New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1895-10-11
NETWORK REAL ESTATE
CORPORATIONS FOR IMPROVING LARGE
AND VALUABLE PLOTS

PLANS OF ONE ASsOCIATfON-STATEMENTs O
SPENCER rRAsK-BoNDs on a GREAT OFFICE
BUILDING TO DE ISSUED.
There has been some agitation recently on Ii.
subject of creating corporations based upon real
estate +, this city. With view to its improyemen,
on the more modern lines OF construction and d.
velopment The many high buildings which haze
been erected here within the last fifteen yean
have as a rule, especially In the lower part OF he
island been productive OF interczt-oearins poss,
blit,cs which a score or more or years ago weu
never thought of except by the pioneers IN tas
movement for the reconstruction Of the city.
S,encer Trask for many years vel known %
Wall Street as a successful banker and Stock En-
change member has within the last eight month";
appeared conspicuously as an advocate oil tns KIND
OF investment by organizing and taxing the press
dency of an association of capitalists wh.ch has
bought the plot OF ground facing bowling "reen
about 10000 square feet In area, just noIth OF ta
Washington Building and extending through to
Greenwch-st. Plans have already been perfected
for the construction this pot Of an ONCE oui@
ing to be sixteen stories high, with spacious
court connecting with that already existing IS
mart OF the plan OF construction OF the Washinsto
Building.
The charter recently granted TO the Colonial Iea
Estate Association for the creation OF company I"
control the property known as the Scotch Presoy
,er,n Church. on the north SIDE OF Fourteenth
Il east OF Sxth-ave.. and the appointment Of
Samuel d Babcock as president caused consider
able comment. chiefly favorable, but In some case
unfavorabe. to this plan Of controlling areas Of
ground more especially where the interests OF
different estates or individuals were involved Tho"
who oppose the idea raise the question OF Inc
manner in which such properties shall be managed
The advantages of this plan OF reconstruclns
the city viewed by those interested in real estate
have been mentioned in previous articles iestefaV
a Tribune reporter asked for the views OF NJ
Trask upon the subject Mr.. Trask said SUI
stantiay:
"Mv attention was first called to the desrabiliiyx
office buildings As a form of investments oy the its
that mos. Of fduciary institutions have iouM
them 40 in the past Mortgages on city properly
are always in great demand. and mortgages So
cured by NewYork city property snoid De mos'
desirable form of investment The trouble mas al
ways besn that these mortgages nave beeh 'NA-'
IN large blocks by institutions. and the smaller J"
vestor with his 81 10000 has had TO LOOK else
- Tho mos, desirable investments Of ever,
character have been increasing in value. and have
hsconoe more and more difficult to obtain. Municipal
bonds have now become so high In price mat Only
large institutions afford to purchase them' ana
our high grade railroad bonds command TOO mucn
of a premium for an individual 10 charge on All
bankers find it more and more diHcut 10 GUAM
securities bearing good rate of interest VITA
.htcb IN SUNNY their customers. Now. there can
no no,hng more secure than a mortgage on real
estate whether that mortgage is owned by one III
divldual or whether the same mortgage II 'e'
posted with trustee and bonds are issued on y
smaller denomination. Trustees and executors "
estates and others who have 10 do with the ih'esy
ment of trust funds are more favorapiy disPoses
toward real estate mortgages in frst-class c'nes
than any other form of investment, and IN many ID
stances they are limited by law particularly 10 thAs
one thing because It has always been fouhu 10 !"
the safest With this idea in view. we intehd' ai'H
our building is completed. to oner TO investors
this vicinity bonds our building Issued at % PEI
cent on the valuation and we expec; that they via
he readily taken. The question has arisen "he,hn
a corporation would manage building Oh illS ,ne,
acter az we'll individual owning IN, t".is
property and managing IN nns oTo nnsiion Of the de-
STABILITY Of the concentration or VARIOUS inteiss."
The larger buildings have 80 decreased all oms
rents that the income from smaller oulmhss ne ns
been greatly reduced II would o. s ia bnI
one large office building than for each one TO ouH'
one alone IN proportion TO MS ga own elevator
connection with the comparatively recent metn0ns~
oteel-skeieton construction has not only co,pehs.
made possible a concentration Of offices. and put
srgely increased value upon lard IN certain de, -.
abe localities. This great value OF lana. ann ~ y
necessity. in order to make the investment Pay y.
erecting immense buildings. whore the proportonnra'
expense of maintenance Is reduced 10 mll,W ,.
n 40 heretofore prevented any except large clpaIee
or very rich corpora lions from buying and np,v'i
ing property. especially In the neighDorhoo' % We
street. "a.
The general trend for many years has peen w
ward concentration OF capital for various p1fpo,e.
thereby giving not only increased power 20 H. Du.
issr expense Of management There is no teas
why this should not extend In the direction OF
ing and managing real estate. AMI when me p'.Iss
hnr once become cducgiel 10 the Va Ne 81 g.' -
secured by such property. | have every reason
believe that they will be looked upon 10 more ~,
than nrs,-cass railroad bonds. especially wne, II
bonds upon property wei. situated ana 81.
time commanding good tenants. II is great ~,
with many that they are abe 10 nee tns nes,,
vesiments or that upon which their inye'tmea,.
are securcd. from time 20 time. when Hu,n s.sh
ties llstei upon stock exchange" am IA
greater currency IL given 90 thcm. the Dcse H'
Viii rink AMONG The NerN hnLi.