Evening star. [volume] (Washington, D.C.) 1854-1972, 1884-08-09

ESTATE.
AS has been stated In THE STAR the difficulties
| attending the enforcement of the so-callel me-
chancs lien law approved July 2d last, have al
ready forced themselves upon the attention Of real
estate dealers and others interested In real estate
transactions and building operations. The law has
presented a number OF embarrassing questions to
managers Of building associations and promises, II
it is continued in its present form, to limit the ad-
| vantages the associations offer TO members desr-
ing to build houses
| Mr.. John Joy Edison, secretary OF the Equitable
Cooperative Building association, when asked by a
STAR reporter for his views concerning the law,
said: in the first place, this Law, which IS called
mechanics lien law does an indirect injury to the
workincman by retarding building operations. II
! It had been named The lumberman, brlckman and
SuppHeSman bill 1t would have been more correctly
described. 1t was drafted in the interest of the
material men. but the material men themselves l
think, see by this time that the law VIII work to
their injury by rest rcting building operations. Real
estate men and others interested In the values OF
property might not like to put it rs strongly
law Iencdied is to expose them rs much as posi-
bic. Gen Grant USED TO say that the best way to
Sscur , lhe repeal 0. BAD law was 10 enforce IT.
| is TO give publicity to It's evil tendencies
ut vill not hurt our association at ALL" contin-
ued Viz. Edison, "fOr the reason that we could loan
four or five times the amount of money each month
that we have to loan, and can, therefore, be par
tic;Ilar in placing our leans We could not advance
HlGnty on house about TO be erected or in course
! or erection without requiring some extra security
or bond given by the contractors or builders. III
person applied fer loan on an old house, we would
have to get from him an affidavit that he had had
! no repairs made upon the house within certain
time, and that he had made contract for repairs
or improvements In case he SWore falsely he
would he guilty Of perjury. We loan money to our
stockholders only, aud they are generally thrifty,
! Industrious, reliable men. SO we have little or no
fears OF being troubled by attempts to Gefraud the
association
"What is the troublesome feature Of the law p"
! asked THE STAR reporter
The Objectionable part of the law" said Mr.
Edison, sis the second section. which permits. the
! mechanic. ZIMMERMAN or brick man to file his lien
| within three months after the completion OF q
building or repairs which lien shall be preferred to
all claims attaching TO the property subsequent to
| the commencement of work on the building. Now,
| q person or association lending money TO man to
buld house will not be absolutely safe at ali I'M
less LIE waits for three months after the house Is
| completed before he advances the money. To take
/ an Instance that might occur in our association:
suppose man owns a lot worth 81 900 and desired
/ to build. We would loan him $4,000. taking a deed
OF trust upon the lot and house. and advancing the
/ money in instruments as the building progressed
suppose the builder, being involved, tailed to pay
i his brick man. He files lien, and although our
/ loan was made prior to the commencement of the
work, 1t Is probable that the Court in Equity would
/ hold that the lien was a preferred claim, as our
/ records would show that the loan was made upon
prospective values, and practically furnish evidence
OF couSfOn, and OF course the association could not
/ Involve itself in any such transaction.
NO. the law will not hurt the association, but it
Will prevent many individuals from building houses
who otherwise could do so. ON an average about
one borrower out OF fifteen or twenty borrOws for
the purpose OF building house This class OF
borrowers VIII experience greater difficulties in OBJ
tanning money under the new law. / suppose ten
houses are In course or erection now with money
advanced b. the association The association has
about <fecD outstanding now as loanS divided
among $50 borrowers. The average loan is about
Si,1G0 and it is the people who need such sums of
money to aid them In building that the association
aims TO benefit. Private parties lOaning money will
feel the effect OF the law more than the association.
The not Well acquainted with all the phases OF
tn a hpr-
rover when he finds that he cannot be absolutely
sure that there is no prior lien on the property OF
fered as security. Then it does not affect people
who want to loan money on property anymore than
il does persons who want to buy. A man could
not feel that his title was good for three months
after ne had bought a piece OF property. Lawyers
Will tell you that they cannot say that any title Is
perfectly clear under the present law. In
Speaking OF this matter OF course we must
take into consideration the fact that there are
dishonest men In the world, and it opens the doors
goes To the owner OF the property and asks il he
has made any improvements within three months.
The owner may say no. but perhaps he has. After
the house has been bought along comes q man
with Il $500 lumber BILL and it turns out that the
man who sold the house made an addition on it
worth 81 o0or $500 before selling 1t and left the
till TO be paid by the buyer become lea on the
property. The unfairneSS OF this law Hes In the
dact that II provides for covert or dark lien.
There Is no method in the world by which you can
discover the lien until is spread upon the records
The law throws a cloud upon every title. main
tain that nothing should affect the title OF real
estate unless ii is matter of record Here is an
intangible lien that a man may carry about I'm his
head until he chooses TO file it. In the case OF q
bflck man. Tor Instance, 1t may be five months
after q building Is commenced before he files his
lien, for he may furnish the material two months
before the building Is finished. Which Is generally
NE ease, ana then have three months in which to
file his notice.
SLOW could you modify the law?n asked the re-
porter.
- would amend the law so that, instead of CIV
ing nan the right to file lien ut any time
within three months aftera building is completed.
lumber r mar ar
other person desiring to take advantage OF the
law, might file notice at the City Hall. that he is
about To furnish. or has furnished, material. and
may or may not file a lien. Such preliminary
notice should be required in order TO give tie lien
priority over other claims. 1t would give warning
10 persons intending to buy, or advance money
upon the property. He would understand the con-
dltion OF the property and would know where to
make his inquiries. a book could be kept at the
City Hall for this purpose. A material man who
was about to furnish supplies, II he had any doubt
as TO his bills being paid. could send his check to
the City Hall with simple notice like this: Il
have commenced TO furnish John Smith with lum-
per, on lot 9, square So Then II man wanted to
Duy mouse, he could have his attorney search this
book for three months back, and II he found no
entry affecting the property, he could buy without
the property"
rs not this bill supposed to benefit the mechanic
espscia!lyr'
The workingman,' said Mr. Edson "derives no
practical beneftt from this law that he did not
enjoy under the old law. or course, the time OF
filing lien is extended three months but that is
OF little benefit to the workngmen The rule of the
tFicklayero' and carpenters and other organiza-
lions, as understand, require that the mechanics
snail he paid by the builder every SATURDAY night
else they Will not go 10 work Monday morning
InuS they have q law OF their own which is very
effective, and, as | think, very excellent regula-
ton. They have little need OF this new law and
as Il matter OF fact 1t was made for their ben
ent- IL was drafted for the protection. as IL was
supposed, OF lumber men and brick men, but they
are beginning TO realize the practical effects OF the
piii. me men Who supply the materials, and
builders did undoubtedly need additional protec-
ton. but in their effort to secure 1t they have
oyerreached themselves and gone too far 1t
Is going TO have a prejudicial effect upon
the sale OF real estate. Money viii be loaned by
the thousands and the hundreds OF thousands but
nCtsso freely as IN the past There will not be so
many sales, Or so many houses built as there would
be without this law. Probably 30 per cent OF the
I building IN Washington Is done on borrowed money!
SO you can SEE how far-reaChng the effects OF the
law VIII DE. When you know you have an honest
borrower, ana That the builder Is OF integrity
/ you may loan money without much fear. The Ell
lectS 0i the law have already been noticed The
haruslllQ is upon the man who owns q lot and
Woud ike 10 borrow money 10 build with. / do
VIII ehDarraSS real estate transactions somewhat
Dy causing many little petty annoyances and the
soOncrlt Is remedied the better for all concerned
A Sewer Grievance i'm West Washing.
ton.
To the Editor of THE EVENING STAR
large part OF Georgetown is without sewerage
and the existing sewers are In ,many cases nui-
sances, aggrayating the evils they were intended
N hut ,tc vi re thaa