June'22, 1889
Record and Guide.
873
city has been hampered by the inadequacy of the accommodations at the
central offlce. Much more room is needed than there is, especially
on Mail street. It cannot be long before some steps will have to bo
taken fco increase tbe accommodations, aud a proposition to add to the
northei-n end of the Post-offlce building is sure fco be made. No further
encroachments upon the Cifcy Hall Park should be permifcted under any
circumstances. The suggestion has been made that the government should
buy the block of old buildings bounded by Park row, Ann sti-eet, Beek¬
man street and Theati-e aUey, aud construct a new budding tbere, connecfced
with the Post-offlce by an underground passage, as the two Post-office build¬
ings are in London. This suggestion should be acted upou at once, foi- it
cannot be long befoi-e the old buiidings on Park row are replaced by finer
struotm-es. With the government building on Park row it would be a
street of very imposing edifices,
4**
The sky-scraping "Osborne" flat on the northwest corner of 7th avenue
and 57th street is to be made stiU higher by the addition of fom" stories on
tbe front and one story on the i-ear. The cost of alterations ai-e estimated
at $20,000.
A Eemarkable Loan.
From time to time some extraordinary transactions are disclosed by a
seai-ch of tbe official conveyances which appear in The Rboobd and
GumE. Evideucej are not infrequently discovered of false considerations
having beeu given in deeds transferring property. A scrutiny of the
ofBcial mortgage deeds published in this paper also shows that in some
cases loans are made by or ou behalf of institutions and iudividuala which
are dangerously risky and whicb leave the impression that the morbgagee
would fare badly should (oreclo.=!ure proceedings ever become uecessary
through bbe moi-tgagor's defaulb in paying off the loan, if demanded when
the time of expiry arrived.
A mortgage appeared in a recent issue of The Record and Guide show¬
ing that a piece of property on the northeast corner of Washington and
Cortlandt streets was mortgaged to tbe Poughkeepsie Savings Bank by
oue Samuel Trimble, of Brooklyn, for $182,500, at 4J^ per cent, intei'est for
five years. The property is described as being 67.1xR6.5x66.11x6I.3 in size,
and the mortgage is dated May 17,1889, The ground covered is thei-efore
4,377|^ squaj-e feeb, which is equal to a Uttle 076r 19-13tbs of a city lot.
On this there is a five-story bmlding recently altered from three five-story
stoi-esaud a flve-story factory which stood on the site about a yeai-ago into
one buUdiug.
Let us see how much this property cost the owner.
In The Recoed and Guide of Apiil 14,1888, the followiug transfers
appear:
Cortlandt st, Nos. 74 and 76, n e cor Washington st, 40.9x66,6x45.3
x(i7.1, two five-story brick stores, and 171 Washington st, five-
story brick sfcoi-e. Wm. E. Verplanck exr. Wm, S. Verplanck to
James Adair, Brooklyu, N. Y. Mar. 26,1S88, Deed. nom
Same property, Jas, Adair to Samuel Trimble, AprU 9, 1S88.
Deed. $90,000
In The Record and Guide of March 31,1888, the following transfer
appeai-s:'
Cortlandt st. No. 73, n b, 40,9 e Washiugton st, 20.6x66x21.3x66,6, flve-
story brick factory, E, Ellery Auderson to James Adair, Brook¬
lyn, N, Y, Mort, $9,000, Mar. 22, 1888. Deed. nom
Same property. Jas. Adair to Samuel Trimble. Mar. 23, 1888.
Deed, $35,000
It therefore appears tbat tbe flrst cost of the property, from the con¬
siderations given in the deeds, was $12S,000, It should be added that Mr,
Trimble is said to be a representative of John Pettit, who is understood to
be the reai owner.
But the buUdings underwent considerable alterations. In The Record
AND Guide of November 3, 1888, the followiug item appeai-s under the
applications made to the BuUding Departmeut uuder the head of " Altera¬
tions ;"
Cortlandt st, n e cor Washiugton sb,walls altered; cosb, $8,000; S. Trimble,
Brooklyn; ar't, J. M. Famsworbh.
As a mabter of face, however, considerably more than 88,000 was spent
on the alterations. Architect Farnswortb was caUed on at his offices in
Temple Court, and;he said: " The alterations made by Mr. Pettit were
carried out under his owu supervision, but tbe flgure in tbe application is
misleading. I think, however, that $25,000 would cover what was spent.
It would be au outside figure."
Mr. Pettit was caUed upon by a representative of The Recobd and
Guide, and his attention was called to the plan filed in the official depart,
ment for alterations to cost $8,000. It was difficult to extract from him a
statement as to the approximate cosfc. " Would $50,000 be too high?" " It
would uot," was his reply. Subsequently, however, the object of tbe
inquiry was disclosed to bim, and he said: " 1 wUl be glad to give you the
contract to do the work for $100,000." The discrepancy between the
estimate of the architect and the reputed owner is very forcible, not to
speak of the official application for only $8,000. When alberabion plans are
filed at the BuUding Department it often occurs that the estimates are
exceeded. But it is doubtful if they ever were exceeded by eleven and a^
half times their estimated figure. Of course the architect was innocent as
to the object of the query. But let us presume that the alteratious cost
double his estimate, that is $S0,00O, the entire cost of the property to the
owner, alterations included, was $175,000, And yet tbe Poughkeepsie
Savings Bank loaned $182,500 on it for flve years at Ay per cent.
In granting an application for this and every loan on real estate the
trustees and other members of the bond aud raortgage committee of every
savings institution must sigu a declaration to tbe foUowing effect, in con¬
formity with the law:
" The undersigned members of the bond and mortgage committeeof
said institution do, after investigation, certify tbat tbe value of the above
premises proposed to be mortgaged to said institution ai-e, according to our
best judgment, worth at least twice the amount of the sum proposed to be
loaned on the property."
That is to say, that iu the loan under consideration the offlcei-s of tbe
bank, wbo are responsible lor the payment of their depositors' money, cer¬
tified by their signatures that the property is worth $385,000, which is " at
least twice " the amouut of the sum loaned. And yet, on the face of it, the
property cost less than §182,500, the amount of the loan itself, WiU the
bauk officials explain the seeming discrepancy?
But this is uot aU. The Record and Gdide had been informed tbat tbe
considei'ations given in the deeds transferring the propei'ties were false.
Not wishing to do an injustice, aud ina spirit of honest inquii-y, efforts were
made to ascertain the facts. It was found that the parcel transferred at
«P0,000 to Mr, Trimble on April 0, 1888, had beeu transferred by Wm, E,
Verplanck on March S6, 1888, thu-teen days earUer, at $60,000, Mr. Ver¬
planck having flled a certificate early iu May to tbe effect that the actual
consideration was $60,000.
Wm. G. Verplanck, a relative of Wm, E. Verplanck, is one of the firm
of Cui'tis & Verplanck, of No. 36 WaU street, who are the attorneys for
tbe Poughkeepsie Savings Bank, Wm. E. Verplanck was called upou, but
it was found tbat be ie in Europe.
But we bave not yet done. Tbe property which was transferred to Mi-.
Trimble at $35,000 on March a3d, 1SS8, was on the very day previous soid
by E. EUery Anderson at $22,000. This statement is made on undoubted
authority.
It thus appears tbat the two parcels whicb were conveyed at an aggre¬
gate of $1S5,000 actually cost $83,000, or $43,000 less. If $50,000 was spent
In alterations tbe total cost would be $132,000, and if $100,000 had beeu
spent, which no expert would say of a building covering a space of less
than 66 feet square, tbe total could not have been over $182,000.
Au appUcation was mode for $170,000 ou the property from the Wash¬
ington Life Insurance Compauy. W. A, Brewer, the president, said they
would uot consider such a high loan ou the property, even at 5 per cent.
A director of tbe Mutual Life Insurance Company said that it was diffi¬
cult for institutions to be conservative when such loans were made.
At tbe Eui'eau of Assessments it was ascertained that Nos, 73, 74 and 70
Oortlandb and No. 171 Wasbingt^au street were assessed at $45,000. Tbis,
however, is ou the fom- five-story buildings befoi-e bbe alberations were
made. The assessmeut for 1890 wiU be much higher.
Tbere is only one argument that can be used to overcome criticisms
made upon tbis loau. It may be said that the property was bought at a
very low figure and that tbe actual value, especially with the alteratious
made, is far higher than the cost. Tbere ia but one reply to this, and that
is, that there is only a little over one and three-quarters of a lot of ground,
with a flve-story structure on it. Where are you going to get a valuation
of $385,000 out of that ?
The Record and Guide makes no accusations. It merely points out the
facts. These transactions are injuring real estate. Of course Mr. Trimble
and Mr. Pefcbit arc perfectly warranted in getting as high a mortgage as
possible. But who-.s responsible for the Poughkeepsie Savings Bank mak¬
ing such a loan on the property, and sucb a valuation to boob ?
In the interest of the depositors of that bank, and iu the cause of honesty,
this extraordinary loan requhes explanation on the part of tho bank
officials.
---------•--------
About Those School Sites,
A serious hitcb has occurred in the working of the law passed a year ago
to enable tbe Board of Education to obtain sites for schooLs more speedUy
than before, by condemnation proceedings. The Commissioners appointed
from time to time during the past sis moutbs by the Supreme Court to
appraise the property needed have, it appears, made awards iu thu-teen
cases, aud the Sites Committee of tbe Board of Education declare that they
ai-e aU, with the exception of two parcels, much too higb, being greatly in
excess of tbe estimates made by the committee itself. The provisious of
the new law are that wherever the schoo! accommodation is deficient, the
school trustees of the ward are empowered to make application to the
Supreme Com-t for the appointment of three Commissioners of Estimate,
whose duty it is to hear claims aud make awai-ds, these awai-ds to be subject
tothe approval of tbe Eoai-d of Education before confirmation by the
Supreme Court.
The location of tbe plots, together with the awai-ds and the estimates,
are given below:
Sites, Ward. *Estinjate8. tAwai-ds.
4—Mulberry st, n e eor Bavard st, IS4.I0sI00.4___ 6 $73,600 $153,000
B—Delancey st, n wcor Ludlow st, 96x88.3........ 10 113,000 84,000
C—Norfolk st, w 6, 7S,7 n Hester st, 35x75 ......... 10 12,000 17,000
D—Hester st, b e cor Chrystie st, I00,4sl03.2x
irreg...................................... 10 81,000 107,500
JE:—4tbst, ns, 174.6 w 1st av, r5,fixOe.OV6........... 17 40,000 76,130
ii"—SStia st, S8, IHO.l wadav, 24.11x73.3..........i „. ,--no oo^nn
0—36th st, s s, 333 w ad av, ■2l.2s.m.l0...........f '''■ ^^'^"^ -*'■■'''"
jEf—.Olstst, nwcor 1st av, lOOxd,^),6 ................ 3S 61,000 43,000
J—Oetli st, iiw cor 10th av, 125x100,5.............. 32 58,500 70,000
J—76thst, ns, B05e3dav, 35x!03.a................ 19 2:,000 32,000
Jf—93d at, u w cor 10th av, 170.1x120.6 ............ 13 03,000 79,000
J^I57tli Et, s 3, 100 e Courtlandt av, B0sI97.11?i,
and Courtlandt av, e s, 180.7 s I57th st, ai.Sli
100,3........................................ 33 10,000 13,251
J/—Johnsou av, w s, adj property of Charles Gil¬
christ, irOxI&DxlBSxIOO..................:. 34 ft.OOO 3,900
JV—41st st, bet 7th and Sth avs, 20x100............ 23 13,500 27,000
(-4.)—Thera is nearly $80,000 difference between the School Commis-
siouers' figures and those of fche Committee of Estimate. The plot includes
five lots witb two, tbi'ee and four-story brick and fi'ame tenements, also
stabiee and a coal yard, Lorenz ZeUer, Edward McCue and N. R.
O'Connor composed fche Commission whicb estimated the value of tbis plot
and experts say tbe award is a ."ery extravagant one. It is also said tbat
$73,500, the value of tbe School Commissioners, is entii-ely too low, and
that $120,000 is about what tbe plot is worth.
♦ These estimates were made by the Board of Education before the appomtment
of the different sets of Commissioners by the Siipreme Coui't, and were sent to
Tax Coramissiouer Colemau for and received his revision.
t The awards were made by the Commissioners appoiuted bj- the Supreme
Court, and we arc rollably informed that in most cases the amouuts allowed are
much in excess of the valuation placed upon tho properties in question by the
experts in the employment and pay of the city whom tbe Commissioners called
to their assistance.