New-York tribune., 1919-09-14
Saloons Closed by
Prohibition Are
Quickly Taken
Over by 9th er
Businesses atMuch
Higher Rates-In-
creases as High as
800 Per Cent


ton, it is likely to regard the "bone
dry" measure as having some economic
value. There were moro than 10000
drinking establishments in New York
City when prohibition went into effect
on July /. 1t is estimated that the
number of places which have closed
their doors in the last six weeks is
we'll within the hundreds. The end of
October will find the number of clo-
surcs materially increased, as many IL
censes Will expire during the month";
and the premises will be placed on the
market for other businesses,
The remarkable condition in the re-
tail trade situation is such that stores
will not wait long for tenants, and,
what is more, higher rentals will be
paid by the new tenants than were re-
cclved from the former occupants, sa-
loon keepers. When prohibition ap-
peared certain real estate owners in
this city became very much disturbed
over the situation which seemed inev-
liable when the saloon would have to
close its doors. To many the outlook
was nothing short of calamitous. Large
investments. they were sure, would be
swept away, and property interests
generally would suffer.
Predicted Rental Losses
Although owners of saloon proper
ties and realty close to prominent
cafe establishments cried the loudest
because they were directly affected,
every owner Of real estate in New York
appreciated the seriousness of the mat
ter from real estate standpoint. He
saw where the income to the state and
the city from the privilege of selling
liquor would have to be met by real
estate, which would mean heavier
burden on real property. 1t was the
opinion that when the saloon closed
store properties within reasonable
distance of we'll located cafes would
lose value. The high rentals which
they commanded could not be obtained,
because these rates depended in q
measure on the prominence of the To-
cation and the character of the drink
ing establishment on the corner.
1t can be imagined what were the
thoughts of the owners of such prop
critics and the storekeeper tenants
when Congress decided that the sale
Of liquor should stop on July l
and the New York State Legislature
voted acceptance Of the measure.
Property owners, especially the man
who owned real estate in which was
located IL saloon, saw the end of high
rentals and the loss of investments
proportionately larger than was in
vested in other property in the neigh
borhood.
Higher Rates Paid Now
Although it is only six weeks since
calamity was the cry echoed through
the city by property interests general
ly, the facts are that every saloon prop
erty that has come on the market has
been rented quickly and, there is rea-
son to believe, at higher rentals than
were paid by the saloon men. This is
Known to be true in several instances
in the theatrical or white light" dis
trict of the city, where rent.ls run
ming into small fortunes were paid by
saloon men for the privilege of cater
ing to the sociably inclined traveller
along Broadway and Forty-second
Stree.
The southwest corner Of Sixth
Avenue and Forty second Street is
known by thousands of men. not alone
residents of this city but other parts,
the suburbs and faraway places. 1t
is on the line between the Grand Cen
trail Station and the theatrical dis
trict. Many must have wondered what
rental was paid for the property, be-
cause 1t was a veritable gold mine"
SO large was the business, it having
been a twcnty-four hour corner. When
prohi ion came it was decided the
limited privileges allowed by the law
would not warrant tho payment of
$4,000 year rent for the building.
There was fear thai lower rental
would have to be taken for the prop
erty. That Is, some thought that a
lower rental would have to be ac-
cepted, but as there was an unprece-
dented demand for stores, large and
small, others thought it expedient to
subdivide the saloon floor, which is
eighty feet along Sixth Avenue and
forty feet on Forty second Street, into
stores.
Two Hundred Per Cent Advance
FIVE stores averaging eight feet wide
and thirty feet deep were made in the
Forty second Street frontage of the
space and the rear fifty feet on Sixth
Avenue was left intact. This fifty feet,
which represents about rs per cent of
the space in the floor, and what is
more is the least desirable, has been
rented for $4,000 year, which is as
much as was paid for the entire prop
erty by the saloon proprietor. Then
the corner store has been rented for
$1,000 and two of the inside divi-
sions for about $4,000 1t is estimated
that the floor will rent for $4,000.
Prohibition has improved the income
Of that corner by $4,000, which is
$1,000 short Of a profit of 200 per cent.
Charles Furthman would have sold
-. lla.aaa ar IL