The sun., 1910-01-09
THE REAL ESTATE MARKET
MEANING or LAsT YEARS
GREAT BCTLDING ROOM.

The Growth % the Title aud Mort gage
( Insurance Buslness Has Provided
! New Facilities for UtIlHlng IDLE
CapltaI In Speculative BuiIalns.
The annual building statistics made
public hast week form a truly remarkable
exhibit. They show that 1909 was a
boom year in the building industry not
only in New York city but in the country
at large.
The investment of capital called for
by the new buildings projected in Man
haitian is the largest in the history Of the
borough. amounting to slsl, 200. 600. as
against 1924, 100. 600 in 1905. The building
statistics for the othcr boroughs either
exceed or approach the highest figures
recorded in any preceding year.
Similarly as regards the country at
large a notable volume Of construction
work was undertaken. Thus, according
to BrGdstTeet's. plans were fled in about
100 cities for a total Of t8Ii, ,oOO, 600 worth
OF construction work. as compared with
sGI2, 0OO, 600 10 1905
The number OF cities reporting to that
Journal before 1908 was somewhat snnaIler
than IL has been since then. One cannot
therefore say positively that the national
investment in buildings in 1909 In the
biggest in the history OF the country, but
there 10 reason to believe that it has
seldom II ever been exceeded.
IL certainly Ia surprising TO find that a
building activity so extensive and inn
portsnt as the one revea led in the fore
going statistics has developed within
two years after a great financial panic
and at time when the manufacturing
sections in the East were suffering moro or
less severely from industrial depression
The agricultural West was indeed COM
paratively slightly affected by the panic
and the subsequent industrial depres-
sion. but the building figures just quoted
refer exclusively to the larger cities, most
OF which are manufacturing centers To-
Gated in the Eastern States.
The revival OF the building inctntrv
in 80 far as IL is here dealt with has refer
ence chiefly 70 the big industrial cities.
IL is city movement. general in charac-
ter and confined to no one section OF the
country. This movement deveIoped' in
advance OF the revival Of manufacturing
and has unquestionably been an i'm
portant factor In Fastening that revival
Inc resumption OF buildin on a large
scale began in the last quarter Of 1908.
and activity in the building industry had
reached normal proportions long before
any other industry, except those CON
neCted with the production of food SUD-
plies. had made substantial progress
toward recovery.
There can be no doubt that the out in
the price OF structural steel last spring
stimulated building, but the Importance
OF that measure was by no means de-
cislve as regards the revival OF the
oulolng industry. As matter OF fact
structural steel does not enter into the
great bulk OF the new housing erected.
Ihc low price Of brick that has prevailed
for several years has heen Of far more
consequence to the building industry than
was the cut in the price Of steel
The funda mental cause OF the early
reviva! OF building was the presence of a
great fund Of capital available for mort
gage loans. The presence OF this fund ia
accounted for in large measure by the
multiplication Of title companies through.
out the country. Such companies are now
TO be found in every town OF any re.
As At present constituted they are a
recent development. Their business was
originally confined 10 the searching and
lnsuring OF real estate titleA, but tina
glaAter part VI thair revenue now comes
h1An selling mortgages 20 private in
vestors, estates and savings banks. In
deed many savings banks have OF late
discontinued their own mortgage depart
ments, hnulng & more economical TO buy
mortgages from the title companies
through the L.struTne..Cai.ty of the
title companies. which are ia ore sense
clearing houses for the purchase and sale
OF real estate mortgages, the surplus
or idle capital Of the country is moro
largely available for speculative building
than it has ever been before. Last year.
for example, II would have been inipos-
sible for these companies 70 meet the
buying demand for guaranteed mort
cages without making loans TO builders.
aud IN effect promoting building eater
prices. in order to create securities that
could be TuortgaQed.
furthermore. through the instrumen-
tslity OF the title companies real estate
has become a quick asset IL ca be
sold almost ct an hours notice, SO far as
the searching and insurhlg OF titles is
concerned. IL can be mortQaRed with
equal readiness. Having lost practicaIIy
all tho disadvantages formerly connected
with its ownership real estate Is dealt
IN aims ost as freely a are stock ar 4 bonds
Conse luently in all big cities a numer-
GUS class of real estate opeEaL Lo, s. and build
sfs mas grown up. with the result Jnag
there Is always a u,lick market for real
estate chSInd at moderate reduction
IN price. Investment owners do not
nowadays even after a panic have to sell
at heavy sacrifice. fhey can realize
as fair n price ON their realty as they
can on personally and ure therefore
quite willing in good times - LlKe a
-fiier" in rolI estate.
Al present. not fower than 5000 real
estate corporations are listed in the
Manhattan directory. Most Of these
have considerably support from nom
professional sTIeciilators, People who
would hesitate Ia risk their savings In
independent speculation are frequently
willing to associate themselves with
somo operator Of experience in a cor
poration that gives thom the benefit
Of his judgment while limiting their
liabilities and protecting their contribu-
ton of capital
The improved facilities furnished in re-
cent years Tor utilizing idle capital in the
real estate market explains in large meas-
ure the great building movement OF last
year. Al the same time il is to be noted
that many Of the title companies are hank
ing concerns as well and are IN a position
WHEN call money is high to use their funds
ia ways open to the ordinary run OF banks.
However. the real estate market is more
susceptible TO temporary fuctuation In
he general money market than II was
formerly. and IL remains TO be seen how
tls current Developments there will affect
the u.idmg industry.