The herald., 1897-09-23
OFFICE OF THE HERALD,
LOS ANGELES. Sept. %, 1897

Answering a number of inquiries that
have been addressed to this department
concerning the negotiability and validity
of Street Improvement bonds, it may be
stated that under the state law certain
street improvements may be made and af
terwards paid for by the property owners
In half yearly installments extending over
ten years. These deferred payments are
secured by street Improvement bonds
drawing seven per cent interest, which are
q lien upon the property SO improved. The
validity of these bonds was for Tong time
the subject Of litigation, ana it was finally
decided by the supreme court that the act
authorizing their issue was constitutional.
AS consequence of such decision the value
of the bonds was stiffened, and they COM
mand better price today, although not
very readily salable in many cases, owing
to the fact that, while the constitutionality
Of the bond act has been favorably deter
mined the decision of the supreme court
still leaves open the question as to the reg
ularity Of the procedure and subsequent
compliance with the requirements of the
law under which each special issue of
bonds has been made. While the bonds is
sued on certain street may upon examina-
ton of the proceedings prove to
be perfectly good, another issue on
another street may upon like ex-
animation prove to be utterly worthless
The intending purchaser must. therefore.
be as careful to obtain certificates as to the
validity Of an issue they are asked to pur
chase as they would be in having the title
of q piece of real estate examined before
buying.
Many contractors and dealers in these
bonds, for, as a matter Of fact. the con-
tractor seldom handles the bonds person.
ally, have adopted the expedient of obtain
ing waiver. They go to the property own
ers and sometimes by the aid of a discount
obtain his signature to waiver of all
technical objections to the regularity of
the proceedings under which the bonds
have been issued but, even with this ad-
vantage, the question is left open as to the
extent to which such waiver would be
binding on any subsequent purchaser of
the property. 1t is the opinion of a promi-
nent attorney who has made special study
of the bond law that the ordinary form of
waiver used would perhaps not bind
subsequent purchaser, although it is admit
tedly close question. AS a matter of fact.
the purchaser makes vendor deduct the
amount of the street bond incumbrance
from the purchase money and thus is
amply protected In this connection the
same legal authority speaks in terms of
high commendation of the system in use
in the city offices by which printed blanks
are used from the time of passing the res
olution of intention down to the issuance
of warrant and assessment, thus insuring.
as far as may be, regularity and correct
ness in their proceedings.
+ + +
A San Francisco journal narrates the fol-
lowing incident to illustrate the unjust ac
cusations which savings bank directors
sometimes have to submit to. 1t will read
lily be appreciated that it is not necessary
to go outside of this city to find parallel
cases:
Not long since a savings bank notified a
borrower, who had been allowed to run be-
hind over year in interest, to settle or the
mortgage would be foreclosed. Instead of
feeling kindly to the bank for The years
grace, the delinquent went around charg-
ing that some of the bank directors wanted
to get his property. because he had been
threatened with foreclosure. The prop
erty is away out near the county line, and
will almost certainly bring less than the
amount of the mortgage. In another case,
a mortgage was about to outlaw, and the
borrower was called upon to execute new
one To do this, it was of course necessary
to release the old mortgage and examine
the title for the many years interval be-
tween the date of the old mortgage and the
present time. This of course always in
wolves the same expense exactly as new
loan; but the party who had to pay it in
sisted that no further search of the title
of examination by the banks lawyers was
at all necessary, and that the directors had
put a needless charge on him to enable
their lawyer to earn fee. Argument with
such people is nearly useless; it is excess
sively unpleasant to try to enlighten their
ignorance.
Banking in Australia-The banks and
banking business in Melbourne are mar
vel to Americans. There are seventeen
banks in that city. The three largest have
deposits of nearly $9O,OOOOOO. They carry
large cash reserves and make advances to
customers on quite a different system from
our banks--on open accounts or overdrafts
as we call it. They all issue notes. one col
ony cashing the notes OF another at dis
count of SO much. They charge you a
little something for everything they do. but
then, you know, that's after the English
system. They use the check system and
everybody has an account, and nearly ev-
erybody overdraws.
+ = 4
Considering the usually steady growth
of the business of the patent office, it is not
surprising to learn that a greater number
Of applications for patents were filed in the
calendar year 1896 than in any other in the
history of the patent office. Not only that,
but the number of applications filed for the
first six months of 1897 exceeded by more
than per cent the number received In
the first half of the preceding year. 1t ap-
pears that there were 1860 applications
+. filed in the first six months of 1897 and that
the patents granted were about per cent
In excess of those granted in the first half
OF the year preceding. During the fiscal
year ending June S0th last the patent office
cleared $317, 1876, an amount which increased
the surplus on hand at the close of the
fiscal year to $5093,614 1t seems clear that
the strides made in the last few years in
invention and discovery are playing their
part In swelling the business of the patent
office.
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Information Regarding Postal Banks
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