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Atlg-tlSt T2, 1905
RECORD AND GUTDE
,_y - ESTABUSHED'^ i\ABpH BVT^ 1968.
Dd^TED \0 RpA.LEsrWt.BuiLDlK'c AflCtdTECTUKE.HoUSEHOIDDEflOEtJTlOll,,
Bus[(Jess aiIdThemes of GEriERil lliTEti.EST.;
PRICE PER YEAR IN ADVANCE EIGHT DOLLARS
Pubtished eVerg Saturdap
Communications should ne addiaaaed to
C. W. SWEET, 14-16 Vesey Street, New York
TelophoBe, Cortl.indt 3157
"Entered at the Post 0.fflce at New York, JSf. T.. as second-class Tfialler:'
Copyright hy the Real Est.ite Record and Bailders' Guide Company.
AUGUST ]2, 1905.
INDEX TO DEPARTMENTS.
Cement .............. xw
Clay Products .......... xi'iv
Conlr.ictcrs and B.;ilders. vi
Fireproofing .......... ii
Grauite .............. xlv
Heating .............. xx
Iron and Steel.......... xvili
Meta! Work .........
Quick Job Directory..
Real Estate .........
Wood Products ......
THE remarkable advances wtrich have recently been taking
place ill the prices of a number of higli-pviced securities,
have been the sensation of Wall Street; and they are as certain
to result eveiitualiy in new financial arrangements on the part
of the corporations concerned, as if the companies were failing
instead of enjoying: extraordinary prosperity. Stocks which
sell any where from 200 to 450 and which do not distribute more
ihaii a small proportion ot" their net earnings, are not fit maÂ¬
terial for stock market trading. Schemes will undoubtedlv be
worked out in the course of time whereby the assets which
justify these high quotations will be distributed and repreÂ¬
sented by larger volumes of securities which pay lower dividend
rates and sell for less money. Such financial schemes have not
been very much in favor during the past two years; but now
that confidence has been restored, we may expect that the great
manufacturers of securities will resume business. They cerÂ¬
tainly have many opportunities to produce large volumes of
saleable goods. In respect to these high-pricecl railway stocks,
it is interesting to note that they consist, not of the great pasÂ¬
senger trunk lines connecting the East and the West, but either
of coal roads or of roads whose mileage runs west of Chicago.
It is not the New York Central or the Pennsylvania which
earns twenty per cent, on its stock and sells between 2fHl and
450; it is the Great Northern, the Northern Pacific, the Delaware
and Hudson and the Lackawanna. Doubtless one reason is that
in the past financial history of the New York Central and â "â f
tfie Pennsylvania the melon has already been cut several times,
but the lesson on the whole seems to be one which indicates
the paying' quality of honest and competent railroad manageÂ¬
ment. The Erie was almost irretrievably wrecked by its early
controllers, although it operated a line from New York to
Chicago, whereas Mr. Hill has managed to make a railroad
which runs from Minneapolis to the Coast, through a comparaÂ¬
tively uninhabited country, earn twenty per cent, on its stock.
RE^AL ESTATE trading is fair in volume, considering the
season of the year; but it is devoid of new traits or inÂ¬
teresting results. It is confined chiefly to flats and tenements.
The demand for private residences is fair; but it is nothing
extraordinary. No specific indication is afforded as yet of the
dominant lines of activity during the coming season, but there
is every reason to suppose that real estate and building transÂ¬
actions will continue to be much the same in character and
volume as they have been during the past twelve months. The
nndetlying conditions determining the whole movementâthe
enormous increase of the population of the city by immigraÂ¬
tion, will not be altered, because the general business prosperity
which attracts these aliens will persist. But while the populaÂ¬
tion will be inci'easing, no additional means wii) be provided
during the year of distributing It more effectually; and a large
volume of new tenement house construction will be necessary
lo accommodate it. These tenements will be constructd chielly
in the east side of the Eronx, for it is becoming more difficult
than it was to obtain good sites anywhere on the East Side or
Manhattan. A better class of tenement house will be erected on
Washington Heights in even larger numbers than during the
past spring and .â iummer. Indeed, we should not be surprised to
see plans filed for fully five hundred five or six-story flats to be
erected on Washington Heights during the coming twelve
months, and construction will also be commenced in the DyckÂ¬
man tract. We dou'pt very much, however, whether builders
will erect private dwellings on the Heights in much larger
numbers than they hiave hitherto, because the enlarged demand
for residences is looking rather for houses on the East Side
costing from .'i!4ll,0^10 up, than for a cheaper grade of residences.
The existing supply of cheap houses on the West Side and in
Harlem is apparently adequate to the demand; and tbat demand
must be actually less than it used to be, because the supply is
being constantly decreased (owing to the destruction of old
buildings) without causing any noticeable increase in prices. So
far as business property is concerned the area of activity and
new building will be shifted a little further north, and under
prevaijing conditions it should reach a large volume. During
the next few years the majority of new loft buildings will be
erected north of Twenty-third 'Street and along the lifie of
IT would seem as if it were scarcely worth while for the
Lackawanna Railroad Company to erect another large and
expensive terminal in Hoboken, for surely the oflicials of tha
company must realize that they will be forced eventually to
build into Manhattan, The company will be able to keep its
present large suburban traffic, and to secure a fair share of the
enormous increase of the future only by meeting the plans of
its competitors. The competition of tlie Pennsylvania service
might not make so much difference; but the trolley car perÂ¬
vades every town in New Jersey, and in a few yoars will be
carrying passengers without change and by express service
into the heart of the business and amusement districts oi
Manhattan. To ignore this competition or to pretend that the
establishment of a ferry service to Twenty-third ."street is a
. sufficient counter move would be the worst kind of business.
Neither should the cost of the project be too great for the
. Lackawanna Company. It would, indeed, be obliged to purÂ¬
chase a terminus as far east as Seventh Avenue somewhere
north of Twenty-third Street; but it could probably share the
expense with the Erie Company, and in any event tlie cost
would be small compared to that which the Pennsylvania is
incurring. A block of rea! estate should be sufficient for the
station, and this purchase could be made partly to pay. its
own expenses. Every year of delay means an increase in tj^e
expense incurred and the time will come when further delay
will be tantamount to the abandonment of its local passenger
THE proposal of the nominating committee of the Citizens'
Union to run Mr. Jerome for Mayor, is not a wise one;
and Mr. Jerome himself will certainly know enough to reject it.
He would make a much stronger running candidate for District
Attorney than for Mayor; and there is no evidence that if he
were elecled Mayor, he would make a competent official. The
duties of the Mayor of New York are chiefly that of a business
executive; and our Chief Magistrate should be first of all a
man of affairs. But Mr, Jerome has little interest in municipal
or any other kind of business. He is a lawyer, a moralist, a
reformer and a popular exhorter whose business it is to talk,
and the position of District Attorney suits him admirably.
We believe that he has a much better chance to be elected
District Attorney. There are many independent Tammanjr voters
in New York who might vote for Jerome as a candidate for
District Attorney, just as they voted for Roosevelt as a presiÂ¬
dential candidate, but whose loyalty to the organization would
not allow them to vote for Jerome as a candidate for Mayor.
No; let Us have men of affairs for our Mayorsâmen who, no
matter whether they are lawyers or not, show some technical
interest in the tough details and problems of municipal finance
AS the weeks go by, it becomes harder rather than easier
to discover any serious flaws in the business situation.
General trade throughout the whole country is reported by the
mercantile agencies to be both large in volume and wholesome
in character. The prosperity of the iron business for the next
six months is assured, while at the same time there is no
strong tendency towards a big boom and excessive prices. In
certain lines premiums are being paid for early delivery, but the
condition is not what it was in 1902. There is apparently no
danger of any disturbing stringency in the money market during
the remainder of the current year. There is every prospect that
the crops will be unusually large in volume, and will nevertheÂ¬
less be sold at profitable piices. In the stock market many
of the best securities are selling at figures which do not apÂ¬
parently leave much room for a further advance; but according
to the outlook there is nothing insecure about the striictiue of
values. It has been obtained ihrough the puichase of stoclra by
investors, and does not rest to any considerable extent upon
borrowed money. In fact, there are no indications of a "boom"
in any important part of the industrial and commercial territory.
What we see iswholesome activity and steady expansion. Even
the labor unions are on the whole content to enjoy their share
of the spoils, so that the resources of the saving.s banks have
been increasing during the past six months at an unexampled
rate. Indeed, the situation looks so extremely satisfactory that
an observer cannot help harboring a doubt whether it is really
as good as it seems. A man cannot put his linger on certain
tendencies as in 31102; and say that if this sort of thing keeps