New-York tribune., 1901-06-11

been modernized and improved is readily eX-
planned by the conditions of tenure. The occu-
piers ordinarily do this work at their own cost,
with certainty that they ever get their
money back. The usual agreement covers twen-
ty-one years. with the privilege of breaking 1t
at seven or fourteen years. II the tenant can
not get without a bathroom and electric light
he makes the improvements at his cost.
His only chance Of recovering any portion OF
his investment lies IN an assignment of his lease
while there is a considerable portion Of the Pc
riod unexpired. The rental may be a fixed guam
tity. but he demand a premium Of the
tenant in consideration of the privilege Of TAX
ing an improved house for seven. ten or four
teen years. In this case the outgoing tenant
receives the whole a portion OF his outlay for
improvements in a lump sum. which the incom-
ing tenant pays. while he also assumes all
sponsibilities for local taxation, for general
pairs and for putting the premises in order for
the occupier. If he retains possession of the
house until his agreement expires, he loses the
last chance OF recovering any portion Of the
premium paid when he signed his own papers
When the costs Of improvements are shifted IN
this way from tenant TO tenant. with the ad-
vantages in the long run for the house owner
and the land owner. occupiers are content TO be
behind the times, 10 substitute morning tubs in
rooms for adequate bathroom accommodation.
place Of electric light
NOMINAL RENTALS REMAIN THE SAME,
One of the results Of this system of tenure is
that the valuations OF property for purposes OF
local rating taxation do not rise in proper
ton 70 the improvements. house may be
completely renovated or greatly improved but
the local rates remain as before and the nom
inal rental is unchanged. This is. of course for
o= he
taxes If there were increase OF rental il
would involve a higher valuation and increased
taxation. Rents are kept down artifcially. owing
10 undervaluations; and the municipality or
borough suffers in consequence. The occupier
OF improved house pays lower rent, and
taxes amounting ordinarily 10 about one-third
Of II, less, according 10 the district
since there is uniform rate in the metropoli-
tan boroughs. In this way house rents nom
inally low; but the occupier finds before the end
is reached that the rental account is expensive.
At the outset he has possibly premium TO pay.
which becomes capitalized rent, to be distributed
over the entire period Of tenancy; and he has
also a heavy bill TO settle for fixtures. He has
the entire liability for repairs and taxes and II
structural repairs are not excluded by the agree
nent he may have heavy expenses for reroohng
an old house for putting in new drains
At the end Of the tenancy. moreover. he
5
pend the equivalent of a years rent in paint
ing. decorating and repairing the house for the
next tenant. l remember that when. years ago.
Mr. ParneH and his associates We're agitating
the question Of the Irish tenant farmers wrongs.
my own sympathies onooker from the
safe distance Of New-York were with them
Practical experience in London has opened my
eyes to the quiet endurance OF the long suffering
English tenant, who has never succeeded in en-
listing the services of adequate advocate.
The London tenant in a fashionable quarter Of
the West End has indeed no legal right TO any
improvements which he his predecessor has
made or TO any adventitous advantage which
Comes from the force Of circumstances or the
canrIces Of fashion He merely has the oppor-
tunitv for profting by the uneXpred remainder
Of his agreement and for disposing OF 1t on favor
able terms. ] have in mind an old and historic
house with architectural effects. oak panelling
and picturesque environment. The house is un-
improved and needs renOvating from top 10 bot
tom The tenant having an unexplred remnant
Of ten years has put the house on the market
and asks heavy premium for the assignment.
The occupier who takes possession will pay this
premium repair and improve the house at his
own cost insure the original lessees property
bear all the burdens of local taxation, and when
the ten years come 10 close have no compen-
sations for either premium or improvements,
even if he be fortunate enough to escape liab
ity for putting the house in order for the next
tenant at the expense Of years rent This may
be an extreme case but II illustrates the point
with which / started. namely, that London con-
ditions OF tenure. while heavily against the tax
paying occupiers. render house owning and land
owning a profitable and safe investment In
America the reverse is true. Local taxation and
repairs fall exclusively upon the landlord, and
the margin of profit becomes so narrow that
real estate holdings have come into disfavor.
and there is disposition 10 sell out property al
a sacrifice and 10 make investments in the stock
market l. y. +.