Columbia University Libraries Digital Collections: The Real Estate Record

Real estate record and builders' guide: v. 51, no. 1300: February 11, 1893

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February 11, I8«8 Record and Guide. 206 vim£^ estabushed'^niakch?!*--^ les^ ^ Busittess wfelHEWEs" Of CeSe!^^ lH'i^.^f-n PRICE, PER YEAR IN ADVANCE, SIX DOLLARS. Published every Saturday TBLBPHONa .... COBTLAHDT 1370. UoninmnicationB should be addreased to C. W. SWEET, 14 & 16 Vesey SU J. 1. LINDSEY, Business Manager. "Entered at the Post-offi^ce at New York, N. ¥., os second-class matter." Vol, li. FEBRUARY 11, 1893, No. 1,800 An illustrated supplement, showing hy statistical tablei the record of building operations on the West Side during the last two years, and containing other valuable and interesting m .tter, is published icith to-day^3 issue of The Record and Guide. Subscribers and pai-chasers should see that they receive a copy with the regular issue of the paper. IT has rarely happened that ao much bad news affecting financial interests haa been received in any one week, and it bas often occurred that much less has broken prices more. There has been tbe laJk of strikes, bad weather interfering with tbe operation of the Northwestern roads, gold shipments and, finally, the refusal of both bouses of Congress to take up the co-isideration of the Silver law with a view to its repeal. The action of the banks in putting their shoulders under tbe Treasury alarmed more than it soothed, notwithstanding the almost unanimous indorsement it received from the daily press. Witb all this the decline in prices was uot only mod¬ erate but vei'y moderate and a prompt rally took place yesterday afternoon on the mere report tbat the Treasury had met the situa¬ tion until a new Congress assembles by placing 1$50,0(JO,COO of gold bonds here and abroad. With so much lateral strength it would be remai'kable if there should be any great break in prices. ^OME Elm street, property-owners fear that they are in danger ^^ of becoming victims and, as nobody hankers for the unpleas¬ ant position of " victim," even to the development of a metropolis, they have banded themselves together to protest. Assemblyman Webster became responsible for tbe altar and all the implements of sacrifice, by introducing Bill No. SOS, which we are safe in saying isa Tammany measure if, indeed, Mayor Gilroy is not personally responsible for it. Itmigbt be entitled "a bill to bring improve- menis greatW needed in New York City within tbe limits of possii- biiity," but Elm street property-owners regard it as more than tbis. It provides that tbe city may take possession, after certain official preliminaries, of any property needed for municipal improvements mmediate^T/the Commissioners of Estimate and Assessment have filed their oath. As our readers know, under tbe present law, the city has to await the confirmation of the Court of Awards and Assessments before it can obtain possession of property required and begin work, resulting in delay which in many cases has run into three and four years and even longer. Tbe Elm street property'owners feai' tbat under the new regime which this Webster Bill is intended to establish the interest of mortgagors in property required by the city will be sacrificed sadly. Owners of mortgages, tbey contend, realizing 'that their security is impaired and made less valuable, will imme¬ diately proceed to call in their mortgages, and failure to pay wiil necessarily result in foreclosure proceedings and loss to tbe mort¬ gagor. No doubt there is an element of injustice in tbe Webster Bill. Particular interests will suffer from time to time. Tbis possibility of injustice or harshness is apparently inseparable from the rigbiof eminent domain bowever and whenever it may be exercised. But it is not always in action, and it will not.be under the Webster Bill. All will depend upou what view mortgagees will take of how the property they are interested in will be .aifected by any municipal improvement. Under tbe existing system .thereis the possibility thatmortgagors may suffer from tbe action of mortgagees, and it would not be easy to devise any method of proceeding that would be quite free from possible objections. It is nonsense to suppose that with the Webster bill all mortgagees will always call in their claims, and that all mortgagors will invariably suffer. However, we feel sure that the city authorities are not anxious to inflict unnecessary injury on any body, and probably they would not be averse to any reasonable amendments to the Webster bill to protect the rights of mortgagors. Let the Elm street property owners present their ideas on the subject, but we would recommend tbat they take no extreme position, for toa large extent the Elm street improvement depends upon the Web¬ ster bill, or rather the principle it embodies. The Elm street pro¬ ject has been proposed and talked of for decades, but nothing has been done. A much-needed improvement has been ridiculously delayed. We now have a Mayor and a city administration tbat is ready to act, but nothing will be done if the delay of waiting for tbe present process of condemnation cannot be avoided. Before the awards and assessments can be determined Mr. Gilroy's term in the Mayoralty will be ended, and perhaps the new administration will not desire to undertake the improvement. Under the Webster Act work could be commenced this year. THE fight which is now taking place in Brooklyn between the politicians and the street railway companies is very amusing and instructive ; but another fight, which is taking place in that city, is not less significant. It originated apparently in the attempt of J. Edward Addicks, of Boston, to get complete control of the various gas companies in Brooklyn. Thia Mr. Addicks is a Dela¬ ware merchant, who went to Boston some years ago, and succeeded in consolidating all, or nearly all, the gas companies in tbat city ; and Ihe consolidation was so profitable to himself that he is now called a millionaire several times over. Doubtless many economists will tell us that Mr. Addicks, in helping himself so liberally, could not fail to help the community ; but unfortunately for this optim¬ istic view of things, Mr. Addicks' fellow-townsmen in Boston do not altogether appreciate his efforts on tbeir behalf. They find themselves supplied with very poor gas at a very high price ; and tbey are beginning to grudge Mr. Addicks his millions, and talk about starting a municipal plant. Mr. Addicks himself, bowever, has found nothing in the operation which does not deserve imitation ; and he decided to show how appreciative be was of the opportunities wliich American cities offer to tbe ■'enlightened selfishness" of capitalists by undertaking a similar operation in Brooklyn. His plan, as it has been outlined in a Boston paper, is as follows: Brooklyn is supplied with gas by eight companies, with $11,000,000 in capital stock and §3,750,000 in bonds. The present net earnings of these eight companies is about §1,800.000, which allows for about 10 per ceut on tbe stock issued. He wants to obtain control of the corporations and have them bought out by a new financing corporation to be known as tbe Beckton Construction Company. The capitalizalioo of the new corporation is to be $30,000,000 in stock and §15,000,000 in 5 per cent bonds, an increase of 237 per cent in the total capitalization. Of course, Mr. Addicks does not expect tbat he cau pay dividends on the stock of his new company immediately; but he knows that tbe consumption of gas iu Brooklyn is increasing rapidly, and that in a few years his 237 per cent of paper would be quoted in round figures on the New York Exchange, In tbis way Mr. Addicks doubtlees espected to double the millions made by his enlightened selfishness in Boston. So far, however, his plan has not succeeded. He has obtained control of onlyonesmall company; and his efforts to extend his power are meeting with fierce opposition. Consider¬ able talk is being had about a "gas war" which is soon to take place. Itis stated, even, that gentlemen interested in Brooklyn gas stocks have made an attack on Mr. Addicks' rear by purchasing a plant in a Boston suburb, which could possibly compete with his Bay State Gas Company. So the Beckton Construction Company is having a more] checkered career than the Brooklyn Traction Company. THE fight is apparently a very hot one: but we not believe tha the probable end of the contest is at all doubtful. Like the fight between the Brooklyn rail" ay companies and the politicians, it is merely a fight over the spoils. Some generally acceptable agreement will surely be reached ultimately; and the people of Brooklyn will be asked to pay tbe expenses. Such is always the result of "gas wars." The struggle'is too disastrous while it lasts: and the profits of consolidation and annuity too seductive to be long foregone. Gas companies, like municipal railway companies, tend inevitably lowards consolidation, because more money can be made by a consolidated company than by a number of separate i;on- cerns. The way in which the consolidation is brought about differs, bowever, in the two cases. The municipal railway busi¬ ness does not offer very many opportunities for competition. The tracks of two different companies cannoE be laid in the same streets; and when they are laid iu parallel streets, so much of the business is local tbat the comiu-titiou is of but small importance. It can never act by beating down prices; it can only take the form of a struggle between the iwo companies, each to ofi'er tbe better service, and the limits of such a contest are obvious. Municipal street railw.ays consolidate, not because warfare is disastrous, but because union is so profitable. Gas service, on tbe other hand, offers good opportunities for com¬ petition, becauae two or more sets of mains can be laid in tbe same street, and he.q.a.uEe the battle is necessarily oiie of rates. c;onf'e- d