February 23, 1918





RECORD  AND  GUIDE





231





on the upland h built and this terminal
can also be used at any time. The depth
of water at all the terminals mentioned
above is sufficient for barges, but not for
ocean-going vessels, and freight arriving
at them will have to be transferred
overland to other points if destined for
transocean   shipments.

On the Gowanus Canal the terminal
not only has th: longest piers, but the
greatest depth of water. There is about
35 feet of water at low tide along the
900-foot^ bulkhead wall at the foot of
Columbia and Henry streets, and the
pier, which measures 1,200x150 feet, can
accommodate a number of ocean-going
steamers at the same time. The Gov¬
ernment has taken over temporarily one-
half of this terminal, and the work on
the other pier will be postponed until
after the war for this reason. There are
fifty acres of ground back of the water
front on which it is possible to erect
grain elevators and other buildings for
handling freight. Work on the wall and
the first pier is well advanced and the
terminal  can  be  used  next year.

In Queens there have been secured
three sites for terminals, but no work
has been done on them. Bids have
been asked for on contracts for the
jobs at Flushing, Hellett's Cove and
north of the Queensboro Bridge, and it
is expected that work will be com¬
menced on these terminals within the
next   six   months.





for the compensation of the distributor
in  that  way.

"The United States Fuel Administra¬
tor therefore announces that on and af¬
ter April 1, 1918. the limit of compen¬
sation of the jobber is removed, but
that his compensation must come out of
the Government price at the mine' and
may not be added to it. The mine prices
will be republished prior to April 1, 1918,
and at that time a proper allowance
for selling expenses will be included in
the prices."





QUERY DEPARTMENT





Retail   Price   of   Coal.

As the result of the decision of the
United States Fuel Administration to
make the price of coal to retailers the
same, whether purchased through job¬
bers or direct from the operators, it
is contemplated that a reduction in the
retail price will result. The jobber is at
present permitted to add from fifteen
to thirty cents a ton to the Govern¬
ment price, but under the new plan
that commission will be eliminated. To
offset this the mine price will be in¬
creased slightly and the jobber will be
compelled to look to the operator for
hi"^ orofit.

There is nothing new in this method,
for it was in vo?ue at the time that the
Government took over control of the
mines, and there seem to be several
reasons why it is advisable to return
to the old practice. Tt developed that
under the svstem of allowing- the job¬
bers a specific guaranteed commission
it was possible for some operators to
establish subsidiary companies solely
for the purpose of selling, thereby ab-
sorhine' the jobbers' commision.

The Fuel Administration realizes that
the iobber is essential to the conduct
of the coal business, and wants to as¬
sure his reasonable compensation and
at the same time eliminate fictitious
commissions which mnst be naid by the
ultimate consumer. The following an¬
nouncement was made this week bv H.
A. Garfield, United States Fuel Admin¬
istrator :

"The United States Fuel Administrator
mak^s the following announcement con¬
cerning the iohbers and jobbers* mar¬
gins as defined in the President's order
of Aueust 23. 1917. The intention was to
preserve a useful service at the hands
of men experienced in the di<;tribution
of coal and to allow a reasonable charge
for the service. Tt was the intention,
furthermore, to deny this margin to anv-
one who did not actnallv render this
service. Prior to the fixing of Govern¬
ment prices, it was customary for the
iobber to purchase coal at a lower price
than that generally allowed to the con-
Mimer. and to make his profit bv sell¬
ing to his customers at the market
nrice. After tbe fixing of the Govern¬
ment prices. whJrh included an allow-
3rire for jobbers' margins, unforeseen
difficulties appeared. Many who were
not entitled to the margin and did not
Perform any useful service, neverthe¬
less absorbed the margin. It is virtually
impossible satisfactorily to police the
<:ituation as it stands. The United
State<: Fuel Administrator is satisfied
that the onlv sound basis is to include
in the Government price a proper a/low-
ance for selling expenses and to provide

_________________RECORD   AND   GUIDB





The  Jury  System.

Editor of me Record and Guide:

The apparent difficulty in obtaining
eligible jurors for jury duty revives the
suggestion ofttimes made that jury trials
be dispensed with in commercial cases,
and the recent provision made by the
Chamber of Commerce for increased
facilities for the handling of commercial
differences by arbitration accentuates
the advisability of some more or less
radical changes in the laws applicable to
the jury system. The popularity of the
facilities afforded by the Chamber of
Commerce evidences some dissatisfac¬
tion with our present system.

It is generally claimed that a final
determination of a business difference
may be had from the Committee on
Arbitration in much less time than a
trial can be had at law. It is also con¬
tended that a proceeding under arbitra¬
tion is much less expensive than under
litigation. And beyond all this there
seems to be a feeling that the Com¬
mittee on Arbitration is infinitely better
fitted for the decision of commercial
questions than is either a judge or a
jury.

But whatever the cause may be the
fact remains that among business people
there is a growing distrust of the jury
system as it now stands in so far. at
least, as the same is applied to the trials
of commercial disputes. And certain it
is that many of our great business in¬
stitutions look hopefully to the plan of
arbitration created by the Chamber of
Commerce under which their differences
may be submitted to arbitration.

If my own experience of more than
thirty-five years is of value, I may say
that T cannot recall one case, in the
trial of which I participated, that I
would have hesitated to have dispensed
with a jury. Personally I believe that
the ordinary commercial case is better
tried before a judge without a jury than
otherwise.

From expressions of opinion it is quite
clear that, with one or two exceptions,
the judicial mind clings to the perpetua¬
tion of the trial by jury, in some one
form or another, of commercial or busi-
nes^s disputes. I am constrained to
believe, however, that in this respect
the bench does not echo the sentiments
of the great business interests of the
community. One hears constantly ex¬
pressions of dissatisfaction at the re¬
sults of Jury trials in commercial cases,
and there has grown up among busi¬
ness people a willingness to settle their
disputes out of court on most any terms
rather than have them submitted to a
jury under the present system of selec¬
tion.

Our Judges are elected by the people,
or they are appointed by executives to
whom the people voluntarily give that
power. The Judiciary as a result is
directly or indirectly chosen by the
people, and presumably chosen because
of their fitness for the duties that they
will be called upon to perform. We
are prepared to submit our differences
to our judges with full confidence in
their fairness and in their ability to
decide the questions presented to them.
May the same be said generally of our
Jurors? There is a deep seated and
growing feeling among merchants and
others interested in commerce that it
may  not.

There is no doubt much to be said
for the retention of the Jury system on
the criminal side of our courts, but so
far as the ordinary commercial dispute
or difference is concerned there are
many who believe that the jury system
has outlived its usefulness.

WILLIAM B. ELLISON.





This department is intended to be of serv¬
ice to all interested in the real estate market,
whether as broker, agent or property owner.
The readers of the Record and Guide are in¬
vited to send in questions on matters per¬
taining to real estate, building and builaing
management, though legal questions will not
be answered in this column. Questions should
be stated as fully but as briefly as possible
so as to allow intelligent answers. Arrange¬
ments have been made through which the
questions will be answered by a Committee
of the Real Estate Board, including lie
following

E. A. Tredwell, real estate broker.

Frederick   D.  Kalley,   real estate broker.

Robert R. Rainey, real estate broker.

B.  E. Martin.

William   Douglas  Kilpatrick, builder.

H. H. Murdock, architect.





Question No. 304.—An attorney for a Savings
Bmik. to which application has been made
for a mortgage loan, passes title, deeds are
given and money paid. Six months later the
attorney learns that an old village tax has not
been paid and demands return of the amount
from the seller. Can he leaally enforce pay¬
ment and does refusal impair warranty deedt

Answer No. 304.—The question is
hardly intelligible, and the answer de¬
pends entirely upon the papers executed.
If the writer means that a loan was
made by a Savings Bank secured by a
mortgage upon his property, and that at
the time the mortgage was made a tax
remained unpaid, a lien upon said prem¬
ises, which the attorney for the Sav¬
ings Bank neglected to notice, the
rights of the mortgagee depend upon
the form of the mortgage. If the mort¬
gage is in the usual form and contains
warranty of title and a covenant and
that there are no encumbrances upon
the premises prior to the mortgage lien,
the bank can compel the mortgagor to
make payment of the tax. What the
question means by publication for a
mortgage loan, who the seller is and how
warranty deed enters into the matter at
all  cannot  be  understood.

Fire   Hazard.

Editor of the Record and Guide:

New York City is in grave danger of
a general conflagration due to shortage
of coal and an excessive winter. This
is not an alarmist statement, but a fact
stated by Fire Chief Kenlon and pro¬
claimed publicly bv the Mayor. It is
.doubtful whether this statement of peril
has been seriously taken, at least seri¬
ously enough to bring results. It should
be reiterated until it brings a mental re¬
action that will lead to greater care with
the cigarette butt, the over-hot stove,
the pile of rubbish in the cellar, and to
the readiness of the hand extinguisher,
the standpipe and the sprinkler system.

But what has the shortage of coal and
a bad winter got to do with all this, asks
the average man. Just this—lack of
coal to keep buildings warm has crip¬
pled at least a thousand sprinkler sys¬
tems in the warehouse and mantifac-
turing district, according to an author¬
ity, and many standpipes and even fire
extinguishers have been damaged by
freezing. And it is not generally known
how much the Fire Department depends
on sprinkler systems in certain districts
—the most dangerous districts—to pre¬
vent   general   conflagration.

Unfortunate then is a tendency of
property owners once having installed
sprinkler systems and other fire-fighting
apparatus, to consider their duty done
and everything else up to the Fire De¬
partment and the insurance company.
This letter is an appeal to all such to
realize that they alone are responsible,
and responsible all the time, to see that
such apparatus is kept in condition for
immediate and effective use to save
their own property and indirectly that
of their neighbors.

As chairman of the Committee on Fire
Prevention of the New York Chapter
of the American Institute of Architects,
I desire, therefore, to reiterate the fact.
as publicly as possible, and to urge the
necessity of every precaution by every
person that another disaster be not
added  to  our  present  troubles.





WILLIAM   O.   LUDLOW.

IS   IN   ITS   FIFTIETH   YGAR    OF    CONTINUOUS    PUBLICATION.