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Real estate record and builders' guide: v. 76, no. 1947: July 8, 1905

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July 8, '1905 RECORD AND GUIDE i5i ^ ^ ^TABIJSHED-^M^RPH2l*^IB68. EtAxfl) p) RfATESTATE.BuiLDIjfi; %crf!TE(mjRE.KoiJSElfOlItDEa«tnMfc) Bi;sniEss>ufD Themes oFGEjiER^llKTa^q^. PRICE PER YEAR IN ADVANCE EIGHT DOLLARS Published eVerg tSaturdag •Communications should D6 addressed to C. W. SWEET, 14-16 Vesey Street. New York Telephone, Cortlandt 3157 "Entered at the Post Office at New York. N. Y.. aa second-class matter." Copyright by tte Heal Estate Record and Bnlldera' Gnlde Company. Vol. LXXVI. JULY S, 1905. No. 1947, INDEX TO DEPARTMENTS. (Advertising SectloE.) Page Cement ............... xxv Clay Products .......... sxil Contractors and Builders. v! Firepr!)ofing........... x\i Heating............... xxiv Iron and Jteel ..........xviii Page Law................... vlll Machinery .............. t Metal Work............. xx Real Estate............. xill Stone .................. ixill Wood Products .......... xxyl THE bullish speculators are evidently determined to antici¬ pate immediately aTiy rise In prices warranted by the Im¬ proved conditions which may take place during the summer, and it is entirely possible that if they push this idea too hard they may delay rather than expedite the prevalence of a higher level of prices. The market has already done pretty well and has recovered more than half of its losses during the spring break, and before going much further it would be just as well to wait a few weeks and ascertain just what it can count upon in the way of crops and increased dividends. The sharp rise in commodity values which has been taking place recently does not constitute a very good basis for a bullish speculation in stocks, and it is worth considering whether there is sufficient loanable capital available for speculative purposes to justify any considerable campaign in favor of higher prices. General business is very active all over the country, and large amounts of money here and elsewhere are being tied up in building opera¬ tions. The adverse conditions do not forbid a certain rise ia prices throughout the summer, but if the rise becomes too sharp and costs too much in the way of borrowed money, they will very soon make themselves felt. TT WAS fitting that the activity of the most active season ever ■^ w-itnessed in the New Tlork real estata market skou'ldjculminate in an explosion of business wholly unprecedented in its amount and character. The explosion was produced of course by the fact that the new mortgage tax became collectable on all mortgages recorded on July 1st or thereafter, but it could never have made as much noise and bother as it did were it not that an enormous number of building projects were under con- sidei-ation and were hastened by the desire to avoid the tax. The consequence was that whereas in 1904 some 336 mortgages were recorded in the six days between June S4th and June 30th, the corresponding figures for the current year, including, how¬ ever, only flve days, were 1,156. If the last two days of the month had been added to the foregoing, it would have been more than trebled. That is, fully 4,000 mortgages were recorded during the last week of June, 1905, against only a few hundred in the corresponding week of 1904, Just about two-thirds of the amount of money which was loaned by these 4,000 pa¬ pers carried interest at six per cent, and will be used ror building operations. The building loan contracts alone recorded on these days called for the lending of about $30,000,- 000, and included papers covering four structures which will be as much as twenty stories high, viz.: the new Boreel Building, the new Plaza Hotel, the building of the United States Ex¬ press Co. and the West St. Building. It has assuredly been a year of great opportunities for the corporations and individ¬ uals whose business it ia to loan money on real estate. In Manhattan, for instance, the number of conveyances recorded has increased about 35 per cent, but the number of mortgages recorded has increased by 55 per cent. Over twice as much money has been loaned on iVIanhattan real estate during the first six months of 1905 than during the first six months of 1904; a good deal over twice as much has been loaned on Brook¬ lyn property, and as for the Bronx, the. operations in that bor- ough in 1905 have required three times as much borrowed money as they did in 1904. By way of comparison, it Is interesting to note that while in Manhattan and the Bronx between five-eighths and two-thirds of the money was loaned at six per cent., in Brooklyn the popular percentage was five per cent. In that borough very little Is loaned at less than five per cent, but about two thirds ia loaned at five per cent and almost the whole of tha remaining third at six per cent. /^F COURSE the storm of business transacted during the ^—' past few weeks Is bound to be succeeded by a calm. The speculative transactions which would under ordinary circum¬ stances be distributed throughout the entire summer were con¬ summated during the last two weeks of June; and the dullness seasonable during the summer time, will be during July and August more than usually conspicuous. Furthermore, the mort¬ gage tax will in the beginning undoubtedly serve to decrease business. Under existing conditions we imagine that this effect will not be permanent. It is probable that In the fall there will be a revival of activity, and that this activity will not be very much diminished by the imposition of the tax. An increasing carrying charge of a few million dollars a year ia not suflicient to check speculative real estate and building operations during a period in which as many excellent opportunities for profit exist as there are at present In a few months operators who need money will be seeking it as actively as ever, and will not be deterred by the fact that they must pay one-half of one per cent more for it. The tax will become a serious burden only when the existing spell of real estate activity is over, and not until then will it be possible to trace the permanent effect of the tax. Then the margin of profit is so small that the tax becomes a matter for calculation, and when, consequently, borrowing is dimin¬ ished because of it then the money-lenders may have to as¬ sume some of the burden of the tax and reduce a little the rates of interest. For tbe present, however, the outlook is that we shall have a dull summer in real estate, and an active one in building, succeeded by a revival of real estate business in the fall. There are no signs as yet that the pace which has been set in 1905 will not be continued through 1906, AN exceedingly interesting development in New York real estate is the tendency in the direction of converting 72d st between Broadway and Columbus ave into a business street. It has never seemed probable that the broad streets between 59th and 110th sts would become important business streets like 14th, 23d and 34th sts, because Central Park prevents cross- town traffic and diminshes the area available for habitation, and consequently the local population. It is improbable indeed that the City of New York will permanently put up with the incon¬ venience resulting from the intrusion of an irregular park into a regular street system, but it will be many years before com¬ mon sense has its way. and. the plan of Central Park is altered so as to promote the convenience of the neighboring inhabitants. In the meantime there is plenty of room on the avenues for the business which must necessarily be transacted east and west of the park. These avenues are still frequently devoid of stores, and they contain plenty of space for any additional offices or shops which may be needed. Nevertheless, 72d st between Co¬ lumbus ave and Broadway may well constitute an exception to tbis rule. Most of the important stores now existing on the West Side are concentrated in the neighborhood of 72d st and Columbus ave, and it will be natural for tbe necessary increase in the number of these shops to spread in the direction of Broadway. The square at 72d st and Broadway is becoming one of the most important in the city, and is lilcely to become still more important. It has the advantage of a subway express station, of the location in the vicinity of many huge apartment houses and apartment hotels, and consequently of a great and growing density of population. Moreover, these inhabitants are all comparatively well-to-do, or else they could not afford to pay the rents necessitated by the high price of neighboring real es- tate. It will be extremely interesting to observe how far the development of a local business centre will continue. Just at present the tendency is all in the direction of business concen¬ tration because the subway enables people to move about more freely, but it is possible that the peculiar conditions in the vicinity of 72d st and Broadway may tempt important 5th ave storekeepers to establish branches thereabouts. WHETHER Mr. John D, Rockefeller's money is tainted or not, that gentleman certainly succeeds in spending It on other people with unusually good judgment There ia not a gift of money which be haa made for a public