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REAL. ESTATE
%) BUILDERS
iMiPE
NEW YORK, JANUARY 8, 1916
MEASURES FOR LEGISLATIVE ACTION
Constructive Programs By Realty Interests—Committees Watch¬
ing Bills at Albany—Constitutional Amendments Reintro(iuced
IN recent years realty interests have
learned the lesson of watchfulness,
especially of legislation at Albany since
the consequences of the Legislature's
proclivity for interference in local affairs
have become so costly to taxpayers. Im¬
portant measures for the relief of realty
from excessive taxation and regulation
are expected from the present session.
The Legislature met on Wednesday, and
after organizing and hearing the Gov¬
ernor's 'message adjourned until next
Monday.
Various real estate associations now
have committees charged with the duty
of watching all legislation that may be
either helpful or detrimental to property.
From now on these committees will meet
regularly for the consideration of these
measures and to take appropriate action.
Committee Work.
Last year the Law committee of the
Advisory Council studied approxi¬
mately 4,500 bills and did much gocjd
in protecting the investments in
real estate here in New York City. The
committee consists of Messrs. Walter
I^indner, chairman, and Everett V. Ab¬
bot, John Guyton Boston, Cyril H. Bur-
dett. Henry R. Chittick, Julius Henry
Cohen, Louis Franklin Levy, John J.
Kuhn, Harold M. Phillips, John M. Stod¬
dard, Laurence Arnold Tanzer and Seth
Sprague Terry. It is not only the pur¬
pose of this committee to report upon
the legislation that may be introduced
at Albany, but also, if possible, to carry
out a constructive program. During the
interim since the last legislative session
many valuable recommendations have
been made to the Advisory Council, for
the consideration of the members of this
Law Committee, with a view of havin.g
these suggestions enacted into law. It
is the purpose of the committee not only
to devote its attention to legislation at
Albany, but also to what is .going on at
Washington, and at City Hall.
The most important issue in Wash¬
ington is that of the taxation of mort¬
gages and real estate conveyances by
Congress, under the amendments to the
Emergency Revenue Law. Last year
these particular forms of taxation were
included in the original draft of the War
Tax Bill, but were eliminated in the Sen¬
ate through the efiforts of Senator O'Gor-
man. At a recent conference at the
White House, between Representative
Kitchin and Senator Simmons, it was
understood that this particular form of
ta.xation was a,gain considered, so that
real estate interests should be on their
guard in this particular respect. Sen¬
ator O'Gorman has assured the Advisory
Council that he will exert his best efforts
to protect New York real estate owners.
Sprinklers and Fire Signals.
Among tlic many recommendations
that have been made to the Advisory
Council, for constructive legislation to
relieve real estate owners, is the follow¬
ing:
An arnendment to the Labor Law
which will exempt fire-sprinklered build¬
ings from the installation of fire alarms.
It is a -well-known fact that by far the
larger number of buildings in the city
are not properly equipped with sprinkler
systems, and it may take approximately
five years to have these systems installed
in those buildin,gs where they are re¬
quired by law today.
Today there are 393 alarm systems in¬
stalled in factory buildings, of which 265
were approved in 1915. The number of
interior fire alarms installed in buildings
equipped with auto sprinklers is 37.
In the opinion of the Advisory Coun¬
cil there would seem to be little doubt
that the fire and life risk are reduced to
a minimum by equipping a building with
a model sprinkler system. The installa¬
tion of fire alarms in such buildings
would seem superfluous. If. as estimat¬
ed, it will probably take about five years
for the Fire Department to carry out
the law regarding the installation of
fire sprinklers, it would appear advis-
al)le that this department should be re¬
lieved of the requirements for installing
fire alarms in sprinkler buildings, when
in the majority of cases such installa¬
tion is merely an added expense to the
property owners, without a commensu¬
rate .gain in protecting the premises or
the occupants.
Building Inspection.
Probably the most constructive piece
of legislation in which real estate owners
are interested at this time is that per¬
taining to the consolidation of buiMing
inspection functions of the various city
and State departments. This matter has
been receiving the careful study of a
special committee of the Advisory Coun¬
cil, consisting of Messrs. Nicholas Bid-
die, Louis V. Bright. William H. Chese¬
brough, Geor.ge T. Mortimer and Robert
E. Simon. A tentative plan has been ap¬
proved of and a bill is now bein.g draft¬
ed embodyin.g the principles contained
in this plan, so that relief from over-
inspection will shortly be forthcoming.
Real Estate Advertising.
."Xnother reform which is especially
desired is that of simplifying the legal
phraseology used in advertisin.g real es¬
tate sales, inasmuch as the present sys¬
tem in advertising foreclosure offerings
is obsolete. This matter was originally
called to the attention of the -Advisory
Council by the firm of L. J. Phillips &
Co. Today property to be foreclosed
must of necessity be advertised in the
Law Journal semi-weekly for three
weeks preceding the date set for the
sale, to which there may not be any ob¬
jection: but the verbiage, length and
confusing description, and additional ap¬
pended dia.gram, all of which are re¬
quired, make the statement very unread¬
able. This does not serve the purpose
originally intended and it might be much
better to reduce the advertisement to a
normal size, mentioning street number,
or related description, date and place of
sale. This would curtail the space to
about one-fourth of what is usee! today,
and would be a plan for inexpensive, con¬
centrated and clear advertising.
Today, on account of the lengthy read-
in.g. it is placed in an obscure part of the
paper and oftentimes is only found after
considerable difficultv. It seems to the
council that a paper of general circula¬
tion should be designated by the courts.
in which all such advertisements should
appear and that the advertising used
should be something which the ordinary
person would understand. Many other
brokers and firms have publicly support¬
ed this form of legal advertising, so that
some effort will be made by the Law
Committee of the council to accomplish
a definite reform in this direction.
Mortgage Loans.
Through John Finck, it has been sug¬
gested that some law be passed to allow
lenders to advance money under second
mortga.ges without subjecting such loans
to the taint of usury. Under this plan
owners would be enabled to protect their
property to a greater extent than is now
afforded by the ordinary first mortgage
loan.
Other brokers have communicated
with the Advisory Council requesting
that some definite method be devised
whereby a proposed purchaser or mort¬
gagee or other persons dealing in real
estate can obtain, with reasonable ex¬
pedition, information as to violations of
the Labor Law. It would be a decided
convenience to have this law require
that a record of violations be kept by
the Labor Department and that such rec¬
ords be open to the access of the public.
.\t the present time there seems to be
no way of knowing that any violations
are pending in connection with the exam¬
ination of titles.
At the suggestion of Adolph T. Sicker,
Esq., an amendment to the code is pro¬
posed, so as to make a jud.gment in any
action affecting real estate binding upon
a person who acquires title by birth or
involuntary alienation, after notice of
pendency is filed. At the suggestion of
W. P. Belknap, of the firm of Albert
B. Ashforth. the following recommenda¬
tions regarding legislation have beeni
made:
Mr. Ashforth's Suggestions.
Have the laws clianged so as to—-
Make bonds secured by trust mort¬
gages covering real estate legal invest¬
ments for trustees, savings banks, trust
companies, etc. (Theoretically they are
as legal as railroad bonds, but in several
instances Surrogates have objected to
accountings where such investments
were owned by executors and trustees,
so that attorneys are unwilling to advise
clients that they can properly make such
investments.)
Facilitate the serving of papers by re¬
quiring that when real property is trans¬
ferred or mort,gages, the grantee or mort¬
gagor shall state in the instrument the
name of an agent, preferably a trust
company, in business in the county in
which the real estate is situated, who
shall be authorized to receive service in
anv action.
Make definite the right of a mort-
ga.gee to a receiver as soon as the fore¬
closure is begun.
Usury not to be a defense.
Interest to be paid quarterly.
The tax clause shall require that taxes
be paid on demand thirty days after
taxes are payable, instead of thirty days
after notice and demand after taxes are
pavable.
Have lenders favor the amortized