Columbia University Libraries Digital Collections: The Real Estate Record

Real estate record and builders' guide: v. 78, no. 2003: August 4, 1906

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August 4. 1906 RECORD AND GUIDE 209 ESTABLISHED^ MAR.CHaaX 1668. DcAviipi RpAj.EswE.BmLDirfc i>;RpRrrECTtn¥,HoU8afoiiOE3a(«iMt, Birsn/Ess AitoffiEMEs oF'GETto^l IKtcefst... PRICE PER YEAR IN ADVANCTE EIGHT DOLLARS PuhUtfied eVerp Smtardap Gommnii!^atlons should b« ad drees od. to C. W, SWEET, 14-ia Veaay Street, New York 9 Telaphon*. CortUndt 3157 "Entered at Ifl* P»it Office at New TtI; If. T.. as second-class matter." Vol. LXXVIIl. AUGUST 4. 1900. No. 2003 INDEX TO DEPARTMENTS. Advertising Section. Page. Page. Cement ....................xxlll Law.........................xt Consulting Engineers ..........x Lumber..................xxviii Clay Products ................ixil Machinery ...................Iv Contractora and Builders ......v Metal Work ................xvli Electrical Interests ..........vlll Qul;k Job Directory ........xxvll Flreprooflng .................II Real Estate .................xiv Granite ....................xxlv Roofers & Roofing Materials.xxvl Heating ....................xk Slone .....................xxiv Iron and Steel ..............xvlil Wood Products .....■ ......xxviii AROUSING advance has characterized the stock market this week, much on the lines the Record and Guide has forecasted. In the opinion of many banlting houses, however, the advance has gone Ear enough. This may be the case, but yet there are indications of stocliS going still higher. Old operators in Wall Street have learned by experience that all great movements up or down may be divided into two periods. In the first period prices reach a point where the best agree¬ ment is that they shall not go any farther. Then they proceed to go a great deal farther. This they are likely to do now, and we probably have only seen the beginning of the rise. The resumption of dividends on United States Steel Common un¬ questionably has given a fillip to the market, if that were necessary. It came as a surprise, but is apparently amply justified by the large earnings of the company. Bullish senti¬ ment has been greatly encouraged by it and inquiry among com¬ mission houses shows that outside buying has already begun, in strong contrast to the conditions that have prevailed for several months. It would seem as if good profits were to be found in the low-priced railroad issues. Colorado Southern has made a new high record, and others in the same class heretofore men¬ tioned in these columns should logically do likewise. The pros¬ pect of bumper crops this year has now become an old story, but the iteration of the fact is nevertheless impressive. The Government July crop reports indicate that the corn crop will break all records, the acreage planted being the largest ever devoted to a siAgle grain in any country. Wheat, much of which is already harvested, may go beyond the record by thirty million bushels. Corn, hay, wheat and oats, taking them at their gross value, may be estimated to be worth $2,750,000,000. Statistics and deductions from statistics are often misleading, but they are interesting nevertheless. Fifty-five years of American progress (1850-1905) have seen American wealth grow from 7 to 110 billions, or 1,600 per cent, increase, wiiiie the popu¬ lation has increased by only 250 per cent. In other words, the national wealth has increased eight times as fast as the popu¬ lation. Certainty of ease in the money market is undoubtedly a favorable factor in the general situation. Call money has loaned during the last month as high as six per cent, and as low as one and one-half per cent., the ruling rate at this writing being two per cent. Attention must be directed to the very successful sale by the Government of $30,000,000 2 per cent. 30 year Panama Canal bonds. It was admirably conducted by the Secretary of the Treasury, and the best possible prices secured, though national banks were not largely represented. Although the Russian situation is disquieting, it has so far not had any marked effect on the European bourses. Prom London it is learned that the instalment of 20 per cent, of the Russian loan due on Wednesday was fully covered without any hitch. It is pertinent to the money and exchange question to state that the United States exports to Europe alone in 1905 amounted to $1,021,000,000, having grown nearly $400,000,000 in the last ten years. Compared with ligures for 1896, the imports during the fiscal year just ended show an increase of $447,000,000 and the exports an increase of $861,000,000. Such facts argue well for a continuation of the prosperity which the country now enjoys, and as Messrs. Fisk & Robinson say, "it also means the building up of still greater financial resources, which ultimately will seek investment in high-class securities." It was Messrs. Fisk & Robinson who secured $15,000,000 of the Panama bonds, and are naturally in touch with the financial conditions. With an advancing stock market and the prospects of a continuance of easy money, it is highly probable that at the opening of fall business and the increase of activity in real estate transactions, there will be less difficulty for builders and operators in obtain¬ ing loans. "pvECIDEDLY more animation characterized the real estate -■-' market this week than has been observed for a month, and the sales comprised a very good variety of properties, though not of marked significance in any individual case. The business of the week was at least normal for midsummer, and is a very strong indication that September will see the beginning of another long era of activity. As to the monetary phase of tlie question, there is nothing in the coudition of the mortgage market to be wondered at. The total amount of money loaned during the last eighteen months in the County of New York has been enormous, and much greater than during the preceding period. This has been tbe case in spite of very disturbing tax legislation. The average amount of money loaned for each week for the last three has been at the rate of over $600,000,000 a year. When allowance is made for the recording of new mort¬ gages to take up old ones, the total is still surprising. And there are other reasons which are more general for the high rates of interest at the present time. The better feeling is also evi¬ denced in the buildiug line and in the stronger demand for material, with higher quotations for common brick. Dealers iu building materials agree that the slump is only natural and usual in brick building at this period, but seems more pro¬ nounced because of the. long period of high prices preceding. The brick market on Wednesday was quite clear of material and shippers up the river were reported to be holding their cargoes for a minimum of $6.25 per M. It may be remarked that other building niateria:s have maintained values at the highest levels of the summer, in spite of the bear movement, which indicates that building operations generally continue in strong foi'ce. PHILANTHROPISTS and would-be philanthropists have long sought to establish hotels or lodging houses for women who work in stores, offices or factories, and wliose income is necessarily small. What is now known as the Park Avenue Hotel on Fourth avenue was originally built by the late Alex¬ ander T. Stewart, the dry goods millionaire, with such an end in view. But tlie management was inefiicient, and the restrictions were so severe that the enterprise proved a failure, and the Stewart heirs turned the structure into a regular hotel. This was over twenty-five years ago. There is still a crying need for such establishments, and so we now have the "Trowmart Inn," a seven-story hotel in Abingdon square, built for working girls, which will open its doors in a few days. The hotel possesses many original features, and is an imposing and substantial structure. Mr. W. R. H. Martin, who built it, says; "I put up this building because I did not want to make the mistake of many well-meaning persons, who leave such enterprises for executors and legatees, who may or may not be in sympathy with the plan. It is said that the structure is not an invest¬ ment, and that Mr. Martin does not expect any return from the property, but that it is to be made self-supporting. When this is the case it is to be turned over to a board of trustees. There are some four hundred rooms, many bath-rooms, and on the ground floor, parlors, a library, reading and recreation rooms. The terms will be very moderate to begin with, and if feasible will be reduced to a lower figure to a point where the income and outlay will be equal. Provision is to be made for some sort of social life for the Trowmart Inn's patrons and for the entertainment of visitors. There are to be no unnecessary restrictions, and if Mr, Martin can carry out his beneficent plans in conducting the establishment it should prove a boon to working girls in having a home in a great up-to-date structure with all sanitary improvements, good and cheap food, and amid desirable surroundings. SINCE the bids were opened for the last sale of New York City bonds many good reasons have been offered to ex¬ plain the failure of tlie sale, and these several reasons agree sub¬ stantially with one another. The low price at which the city was obliged to sell its securities was due chiefly to the fact that more of them have been offered for sale recently than the mar¬ ket could take. The city has been borrowing enormous amounts of money during the past five years, and practically throughout the whole of this period business has been active and money