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890 RECORD AND GLIDE April 26, 1913 Brokers, Attention! The Realty Associates desire to co-operate with brokers in every way possible. We sell property on easy terms, paying full commissions to brokers. We have lots, flats, dwellings, and business property in all parts of Brooklyn, making a specialty of our well known Easy Housekeeping Homes in Prospect Park East.Fif ty- Fourth Street and other sections of Brooklyn. It wiil pay you to get in touch with us. Realty Associates Capital and Surplus $5,000,000 162 REMSEN ST. BROOKLYN Telephone 6480 Main Money to Loan on First Mortgages 42 and 5^ Joseph T. McMahon REAL ESTATE and MORTGAGE LOANS 188 and 190 MONTAGUE STREET BROOKLYN Telephone 834 Main SPECIAL ATTENTION GIVEN TO COLLECTING, RENTING AND M.\NAGEMENT OF ESTATES Members Brooklyn Board of R. E. Brokers HOWARD C. PVLE GEO. H. GRAY General Brooklyn Real Estate Brokers Howard C. Pyle Co. Real Estate Expert Appraising Mortgage Loans Insurance 199 Montague Street BROOKLYN Telephone, 33So Main James L. Brumley ESTABLISHED ISSS EXPERT Real Estate Appraiser Broker and Auctioneer 189 MONTAGUE ST. Telephone BROOKLYN. N. ^. Meinber BrooklyTi Board of Real Estate Brokers BROOKLYN REAL ESTATE :EXPERT APPRAISER S. WELSCH 207 MONTAGUE STREET Brooklyn Tel. 273S-9 Main Branch, 177 Seventh Avenue Suburban Long Island. The striking feature of the suburban real es¬ tate situation just now Is the number of new muniiipal im|)rovements of the City of New York that are having a direct influence on Long Island real e.state. To the casual observer it would seem that the city's course was invidi¬ ous in its favoritism to the suburban area ot Long Island east of the city line; but as a matter of fact the city is entirely indifferent in the premises. It is simply carrying on great municipal projects to increase the quick acces¬ sibility between Manhattan. Brooklyn and Queens; and while .Vassau County may go hang, so far as New York City is concerned, the fact is every transit improvement between the three boroughs mentioned redounds as well to the beneflt of Nassau County. Every new subway route in Brooklyn and Queens will make all parts of those boroughs more accessible to the Long Island railroad sta¬ tions in Brooklyn and at Jamaica; and conse- (luently prospective residents in the suburban area will have their desire to live in well pop¬ ulated parts of Xassau County quickened. The level parts of this county, especially, will be aided inestimably because the most important divisions of the Long Island Railroad pass through those parts. The vast level stretch e.'ctending from Rockville Centre, on the Mon¬ tauk division to Hempstead, on the main line of the railroad is undergoing a growth and de¬ velopment that prophecy failed to foresee a de¬ cade ago. The Long Beach division, too. is through its electrical operation, reclaiming for honieseekers hundreds of acres between Ocean- side and the beach. .A. new station is about to be erected at Oceanside and many new bouses are in course of construction. Among the great contributing causes to the steady activity of the Long Island real estate market are the plan to build a 160-foot wide boulevard from the city line through central Long Island to Montauk Point; the projected subway routes through Brooklyn and Queens : the plan to run cars between lOtb avenue in Manhattan and Jackson avenue in Long Island City, by way of the Queensboro Bridge ; and the imminent operation of the loop between the old Brooklyn Bridge and Manhattan Bridge. All of these improvements mean a wider distribu¬ tion of population and an indirect beneflt on the adjoining suburban county, which is Nas¬ sau. The New South American Market. Investigations made at the direction of Sec¬ retary Knox indicate that after the Panama Canal is open the American manufacturer can sell at least 5:30,000,000 worth of goods each year to the countries of the west coast of South America more cheaply than the people of those countries are now purchasing the same articles from Europe. This list includes cotton and woolen goods to the amount of $17.000,O(.i0. ma¬ chinery, carriages and hardware and similar ar¬ ticles, $14,000.(100, and coal and coke, $11,000,- 000: pharmaceutical articles, chemicals, print paper, shoes, canned goods, furniture, cigarettes, cigars and mineral waters. A great deal of this trade will of course come to New York, and together with the new do¬ mestic trade from the West, via the New York State Barge Canal, and the stimulation from subways, start a most remarkable era of real estate prosperity in this country. Rational Utilization of Coal. Power for April contains on page 443 an article by F. B. Junge on the subject of the rational utilization of coal, in which he states that inferior grades of coal, which would hardly be worth transporting to industrial centers are used in Germany at the mouth of the mines in coal ovens by producers. The gas is used in gas engines for producing high tension electric cur¬ rent and innumerable byproducts are obtained from the tar residues. The article describes tbe practice followed abroad and it gives interesting details to show the wonderful economic results obtained by tbese processes. It is an article that any one at all interested in industrial economics will read with a great deal of interest. The New United States Income Tax. The tax is to be collected through the internal revenue division of the Treasury Department, which now collects the taxes on tobacco, cigars, liquors, oleomargarine and similar objects of in¬ ternal revenue. Tbe Commissioner of Internal Revenue will have direction and supervision oyer the collection of the income tax. He like¬ wise has been in charge of the collection of the corporation tax for the past four years. Mr. Cobell, Commissioner of Internal Revenue, has found that the corporation tax was the easiest of all taxes to collect. The Commissioner will be required to issue forms and regulations for the collection of the income tax. and these regulations will indicate in everyday language, and very specifically, just how and where the tax must be paid and upon what It is to be paid. The regulations will indi¬ cate clearly who are to make returns and pay the tax direct to the Government and those whose incomes are not to be returned by them¬ selves, but which are to be collected at the source. The tax will be payable at the office of the Collector of Internal Revenue in the district where the individual paying the tax resides, providing tbe individual pays his tax direct. That portion of the tax which is to be col¬ lected at the source must be paid in the dis¬ trict in which that source of payment resides Corporations will pay to tbe Collector ot Inter¬ nal Revenue in the district where they are situ¬ ated. Payment at tho source must be made in the case of all income which have a fixed annual basis. This is provided tor in the paragraph of the bill which says that "all persons. Arms corporations, copartnerships, companies, joint stock companies, or associations and insurance companies, in whatever capacity acting, includ¬ ing lessees or mortgages of real and personal property and others having control of tbe pay¬ ment of interest, rent, salaries, wages, pre¬ miums, annuities, compensation, remuneration, emoluments, or other fixed or determinable an¬ nual gains, proflts, and income, exceeding $4,000 for any taxable year, other than dividends on capital stock, who are required to make and render a return in behalf of another, as required by the income lax law, shall deduct and witli- sold from such annual income such sum as will be sufficient to pay the normal income tax pro¬ posed to be imposed." The income must be fixed and determinable, and must extend over the period of an entire year, in order to be collectible at the source. An Agent's Compensation. Editor of the Record and Guide : One of our clients asks that we ascertain from you whether he is liable for a commission un¬ der the following circumstances: A owns a building in this city and up to February 1st employed B as agent to manage the property, paying him 2i/j7t, for the per¬ formance of ali duties as agent. While agent. B renewed the store lease at $l.l'Oii. made a new lease for one loft, one year at $000, and renewed the I'd. od. 4th and 5th lofts for one year at various rents, leases beginning February 1st, lill.'l and ending February 1, 1014. Two days before February 1, 1013. A decided to change agents and withdrew the property from E's charge. B now sends a bill for com¬ mission for 2Vi7 on all leases as though made by an independent broker. Will you kindly inform us if A Is liable for commission in this case or if B's services were the ordinary duties of his agency for which he was paid. It may have some bearing on the matter that B sold the property to A about 6 months ago and that he remained as agent since July or August last. B had no written contract, but was employed verbally in the usual way to take charge of the property. Answer : We believe it is the custom of the real estate trade to include all commissions to which an "agenf is entitled in the agreed upon collection commission, and this custom is sanctioned by the courts. The claim for a brokerage, implied when a stranger to the property and the owner ettecta a letting, is merged into the fixed arrangement, when arising between "agent" and "owner." But this is only a presumption, or custom, at the most, throwing the burden of proving it not the intent of the parties upon the agent. ^Editor. Who May File a Mechanic's Lien. The right to file a mechanic's lien is personal and non-assignable. In deciding the case of the Tlsdale Lumber Company vs. the Read Realty Company, the Appellate Division of the Supreme Court, Second Department, made these remarks concerning mechanics' liens: "This action was brought to foreclose a me¬ chanic's lien which was filed by the plaintiff as the assignee of Joseph B. Tlsdale. The lien was claimed for materials Tlsdale had sold to the defendant Cooper, and which were used in the construction of buildings upon lands of the Read Realty Company. It appears that Cooper has also filed a lien upon the same premises, and in his answer he demands that his lien be foreclosed. "The right to file a mechanic's lien is a per¬ sonal right limited to the person performing the labor or furnishing the material, and Is not assignable. The transfer of the claim ia suit therefore did not carry with it the aa- signor's right to acquire a valid lien. This has been tbe construction given to eimilar stat¬ utes for many years. The language ol the statute limits the right to acquire a lien to persons performing the labor or furnishing the materials, and it must be construed in ac¬ cordance with its terms; and the contention of respondent that the Legislature by using the words 'and includes his successor in in¬ terest' in the first subdivision of section 2 of the present Lien Law intended to permit a lien to be flled by an assignee cannot be sus¬ tained. "The language defining the term 'lienor' is as follows: 'The term "lienor" when used in this chapter means any person having a lien upon -Property by virtue of its provisions, and includes his successor in interest.' A 'suc¬ cessor in interest' within the meaning of this term as used in the statute is one who sue ceeds to lienor's rights under valid notice of lien already flled, by assignment or otherwise. In other words, the assignor must have an ex¬ isting lien before he can have a 'successor in interest.' "The suggestion that Tlsdale had an 'In¬ choate lien' and that plaintiff is his 'successor in interest' is without merit. There is no such thing as an 'inchoate' mechanic's lien." Covenants. Where a tract of land is divided into build¬ ing lots and a plan exhibited, showing tha prospective purchasers of the streets and lots thereof, and such purchasers are induced to buy the lots by and in reliance upon repre¬ sentations, either public or private, that all conveyances would contain protective restric¬ tions of a designated character and purpose, it is held in Sanford v. Keer (N. J.) 40 L. R. A. (.\'.S.) 1090, that the restrictive covenants in¬ serted in the conveyances of the lots in accord- an^e with these representations, constitute a general or neighborhood scheme, and may be enforced between the lot purchasers infer te.