New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-01-03
John Finck Is Optimistic
Regarding Real Estate
Market This Year.
SAYS CONFIDENCE
HAS BEEN RESTORED
Excessive Legislation Against
Building Interests Should BE
Minimized, He Declares.
By JOHN FINCK.

What has 1915 in store for real
estate? VIII the tendency in activity
be upward or the reverse?
ITO answer these questions intelli-
gently we must analyze conditions.
both past and present.
ut is recognized fact that since
last July We have witnessed a grow
ing depression in real estate, which
reached high water mark in the latter
part Of November.
During that dark period transac
tons were few in both mortgages and
sales. Not alone was there an absence
of activity, but complete staguation
had set In. There were many unfa-
vorable causes which led 20 this con
dition; first and foremost being the
war scare with its many attendant in
cidets.
Investors boarded their money, re-
fusing all gilt edged investments. and
waited for the unexpected 20 bring
them an unusual return. The result
was stringency In the financial Sit
uation, and a consequent repression Of
all speculation as well as investment.
Investors anxiously awaited the
coming OF the millennium, believing that
with the fast growing and ever ln-
crcasinC unfavorablc conditions many
opportunities would be found 20 rca)
enormous advantages.
THE general stability OF th, coun-
try. the confidence Of the many in our
ability 20 meet successfully the em,r-
gency of the moment. all alike inspired
a faith that swung the pendulum the
other way.
For a long thine We oscillotct be-
tween the sternest hopes and grandest
apprehensiOns. This return % CONT
dence was further emphasized by the
reOpening Of the Stock Exchange. fol
lowed by increased activity among
large mortgage investors, banks and
trust companies.
This renewed confidence was fol-
lowed by an increased buoyancy in
both sales and mortgages. Building
operations in both Manhattan and The
Bronx, having been at standstill for
many months, rents received a stimu-
lating impetus, enhancing the value OF
real estate.
For the last six months there has
been n general withdrawal OF money
for mortgage investments. so that-now,
on the dawn of a coming prosperity. "A
large sum will be available 10 give life,
strength and tone 20 an otherwise de-
moralized situation.
This tendency 10 general improve
ment is clearly illustrated in the sales
room, where the formal announcement
of bid in by plaintiff" has been varied
by outside bids
Recently large Fifth av. corner
was sold on a judgment of S23j,0 an
amount in excess Of the incumbranceg,
netting the defendant comfortable
return. In an auction sale of eighty
eight suburban lots Sl20.707 was read
lily realized from buyers ready and
anxious The sale Of the Hotel Gotham
for S3,500.0O0 cash shows the conf
dence of the outside buyer. A number
of large apartment houses have recent
ly been sold on a cash basis.
"The sales and mortgages for 1914 In
greater New York were but Sl50,000-
900 less than 1918, and aggregated up
ward of Sl,310.000,000. The decline OF
1914 was but 10 per cent. All these fig
ures indicate a return 20 normal condl-
ton.
THE future prospects for 1915 are
encouraging, but in order 20 make the
effect lasting real estate interests must
be alert and keep on guard 10 ward oif
the continuous assaults directed
against them.
Municipal extravaganza must be
checke,,. .,9litical favorites dispensed
with and the rate Of wages fixed on q
par with that paid by the ordinary
business man.
MANY departments should be con
solicited under one general head. with
a view of general uuan.mity of action.
The vast army Of inspectors. whose
sole duty seems 10 be 10 harass prog
erty owners with duplicate orders,
should be reduced 10 meet legitimate
needs.
Excessive legislation directed
against building interests should BIO
minimized. and broader latitude giver,
within the limits OF peace and health
regulations. Legislation should be in
itiated seeking other sources Of taxa
ton in addition 20 real estate
with a return 20 normal conditions,
a renewed confidence in the heads Of
government, strong faith IN the
riches Of the country, 1915 bids fair
20 mark the era Of "A returning pros
perity which will win the investor 90
. realization that mortgage invest
ments are the safest and sanest secur-
ity.