New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1904-01-10
Mr.. TOmkins president OF the Municipal Art S
ciety, said yesterday;
REALITY BUYERS DUPED.
Hoso Some Spectators Haze Gre
ated abnormal Realty Conditions.
BY PAUL MAYER.

The need OF drastic reforms in the real estate
business Of this city is not only by the lack
OF confidence the part OF prospective investors.
but by the methods adopted in the last few years
in eTecting various deals.
It may interest the public to know that more
foreclosure sales took place in this city in one
month last year than took place IN whole year In
the kingdom OF Bohemia, Austria. In most cases
these properties bought in by the plaintiffs
showing concusIvely that the mortgages did not
represent more than the actual value of the prop
critics. To show tho condition OF affairs in Its
various phases, I will begin with the swindling
practices which hourished here FOR years, and
did not come to an end until our State legislature
passed q new building law.
The majority of houses built in this city within
the last ten years were erected by speculative
builders who relied entirely on the assistance Of
loan operators the transactions being usually con-
Quoted In tho following manner: The loan operator
would buy building plots, either at auction
or at private sale, sometimes at market value,
sometimes below. A resale at a profit or from 10 TO
Is per cent would have been legitimate business
transaction. enabling the builder TO complete his
building operation successfully and sell the house
to the investor fair value But instead OF this.
the loan operators methods were to sell the vacant
plot at an usurieus price with the customary
building loan.
To this state of affairs alone is attributable the
fact that many builders forced to resort to
dishonest and INSCRIPTIONS means TO get r!d or
their property. AS regards the manner or con-
struCting such houses, It would TAKE 100 much
space to enumerate their faults and shortcomings
1t need only be mentioned that a great number OF
investors have resold their purchases within the
last few years at considerable loss. while the ex
pense OF incessant repairs not only has cut on
every possible dividend return but has materially
increased the original purchase price.
The following OF an investor which came
TO my notice recently will serve to Illustrate many
similar instances in this city. This man bought
q building for si35OOo which. according TO the rep
reservations Of the broker and the builder. yielded
net income of 81 CO., The leases for the stores and
living APARTMENTS submitted convincing evil
dence to him of the honesty OF their stories Three
months prior to the expiration OF the leases the
new landlord placed himself IN communication
with his tenants and learned to bis surprise that
every one OF them insisted on a concession OF two
months free rent declaring this granted by
the previous owner.
This free rent swindle remained undiscovered
either because the tenant received from TO
three months rent Free with the stipulation that
the lease contracts to be dated from the ex-
piraton of this time, the tenant was TO receive
back q proportionate OF money payment
OF the monthly rent. The landlord in question
had no alternative but to allow the tenant SINH
lar concession. which reduced the income Of the
house from S4.ooo to S11. 900 In the mean time 1t
became necessary to make a number Of repairs
the tsnants complained about Lack OF steam