The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1894-12-24
REAL ESTATE NEWS.
Orange Board Of Trade Attacks
the Building Material Lien
Atroeity.
Atroeity.

The Board of Trade of the ran has
started a discussion on the merits OF the
Mechanics Lien law, which will interest
every property owner, Spectator, money
lender and banking institution In the
Statel The board contends hat the law
is having the opposite effect of what
was intended. Prior to the passage of
the law banking houses and such institu-
lions as the New Jersey Title Guarantee
and Trust Company of this city lent
money freely on unencumbered property
for the erection of buildings, taking as
security a first mortgage. Now it is
difficult to borrow money with which to
build, particularly where the security
to be given Is a lien on the building to
be erected, as the institution or individual
lending the money plays second fiddle to
the building material dealers. These deal
ers are protected in the same degree as
che workmen. After the claims of both
are satisfied in the event of a failure, the
banking institution or individual who
loaned the money for the erection of the
building gets what is left, no matter
whether the claim is satisfied or not.
Circulars have been sent all over the
State for signatures requesting the Legis-
lature to amend the law, so as to make
loans easier by giving the lende better
protection. For the past two months the
member of the Board of Trade of the
Oranges nave been discussing the mat
ter. President ]. S. Holmes says he be-
lieves the law is pernicious in its charac-
ter and has worked injury to those whom
it was intended to benefit in the first in
stance, and also to the community at
large. The law is besides unjust because
it aims to protect one class of the COM
munity at the expense of all the rest.
1t is claimed that the law, though
framed in the interest of the building ma
terial trade, in most cases fails in its
purpose because in a majority of in
stances the dealers were asked to sign
releases before their claims have been
discharged; and they are obliged to
grant these concessions in order to main
tain friendly relations with their cus-
toners. 1t is felt that men furnishing
building material should be placed upon
identically the. same plane as other trades
men. They should be required to exercise
the Usual business discrimination in
granting credit, and should not be given
an advantage.
mere appears TO be no general 1ncllna-
ton or desire to favor any action that
would repeal the portion of the law that
gives the w-age-earner foil protection, by
lien, for the remuneration for his labor
IN the construction of any building. 1t is
Intended to secure only a. modification Of
the law as far as building material deal
ers are protected by it, to the exclusion
Of everyone else save mechanics. The
memorial addressed to the Legislature
reads as follows
"We, the undersigned, do respectfully
petition you honorable body to repeal
81 amend the present lien law so that it
will not interfere with those who wish
20 place a loan upon their property for
he purpose of erecting a homestead.
Under the law as now in force it is
Impossible to obtain loans on real estate,
except from a few private parties. In
stituttons Will not entertain loans on
account of the great risk attached to
the same.
We trust you will give his matter
your earnest consideration, believing,
when you give it your thought and at
%tention, 0 will see the necessity of
taking immediate action, and your petit
toners would ever pray, ETC."
These petitions are being sent to every
Board of Trade in the State, prominent
business men and banking institutions.
1t is being extensively signed in this city.