August 1, 1885





The   Record   and   Guide.





855





THE   RECORD   AND   GUIDE,





Published every Saturday.





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Vol. XXXVI.





AUGUST 1, 1885.





No. 90^





TJie Mechanics' Lien Lau\ with full Manjinal Notes and com¬
plete Index has been published in pamphlet form by The Record
AND Guide. Copies canbe obtained at the office of pnbllcationy
iVo. 191 Broadway, price 2.^ cents. This valuable work should be
in the hands of every man interested in building or in ihe sale of
building material.

--------------9--------------

The Duke of Marlborouj;h is trying to push through the House
of Lords a bill to cheapen and facilitate the transfer of laud in
Great Britain. The late Lord Cairns succeeded hi getting a bill
througli Parliament having this object in view, but as its provisions
were permissive rather than mandatory it has been practically a
dead letter. The Cairns act supplied the basis for the famous
Torrens' Laws of New South Wales. The Duke of Marlborough is
a man of signal ability ; indeed, by many he is regarded as i>ossess-
ing more varied talents than his brother, Lord Randolph Churchill.
He evidently wishes the world to forget the evil social reputation
he once bore by linking his name with a beneficent measure of
public policy. Bad and unreasonable as are our land laws those of
Great Britain are far worse. It will be noticed that one of the first
acts of the Salisbury Cabinet was to forward the bill introduced by
the Gladstone government, helping the laboring poor of Ireland to
acquije small landed possessions through advances of money made
from the natioual treasury. The tendency of things in Great
Britain, as on the continent, is to encourage the distribution of large
estates and help facilitate the transfer of land to those who actually

till it.

■----------------------------------------------------•----------------------------------------------------

The remarks of President C'oleman, of the Tax Department, made
before the State Board of Assessors at their meeting in this city last
Tuesday,   sounded   trite   enough   iu   some   particulars   to   men
acquainted with the methods of estimating real estate values; but
they apparently contained a revelation to the gentlemen for whose
information they were delivered.    **Where did you get your infor¬
mation?" asked  Mr. Coleman, in seeking an explanation of   the
methods used last year by the State Board in increasing the assess¬
ment on  property in New York.    To this  question the assessors
replied that their knowledge had been derived  from the  Building
Department's report of new buildings, from inquiries at real estate
oftices and from  the  sales of real estate.    Upou   receiving this
answer, Mr. Coleman called the attention of the assessors to a few
of the various devices used for the purpose of increasing  the  mar¬
ket value of property, and showed how easily the  results of sales
could be made deceptive.    But his  statement  that the   total of
values in New York is no higher now tban it was in  1870,  is  very
wide of the mark if he was not badly misreported.    He said  very
justly, in the course of his remarks, that the only true  way of esti¬
mating the value of property is by the rental.    But he would hardly
say, we think, that the total rent roll of New York is no greater at
the present date than it was fifteen years ago.    Still,  it is unques¬
tionably true that the assessments for this city or county, compared
with the assessments for other counties of the State, are much  too
high, and the State Board will do justice  by  reducing instead of
increasing the returns of the local assessors.





well-informed quarters are often misleading, and the wise operator
both here and abroad does better when he relies ou his own
judgment.

There are not so many Americans as usual in Europe this year,
partly because our rich people have not as much money to spare as
in former seasons, but more especially because it was feared the
cholera would prevail on the continent during the summer. So
far, however, this scourge has been confined mainly to Spain, and
it does not seem likely that it can reach all parts of the continent
this season. Then its virulence is not as marked as it was In Italy
last year, while it does not begin to be as fatal as it was in Egypt
two seasons ago. Indeed, this pestilence might die out in Europe
as it did in its last visit to this country when, being introduced by
way of New Orleans, it ravaged the valley of the Lower Mississipi)!,
but was not heard of after it reached the Ohio. The poison of the
pestilence seems to lose its strength as it travels westward, and dies
out after the lapse of the third year from its origin in Hindoostau.





There is not an anti-monopolist in the country, not alsoalunatic.
who will not hear with a feeUng of relief that the New York Cen¬
tral road  proposes, on certain terms, to lease the tracks, rolling
stock, etc., of the West Shore  road.    With this feeling, too, will
come a sense of profound indifference to  the nature of the terms
ofiFered.    When the West Shore road was built the Central road
was practically not only a four-track road, but a double and triple
road over most of its extent, equal, with increased rolling stock, to
twice the amount of traffic which it can, by any possibility, secure
iu a quarter or half a century.    Very little sympathy can therefore
be expected  for the stock or bondholders of the West Shore road.
and the terms which they are getting, according to the circular of
Drexel, Morgan & Co., seem to be remarkably good.    The Central
road would hardly be the gainer could it obtain the property of the
West Shore road for nothing.   The possession might add something
to the (luality of its rolling stock; but in the maintenance of its
tracks, depots, terminal machinery, etc., it will be forced to carry
a load which will place  it at a disadvantage with the competing
trunk  line roads to the West, while  it will gain nothing for its
local  traffic.     Could the tracks of the West Shore road, between
Buffalo and Albany at least,  be removed to-morrow, its depots
burned  down  and its road-bed delivered over to the original own¬
ers, the New York Central road would save money.   But the adven¬
ture  has furnished  a lesson  which   may  be worth   more   than
150,000,000 to the railroad managers of the future.





Insiders who get points from those who ought to know most
about what will affect the market price of stocks fare as badly in
Europe as they do in America. The London Times' Berlin cor¬
respondent states that when the trouble existed between Russia and
Great Britain, Bismarck believed that war would ensue and was
anxious that it should take place. His banker was aware of the
chancellor's views, and he not only sold the market short but
induced all his clients and friends to do likewise, but the Emperor
William was averse to a war taking place and by correspondence
found that the Czar was opposed to the Russian military party
which desired to bring about hostilities. The Emperor's favorite
court banker was soon made aware of his patron*s views and he





A recent decision by the Kentucky Court of Appeals brings into a
strong light the duties and obligations of directors while adminis¬
tering the franchises of a corporation.    The Newport Street  Rail¬
way Company was chartered in the year  1SG4, and  a majority of
the stock was held by one Robbins, who was also a director of the
company.    Not having sufficient funds to complete the enterprise,
the nuiuagers made an arrangement with three men named Kellogg,
Morton and Carrick, to take the bonds of the company atfiOor (i5 to
the dollar, Robbins and a sufficient number of other directors with¬
drawing, aud allowing the three capitalists to be made dirpctors in
their places.    This plan was followed, and the bonds, held as indi,
vidual property, were sold afterwards, some at 75 cents ou the dol¬
lar and some at i)ar.    In the case growing out of some debts con¬
tracted by the corporation, and which finally reached the Court of
Appeals, the   court held that  "directors  of a   corporation  will
not be allowed, under an arrangement with each other, to issue
the bonds of a corporation and then purchase them at less than
their value, or if the value of the bonds is in fact  paid at the time,
and the director then proceeds under such an arrangement to sell
the bonds on  his own private account so as to realize a profit, he
will be held to account for that profit to the creditor or stockholder
of the corporation; it is, in fact, the money of the corporation and,
not of the director."    How many transactions would this decision
reach in New York?   In  the  Keap libel case now on trial in this
city  it was  *'developed that while Drexel, Morgan <& Co. sold the
first million of Metropolitan Elevated Railway bonds for the benefit
of the company the second milUon was taken at 95 by the president
of the company and a director."    If this is a correct report of what
was developed the case looks quite parallel to the Kentucky case.





The report published by the Supervisors of San Francisco, in
relation to the section of their city known as Chinatown, will go
further than anything else that has appeared to justify the opposi¬
tion to Chinese immigration so long manifest on the Pacific coast.
The report is not based mainly upon class interests. It is not put
in the terms of the Sand-lot orators; but is a calm statement of the
conditions of Chinese life where the Mongolian population is
numerous enough to form a district. It is a picture of filth and
immorality discovered by careful investigation  wliich is altogether





and his friends went long of the market, and of course profited I shocking; and it must be said that no city having learned of the
greatly when peace was assured. The moral is that points even from J existence of such a plague spot as Chinatown within its boundaries