: v. 86, no. 2226: November 12, 1910

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November 12, 19IG. RECORD AND GUIDE 781 ^ ESTABUSHED^ f^U 21^ "868. ''Sl&lCDpRfMEsTAlt.BlJlLDlU'G Aj»^rrECTUI^E.KcnJSDf01BDEOaHM10< BUsntess AifoThemes of GeflER^l lhfTEfiEsi.j l»RICE PER YEAR IN ADVANCE EIGHT DOLLARS Communications should h6 addressed feA Cr W. SWEET Publlsfied EVerff Saturdap By THE KECORD AND GTJIDE CO. President. CLINTON W. SWEET Treasurer, F, W. DODGE Vlce-Pres. & Genl. Mgr., H. W. DESMOND Secretary. R T. MILLBB Nob. 11 to JS Eaat 24tli Street, Ne-w York City (Telephone, Madison Square, 4430 to 4433.) "Entered at the Post Office at New York^ N. Y.. as sceona-i:lass matter." L '■ ■ Copyrighted, LXXXVI- 1910, by Ths Record fi; Guide Co. Vol. NGVHl.MBER 12, 1910. Nn. 2226- THE ELECTION AND RAPID TRANSIT. THE result of the election may have some effect upon the rapid transit situation in this city. It is wholly im¬ probable that tbe Public Service Commission Law wil! be essentially modified, but there is probability that the new Governor will change the membership of the Commission. Newspapers'like the "Times" which had a good deal to do witb the election of Mr. Dix are already predicting the ap¬ pointment of a new body of commissioners, at least for tbe district of New York Gity. It is unlortunate, from some points of view, that such a cliange wiil be made, because it will be a long time before any new commission can obtain the knowledge and experience necessary to tbe efficient transaction of their very important business. MUCH as the Record and Guide bas disapproved of some of the actions of the existing Commission, the public iifterest would be better served by its retention than by the appointment of a batch of new and inexperienced men. But there is this consolation—it will not be difficult for tbe Gov¬ ernor-elect to flnd au abler aud broader-minded group of appointees than the existing Commission bas proved to he, and it is much to be hoped that whoever the new commis¬ sioners will be. Mayor Gaynor will be consulted as to tbeir appointment. It is essential tbat tbey should be willing to co-operate with tbe Board of Estimate, and tbey are much more likely to co-operate effectually in case Mayor Gaynor has something to say about them. Mr. Dix's action in this matter will be one of the most critical and important of his entire term, so if any suspicion of undesirable corporation or political associations attaches to this appointment, it might be enough to wreck bis administration at the very outset. THE extent to which tbe new Public Service Commission will be able to interfere in tbe plans of tbe Broadway- Lexington Avenue route, depends upon what will happen be¬ tween now and tbe lirst of January. The Board of Estimate can easily approve the proposed construction contracts be¬ fore tbe middle of December, and in that case tbe new Com¬ mission will have nothing to do with the tri-borough route but to carry out tbe plans of the present Commission. Every¬ thing depends, consequently, upon tbe willingness of the Board to approve tbe construction of the Broadway-Lexing¬ ton Avenue subway witb the city's money, and without se¬ curing any responsible tenant. What tbe action of the Board will be still remains doubtful. Controller Prendergast and Mr. Mitchel, President of the Board of Aldermen, will prob¬ ably vote in favor of tbe signing of tbe contract. The Bor¬ ough President of Manhattan -usually acts witb tbese gen¬ tlemen. On tbe otber hand, Mayor Gaynor, evidently, doubts the advisability of committing tbe city to sucb an enormous expenditure without some guarantee of an income sufficient to pay the interest on its cost, and bis influence is very power¬ ful. But, on the whole, it looks as if the Board would ap¬ prove the contracts. If it fails to do so, the failure can be brought about only by a most vigorous opposition on the part of public opinion. An increasing body of public opinion is undoubtedly being formed iu opposition to this danger¬ ous flnancial adventure. sit committee of the Chamber of Commerce, for instance, points out that the construction cost of the entire system would be about $210,000,000, and the cost of equipment, about $40,000,000 more, hence the interest on the capital invested after tbe system was in full operation would be al¬ most ?13,000,000, while the net receipts, at best, could not he more tban $10,000,000, Moreover, tbe issue of this enormous mass of new securities in addition to the stock sold for the new water system and for otber purposes would probably force the city to pay over 4H per cent, for Its money. Indeed, one would not like to say what would be¬ come of tbe city's credit during a period of very tight money, yet when anyone points out tbe dangers to tbe whole flnan¬ cial system of the city, of spending such an enormous amount of capital without some guarantee of its profltable invest¬ ment, the great argument used against him is that he bas been corrupted by the Interborougb Company. We shall deal with tbis argument in a coming issue of tbe Record and Guide, but whatever Its value, tbe supporters of tbe tri-bor¬ ough route are confronted by the almost unanimous op¬ position of tbe best engineering and flnancial experts in tbe city. Instead of abusing tbese gentlemen, it would he better seriously to consider tbeir arguments. PARK AVENUE SOUTH OF 42D STREET. THE volume of real estate transactions has, of course; been considerably diminished hy tbe election, but there hag been one transaction which plainly foreshadows import¬ ant future changes. Tbe corner of Park Avenue and 40th Street has been purchased by a firm of speculative builders, whose intention it is to erect an office building on the plot, and there can be no doubt as to the transformation which this and other similar transactions foreshadow. Park Ave¬ nue, from the Grand Central Station to 34tb Street, cannot remain a residential street, and its alteration for business purposes may proceed more quickly than the alteration of Madison Avenue. There are a number of reasons why this change is inevitable. In the flrst place, after tbe new Grand Central Station is finished. Park Avenue will become a busi¬ ness thoroughfare, and the increased tralfic which will ensue will make it less desirable for expensive private residences. In tbe second place, the rapid reconstruction o! Fourth Ave¬ nue soutb of Slth Street will undoubtedly tend to have its effect on Park Avenue immediately above. More powerful, however, than either of these causes is the increasing num¬ ber of rapid transit routes that will contribute to tbe busi¬ ness growth of tbis particular neighborhood. Year by year tbe suburbs served by the Grand Central Station increase in population, and tbey will continue to increase even more rapidly hereafter. It has become the settled policy of the Public Service Commission to give every East Side Subway au express station at 42d Street. Both tbe Steinway tunnel to Long Island and the MacAdoo tunnel to New Jersey ter¬ minate at that poiut; thus, any business buildiug situated in the neighborhood of Fourth Avenue and 42d Street will probably be better connected with more parts of tlie Metro¬ politan district than it would if located iu any other part of Manhattan, and tbis fact is important to the occupant of buildings, not merely because of the convenience of loca¬ tion for the transaction of business, but becauso of the large area from wbich be can draw bis employees. The full force of this fact will not be felt for a good many years, and the transformation of Park Avenue from 40tb to 34tb Street will be retarded by restrictions and by the devotion of the resi¬ dents in that neighborhood to tbeir present bomes, but no motives of tbis kind will prevail against the conditions which make for business development. The property will be much more valuable for business tban for residential purposes, and this fact will be decisive. rpiHB Merchants' Association and the Chamber of Com- X merce have recently come out in opposition to the tri-borough route, and the more the details of the problem are studied, the more the opposition grows. The rapid tran- THE total number of sales reported in this issue is 44, of which 20 were below 69th st, 11 above, and 13 in the Bronx. The sales reported for the correspond¬ ing week last year were 66, of which 27 were below 59th st, 24 ahove, and 15 in the Bronx, The total number of mortgages recorded for Manhat¬ tan this week was S9 as against 160 last week, and in the Bronx 147 as against 133 last week. The tota] amount was $3,551,11'' as against $5,256,595 last week. The amount involved in the auction sales this week was $394,393, and since January 1, $47,733,849. Last year the total for the week was $1,065,408, and from January 1, $52,538,710.