The New York herald., 1879-12-15
REAL ESTATE FORECLOSURES.

FRAUDULENT PRACTICES DETRIMENTAL TO THE
INTERESTS OF PROPERTY owNERs-A SWEEP
ING REFORM NEEDRD
Property holders at least those belonging to the
debtor class, diructly interested in the rescnd-
ing by tho Supreme Court of order formerly made
relating to sales under foreclosure. This order did
away with many abuses prevalent in such sales.
and placed In position to recover a
full market value for their property. Though
1t was never enforced. being suspended from time
to time until rescindod, it just what property
owners needed to protect their rights Now tho old
system is still in vogue by which the sales although
named public but little better than secret sales
in which the plaintiff bids in the property OF his
fortunate debtor at q nominal sum- often less than
third Of it's value. the latter having no recourse
for protection. Add to this the collusion which, it
is claimed often exists between plaintiffs and
referees auctioneers and buyers and it will be seen
that widespread reform is needed. 1t is even
limited that some Of the judges are prostitutng the
courts for special patronage The order would inter-
fere with their patronage and they would not sub
init to it, Consequently. it is said. the General Term
Judges were Obliged to rescind it.
political PATRONAGE"
HERALD reporter called upon Mr.. John McClave,
tain his views in relation to the resembling Of the
order.
'.My opinion" said Mr.. Mcclavo. on learning the
object OF the reporters visit, sis that political
patronage has stopped the working of this order.
The General Term judges are ANXIOUS and always
think they have discovered that they had not
the power to do it. Public attention should be
called to the resembling OF that order and tho
causes .or this movement"
"What are the evils complained OF p
"Wel. on March ii made report on the sub
ject which was published in the papers of the fol-
lowing day. said that these foreclosure proceed
ings were irregular. unfair and fraudulent. They
unfair for the reason that the sales not
properly advertised aud presented to the public
that competition could be properly provoked and
owners enabled to get value for their property
without the plaintiff swallowing it up. People are
unable to get at the particulars of these sales.
little obscure paper called the Register and the prop
erty is described only by the metes aud bounds and
not by any real information at all. Many OF the
sales irregular because the plaintiffs or their at
torneys are in the habit OF procuring their own
friends referees In several cases that know of
clerks of tho plaintiffs have been made referees
in these foreclosure proceedings, which is
against the rules of the Court. and these
therefore contrary to law. They are frequently
fraudulent because of the cousion between referees
aud auctioneers Referees in great many cases are
employed by the plaintiffs. One Of the insurance
companies for instance. seems to have one referee
In all its and the same auctioneer. who is en-
tho practice OF auctioneers agreeing to make these
sales tor from s. up and frequently even for moth
ing, in order teet their names in the newspapers.
and have free advertising. BY the plaintiffs having
their referees and selecting their own auction
own advantage where people cannot go
abe to got at the particulars OF the case Most Of
these sa.es are made at the Real Estate Exchange.
aud there are sometimes dozen sales going at
the time, people standing with their backs to
half OF them, that all do not have q chance to
bid, and owners have not the benefit OF equal COM
petition in the sale of their property
JUST WHAT WAS NEEDED."
"What remedies would you suggest for these
evils?"
Tho order that was promulgated just what
was needed. have tried in every way in the world
to got these abuses corrected, and ut last
cecded in getting this order. All the papers had
been demanding an Investigation. When the order
given they all had editorials approving 1t. IL
prescribed just how the sales ordered by
the courts to take place. Accord
ing to its provisions they to be
held in the City Hall, whore 1t cost
Exchange. where it costs So for every sale. They
all to be sold from the same stand. that buy
could what was going on. Yet the Court sus-
pended that order because OF probable Legislation
the subject. When that time expired they sus-
pended It again. After the Legislature had adj
vember they finally rescinded It. These un-
fair irregular and fraudulent proceedings still
continue. Auctioneers selected by the plaintiffs
the plaintiffs attorneys III most cases, because
they do their work for less foe. prominent life
Insurance company pays SO to its auctoneer, while
in stating the conditions of the sale he says '$26
tor u knock down." That has fraud on tho face
of It. Some OF them sell tor nothing. My idea was,
the order stated that these sales should be held
from stand and DO properly advertised In the
them, and so that every sale could be witnessed by
every buyer--not having dozen OF them going on
ut the time The order q good one, and
was hastily made. but had been under consid-
eratiou for several months. intend now to 90 be-
fore Legislature and present all the facts In this
correct these abuses. consider the present system
OF foreclosure in this city one OF tho biggest frauds
perpetrated the people. and 1t Is tune that the
people took some action in tho matter.