The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1891-02-26
MECHANICS Liens.
Why Should Building Sup
ply Men Have More
Protection Than
GrocerS.

The Legislative Committee of the State
Federation OF Labor has notified the diff
ferent trades In the building line OF the
effort to amend the Mechanics Lien law.
and has asked them to take action in the
matter. In conversation with several
members of building trade organizations
/ find they are unit IN favor OF the law
remaining as it is. They say that If the
building aud loan associations tamper
with It, it will be of no use to the trades,
and they have decided to forward pro-
tests to the different assemblymen Of the
county against amending the present law
unless to make its present features
stronger.
The b. and l.. men with whom talked
yesterday are almost unanimous In the
opinion that the present law Is detrimen-
tai to the building interests OF the city.
Representatives Of several large B. ana l..
associations, however, said that they were
not aware that their associations had
failed to make loan on account of 1t.
But the B. and l.. men sre opposed to it
and want it repealed. They say 1t In
wolves the borrower In great expense, and
this must necessarily be felt sooner or
later.
Comptroller George r. Hough, who is q
member OF the Garfield Building and
Loan Association, was the first l called
upon. II can't say that | have personally
noticed that the amendment operated
against the building interests of the CITY,"
he said, but l understand from other B.
and l.. men that that is the general result
OF observation. l presume IL Is more an
ticipatory than actual. yet / have no
doubt the amendment has a tendency TO
make borrowers timid. As TO the protec-
tiOu IL affords material men ] see no
reason why they should be any better
protected than a wholesale grocer"
VERY EMBARRASSING.
Architect l.. II. Broom said.-"The
amendment ought to De repealed 1t en-
tails too mucn bother upon the
builders. The feeling in Trenton is
more bitter than it is here. The State
School COMMITTEE l presume hss been
legally advised. For all work it has done
in building the State Normal School it
demands that the builder shall show a re-
ceipt releasing him from every claim an
employe on the building or "a material
man may have upon him. This has to be
done for every payment The committee
makes itself the arbiter between the con-
tractor and the men. You should see
what an immense pile of receipts the
builder is Obliged to gather from all his
employees, including italian and other
foreigners who can't write their names.
There is no contractor but has
trouble with some of his men, and il is
not always possible to find men VINO have
been discharged but few days"
stHave you noticed whether or not il has
as yet affected building interests in this
cltyp
dwell, should think it had. l know
contractors who are able TO pay ordinary
claims brought against them, who refuse
actually to bid on a contract where it is
necessary to 20 to all this trouble or se-
cure indemnity bonds. The more of this
La 81.
bids, and consequently the less work"
Suppose" said Builder Niblett of
Henderson aud Wayne streets. "a dis
charged employe would prefer to put you
in hole by not giving you a chance to
get a release from HIN rather than get a
few dollars you owe him, what redress
would you have as a builderW
INCREASED EXPENSE. z---
Hitherto" said Frank o. Cole. of the
Phoenix Building and Loan Association,
and speaking solely with reference to
that body, "in making loans it usually
cost the borrower S35 for making the
search and preparing the mortgage
Since this law went into operation the
expense to the borrower has increased
about fifty per cent. This added expense
arises from the fact that IL Is necessary to
procure an indemnity bond from the
contractor double the amount, and also
release accompanied by an affidavit fro N
every person WHO mas LuTuthucu any uld-
terial or labor in erection of d building
These releases are necessary for every
payment on the building. There are
usually from six to ten payments made.
$50 far the Phoenix hasn't failed to
make loan through the operations of
this amendment. but there are so many
complaints upon the part of borrowers
that shall not think it very strange If it
does not have the effect of deterring
others from borrowing.
81 am opposed to the law,n continued
Mr.. Cole" because / can't understand
why the material men should enjoy any
special privileges In the collection of their
debts. / sell goods. II / sell on credit
and do not get my money | must sue
The material man can go and take the
house.
1T is my opinion that the law is a
sham, because IL is clearly in the interest
of large dealers. They evade the law by
assisting contractors to secure the in-
demnity bond. They also accept notes n
payment of their claims. which enable
the contractor 10 make affidavit that al
claims have been satisfied. The small
dealer not having unlimited credit can
not use notes. and must therefore insist
upon cash payments. Consequently the
large dealers will monopolize the busi-