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September 2, 1905
RECORD AND GUIDE
"Wra 10 Re^EstaieIbuildiKo %^iTEcnuiiE.K<iwsEriou)I)EQffltp»i4i
BUSDfeSS AltoTHEHlES Of GEHER^VlKTCTifSl^
PRICE PER YEAR IN ADVANCE EIGHT DOLLARS
Pablisfied eVerg Saturdag
Communications should ne addiessed to
C. W. SWEET, 14-16 Vesey Street. New York
Telephone. Cortlandt 3157
"Entered at the Post Office at New York. N. T., as second-class matter."
Copyrleht by tho Real Estata Eecord and Bnildera' Gnlda Company.
No. 1955.
Vol LXXVI.
SEPTEMBEK 2, 1905.
INDEX TO DEPARTMENTS,
(Advertising Section.)
Page
Cement ................ xxv Law ................... viil
Clay Products ........... xxiv .Vach;ntr/ ............. v
Contractors and Builders.. vi Metal Work ............ xxii
Fireproofing ............ ii Stcne .................. xxiit
Granite ................ xiv Quick Joh Directory...... xxvi
Heating ............... xx Real Bstate ............ x
Iron and Steel .......... xviii Wood Products.......... xxii
THE real estate market is alrefidy showing sigQS of a re¬
vival of activity. The sales reported day by flay are
fifty per cent, larger than they were a few weeks ago. They
are comprisecl chiefly of flats and tenements, and such must
continue to be the case throughout the fall. The investment
demand for real estate must show itself capable of absorbing
an unusually large number of new tenements during the next
twelve months. More than twice as many buildings of this
class will bs offered for sale than were offered during the
last twelve months; and this is an increase which will test
severely the popularity of one class of investment. For¬
tunately, however, the new buildings will he well rented, and
btiilders can afford to sell them at a price which will enable
the investor to obtain a good return on his money. Consid¬
ering the time of year, a large numher of private dwellings are
also being sold, but the demand for such dwellings has not
as yet encouraged builders to resume their construction. One
speculative construction company has, indeed, announced its
Intention of constructing twenty small dwellings on the
Heights; but the enterprise is noteworthy chiefly because of
its exceptional character. The plans filed during the present
year show only one other operation of this character In this
district. On the other hand, plans have already been filed for
260 tenements to be erected on Washingtcn Heights, at a cost
of not far from $14,000,000. As long as the erection of cheap
dwellings attracts th« capital of such a small number of build¬
ers, the few- who do engage in it will come out very well; but
it may be doubted whether the existing demand would absorb
200 new buildings of this class during a single year. The
people of New York are acquiring the habit of living in fiats;
and only the well-to-do care for the comparative responsi¬
bility anfl expense of a whole house. Year by year the stock
of private dwellings in Manhattan actually diminishes with¬
out causing any important alteration betweeii supply and
demand.
ONE sufficient indication of the assured re-election of
Mayor McCIellan is the confusion which prevails in the
ranJcs of the adversaries of Tammany Hall, They cannot agree
upon any effective line of opposition. Some newspapers and
individuals, who, under ordinnary circumstancnes, oppose any
candidate nominated by Tammany, are advocating the re-elec¬
tion of Mayor McCIellan on the ground that in case he secures
independent support, it will strengthen his hands against the
worst elements in his own party and enable him to act even
more independently during his second, than during his first
term. The assumption of this attitude means that no fusion
candidate wili be able to obtain the cordial support of all the
anti-Tammany groups. On the other hand, the opponents of
Tammany, wbo believe In trying to nominate a fusion candi¬
date, can see no hope ol victory except by persuading Mr.
Jerome to head the ticket, and there is no chance that they
will succeed in obtaining the District Attorney's consent to
such a project. Mr. Jerome will almost surely be re-elected
to his present position, to which he is adapted iu every way,
whereas' in running against Mayor McCIellan he would be
leading a forlorn hope. In view of the popularity of the pres¬
ent Mayor and his assured re-election, It seems to the Record
and Guide that the efforts of the opponents of Tammany
should be concentrated upon an attempt to run strong: candi¬
dates for the ofiices of - Comptroller and President of the
Board of Aldermen. In a not improbable contingency, the
President of the Board may become Mayor before the term
expires to which new Mayor will be elected; aod in any event
the most effective method of securing good government for
New York City is to elect an incorruptible and competent
Board of Estimate and Apportionment. Unless the Mayor can
count upon the co-operation of such a Board, he is powerless
in all important matters of municipal policy. Consequently
it is very much to be hoped that Comptroller Grout will be
re-nominated, and will see his way to accepting the nomina¬
tion. New York City has never had a head of the Finance
Department who was more completely and intelligently de¬
voted to the public interest.
EVIDENTLY, there will be a good deal of fliscussion of
municipal ownership of public utilities during the local
campaign this fall, but it is not so evident that any immediate
good will come of it. Both parties are ready enough to come
out for municipal ownership, provided the party leaders be¬
lieve that a few votes can be gained thereby, but those lead¬
ers know perfectly well tbat a local administration is power¬
less to make any effectual step in the direction of such owner¬
ship. The city authorities can accomplish nothing without
State legislation, which will enable them to issue the neces¬
sary bonds. Furthermore, it frequently happens that the local
oflicials are prevented from moving hy provisions of the mu¬
nicipal charter, and even by clauses in the State constitution.
The Mayor of Chicago, for instance, is apparently able to ac¬
complish nothing towards redeeming the platform on which
he was elected, because of existing restrictive legislation; and
In the case of New York, the constitutional provision restrict¬
ing the debt limit to ten per cent, of the assessed valuation
of real estate makes municipal ownership practically impos¬
sible. The existing debt margin is barely sufficient for the
current needs of the city, and the city will be unable to con¬
struct even the necessary additional subways by the use of
its own credit. Until this clause in the State constitution is
either repealed or modified, it is futile to talk about munici¬
pal ownership. The only advantage which is derived from the
agitation, which the subject is constantly receiving, consists
in the preparation of the public mind for possible municipal
ownership at some future date. If the public service corpora¬
tions behave themselves, and are content with a fair rate of
profit on their business, such ownership is unnecessary and
undesirable; but. Inasmuch, as these corporations frequently
deem themselves entitled to extortionate returns, the city au¬
thorities should have the power to take any step in the direc¬
tion of municipal ownership, which the public interest dictates.
Such power should be considered as a weapon to be held in
reserve, and to be used only in the case of an emergency. The
municipal lighting plant, which the City of New York for¬
tunately had the power to build, is an excellent illusti'ation of
the proper and necessary use of such a power; and it is a pity
that the city officials are deprived a similar weapon in nego¬
tiating with the lessees of the new subways. ...
THE practical consummation of peace between- Japan and
Russia will not vitally affect the financial situation in
this country, but it removes one important danger. In case
peace had not been concluded, the failure of the negotiations
would have had a serious effect upon the European money
marltet, which in turn would have affected the money market
of this country; and it is possible that the disturbances pro¬
duced thereby, would have effectually cheeked any further
rise in prices during the coming fall. The success of the nego¬
tiations at Portsmouth removes this danger, and it assures
American bankers that they can obtain, at satisfactory sales,
the money which they may need to borrow in Europe between
September 1st and January 1st. Both Japan and Russia will
have to do some further borrowing in order to wind up their
military operations; but the cash they will have to raise will
be comparatively small, and their creditors will be relieved of
all apprehensions. On the other hand the termination of the
war, which during its continuance has been profitable, both
to American industries, and American railroads, will have a
certain effect upon the business activity of this country. The
Stock Market continues to behave in a re-assuring and whole¬
some manner. The substantial increases which have taken
place in the prices of securities have been accomplished with¬
out creating a top-heavy and perilous speculative situation.
The steady demand for stocks at the existing level of values
is suflicient to carry the market over recurring weeks of profit-
taking sales. Excessive speculation in any one stock is ef¬
fectually discouraged. Every week provides an additional as-