The Washington times., 1901-07-17
LOCAL BUSINESS NOTES.
Real Estate and Securities Discuss
ed by Washington Finnnciers.

Charles E. Early, real estate broker:
Business during the past six months
in real estate has been much better than
at any time before in recent years. Trans
actions of moderate size have been num-
erous, and important deals have been not
infrequent. A considerable number of
new people of wealth have come to the
city to make their homes and many of
them have bought real estate. l look for
an active market during the coming
months, also, though at the moment the
hot weather has had depr 2ssing effect,
which may continue during July and Au-
gust. People interested in purchases and
sales are in Europe or in the Northern
resorts and it is almost impossible to
reach them, even ii they are willing to
be bothered with business. The brokers,
too, are many of them away for the sum
mer. However / am interested myself
in number of important pending trans
actions and l hear of others that will be
pushed to completion in the autumn, so
that / have every reason to look for
healthy market later.
"One or two factors are not wholly
satisfactory. In my opinion the fiat ques-
ton is likely to be an important one
during the coming year. The building Of
the big apartment houses may go too far,
ii 1t goes much further. Either fiat rents
or house rents may have to come down,
and l would not be surprised if the fats
were the sufferers. Undoubtedly, there
is a certain proportion of the people in
any city that prefers to live in flats. In
my opinion this proportion in the District
has been provided for already"
Business in local securities yesterday
was unimportant. A large number of
the brokers and their customers are out
of the city and the others do not seem
inclined to venture far while the New
fsN.FIr hot Is in raseez ri
Gus condition. A few sales OF Mergen-
thaler We're made at l62 to 1921. small
block of Lanston changed hands at 1il9
and 142s. Prices showed no particular tend
ency to decline, but, on the other hand,
there was certainly no indication of an
advance In the near future. The summer
dullness and the weakness in New York
favor shading of prices, if anything,
during the coming few weeks
c. j. Bell. President of the American
Security and Trust Company. left the
city Monday and sailed for Europe yes
terday for two months vacation. His
place will be taken during his absence by
Vice President Henry F. Blount. who has
just returned from a six months sojourn
abroad.
People concerned with the financial af-
fairs of the Washington Traction and
to August / as likely to be an interesting
date with the company. The interest on
the City and Suburban 5 per cent bonds
will be due on that day, and the question
is being asked ii the company will pay
the interest, or take another step in the
direction suggested by Receiver McDer-
mott in an interview the other day. by
defauiting on the payment. The bonds
are 81, 10000. and the semi-annual inter
est at the rate of . per cent is si3. $50.
Default in this interest would be a very
different thing from the default In the
interest on the collateral bonds, which
occurred recently. 1t would necessitate
the foreclosure of the City and Suburban
and its sale under the hammer to the
highest bidder. Despite Mr.. McDermott's $
published views on the subject some con-
servative people do not believe that the
controlling interests intend to allow any
default. They seem inclined to the opin-
ion that his remarks were made with the
idea of getting struggling bondholders
that have not signed the bondhoiders
agreement to come in.
The statement of the City and Subur-
ban Railway for the last year. ending
December 81. submitted to Congress in
January, shows that the total revenues
of the company were s235, ,92S 2S and the
total expenditures for operation and re-
pairs S197, ,342. .06. leaving a balance of $685.
5S6.22 only. This sum was not nearly
enough TO pay the interest on the bonds,
not enough. in fact to pay a half year S
interest. Officers of the company, how
ever, state that its earnings so far this
year have showed a considerable increase.