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Real estate record and builders' guide: v. 29, no. 743: June 10, 1882

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Real Estate Record AND BUILDERS^ GUIDE. Vol. XXIX. NEW tore:, SATURDAY, JUNE 10, 1882. No, 74:3 Publiahed Weekly by The Real Estate Record Association TERMS: ONE TEAR, in advance.....$6.00 Communications should be addressed to C. W. SWEET, 191 Broadway. J. T. LINDSEY. Business Manager. Our Albany letter this week will be found of special interest to New York property- holders. It gives an account of everything that was done, as well as everything at¬ tempted to be done at Albany during the past winter and spring. In no other journal will be found so complete a resume of the legislation which affects the vital interests of New York property-holders. The daily papers cannot be depended upon to furnish this kind of information. The doings of some tenth-rate politician are considered of more importance by the daily press than the enactment or defeat of laws vital to the in¬ terest of owners of realty. WHY A NEW EEAL ESTATE EX¬ CHANGE. Our reporters have been interviewing sev¬ eral prominent real estate auctioneers and others as to the wisdom of establishing a Real Estate Exchange. There seems to be some misapprehension on the part of certain other dealers as to what we had in view. Our proposition was not simply to have another room for the auctioneers better situated than the one at present in use, but to have a real Excliange not only for the auctioneers but for all real estate dealers. It would be an institu¬ tion iu which every person who wanted to buy or sell realty for clients, or who was in¬ terested in rentals could meet daily for the transaction of business. Of course, the auctioneers under our present laws would still sell estates under the orders of courts, and when executors wished to dispose of property. But in the proposed institution all the business now done by brokers would be transacted within certain hours, like the Stock and Mining Exchanges. Property would be offered to buyers, but, of course, in some different way from the methods of business of other Exchanges. Dealers in realty will at once see what a convenience it would be to have such an in¬ stitution. It would not only multiply transac¬ tions but would bring business from all parts of the country. ■ It would be very desirable to have some great headquarters for the sale of lands of every description. This is a kind of business that can never be transacted by a private firm. The sales must be effected under the auspices of a great Exchange. Buyers and sellers of realty would know just where to go to have their wants sup¬ plied. The auctioneers generally see the point very clearly. They say that if the reforms in the transfers of property suggested by Mr. Dwight H. Olmstead were effected, t wpuld afiji ijnmepsely to tbe value pf sucji an Exchange. Indeed the organization of such a body would in time necessitate the reform of our land laws so as to put them on the same basis as personal property. In connection with this Exchange there might be a bureau for delinquent tenants. A book could be kept giving the names of the dead beats who occupy apartments ^v ithout pay¬ ing for them. In time it would be impossi¬ ble for a majority of such people to obtain apartments in this city. The landlord inter¬ est would pay handsomely for such informa¬ tion. There are many ways in which an Exchange, such as is proposed, would benefit the real estate interest, auctioneers, brokers and dealers, as well as the public at large. COSTLY REALTY. The tendency of the age is towards the organization of great financial institutions and corporations. When these are success¬ ful, they aspire to having buildings which in a measure represent their wealth and im¬ portance. Although some private individ¬ uals own great business structures, yet it will be noticed that our banks, trust com¬ panies, life and fire insurance companies and other corporations own the finest and largest buildings in the business part of New York city. It is true that great capitahsts like D. O. Mills can afford to erect great structures, like that opposite the Stock Exchange, but it is generally corporations which represent associated wealth that own the costliest buildings in the lower part of the city, as wit¬ ness the Equitable, Western Union, Park Bank, "Fort'' Sherman, the Stock Exchange, the Liverpool, London and Globe edifice, and a^score of others whicii can easily be recalled. I'he Farmer's Loan and Trust Comp'jny is about to erect another fine building on South William street and the Williamsburg City Fire Insurance Company an edifice worthy of the location, corner of Liberty street and Broadway. The Washington Building Co.'s purchase fronting the Battery will some day be the site of a noble building as will the proposed Cotton Exchange in Han¬ over square. In view of this disposition of great corpor¬ ations to erect large buildings below the City Hall Park, it will be seen that the area is so limited that it must be an important factor in the future of down town property. All good business corners from th» Post Office down to the new Produce Exchange will hereafter command high figures. The enormous price paid for the small plot of land on the southwest corner of Wall and Broad streets is a case in point. When the building is a large one and over eight stories in height, the price of the ground on which it stands is a minor consideration. Hence it is almost certain that comparatively large areas of property on the southern end of the island will in time command higher figures than even the heart of old London, which at this time is the costliest real estate on the planet. Nor will the advance in price be confined to the most eligible sites, for all the ^ property in the impiedi9.te neighborhood wiU feel the effect. Far sighted mvestors must see that nowhere in the world is there such a chance for an immense return fer a real estate investment as in the businojss portions of this island below the City Hall Park. THE METROPOLITAN ROAD. The action of Jay Gould in postponing the annual election for directors of the Metro¬ politan road, from June to next November, is so flagrant an outrage upon the rights of the stockholders that it ought to create a feeling of indignation that would make New York too liot to hold this conscience¬ less manipulatoir. Some time since we were among those who advised the shareholders to make the best of a bad bargain, and con¬ sider the terms offered by the Gould party. But this last outrage is a little too much, and we now urge all who were in favor of a compromise to follow the lead of Mr. Stout or Mr. Kneeland,^ or whoever it is that is fighting Jay Gould in this matter. It is now very clear that the Metropolitan road is earning very much more than the six per cent, which the Manhattan Company is willing to give its shareholders if they will come to terms. Tlie increase in the busi¬ ness of the elevated roads has been enor¬ mous. We have no doubt that to-day the New York Elevated is earning fully sixteen per cent, upon its capital stock. The fact that the Manhattan Company, in face of tho heavy expenses to which tho roads have been put in the way of repairs and new- equipment, as well as the legal and legis¬ lative disbursements, is forced to declare six per cent, on both classes of stock, showg that tho business of the elevated system is very lucrative, and we have no doubt that if Gould could succeed he would soon be able to declare a dividend upon Manhattan, and we are furthermore convin¬ ced that the stock of the latter would soon be worth par and would be the most valua¬ ble of the three stocks. But there is no reason why the Metropolitan stockholders should consent to an arrangement which would deprive them of their just dividends to enhance the value of a stock, which, less than a year ago. Jay Gould and Russell Sage took solemn oath was worth nothing at all. A great deal is said about communism, but Justus Schwab would never propose any¬ thing so audacious as to seize upon the cash boxes of his rivals in order to add to the prof¬ its of his own lager beer saloon. This is substantially what Jay Gould has done in the case of the elevated roads. He doeg not own the Metropolitan stock, but, in effect, he has the shareholders and company by the throat and tells them they must sun-ender the profits on their line to make his other¬ wise valueless Manhattan stock pay divi¬ dends. The postponement of the election shows that he does not own a majority of the stock, but he wants a few more months' time to manipulate certain of the sharehold¬ ers so as to get it into his hands. The elevated roads are potentially very valuaWe propert^p§, §1jqiU4 t^e aecisipft of