While these activities were going on in Harlem, a great many builders had erected rows and rows of private houses on the West Side, principally between Central Park West and Amsterdam Avenue, so as to be adjacent to the Elevated roads. In 1887 and 1888 there was a considerable slump, and over three hundred new private houses were unsold and unoccupied. Everything looked very gloomy. All of us who were interested in the West Side were terrified when an announcement came that there would be an unrestricted auction of the Joshua Jones Estate on Seventy-fourth and Seventy-fifth streets from Central Park West to within a few hundred feet of Amsterdam Avenue.
Ehrich and I attended the auction, and when the first lot on Seventy-fourth Street was put up with the privilege of the balance of the block, we astonished the auctioneer and all present by taking all twenty-four lots.
That afternoon Ehrich and I went up to look at our purchase. As we walked over the lots a couple of men shouted at us to get off the property. We asked them why, and they said: “Don’t you see our traps? We are catching birds here.”
There is not much bird-trapping in that neighbourhood to-day!
Success breeds enterprise. When we had disposed of these various plots at a good profit, I was ambitious to undertake still larger transactions. The original Rapid Transit Commission was then laying out the routes of the first subway, and I, in search of another One Hundred and Twenty-fifth Street, began to prospect for the district in which the Commission would be likely to locate a northerly spur, concluding that if Washington Heights were made accessible, One Hundred and Eighty-first Street would become the important thoroughfare of that neighbourhood.
There were four hundred lots owned by Levi P. Morton, then Vice-President of the United States, and George Bliss, of Morton, Bliss & Company, for which I had practically concluded my negotiations in September, 1890, when the Old World was shocked by the failure of Baring Brothers, the largest banking house of England. All negotiations were stopped. But, in February, 1891, about eighty lots located in this vicinity were successfully disposed of at auction. Peter F. Meyer, who conducted that sale, assured me that less than one half of the bidders had secured lots.
On the strength of this success, I asked L. J. Phillips to ascertain whether, owing to the financial stress of the times, the owners, Morton and Bliss, would take $900,000 for their property, for which they had formerly asked $1,000,000.
Phillips’s report was brief: “Nothing less than a million.”
This was what I really expected, and my directions were briefer: “Go close it!”
On March 26th I signed the contract. I paid $50,000 down and agreed to pay $300,000 more on May 27th. I then interested about fifteen people in the syndicate, many of whom were very prominent in real estate. We were granted special facilities to open One Hundred and Eighty-second Street, and had all the work done before the auction.