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October 9. ^^97-
Record and Guide
Dr/oTtí) 10 ^U tsojz. EuiLDí/,'b A^fĩcjíitecture,Ko\jseiíou>DE5QSÍAîM
BUSIÎÍESS AfÍD ThEÍĨES Of GEÍ-ÍElĩf.1 IfÍTEl^Sl.
PRICE PER YEAH IN ADVANCE, SIX D0LLAR8.
mblisheã every Saturday.
TEL'-PaOKB. .... COETLASDT 1370.
CorarauulcatlouB should be addresBed to
C. W. SWEET, 14-18 Veaey Street.
J. 1. LISDSEY, Biiameas Manager. ____________
•'Eiilcrcd at Ihe Foiil.-0:(ri.re at New York, 2V. Y., «s second-class mallo:"
OUrOBKlí 9, 1897.
WHILK rallîes comc now autt íheii to eUeelĩ tlie aowawartl
movement iu ihe StoeU marl;et, it is quite apiJareut
lUat thore mu.t be furthor clocliuo before a uew umvara luoYe-
meut t-an be orsauizea successfully. Gooa news fails of effect,
otherwir^e the eoiitiinieil reports of iucreasea railroad earnmgs
and thc iiuport of golcĩ would bave put up prices. This is maic-
atÍVB of iiu ovcrĩoaded marlíet, aud so long as this couditiou
prevails there must be tUilIuess ol lowcr priccs, with thc latter
the iuevitahle result at last. So mauy issues lÍUe Northem I a-
eiflc prcforrea were foreed up in the reeent bull raovement by
stories to which too uuiuy foulish ears lent themselves, of com-
ing aividend« that tbcir priees mu.t deeline as the baselessness
of those artful tales bc^comes exposed. lu a buyiug movement
like that of a mouth ago no statement is too prepostrous to be
incredible, so loug as it runs with tbe popular wisli. We pomted
out at Ihe time of tlieir circulatiou that there was uo official au-
thority for mauv of these reports aud uo warrant for tbem m
the knowu couditious of the severaĩ properties referred to; but
to the boomer oue swallow is ample material for tbci makmg of
a sumuier. and sonietiines au imagiuary swaUow wiH do. The
prices of all the isstte,s, ruu up without study or discrimmatiou,
are still too higli. and ottcr a fair aud easy mai-k for bear op-
orations aud tlic rallies that come uaturally ín the oi-ainary
operatiou of the market ouly inerease the temptations to attack
from the short side. The otber faets tbat we have poiuted otit
in the past few weeks as favorĩng ĩower priees are stiU of foree
aud effect, only wantiug opportuuity to develop themselves.
There'is in addiUon a loeal election to interfere with business,
aud, thereafter, tlie near asaembliug of Oongress, which will uot
be without its usiial terrors to thc business luiud.
been afCeotea by the reinoval of fears that the Russian crop
would be a failure. Instead. it is estlmated that Itussia will be
abíe to export 04.000,000 busUels. TUls, taken !u conuection with
falrly good reports from India ana Argentina, Uas removed tUe
fear of estreme scarcity, and lowered pvlces,
EITHEIt tUe Bauk of England's positioii is uuusually strong,
oi- tUe Governors do uot t-OBSÍder tUe United States' ûe-
inaua for gold likely to be large. If oue of tUese was not tlie
ease tUe bauk rate woukl have been advauced tUis weck owmg
to tUe wituarawal of gold for traus-Atlantic sUipment. Pre-
sumably it is tUe íirst, becaust; tUe luoney in sigUt in London
coutiuues to be plentiful, wUiĩe tUe acmand, owing to a duU
stock markct and eoutractioii in trade nnd mauufiictures, is
11"^ so tUat the bauk eould see a contiuuatiou of goia exports
to" the Uuited States without anxiety. The press aud busiuess
public contiuue to Ueep tbemselvea at fever heat ou gratuitous
views of the silver poUcy forming in Parliament street. Tho
aetua! aunouueemeiit wlieu it comes will, probably, be so modest
iiud practical tUíit it will sileuce oppositiou and make some of
the loudest iu opposition to-day asUamed of tUeir prcseut ve-
Uemeaee. TUe fallJng off iu business sUown by tUe BritisU trade
reports, éspeciaĩly In trade with the United States, is the reflee-
liou of'uatnral ronetiou frora the activity indueed earlier in tUe
year by tUe immluenee of tarift" cUauges, and it is mueU too soou
tû decide wheîher the luss is to be permanent or uot. However,
tUat this cUange in trade is serloua there is no renson to doubt.
The englneers' strike would not have been permittea to eudure
80 long had the shops been pressea with orders, and we learn
from our exelianges tUat a combioaíion is forming among Lan-
cftshlre mlll owners to foree a reduetion of ten per cent. in tUe
wages of tUelr operatives; a fact that also explaius the heaviness
of cotton prices lu spite of a fiivoraUle statlsticaĩ crop position.
It is ĩnferable, too. tbat ludustrial conditlons iu France are not
eo good as they were from the fact that the year shows a bal-
ance of aUout ípS.OÛÛ,000 against savlngs' bank deposita. From
Germauy a fiilUng off in the testlle trades Is reported, with
mauy idle hinids as a eouseciuence. In Vienna rcceutly a gooa
deal was made of the receipt of Ameriean wheat, that being the
flrst timo thal gr:iiu had travelled so far iulaud. It was sent
l'vom RotlercUim to Mannheira, thenee to Regeusbnrg and down
tUe Pauiibe to A'ienna, Tbe wheat raí^rlíeís everywUere have
The New Lien Law.^'
By Edward L. Heydecker of the New York Bar.
THE ACTS OF THE CONTRACTOR AS AFFECTING HIS LIEN.
THE ohligatiou of tUe contvactor is to perform certnlũ work
or furiîisU eertain materinl, or holU. If he compleles Uis
coutract to 'tUc satisfactiou ot tUe owner, tUere remaias only
tUe question of performance ou tlie owner's part, 1. e., payment,-
whicU Uas been aiseussed in tUe foregoing paper.
But if it is uot completed to theowuer's Batisfaetîon, resls-
tauee to the lien may be expeeted. Henee we need only cou-
sider wliat shorteomíngs ou tUe coutractor's part are excusable
aud uot uecessarily fatal lo Uis lieu.
TUese sUortcomings are:
1. Incomplcte perfoi'raaucc.
Of eourse, wilful abaudoument of the contract is inexcusable,
and the contraetor tUereby loses all rights. TUe unexplained
failure to comply witU some couditiou of the contvact Is fatal,
so if paymeut be eonaîtionea ou tUe pi'oduetion of the arcUitect's
certiíieate, tlie fíiilure to produce tUe eertiflcate, witiiout proof
tUat it was uureasouably wÍtUUeld, would Ue fatal. But if it be
sUowu lUat tlic arcUitect's eertiíieate is uurcnsonaijly witUUeld
or tUat the owuer Uas failed to pay as required by the contract,
or Uas iuterferea witU tUe progress of tUe work, or Uas createa
conditious which make it impossible for tUe contráctor to pro-
cê'ed, uon-performance îs excnsea and tUe contractor may Uave
liis lieu for the amouut due Uiin. In otUer words, ii" it be sUown
tUat tUe contract Uas realiy been brokeu by tUe owner, and tUat
tUe contraetor has stopped only because of such breaeh, it will
not be couutea agaiust Uim.
As the sub-coutraetor îs íhc agent or employee o£ the con-
tractor, uo excuse for non-performauee ou the part of a sub-con-
tractor wiU bo permitted to a eontractor whieU would uot be
periuittod to Uim personally.
But most dispntes over non-performauce usually resolve them-
selves into wUat ĩs kuown as the doctrine of substantial com-
plĩance. It ĩs manifestly ditîĩcuĩt to provide in tUe bnilding con-
traet and specifîcations the mauuer in wUicU tUe work shall be
done or tUe uature o£ tUe materials to be suppĩied in so exact
and aetailed a way tUat all minds sUall agree in tUeir iníerpre-
tation of tUem. Because of tUis difficulty there has arisen tUis
aoctriue of "substantial compliauce," hy whieU is meaut a faĩi'-
and reasonaUIe compliauce on íUe part of tUe contractor witU
UotU tUe lettcr aud the .spirit of the coutract. Jnst wUat is sub-
stantial compliauce mnstdepeudverylargely ou tUefaetsandcir-
eumstauces of eacU ease, bnt ít Uas been possibĩe for tUe courts
to deduce aorae general principles to govern tUem in appIyiUg
Substantial complianeo, theu, i.s enough tô siistain tUe lien,
aitUougU matters of small aiuoniit or vahie Uavc; nol bceu done
by tUe contraetor aecording to íUe terms oC the contract, and
the question depeuds on the contractor's good faitU; if Ue Uas
really intendcd and tried to complete, but has failea in some few
points, it wîll be considered substantial comi>Iiauee. So this
aoctrĩue wĩll never be applied wliere there has been wilful
abaudoumeut, for that is bad faith in itself.
If, tlien, only tUe flual toucUes or flnÍsUiugs of tUe work re-
maiu to be done. to provide whieU will require hut a small sum
în money or effort, an nllownuce wîll be made the owner and the
rule will be npplied; but if tlie defectã 1-im all througU tUe work
ana caunot be remedíed, or !C tUe worU was to be done in a par-
tlcular way íind it has not been so doue, or if substautkil nddi-
tions to the buihlings nuist be mnde to complete it, or if it Is
necesaary for tUe owner to expend a consiaerable sum of money
to coraplete some part of the contrnct, the rule will not be ap-
pllea, and the lien will fall for non-performnuee.
In tliis eouuecfion it Is proper to consider tUe effect of abaa-
donment hy tUe coutraetor unaer a coutract, proviaiug for pay-
ment iu flxea înstnllmcnts, as certain stages of tUe work are
reaeUed. Sueh a contract is a series of separnte contraets, rntUer
than one coDtract, and wlll be so regarded for the beuelĩt of snb-
contrnctors, though the coutractor canuot set np sueh an Inter-
pretation. Hcnee as cacU stage for a pnyment is reached. such
installmeut become due and payable, and wlll be eovered by a
'Copyrislrt, 1807. hy "Tha Record and Guide."