New-York tribune., 1903-03-22
THE WEEK IN REALITY
Quiet Market Ascribed to Proposed
Tar Legislation.

The features OF the real estate market last week
were not especially notable There was an
average amount of business. with no notable sales,
and remarkable movement appeared in any
quarter. The chief activity, judging by the num-
her of sales reported. the east side of the
city. This would indicate that the building laws,
they stand and as they are likely TO be amended
have not seriously affected tenement house prop
erty investment. Many old buildings changed
hands. which would suggest that a number of i'm
provements were in progress. In fact the chief
characteristic of the realty week its Quetness
This Quietness was ascribed TO two causes-the
tightness OF the money market and the uncertainty
OF tax legislation at Albany. The general opinion
regarding the latter that II will mean double
taxation of real estate-that the mortgageor will
have the mortgage tax to pay and that ultimately
the real estate will have to carry the tax. 1t
figured by one authority that property owners in
this city whose property is mortgaged will be
called upon to pay in taxes. over and above the
fax levied by the city just the amount by which
the city is save in payments to the sinking fund
$ono.o00. The total amount of the mortgages which
would he taxed figured at $3000,0o0o00. OF this
about $20oo00o.o0o was in this city. The mortgage
tax would produce these S. 0o0,0Oo.
It was believed by that the uncertainty
about the passage Of the bill had intensified the
tight money conditions far real estate is con-
cerned. Many mortgages now in existence it is
said. contain clauses specifying that the mortgageor
shall pay the tax in the event OF the passage OF
legislation affecting mortgages THE inevitable re-
suit, declares one, "of the enactment into law Of
the proposed tax would be the calling in Of all
overdue mortgages which contain such provision.
In any case the law would react on the borrower.
In all cases it would be evaded by the mortgage,
and as by far the majority Of borrowers could not
afford the additional tax on their Investments the
result would be numerous foreclosures
One of the interesting developments Of the week
was the announcement that third North River
tunnel was in prospect. The men-at least some Of
then-interested in the scheme evidently among
those behind the Morton-st. tunnel: So far
he learned the tunnel will enter Manhattan under
Cortlandt-st. and will follow that street Church.
st. along which IT will north TO Fulton-st- A
trolley tunnel would be OF great value at this point,
as ii would tap the heart of the business district.
Apparently the plan at present is to run the cars
back and forth under the river in the manner
the bridge cable cars operated. It would be
valuable the unit Of system. Just the bridge
has become. Apparently spectators got wind OF
the project and made investments in property in the
neghboThood Of the proposed terminal and bought
property they thought might be needed It is
derstcod that all the property required has been
obtained
One phase of the weeks business was the absence
of the larger corporations and the realty companies
from the buying