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Real estate record and builders' guide: v. 74, no. 1913: November 12, 1904

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November 12, 1904 BECORD AND GUIDE ^ey " ESTABUSHED ^ HWRPH Si^'*^ ISGS. DE/fflEDpi^LEsTAiE-BuiLoif/G AffPifiTEcrnmE.HoiisnioiDDEefflifimtl, Busitfess Alb Themes Of GEfiER^ ljjTEfVE3T. PRICE PER. YEAR IN ADVANCE SIX DOLLARS Tablished etlery Saturday Communications Bbould be addresBCd to C. W. SWEET. 14-16 Vesey Street, New YorK J. T. LINDSET, Business Manager Telephono, Cortlandt 3157 •'Entered at the Post Office al JTeuJ York, N. Y., as second-class matter." mous, as is the volume of business on the Stock Exchange, but in real estate it is even more exclusively professional. Inas¬ much as those operators are buying not merely to liold as the land speculators used to do, but to turn over to builders within the next year or two, it is entirely possible that an average of $20,000,000 or more will be spent on new buildings on the Heights for 1905 and 1906. There is every prospect, also, that this increase in house-room will be readily absorbed. The icv crease in population north of 125th st will, of course, effect im¬ portant business changes along the line of upper Broadway and on 125th St. Stores, banks, and oifices will have to be provided, as well as restaurants and churches; and all this will swell the volume of building operations. Vol. LXXIV. November 12, 1904. No. 1913. APART from Monday and Wednesday, when some little ex¬ citement was natural, the stock market has been behav¬ ing in a wholesome manner during the past week. Heavy buy¬ ing was succeeded by heavy selling, and prices did not recede as much under tbe selling as they advanced under the buying. The fact tbat the selling has taken place assures tbe market a stronger technical position; and, provided conditions do not change, there is no reason to believe tbat the general trend of prices will not continue to be bullish. The advance would not have contiuued during the past month had the imporve- moBt in business Itept pace witb it; and that improvement is as conspicuous as evei\ It is particularly conspicuous in those lines of heavy manufacturing wbich bave been organized into large corporations; and it looks as if the preferred stocks of tbe best of tbe industrial companies might during tbe next year or two attain a sounder position tban any which they achieved in tbe past. In 1902 tbesc corporations were experiments, and an investor had no guarantee that they were not capitalized too high to maintain dividends through a period of very bad business. Well! tbe period of bad business has come and gone. The w.eaker-of these corporations ceased to pay any dividends. The stronger omitted the dividends ob tbeir common stock, but were not obliged to diminish the dividends on tbo preferred. They will undoubtedly use another prosperous period to strengthen their cash surpluses, and so put themselves in even a stronger posi¬ tion to meet some years of relatively meagre and unprofitable business. Such is certainly tho case with the biggest indus¬ trial company of all—tbe United States Steel Corporation. A'year or two of really good times would enable it to add twenty-flve or thirty million dollars to its resources, and so ju-actically as¬ sure its rate of distriljution on its preferred stoclv. The com¬ mon stock will bave to wait until tbe company bas attained au impregnable financial position. Under such conditions there is no reason why these preferred stocks should not sell at least on a &ix per cent, basis. "y HE agitation against the disfigurement of the Subway ■^ stations by cheap and ugly advertising signs continues to increase in volumo, and to gain in confidence; but it has as yet succeeded in effecting nothing decisive. One gets tbe impres¬ sion very strongly that some at least of the Rapid Transit Commissioners and their counsel regard the wbole business as an unwarrantable interference with the Commission's busi¬ ness by a parcel of aesthetic busy-bodies. In the interviews with these gentlemen wbich appear in tbe daily papers, they not only stand resolutely on the contract with the Interborough Company but they go so far as to declare that they have no objection to the kind of signs which bave been installed. It cannot be said tbat this attitude reflects very much credit upon the discernment of these gentlemen. We can understand tbat they should be lotb openly to disparage tbe contract for whicb they are directly responsible. But inasmuch as they represent the city's interest in the rapid transit system, they should recognize that such signs are a genuine grievance, and they should be ready to use tbeir influence towards tbe abatement of the nuisance. Tbat tbe signs are aesthetic nuisances they mnst understand, because no advertising has been permitted in the stations of the Brooklyn Subway; and if they let it be known that they would do what they could to induce tbe Interborough Company to surrender the privilege, the public would bave con¬ fidence tbat considering the dependence of that Company on tbe good will of New Yorkers and of the Commission, the pressure wonld ultimately be successful. It is certainly absmd to spend a great deal of the city's money in decorating tbe stations witb tiles of delicate design and carefully selected colors, and then to bave the wbole scheme mutilated by aisplay advertisements in auy kind of color, and witb tbe letters of any size. Although we bave little faith that the contract is illegal, we hope tbat since in all probability the irremovable members of the Rapid Transit Commission will do little to help, the matter will be tested in the courts. If the Subway stations can be legally declared to be part of tbe street system of tbe city, it wouid be an excellent thing in more ways than one. IN spite of election day the budget of real estate sales con¬ summated last week shows no diminution from the large totals of the last few weeks. The wbole snm still runs well over 300, and of tbese more tban one-half are sales of vacant iots. The greater part of tbe remainder consist of fiats and tene¬ ments. In Manhattan tbe transactions in vacant lots and tene¬ ments constitute 150 out of about ISO transactions. It can be judged conseqtiently bow narrow the market is in otber re¬ spects. It is more restricted even than it was during tbe cor¬ responding week in 1903. A year ago some 30 private houses were sold, against less than 20 for the past week. We fully .believe that tbe market will broaden considerably during the next few months. Tbe public does not yet understand that the business reaction is over, and that business realities and prospects are excellent instead of doubtful. The people who own real estate bold on to it stubbornly enough. The level of prices established in 1902 has for tbe most part been main¬ tained, while it bas in some cases been advanced. But tbe firmness of prices partly explains the narrowness of tbe market and people are not purchasing either for use or investment as they were two years back, because prices still sSem high. It is, Lfjwever, to be expected that they will soon do so and that the good residence and business districts of the city Vvill receive tbe benefit. For tbe present, bow- ever, there is nothing doing but lots and tenements. Every operator and speculator in the city is busy buying and selling lots in tbe Bronx and on Washington Heights. About l.GOO lots changed hands during tbe past weeli of whicb about 900 were situated in Manhattan. The volume of business is enor- NOW that the election is over it is Lo be hoped tbat the city departments will show signs of increased activity. Tbe Rapid Transit Commission in particular may yery well show a little more energy. It is just three yearr. ago this fail that the need for a lower West Side and an upper East Side Subway began to be discussed and the matter of selecting routes was taken up by tbe Commission; and in tbese three years but little bas been done towards tbe settlement of new routes. Tbe whole business has not advanced beyond the earliest stages, so tbat tbe city will bave to wait for another five years or more before it can enjoy any improvement in its transit system—except such as can be made by enlarging tbe capacity of the existing ele¬ vated roads. Part of this delay was doubtless unavoidable, and part of it has been due probably to a natural desire on the part of tbe Commission to test tbe operation of the existing Subway before making detailed plans for extensions. But now there is no longer any reason for delay, and tbe people of the city will expect some display of energy on tbe part of the Commission—not only in laying out new longitudinal rapid transit routes, but in providing sufficient means of collecting and distributing the traffic wbicb is crossing and will cross the East River. In this matter tbe plan of tbe Municipal Art Society for loop terminals connecting the bridge terminals with each other and witb tbe most important points at which the traffic originates is undoubtedly tbe best that has been suggested and deserves more serious official consideration than it has yet received. The work wbich the Municipal Art Society is doing in the way of bringing to bear fresh and radical ideas upon the rapid transit problem of the Greater New York, is excellent and salutary. The ideas and plans it advocates may not always be acceptable, but they provide a needed corrective to tbe ex-