Columbia University Libraries Digital Collections: The Real Estate Record

The Record and guide: v. 35, no. 893: April 25, 1885

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1 26, 1 Apr=i 1885 The Record and Guide. 455 n THE RECORD AND GUIDE, ir Published every Saturday. 191 Broadwav, 1^T. "ST. TERMS: ONE TEAR, in advance, SIX DOLLARS. Communications should be addressed to C. W. SWEET, 191 Broadway. J. T. LINDSEY, Business Manager. Vol. XXXV. APRIL 25, 1885. No. 893 Land Transfer Reform Commission. The majority and minority reports of this Commission were presented during the past week to tlie State Legislature. This Comm.ission was appointed in June, 1884, and from time to time we ventured to express the hope that the members would have frequent meetings during the fall, so that a report and the neces¬ sary bills would be ready by the opening of the Legislature. Mr. Dwight H. Olmstead, whose name stood flrst in the appomted list, would lia\ o been by courtesy and usage Chairman of the Commission^ He, howe\er, waived his rights in the matter and proposed that Mr. Southmayd should act as Chairman. The Commission was not cabled, together until December, when it was found that they differedou a vital matter. A majority of the Commission, Messrs. Sbuthmayd, CoggeshaU and Riker, wishing to index city property by lots, whUe Messrs. Olmstead and Strong favored Indexing by blocks. Mr. Strong was subsequently won over to the majority side. Instead of making the report in January so that some action could be taken, the majority delayed sending in their bUls and the reasons tlierefor, until the middle of April, too late to be acted upon this year. The majority of the Commission ask for a con¬ tinuance of their authority for another year. We wUl not at this time undertake to give our opinion as to the point In dispute between the advocates of the lot and block system of indexing. Ideally the former is the perfect one, but practically Mr. Olmstead gives some very good reasons to show why it may not work. This is a matter which primarily effects real estate owners, and its settlement should be left to the decision of a Com¬ mittee of The Real Estate Exchange. As this Commission, which cannot agree, are all lawyers, the Committee to decide upon the matter should be exclusively composed of business men interested in real property, who would, of course, avail themselves of the technical knowledge of the professional lawyers. But the Ex¬ change should be ready with the necessary bills at the open¬ ing of the Legislature next year. It is of the utmost moment to real estate interests and the new Exchange that land transfers should be made inexpensive, titles secure, and that no unnecessary time in transferring ownership should be wasted. In other words, the object to be attained is to have the same certainty, expedition and economy in transfers of real estate which now obtains in change of ownership of personal property, such as stocks and bonds. In one hour millions of dollars worth of bonds can change bands in Wall street for a trifling fee and without a question as to ownership ; but a month is required to pass a title to real estate; the oflicial and legal fees for doing so being absurdly high, and then there is no security of title to compensate a buyer for the pains and penalties imposed on the real estate interests by the sanction of law. That there is a perfect system which is practicable is proved by the experience of other countries. On this point Mr. Dwight H. Olmstead in his minority report says : Unquestionably the best and most scientific way of transferring land by the aid of a public record, and the only one which will prevent an accvunulation of the records, is that devised by the late Sir Robert Torrens, and now in successful operation iu New Zealand, Australia, British Colombia and many other of the British colonies. It is substantially the same system as that sought to be brought into use by the Land Transfer Act of Lord Cairns, enacted by the British Parliament in 187.5, but which not being made compulsory aud not being suited to the EngUsh modes of conveyancing, failed of effect. A similar bill has been introduced into the Ontario Legislature of Canada this winter. This system presents two salient features. 1. A guarantee of titles by the government. 2. A registration of titles in the Registry office. It will be observed that the main feature of the Torrens system, apart trom the guarantee principle, is the method now in use throughout the civil¬ ized world for the transfer of registered stocks, ships, bouds and other personal securities, namely, by the so-caUed registration of the title which consists substantially in the appUcation of the rule that no transfer shall be actually made unless and untU it is entered on the registry books, the deed being considered a mere power of attorney for the purpose of authorizing the transfer, thus assimilating the mode of transferring land to ordinary stock ti-ansfers. In the Torrens system the further rule is adopted that each trans¬ fer, when so entered, shall be indefeasible e'icept iu case of actual fraud on the part of the transferee, thus abrogating the law of equitable notice and equitable assigmuent. The essential thing sought to be accompUshed after the first entry on the local index being to ensure the vaUdity of each transfer of the title as it passes from owuer to owner. This is really the ideal system of land transfer reform, but the whole American bar, including Mr. Olmstead himself, declares that it cannot be adopted in the United States. In a new country, they say, it would be practicable, but that it is out of the question La the complication of titles which exist in communities which have grown up under a very different system. But it ia to be noted that the British Parliament, which is not dominated by lawyers as is every legislative body in the United States, passed Lord Cairns' act in spite of the protest of the British lawyers, who have, however, succeeded in nullifying the purpose of the law for very obvious reasons. In 1872 the Reichstag of Prussia authorized the munici¬ palities of that kingdom to guarantee titles in the same manner as the colonial governments do in the British South Pacific colonies. It has been so successful and popular that at last accounts the Imperial Reichstag was being urged to extend the provisions of this Prussian act throughout the German empire. If it is possible to have a government or municipal guarantee of title in an old nation like Germany, there can be no insurmountable objections to its adoption m this comparatively young country. But it is obvious that there will be the most powerful opposition to the consideration even of this radical but necessary reform in our land laws. The lawyer is supreme in the United States. He is backed by extravagantly paid officials to whom the laws give authority to plunder real estate owners. The guarantee title com¬ panies also which have come into existence and are such a power in Philadelphia, Baltimore and Boston, will oppose any state or municipal guarantee, as with such assurance of title there would be no place for these organizations. The real estate interest must look out for itself, and should not be influenced or controlled by the corporations, ofiicials and lawyers who profit by the monstrous land laws under which we are now living. We have in our possession the full text of the reports of the majority and minority of the Land Transfer Reform Commission, but they are so voluminous that we cannot even give an abstract this week. We wfll endeavor to publish their salient features next week. The reports show that all the gentlemen concerned have worked hard and intelligently, and they deserve the thanks of real estate owners for their unremunerated labors. The Broad Cross Streets. The most notable sale of real estate during] the past week was that of the house and lot. No. 24 East Forty-second street. The dimensions were 26x98.9 and the price |70,250. This indicates an appreciation of property lying between the Grand Central Depot and Sixth avenue, which has long been expected by far-seeing real estate experts. This part of the city is destined to be used for hotels, apartment houses, stores and places of amuEement. Manager A. M. Palmer is of opinion that the great metropolitan theatre of New York will be situated somewhere in this particular neighborhood. It has always been believed that the broad streets extending from river to river would, as the city grew, become more and more desirable for business purposes. Naturally the improvement in values commenced at locations at which were concentrated the largest number of persons. These happened to be the "L" road stations ; hence the marvellous change which has taken place within a few years on Fourteenth street, between Third and Sixth avenues Twenty-tliird street next became a centre of interest, due to the crowds which come to and from the station corner of Sixth avenue. These met the currents of travel from upper and lower Broadway and Fifth and Madison avenues. Thirty-fourth street will also in time be metamorphosed into a business thoroughfare. Many of the stores which should be situated on this cross street are to be found on Fifth avenue, below Forty-second street. Property on Forty-second street, between the Grand Central Depot and Sixth avenue wfll probably command even higher prices in time than eitlier Fourteenth or Twenty-third streets, for as a thoroughfare it must be more largely used as the number cf people increase who use that depot to enter and leave the city. The new annex to this depot will liave a tendency to improve Forty-second street easterlyt Were it possible to get rid of the reservoir and sell the ground east of Bryant Park for business purposes, a very great enhancement of values would take place on this, the crown of Murray HiU. Hotels, great apartment houses, stores, and perhaps a theatre would be called into existence on the site of the present reservoir. All the broad streets have a future. Thirty-fourth street wUl be bettered when it has a horse car line, and if ever the cable system should come into existence it would greatly advantage every thoroughfare available for a transverse road. The ferry travel nat¬ uraUy and necessarily adds to the numbers who make use of the broad streets. New York is becoming more and more a business, though not necessarily less a resident city, for while more space is