New-York tribune., 1909-01-31
ASK LANDLORD FOR RENT.
Richman and Smith Sue-Wants
Lien ON 34th Street PROPERTY.

In the fall Of 1905 the firm Of Bonwtt. Teller &
Co., 23d street. in looking for location for an
uptown store entered into negotiations with Rob
ert 8. Smith and Daniel W. Richman for the pur-
chase of the property now known as No. Il West
S4th street, which they owned in fee Upon in
vestigation II was found that Richman and Smith
were also the holders Of lease upon the adjoining
property, No. 15 West 34th street the fee being
owned by the late Ernest 6. stedman This lease
was made for a term OF twenty-one years, with
the right TO two renewals, and contained pro-
vision that the tenants, Richnan and Smith, would
erect upon the property, Nos 13 and ID West 34th
street a six story oft building, Stedman agreeing
to contribute $4,000 toward the erection OF the
building and acknowledging the receipt Of q
deposit OF $4,000 from Richman and Smith Sc
curty for the performances OF the covenants Of the
lease.
deal was finally consummated under which the
Bonwit Realty Company acquired the fee OF No Ii
West S4th street, and took from Richman and
Smith suitcase Of the premises No. Is West 34th
street, on the same terms as the lease from Sted-
man TO RichInan and Smith. The Bonwit Realty
Company erected tae present building. being an
eight story freproof loft structure, upon the two
properties Upon the compilation OF the building
the Bonwit Realty Company engaged the services
OF the McVickar Gaillard Realty Company TO
finance a loan both the fee and leasehold
A demand was made upon Mr.. Stedman for a
balance OF $50 900 due under his covenant 10 con-
tribute $4,000 toward the erection of the building
This payment was not mage a0r aG fSs night o
offset the rent against the $4,000 Mr.. Stedman
assigned to the american Exchange NatiOna! Bank
all the rents accruing under his lease as collateral
The bank made demand upon the Bonwlt Rea4sy 4Sy
Company for rent o6 an6 fo the W
Realty Company as tenant, and the case was de-
Gdsd tn To tSs Of ns Te and
affirmed the decision Of the lower court The case
"n5 m the then s aPpesif7 of 1897 the Realty
Company endeavored TO obtain loan on the fee
~ II leaSehOlC
Is West 34th street, but found 1t Impossible 10
erected partly upon fee and partly upon leasehold
RF0pSer E eTery nanca HsttUtOn in New York
loans upon real estate. but none OF the cOod see
The McVickar- Gaillard Realty Company then
oRnv Of Edinburgh. Scotland, which looks upon
feasehold security as safe investment wIeFe t1S
not subordinate to any mortgage. security Of this
character Pens Sermon @ neotat9ns IN the n foreisn IN
stitutlon made loan to the BonWlt Rea!ty CoIa IN
pan from r. the foreign institution the McVickar-
GaiIIard Realty Company approached MI Stedman
snd wl5 6aHceim the leases in order that the loan
might be obtained Il IN NJ HeT e63an T0gE fr ao m a p2p
No 10 West 34th street. which offer was reIussd-
After M M steonhn OF interest," ON the mortgages Which
had been placed on the fee OF No 10 west S4th
street sod at public Auction under judg
ment procured in foreclosure action eT3ushr oy
to this foreclosure sale the Bonwit Realty Com
many purchased the bid, and on January q took
Title to the fee of No. 10 West 18th street subject
10 ibe lease to Richman & Smith. and subject 10
the lease to the Bonwit Realty Company.
It Is understood that Daniel w. FSichman. one OF
the holders OF the original lease from Stedman.
has made demand on the Bonwtt Realty Com
pany, as tenant under the sIb-lease. 10 pay HIM
the rent due on February !. This creates a rather
remarkable condition. The Bonwit Realty Company
Is now the owner OF the fee OF No. 10 West 4th
street; Mr. Smith claims that they are also sub
tenants under the lease made by Richman & Smith
TO the Bonwft Realty Company, and that Ftchn1an
g. smith are the holders OF a lease made by Sted-
man in his lifetime This creates the peculiar cir,
cumstance Of the owner Of property being asked
10 nav rent TO his tenant.
A further complication In this matter Is caused
nv reason OF the fact that Mr.. Smith has COM
r5e1cad suit which Is pending. to have the
$40 coo deposited BY Richman 4 Smith under the
terms OF their lease with Stedman, declared a ier
Do1 the property No. 10 West 34th street ahead OF
ali other charges. The outcome OF this situation
will be watched with great deal or interest by
the real estate fraternity and lawyers generally.
II is doubtful If a title has ever before existed
I'm New York which has presented so many lega
compications as this does. and the McNtckar-
3ailiard Realty Company is to be congratulate ted
on it's final solution OF the problem by enabling
the Ronwit Realty Company TO become the owner
or the premises No. 10 West 34th street.
ON the closing of the title a loan was made by
the Title Guarantee and Trust Company covering
Nos 1s and Is West 34th street for S2Ooo0