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Real estate record and builders' guide: v. 75, no. 1934: April 8, 1905

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April 8, 1905 RECORD AND GUIDE 739 lull. ■^^ ■* ESTABUSHED ^ «\ARPH 21^^ 1868, DE/o^ED^oRf^LE>TAIz.BmLOl^'G Architecture.KoosEVioiLDEOtflfliaK, BusiriEss Alio Themes OF GEtJER^l I^TEflfST- PRICE PER YEAR IN ADVANCE SIX DOLLARS Published eVers Saturday Communlcationa Bhould be addressed to C. W. SWEET, 14-16 Vesey Sireet, New YorK ■ T, icplionn, Coi tl.indt 3157 "Entered at the Post Office at :N'ew York, If. Y., as se.'ond-class matler." ^ Cui^jiifehL by the Real Estate Record and Builders' Guide Company. Vol, LXXV. APRIL S, 1905. No. 1934. THE stock market has been buoyant during the past week: and the leaders in the rise have been the industrial se¬ curities, particularly those connected with the iron and steel in¬ dustries. It has been fore shadowed for some time that Steel Preferred would sell above par during the current period of business activity. Tbe facts that the company bad pulled through a severe crisis, and that for the present its earnings over tbe dividend on the preferred would go into the surplus— tbese facts really justify a higher level of values than that which prevailed in 1902. We sbould not be surprised to find tbe stock selling at 110 during tbe next few months; and it is a fair prediction that its fluctuations hereafter will not extend over so wide a range as tbey have since the fall of 1903. If the current activity continues for a year or more, and tbe com¬ pany can add $30,000,000 to its surplus, dividends on tbe pre¬ ferred stock should be well assured for a number of years. The chief danger is really the intensity of tbe existing activity. It I3 a sort of demand which forces up prices to so high a point that on the first sign of a reaction people become scared, and tbe famine follows bard upon tbe feast. Tbe outlook would be better, in case the consumption was more moderate. THE real estate market still shows a wholesome balance In tbe distribution of tbe enormous amount of business.which is being transacted. Improved as well as unimproved property of all kinds is selling well; and the existing demand for private residences should encourage builders seriously to consider tbe erection of this class of improvement. So far as. vacant property is concerned, Jerome Ave and the Dyckman tract continue to receive the major share of attention; and they deserve it. Cer¬ tain parts of Jerome Ave are almost as available for improve¬ ment as "Washiagton Heights, and tbe Dyckman tract is even more so, because people inhabiting that section will not bave to descend by elevators into tbe bowels of the earth, so as to board tbe Subway trains. After the Subway is in operation north of 145tb St,. It will be found that the development of all this section will be hampered by the inadequacy of the express service. An agitation should be started soon for tbe four-track- - ing of the Washiugton Heights tunnel. Building will soon be under way both on Jerome Ave. and the Dyckman tract. Sev¬ eral new tenement bouse operations bave also been announced for Washington Heights; but tbe movement bas neither tbe volume or the pace in that section which it ought to have. We understand that prices bave been receding perceptibly on tbe Heights; but this recession only means that certain weak pur¬ chasers have been obliged to reduce tbeir extravagant ideas of existing values. It is tbese extravagant ideas, which are prov¬ ing to be the most serious check to the undertaking of a larger number of building operations; and to have them reduced to a common sense basis would clear the atmosphere immensely. Nothing like tbe current level of values can be maintained, with¬ out tbe assistance of a large and steady amount of building; and the operators most extensively interested on tbe Heights should protect those interests by encouraging building, particularly in tbese sections where bouses of a good class are justified. TOURING the past week, it has developed that Mr. ^-^ John Claflin has purchased the old Henry Clews property, and that he now owns a plot fronting 150 feet on both 34th aud 35th sts., and containing 30,000 sq. ft. Presumably, Mr. Claflin has acquired this plot for tbe purpose of making it the location of a high-class dry-goods store. It is not to be siipposed that IJcCreery's will be pipved from its present fine location at the " corner of 23rd St and 6tfc Ave; buf goin§ of the many etpres in which Mr. Claflin is interested will build on 34th St,; and thia new improvement added to the Altman store will still further increase the importance of that street. In fact it is now definitely established that 34th St. will be tbe busiest and ihost important cross-town street in New York City. Twenty-third St.. from Gth Ave, to Broadway will remain an admirable location for retail stores; but 23rd St, has lost touch with the hotels and the class of retail trade, which occupies 5th Ave. On tbe other hand 34th St. will be both more central and more distinctive and metropolitan. Somebody has said that the Waldorf-Astoria supplied exclusiveness for the masses. So 34th St, will supply a more exclusive shopping and business centre for tbe people who can. afford to pay for it. Moreover, its importance will stretch from Sth to Lexington Aves; and as its buildings are fur the most part superannuated, it will be improved with modern structures which will give it a more spectacular appearance than 23rd St, can ever obtain. All this is clearly understood by real estate operators and business men. Althongh very lit¬ tle of it comes out, there are under way many negotiations for property in that vicinity, wbich are advancing prices still higher. No less than $5,000 a front foot is being paid for lots on 35tb St. and almost as much for lots on 36th St. between Sth and Gth Aves. This fact in itself shows the immense difference between the future of 34tb St and that of 23rd St. Tbe 34tb St. move¬ ment is carrying witb it a much larger amount of neighboring property. Other items .of news, as important as the Altman and Clafiin purchases, may soon be expected. *" I ■'HE mortgage tax bill is passed and is now in the Governor's ■*■ hands. Strenuous efforts will be made to pursuade the Governor to veto the bill; but after his pronouncement of the past week, it is wholly improbable that tbey will succeed. The truth is that tbe real estate interests of this city were caught napping. At the beginning of the session it was evident that the Republi¬ can leaders would be obliged to fail back on mortgage taxation, in order to repair the deficit; and the Record and Guide pub¬ lished an explicit warning that such a contingency should be feared and provided against. But partly owing to the fact the danger did not appear serious until the last moment, and partly owing to tbe confusion which existed in tbe public mind between the mortgage tax bill and tbe mortgage recording tax bill, no sufflcient protest was made until it was too late. There is a chance that tbe Governor may be pursuaded that tbe tax will be injurious to the building and real estate interest and to theRe- publican party; but the chance is distinctly small. The Repub¬ licans have adopted the tax reluctantly; but owing to a com¬ bination of causes, it will be very difficult for them to revise their decision. It is merely a matter of expediency with tbem. The mortgage tax seems to be tbe least troublesome way of avoiding a reduction of State expenses. EJvery argument which the Governor has used in favor of the bill applies witb doubled force to the complete exemption of mortgages from taxation; and such would be the conclusion drawn, were not tbe action of the Legislature dictated by the fiscal interests of a few rural coun¬ ties. Tbe mortgage recording tax would raise the necessary revenue, but it is unavailable because it would disturb the fiscal arrangements of a half a dozen localities, which collect needed revenue from the existing property tax. Consequently a tax must be levied upon everybody, who wishes to build a house in the State of New York. Tbe leaders at Albany are cons'der- ing whether tbey cannot diminish the unpopularity of tbeir new tax by exempting the building and loan asociations; but in that case they will avoid unpopularity by increasing the injustice of the tax. There are plenty of speculative companies operating in tbe vicinity of New York, who supply dwellings to wage- earners without capital as cheaply as the building and loan associations do; and tbe exemption of loans made by building associations would be an unfair discrimina¬ tion against such companies. Moreover, it would hurt tene- meut-boiiSe property in Manhattan and the Bronx in competi¬ tion, with suburban property. If we are to have a mortgage tax, let it at least be fairly distributed. WHATEVER reason there is for caution and oelay in respect to the new Subway system, no similar reasons bave auy force in respect to the moving platforms under 23rd and 34th Sts. These platforms should be laid out as independent routes in any event; and there is no part of the new rapid transit sys¬ tem which is more necessary. There are no surface cars in the city, which are so continually crowded as those running across these streets; and in the winter tbey are also subject to constant and tiresome delays. Furthermore, the privilege of transferring ^pnj the moving platforms to the Subway arid elevated, foads