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July 8, '1905
RECORD AND GUIDE
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Bi;sniEss>ufD Themes oFGEjiER^llKTa^q^.
PRICE PER YEAR IN ADVANCE EIGHT DOLLARS
Published eVerg tSaturdag
•Communications should D6 addressed to
C. W. SWEET, 14-16 Vesey Street. New York
Telephone, Cortlandt 3157
"Entered at the Post Office at New York. N. Y.. aa second-class matter."
Copyright by tte Heal Estate Record and Bnlldera' Gnlde Company.
Vol. LXXVI.
JULY S, 1905.
No. 1947,
INDEX TO DEPARTMENTS.
(Advertising SectloE.)
Page
Cement ............... xxv
Clay Products .......... sxil
Contractors and Builders. v!
Firepr!)ofing........... x\i
Heating............... xxiv
Iron and Jteel ..........xviii
Page
Law................... vlll
Machinery .............. t
Metal Work............. xx
Real Estate............. xill
Stone .................. ixill
Wood Products .......... xxyl
THE bullish speculators are evidently determined to antici¬
pate immediately aTiy rise In prices warranted by the Im¬
proved conditions which may take place during the summer,
and it is entirely possible that if they push this idea too hard
they may delay rather than expedite the prevalence of a higher
level of prices. The market has already done pretty well and
has recovered more than half of its losses during the spring
break, and before going much further it would be just as well
to wait a few weeks and ascertain just what it can count upon
in the way of crops and increased dividends. The sharp rise in
commodity values which has been taking place recently does
not constitute a very good basis for a bullish speculation in
stocks, and it is worth considering whether there is sufficient
loanable capital available for speculative purposes to justify
any considerable campaign in favor of higher prices. General
business is very active all over the country, and large amounts
of money here and elsewhere are being tied up in building opera¬
tions. The adverse conditions do not forbid a certain rise ia
prices throughout the summer, but if the rise becomes too
sharp and costs too much in the way of borrowed money, they
will very soon make themselves felt.
TT WAS fitting that the activity of the most active season ever
â– ^ w-itnessed in the New Tlork real estata market skou'ldjculminate
in an explosion of business wholly unprecedented in its amount
and character. The explosion was produced of course by the
fact that the new mortgage tax became collectable on all
mortgages recorded on July 1st or thereafter, but it could
never have made as much noise and bother as it did were it not
that an enormous number of building projects were under con-
sidei-ation and were hastened by the desire to avoid the tax.
The consequence was that whereas in 1904 some 336 mortgages
were recorded in the six days between June S4th and June 30th,
the corresponding figures for the current year, including, how¬
ever, only flve days, were 1,156. If the last two days of the
month had been added to the foregoing, it would have been
more than trebled. That is, fully 4,000 mortgages were recorded
during the last week of June, 1905, against only a few hundred
in the corresponding week of 1904, Just about two-thirds of the
amount of money which was loaned by these 4,000 pa¬
pers carried interest at six per cent, and will be used
ror building operations. The building loan contracts alone
recorded on these days called for the lending of about $30,000,-
000, and included papers covering four structures which will
be as much as twenty stories high, viz.: the new Boreel Building,
the new Plaza Hotel, the building of the United States Ex¬
press Co. and the West St. Building. It has assuredly been a
year of great opportunities for the corporations and individ¬
uals whose business it ia to loan money on real estate. In
Manhattan, for instance, the number of conveyances recorded
has increased about 35 per cent, but the number of
mortgages recorded has increased by 55 per cent. Over twice as
much money has been loaned on iVIanhattan real estate during
the first six months of 1905 than during the first six months of
1904; a good deal over twice as much has been loaned on Brook¬
lyn property, and as for the Bronx, the. operations in that bor-
ough in 1905 have required three times as much borrowed money
as they did in 1904. By way of comparison, it Is interesting to
note that while in Manhattan and the Bronx between five-eighths
and two-thirds of the money was loaned at six per cent., in
Brooklyn the popular percentage was five per cent. In that
borough very little Is loaned at less than five per cent, but about
two thirds ia loaned at five per cent and almost the whole of tha
remaining third at six per cent.
/^F COURSE the storm of business transacted during the
^—' past few weeks Is bound to be succeeded by a calm. The
speculative transactions which would under ordinary circum¬
stances be distributed throughout the entire summer were con¬
summated during the last two weeks of June; and the dullness
seasonable during the summer time, will be during July and
August more than usually conspicuous. Furthermore, the mort¬
gage tax will in the beginning undoubtedly serve to decrease
business. Under existing conditions we imagine that this effect
will not be permanent. It is probable that In the fall there will
be a revival of activity, and that this activity will not be very
much diminished by the imposition of the tax. An increasing
carrying charge of a few million dollars a year ia not suflicient
to check speculative real estate and building operations during
a period in which as many excellent opportunities for profit
exist as there are at present In a few months operators who
need money will be seeking it as actively as ever, and will not be
deterred by the fact that they must pay one-half of one per cent
more for it. The tax will become a serious burden only when the
existing spell of real estate activity is over, and not until then
will it be possible to trace the permanent effect of the tax. Then
the margin of profit is so small that the tax becomes a matter
for calculation, and when, consequently, borrowing is dimin¬
ished because of it then the money-lenders may have to as¬
sume some of the burden of the tax and reduce a little the
rates of interest. For tbe present, however, the outlook is that
we shall have a dull summer in real estate, and an active one
in building, succeeded by a revival of real estate business in
the fall. There are no signs as yet that the pace which has been
set in 1905 will not be continued through 1906,
AN exceedingly interesting development in New York real
estate is the tendency in the direction of converting 72d
st between Broadway and Columbus ave into a business street.
It has never seemed probable that the broad streets between
59th and 110th sts would become important business streets
like 14th, 23d and 34th sts, because Central Park prevents cross-
town traffic and diminshes the area available for habitation, and
consequently the local population. It is improbable indeed that
the City of New York will permanently put up with the incon¬
venience resulting from the intrusion of an irregular park into
a regular street system, but it will be many years before com¬
mon sense has its way. and. the plan of Central Park is altered
so as to promote the convenience of the neighboring inhabitants.
In the meantime there is plenty of room on the avenues for the
business which must necessarily be transacted east and west
of the park. These avenues are still frequently devoid of stores,
and they contain plenty of space for any additional offices or
shops which may be needed. Nevertheless, 72d st between Co¬
lumbus ave and Broadway may well constitute an exception to
tbis rule. Most of the important stores now existing on the
West Side are concentrated in the neighborhood of 72d st and
Columbus ave, and it will be natural for tbe necessary increase
in the number of these shops to spread in the direction of
Broadway. The square at 72d st and Broadway is becoming
one of the most important in the city, and is lilcely to become
still more important. It has the advantage of a subway express
station, of the location in the vicinity of many huge apartment
houses and apartment hotels, and consequently of a great and
growing density of population. Moreover, these inhabitants are
all comparatively well-to-do, or else they could not afford to pay
the rents necessitated by the high price of neighboring real es-
tate. It will be extremely interesting to observe how far the
development of a local business centre will continue. Just at
present the tendency is all in the direction of business concen¬
tration because the subway enables people to move about more
freely, but it is possible that the peculiar conditions in the
vicinity of 72d st and Broadway may tempt important 5th ave
storekeepers to establish branches thereabouts.
WHETHER Mr. John D, Rockefeller's money is tainted or
not, that gentleman certainly succeeds in spending It on
other people with unusually good judgment There ia
not a gift of money which be haa made for a public