The Birmingham age-herald., 1913-06-14
SUMS
ARE BEING INVESTED
IN GREAT BUILDINGS
Three New Retail Places in
New York Alone Cost
Twenty Millions
RULE HOLDING GOOD
ALL OVER COUNTRY
Impression in New York That Minne-
sofa Rate Decision Is Textbook
to Be Studied With Profit
in Every State
BY HOLLAND

by HOLLAND
New York, June .--(Special.)-I a
business which is exclusively retail and is
only to limited extent of interstate COM
merce character-for its commodities are
sold outside of New York city only in
Connecticut and New Jer-
sey--can be established in a building and
upon land which represents the imposing
investment of s12, ,0oo,0oo the fact of itself
illustrates the colossal changes which
have occurred in New York retail business
life within recent years. The owners of
a white marble palace whose architecture
was based upon that of one of the his
large their building so that the completed
structure will occupy an entire block of
which the front faces Fifth avenue Tho
addition and the land will, when COM
pieted, represent a total investment of
sl2,oo0,0O0 in one building devoted ex-
clusively to retail trade
But this is not all A few blocks far
ther north upon Fifth avenue another re-
tail house is constructing a building
which, with the land, will represent an
investment of not far from s6,OO0,OOO A
little farther north on F'orty-second street
another exclusively retail house has had
under construction a great and imposing
nent of nearly $4,000,000
Here, then, are three retail shops
whose aggregate investment in building
and land is approximately s20,o0o,0oO. The
interest upon this sum- at per cent, is
Sl,000.000, and so great charge as that
will be one of the fixed and immutabe
items in the expense account.
These investments and a number of
others Of like character undoubtedly ex-
plain in part the stringency in the money
market. One world SURPRISING structure
on lower Broadway represents an invest
ment of nearly s14,000,00 another which
is a neighbor of the Wall street district
will when completed, represent an in
vestment of nearly $25,000,5O0. The aggre-
gate amount of capital which has been in
vested in retail establishments and in
some office buildings in this city within
a few years is estimated at about $780,
O0o, 900.
OF course, ultimately, some of the cap
ital thus invested returns in one way or
another to financial use. Yet for the
time being this capital is locked up and
all the investment In the land is perma-
nent or fixed, since there are no outlays
for building materials, structural iron,
for labor or for other building needs
which In the case of a building make it
possible for the money invested to go back
into available channels
Does II Pay?
One of the greatest of American cor
porations mas adopted an entirely differ
ent plan with respect to its retail shops 1t
is one of the largest renting tenants in
New York, for it has many shops But
1t so arranges its shops as to utilize every
available inch of space for Its commodi-
ties and Is able in that way TO slice off for
itself little strip of Il great store and
then rent the other part or parts of
store to profitable advantage. That is the
other extreme. The great retail shops ap-
pear to have enormous amounts of space
so arranged architeeturally that they are
attractive to the eye, but in no other way
bring in returns Yet this investment
must be profitable, for some Of the
shrewdest business men of New York do
not merely venture to make 1t, but have
said that it is imperative If they are to
maintain their trade.
What is going on i'll New York is also
under way in many of the leading cities
of the country, and some of the profound
est economic thinkers of this city are in
clined to the opinion that no small part of
the money in the community can be
traced to the enormous investments in
ca pital in vast, imposing and very expen-
sive structures.
The Supreme Court Decision
When the supreme court at Washington
intin,ated to the department of justice
that it might be well for the government
to file brief for the consideration OF the
court in the so-called Minnesota rate
case. it was instantly inferred by lawyers
in this city, some of whom have had eN-
perience as counsel before the supreme
court in trust cases. that the long delay
in preparing a decision in the Minnesota
case was due, in some measure, 10 con-
siderable divergence of views ON the part
of some of the judges
This idea has been held by lawyers FOR
some time Experienced lawyers know
almost by intuition what Is going on IN
the council room of the supreme court
at Washington, at least when there is
long delay in handing down the decisions.
The bench as a whole, and always the
chief Justice in the opinion OF lawyers
who have practiced before that court,
ave been anxious to secure If possible d
unanimous or practically unanimous opln-
ion, at least when the issner are consld-
cred of great public consequences.
LAWYERS who have read the decision
handed down by the supreme court in the
Ninnesota rate case carefully, not relying
unon The first impression Immediately
after the decision was published, are per-
susded that when the supreme court in
confererce came to discussion OF the
case 1t was discovered that there were
differences of opinions. For that reason
an oninion was prepared to which the
bench could have its unanimous approval.
ono of the ablest lawyers of New York
sneaks of the opinion as very fine text
hnol, and one which both Congress and
tbe citizens of the various states may
read 70 advantage when the question OF
state or national control of interstate or
intrastate railroads is under considera-
ton.
nv Strengthening the System you can
Better Withstand the Heat
GROVES TASTELESS chill TONIC en-
- III and builds tho