The New York herald., 1877-01-22
How Owners Of Property Are
SWindled.
The Plan Of Operation, with Examples Of
Successful Results.
HISTORY OF A SERIES OF FRAUDS.
The SmuRgIers in the Business and the
Remedy for It AL


Vested In estate. The rent roll OF which decides
Abe income OF ,he possesscr Even II bis sxirava-
Eance compels him involve his BY mortgages
Shs tee simple IL transferred under the law Of
entail, though tor length Of time the revenues may
enrich the Golfers OF tho money lender. Considerable
properly held under long lease, but wnere there are
email portions OF land, the fec OF which can be trans
fsrred by purchase and saie the transaction has 10
take It's due course and occupies such length OF
time that fraud is almost impracucabIe Here, now
ever, in the United STATES where change seems the
order ot Tho day. where property can DO sold, and
transferred deeds passed. and recorded in the space
OF twenty hours there great room and oppor-
sunty Tor fraud and that has been taken advantage
oi by the wary, Is papabe every one cognzant OF
real estate sransactions.
Mcchanics' hens mortgages, Judgments and tax
sales may all eventually lead TO forfeiture Of the Zee
simple in real estate. and the possibility OF even two
or three transfers OF title day gwen such
prominence to sharp practice in real estate ,ransac-
lions to acquire the name of "piracy."
IL Is tho province OF this article 10 deal with the
methods Of piracy, showing how 10 managed, with
actual transactions tor examples, warning 10 the
unwary who contemplate investing in landed prop
erty For nothing but full revival OF moral tone IN
the entire community, will put stop general
practice.
Land and building companies and associations, In
Stslment purchases, and auction sales, with their
comitants Of free excursions, music, singing and tree
lunch, oil psrtake OF ieenng OF taciious overreach
tng though they In ull be classed under
the head OF piracies Neither the doubtful pras-
brokers reception Of fees. from both parties
10 sale or transfer, be termed a piracy. He con-
sders his honor untaru,shed and his
by tho reflection that buyer and seller both happy
In the idea that they have overreached each other.
rlRArIcAL LAND coAPANIRa
F,rst among The pirates may be enumerated those
Who order aefraud their creditors aud avoid tho
payment Of just debts, deed ali their real
ESTATE their wives some ogner members
u their families, thas II remains intact and
eouehed by those who Justly entitled to obtain H.
But a. such transfers raroy come before the public,
and ottcn . Legitimate investment by careful
husband or father, the fraud must be papabe before
piracy bo charged.
Land companies generally pratical institutions,
wh,ch Dickens has ably caricaturcd In "Martin Chuz
slewi" the expecant lots in the great
Eden City found them under
PIRATicAl OWNERS.
A yet dangerous class Of pirates is the
OF numero ols who, whe possessing means desires
TO improve his property his chcaply.
HIS method Of working is clever that OF All Sin;
and again will illustration be gwen. Promising that
In the have OF houses been
IN this city and Brooklyn, the writer has in his
minds eye Macon McDonough ana other
streets the Him. and In Rodney street, Marcy
nus and Other thoroughiarcs IN Williamsburg. The
has, for Instance lour lots the of
good streets worth $500 per lot 25xl09 feet eacL
These he deeds irena at So COO per lot, taking
full purchase money mortgage as consideration
with interest payable sem-annually The pui chaser
then, TO carry out share of the programme con.
fhn hon tho olots
foot front each. Masors, carpenters, plumbers &c
engaged and tho work progressed, partial pay
ments 10 be mado at stated intervals, mcchanic g
lien 10 bo given when the work completed, with
seven per interest until the promised time when
the balance would be paid Six months capse the
has advanced to the morgagor 1000 or ST. 500
10 relieve the pressing demands of The builders,
the houses are possibly enclosed but completed.
Then, no money beng in possession OF the
holder oil the properly, he defaults his first payment
Of interest, and the party from whom he obtained ns
deed commences proceedings 10 forecose The build
ers seeing the advertisement Of the sale. hurry the
Registers office aud fnd such heavy mortgage that
,her liens worthless Five thousand dollars worth
Of labor and material may he invested, but Of
them viii pay ss 900 for the mortgage and $3.50 inter-
est COSTS and allowance, order TO the So 600
due The day Of sale arrives, the mortgage bids
In and thus legally the lots again, with oil the
improvements This species Of piracy can only be
possible lax laws real estate,
10 remedy Is possible until the courts granted
power inquire into the original TRANSACTION. This
will show fraud, ind In equity the amended laws
In tho matter should allow proport ionate amount Of
the sale money each claimant, tho lots taking their
position basis OF their market value at tho tic
OF tile fraudulent transfer.
The above species o; piracy was very prevalent IN
New YORK CITY between the 1858 and 1857, and
yet she Lesson then read The dealers IN building
material not hetdcd these later times, until the
savings banks alarmed. refused to make loans on such
properly.
PIRArcAL BROKERS' AND LAWYERS
The later aud more dangerous class VI piracics re-
mains 10 he noticed ana inns has more tar reaching
influence than those hcre oiore mentioned the
vctms nre generally helpless women or conndlng aud
ignorant people who dosire TO invest tho savings Of
lifetime. The principal actors these frauds dis
reputable real estate brokers and equally dsrepuable
awyerx
several Of these parties have been known TO club
toeetne purchase some country properly or little or
no value and then armed with deeds and fancy maps
drawn up BY some unscrupuous surveyor, lay IN
for somc one who owns heavily mortgaRed tenement
houses that y,cd good rental The owner. probably
foreigner, despairing oi mis- or her sbny wipe
tho encumbranco when ~ becomes due, nibbles gladly
~ tho alluring bait he'd out and gladly exchanges Tor
an eligible farm on Which to live and comfort.
The pirates now in possession, the title being legally
theirs, vested in one Of their NUMBER make the
most OF their bargain. They appropriate all rvnt
but do pay one cent Tor taxes, assessments
terest the mortgages, the lawyer portion OF the
concern using their influence in delaying the
foreclosure suits, which easily accomplished, by
transferring and retransierrng tho property on the
Registers books, SO as 10 cunpel the advertising OF
tic 10 all parties interested ana tnus adding
SIX weeks TO the time usually allowed py law II the
ortga2ec gets tue foreclosure thcy continue collecting
The unit the property sold or until
s appointed for that purpose then they lucily With
draw 70 repeat the game In another quarter Their
victims mean while binding themselves badly sold, at
tempt OF their losses, but hndng the
theves tor they are nothing clse) wholly irresponsi-
ble !or6ear sue, and hug their sorrows and losses
siience. What else can they do? Il would be oi no
possible advantage 10 sue tor rcconvcyapce, and u
they obtain judgment against any all OF them, they
can collect nothing on H.
There ls, however, class o! real estate pur-
chasers who, through their own love o' drv,
H. ard these pirates ~ their work and are
saved only from suffering the penalties OF the conspr
acy law because any what he pleascs, iOr
psotsrty that hts Moral law Is the only chcr
UPON such operations, aud lar avaictb nothing.
The present laws vi real estate lax that they
u4an nj and cncourngc sLArp pracllce 10 rem