Delaware gazette and state journal. (Wilmington, Del.) 1883-1902, 1891-06-25
A STAGNATION IN BUILDING
But Small Operations Now
Being Conducted,
A LIEN LAW GIVEN AS THE CAUSE
Capitalists Unwilling to Ad-
vance Money.
Some Views Upon the Existing Dizziness
in House construction--The Speculative
Builder is Doing Notiilng--OnIy Private
Work Going On.

An anonymous leailet with the title
"1he Mechanics Lien Law ana addressed
to the citizens of Wilmington and Vicinity
has been scattered widespread about the
city. 1t contains the following short para
graph to which is appended Il copy Of the
act in relation to mechanics liens:
THE loan associations and bankers in
general having resolved TO loan no money
on houses for -four months after compile
ton has caused some of the contractors to
attribute the cause to the mechanics lien
law Such being the case the labor organ
izations of Wilmington see proper to
obtain certified copy of said law and
herewith publish the same for the benefit
of all concerned
Then follows copy of the new act as
stated.
Undoubtedly the pamphlet emanated
from the labor organizations. The latter $
position is 10 contradict the assertion that
the cause OF the undeniable restriction in
building circles which is a special feature
of this season is to be attributed to the
bankers calling i'll their loans and refusing
further credits TO contractors. The labor
organizations assert that the cause is the
immense amount of built up property in
the city which does not find sale and that
WAS erected previous TO the enactment Of
the new lien law. From the direction Of
TUT luJbT ORGANIZATIONS tDHlGo lHc sIitlG-
ment also that the numerous rows of two
story brick houses erected BY contractors
on the expectation of obtaining s., 500 per
house now realize only 1900.
From directions other than the labor
unions the statement is made that num-
bers of new houses exist around the en-
virons and elsewhere in the city that cam
not be sold at construction prices. They
claim that there is glut of the small resi-
dence class of houses, and that buyers
will not come forward at the prices de-
manded.
II is not illogical to infer that this glut
in itself has contributed more or less to
the admitted stagnation in building in
terests in the city this year.
ON the other hand in regard to the
new mechanics lien law it is stated in
some circles that its general effect is to inn
pede building enterprise in the city. Under
its provision mechanic who has done
only 80 cents worth of work on the job
can obtain lien Mt any time following the
expiration of 20 days after he has done his
work with limit of 10 days after the ex-
piration of the 70 days referred toy
The difficulty to the contractor in regard
to this is that supposing this mechanic,
who has obtained the 59cent lien suddenly
took IL into his head to 90 off to New
York, the contractor, when the job is
finished, cannot get release from the per
son who gave him the commission TO build
the house. The owner will only pay the
contract amount when he gets full re-
lease. 1t must be signed by everyone who
holds any lien against the building.
Otherwise of course the owner would
never know when he had the property in
his own hands, as liens are possible of
coming in in the form of bills from any
direction
Material and supplies men will sell to
4, "a
matter to them whether the contractor is
sound or not. The material is guaranteed
by the lien law upon the building. Sothe
material man is secured.
The general custom which has prevailed
in this city for the past 10 or Is years has
been for that large class of small lot
owners who wish to build but have no
means outside their weekly salaries, to
mortgage their lot and building to the
banks or savings funds and so obtain
money to 60 ahead with the building.
Probably the largest share of the new
building enterprise of Wilmington, cover
ing most OF the Two and three story brick
dwellings was accomplished in this way.
And this was the harvest time for the
Spectator, who had no credit with the
building materials man and was also
without means TO pay his help. This was
all straight enough as long as it lasted.
For the banker who made the loan we'll
understood how to take care of himself.
Thus building enterprise went along I'M
trammeled,
But now, it is understood, the loan assoc
Citations and savings fund refuse to loan
money on houses except four months after
the date Of their completion That is to
say at that date when all liens. those of the
material and supplies men as well as the
mechanics run out.
In other words what is needed is ready
capital in the hands Of and owned by the
contractors who undertake building con-
tracts. This wipes oft Of existence all
speculative contractors.
It is stated in some quarters that the
banks and moneyed men took advantage
of the enactment of the new mechanics
lien law to choke off all speculative con-
tractors in order to put the building bust
ness of the city INTO the hands of the con-
tractors who can to some extent at least
back the enterprise,
Again, it is stated that the present order
of things is legitimate DEVELOPMENT from
an unhealthy condition which allowed
INSCRIPTIONS men to enter the building
trade. II is claimed that the conditions
that existed afforded a standing invitation
to cheat and embc2zle right and left. They
obtained an accumulation of payments on
account and then ran off, leaving every
one in the lurch. The tradesmen were
forced toapply to The Legislature for pro-
lection, rs in each successive season they
We're mulcted in wages again and again
The material men were fully protected by
their liens on the building and the unfor-
tuuate owner left Iii the lurch, who had
already paid the asCally contractor almost
the full amount, had to pay it all over
again.
1t should be explained that under the
old law no liens could be obtained under
80. This was the weeks wages that the
tradesnan regularly lost. On lien case
the lawyers fees, costs, &C., would easily
amount to S25. II was never less, - the
mechanic was always left out Of sight.
Some prominent builders referring to
the difficulty state that they would much
prefer to have no lien law 1T ALL They
claim that a straight contractor who has
means or sufficient credit is the only man
e. take a job. Ills men can depend on
him for their weeks hire and for the cost
of the material he and the supplies man
are satisfied with one another As it has
been in the past the contractor had no
means whatever to paw his men and
always undertook the building contract on
the purest speculation. Through these lat
ter recurring conditions whole rows eof
buildings within recent years have been
sold at forced sale to pay for adterial.
----sn.-
Public Execution in Georgia.