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Real estate record and builders' guide: v. 81, no. 2082: February 8, 1908

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February S, 1908 RECORD AND GUIDE 243 ESTABUSHED^(i(impHSLf^l868, Ita6TU)K>REA.LESTA;E,BuiLDIjfe Afp^ITEeTUIi.E.KcUSEHOIBDECOEtATlorf. Bifsnfcss Af/oTHEiiiEs of GEjfeR&l lifto^n^ PRICE PER YEAR IN ADVANCE EIGHT DOLLARS Communications should be addressed to C. W. S'WEET Pablisbed Every Saturday By THE KECORD AND GUIDE CO. President, CLINTON W. SWEET Treasurer, F. W. DODGE Vice-Pres, & Genl. Mgr., H. W. DESMOND Secretary, P. T. MILLER Nos. 11 to 15 East 24tli Street, New York Cily (Telepbone, Madison Square, 44.30 to 4433,) •■Knli 'jrcd ut the Po-H Office at New York. N. Y.. OS srcoHil -class mntlrr." Copyrighted, 1907, by The Record & Cui'lc r-n. Vol. LXXXL FEBRUARY 8, 190S. No. 2082. INDEX TO DEPARTMENTS. Advertising Section. Page Page Cement ......................xii Lumber .....................xiii Clay Products ................xlv Machinery ..................Iv Consulting Engineers ..........x Metal Work.................ix Contractors and Builders......iii Quick Job Directory..........vii Electrical Interests ...........x Real Estate...................v Fireprooflng ..................li Roofers & Roofing Materials.xii Granite .......................xv Stono .......................xv Iron and Steel..................xl Wood Products ..............xiii THE outlook seems to be encouraging for some liberal and liberating rapid transit legislation during tiie present session of the Legislature. The local autliorities are all in favor of such action; and they can depend upon the support of Governor Hughes aud a large section of public opinion. Much as one may prefer a rapid transit system constructed with the city's money and leased only for a short term, every caudid man must recognize that conditions are utterly unfavorable to such a policy. In any event the city's resources must be carefully husbanded. Even if it obtains the power to issue an indefinite amount of stock for transit purposes, that power should not be used until New York is again in a position to borrow money at 3 ^ per cent. Under the circumstances the most economical and progressive line of action will be to offer private capital sufficient inducements to build the additional subways, which are at present our crying local need. Just how much the city will have to offer in order to attract private capital is a doubtful question, but there can be no doubt about one aspect of the matter: The Legislature should not tie the hands of the Public Ser¬ vice Commisston to leasing subways for any fixed term of years. There would be no objection to establishing a maxi¬ mum period of 5 0 years with one renewal of twenty-nve years; but within this limitation the Commission should be permitted to secure the best possible terms for the city. It is tolerably certain that a lease of 'forty years, with one re¬ newal of half that period, would be sufficient to attract the support of private capital; and in case transit corporations were not subject to such drastic supervision, there can be no .doubt that such terms would mean a handsome margin of profit for the lessees. The dubious element in the situation is the attitude which financiers will adopt toward the in¬ vestment of many millions of dollars in railway enterprises over which they do not retain effectual control. In any event, however, tbe attempt to secure such support must be made, and if the city is obliged to offer private capital larger in¬ ducements because of the existence of the Public Service Commission, that condition must be accepted with the others. In any event the subways must be built, —-----—«-------------• IN case the Legislature does untie the hands of the Public Service Commissioners, it is much to be hoped that they will use their additional power in a liberal and flexible man¬ ner. They should announce their willingness to open nego¬ tiations with any corporation, new or old, that is prepared to build desirable subways; and they should seek to start the construction as soon as possible of at least two new longi¬ tudinal routes. But in opening such negotiations, it should certainly give the first chance to the owners of the existing subway. The Interborough Company should get the flrst chance, not because the city owes to Mr, Belmont any special consideration, but because the city's own interest demands a policy of this kind. The convenience of its inhabitants and the prosperity of its business will be best served in case any new subways are constructed as extensions of or in connec¬ tion with the existing subway. This is the only way an organic, well-articulated and thoroughly efficient system of underground transit can be created, and the policy of calling in a competing corporation should be followed only in case fair terms cannot be obtained from the Interborough Com¬ pany. Other things being equal the Interborough Company should be given tlie preference, so that the whole subway system can be operated as in Paris with such excellent re¬ sults, as a unit. Only in case the Interborough Company cannot raise the money for additional subways, or in case better terms can be obtained from some other corporation, should the Commission establish a competitive system. ' If it is objected that the Commission is not free to negotiate in this manner, the answer is that such negotiations can be conducted without any violation of the law. Once the Public Service Commission is assured that the Interborough Com¬ pany can raise the money and will offer fair terms it can lay out routes which are substantially extensions of the exist¬ ing subway, and over which the Interborough Company will have, becayse of its existing lease, a prior claim. On the other hand, it can, in case negotiations with the Interborough Company fail, lay out an independent system which will be capable of efficient operation. In the end it may be forced, in order to-stimulate competition, to follow the example of the old commission and lay out alternate routes, either or both of which can be constructed according to the results of the bidding. SOMETHING may be expected to follow quickly from the communication which Comptroller Metz has this week addressed to the Governor of the State upon the methods pursued in this city when private property is taken for public uses. For years the general thought has been that the system is too rudimentary, and too dependent upon the old idea of the unselfish devotion of the citizen to the welfare of the state, for meeting tbe complex conditions tbat arise in a metropolitan city. The proceedings have most often been spun out to great length, the expenses have been ex¬ cessive, and owners have been deprived of payments for an unreasonable length of time. On the part of the' city au¬ thorities it bas been observed that the dilated fees of the commissioners were only a small extravagance compared with the interest charges that have resulted when cases involving large awards have been carried along for several years. In one case, where only ten parcels in one plot are under dis¬ cussion, the condemnation proceedings are now in their fourth year, and the city is paying interest at six per cent, on $820,000. To appraise a school site requires sometimes as many as.fifty or sixty sittings of the commissioners, and it is said that they generally determine the award by the simple process of splitting the difference between the extravagant estimates of the claimants and the inadequate valuations of the city's experts, and with little or no regard to the value placed on the property by the Department of Taxes and As¬ sessments, or by the appraisers in the Department of Finance. It must be conceded that the claimants seldom have cause to complain of the amount of the awards, which is some con¬ solation for having to wait a long time for their money. In small towns where condemnation proceedings are of infre¬ quent occurrence, aud where the essential facts in any given case are patent to all, the system which is being abused here is possibly reasonably efficacious; and the difficulty is pre¬ sented of obtaining legislation from the State under such circumstances. The particular request which Mr. Metz makes at this juncture is for the appointment of a special commis¬ sion to investigate, and to devise a better system; but the Comptroller's own thought seems to be that a per¬ manent court or commission to appraise benefits and dam¬ ages is the only solution. To achieve this would require a constitutional amendment, but solely in the interests of New York City, and it is a question how the electors in the rest of the State would regard it, and what the attitude of the judges of the Supreme Court would be. As it is the present province of this court to appoint the commissioners in con¬ demnation pi'oceedings and to pass upon their reports, it might be a good policy to secure their cooperation in this movement. -------------—♦----------------- SINCE the Parker fire insurance companies have followed a very conservative policy in accepting new risks in the congested district, and it is noteworthy that they are bring¬ ing strong influence to bear in favor of the introduction of automatic sprinklers, and are taking larger lines when these are present. Later opinion in this quarter holds that the loss by the fire would not have been a quarter of the amount if the fire department equipment had been in a passable con-