The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1903-06-02

New York Letter to Philadelphia Press.
An approximately accurate estimate
made by some of the experts of the build
ing department names $4,000, 900 as the
investment in buildings and plants of de-
partment stores erected since 1888. In
fact, almost all of them have been built
since that year. The department store
as we now know it in New York Is al
most coincldent with the creation of the
underwriting syndicate. and in one in
stance syndicate of that kind was or
ganized for the purpose of erecting, equip
ping and furnishing one of the finest of
these buildings and businesses.
The first department store was in
little brownstone front building on Fifth
avenue, and its proprietor was obliged
to seek for credit in order to obtain his
stock of goods. He has long since passed
away. leaving a fortune and also a most
valuable good will. which is represented
by the continuation of his name by those
who now carry on the business. and who,
until Mr.. Wanamaker's building is COM
pleted. will possess the record that in
dicates the largest, most expensive, as
well as the most swiftly built department
store in New York. But the merchant
who furnished him that credit. Mr.. Rush
more, now lives in happy and peaceful
retirement at his country place on the
shore of Long Island sound.
Although $50, COX, 600 is the estimate Of
recent investment of fixed capital in the
form of building and plant for the ten or
twelve department stores of New York,
yet the tendency of which Mr.. Wanna
makers plans are so sure an indication
seems to be toward a rapid increase OF
investments of that kind. The energetic
f1nancier and experienced creator of de-
partment- stores in the west, who came
to New York seven years ago. and
erected a gigantic building over the old
Minetta creek, which still flows be-
meath that building, seems to have been
inspired by that experience to larger
ventures, since 1t is understood that he,
after causing the first department store
building in New York to be torn down
last week, proposes Immediately to erect
upon the spot where 1t stood and upon
adjacent lots a colossal building, at
cost considerably In excess of s2,0OO0OO.
Further east upon the highway, Four
teenth street, it is the understanding
that within a year or two department
store may be erected, negotiations with
that end in view being now under way,
which will dominate nearly all the block
upon the south side and extend through
to Thirteenth street. If the plan be con-
summated, it is presumed that 1t Will
entail an expenditure Of cash equal to
that which Mr.. Wanamaker contem-
plates. So that II is seen that the in
vestment of this time is matching rela-
lively that which other capitalists have
found profit in making in the way of
lofty hotel structures, apartment houses
and office buildings.
At one time it was the impression that
the great department stores and espe-
c,aIlv those which cultivated with zeal
the higher dry goods trade would GEN.
tralize on Twenty-third street and would
even capture the Fifth Avenue hotel and
raze It and erect upon that site monu-
mental department store building. The
veterans Of the trade in New York were
certain that the district bounded by
broadway, Fourteenth street, Sixth ave-
nue. and Twenty third street would be
monopolized by the dry goods and depart
ment stores. Therefore when Nathan
Strauss. pausing in his political and his
phi.anthropic avocations to give heed to
a. sudden Inspiration that came to him, de-
termined to venture into Herald square,
the very heart of the Tenderloin, So
called, and to buy with audacity, appar-
entity needless of cost, all the land that
he needed, even though his purpose entail
the purchase of a newly-built opera house
and the leveling of that structure to the
ground, many of the veterans were per-
suaded that Mr.. Strauss zeal and am
ibtion had impaired his judgment but he
seems to have been inspired by an i'm
pulse which was spontaneous, coincident
and shared by several.
The owners of large department stores
in other cities at the same moment were
fixing their acute eyes upon that location
and were in negotiation for land of area
sufficient to give foundation to a building
which would almost match that planned
by Mr.. Strauss These two buildings we're