The Birmingham age-herald., 1915-08-03
Ruinous to Allow Tenants to Cancel Lease by Bank
 rupting, They Say
OTHER CITIES JOIN IN
 PROTEST TO SOLONS
Claim Bill Takes From Landlord His Lien on Tenants Property, His Only Security-Claim Bankruptcy Law
 yers Are Pushing the Measure

Real estate interests in Birmingham and other cities of the state face seri- ous trouble if the proposed bill before the state legislature to give tenant power to terminate lease by declara- ton of insolvency or going into bank 1uptcy Is adopted. according to local real estate men.
 Yesterday morning at Il o'clock big meeting, attended by about 100 real es- tate men was held at the Chamber of Commerce under the auspices of the Birmingham Real Estate exchange, and a strong protest against the proposed bill, which already has been passed In the house, was unanimously adopted. The declaration was drafted by spe- ciai committee of the exchange which was named to handle legislative mat ters and preparations have been made to make a hard fight against the bill. which is now in the hands of the re- vision of laws committee of the state senate
 Arguments Advanced l Real estate interests in Mobile, Mont | gomery Gadsden, Tuscaloosa and oth sr cities are being urged to aid in the | fight, the principal arguments against tine bill being used by the local real estate exchange being as follows:
 q. The bill practically takes away from the city property owner his lien on the tenants property, but doesn't af- feet the country leases. Why this dis crimination2 3. The bill is being pushed by the bankrupt lawyers who will be the main beneficiaries. Birmingham is already the third bankruptcy point in America, and Is not looking for further honors In that line"
 The appeal to the legislature unani- mously adopted yesterday by the local real estate exchange is as follows:
 Protest to Legislature
 l Our attention has been called tc house bill 11S amending section t747 of the code of Alabama of 1907 the ef- feet of which, If 1t becomes law, would give the tenant of any building the power to cancel and terminate any lease by declaration of insolvency or going into bankruptcy
 | IT InlS Dlll DeCOlDtS Il idW u VIII depreeiate the value of real estate ir our cities more than any other law ever put upon the statute books of Ala
 bama If you destroy the landlords lief no owner of property can afford tt lease his property for any length oi time without requiring the tenant te give other security In lieu of the land lords lien, which has far made Il easy for merchants to secure leases fol long terms, and it Is we'll known faci that no merchant can afford to lease g
 building and establish himself in buy
 ness for a short term.
 "It will make It practically impossi ble for the ordinary merchant to get { land owner to erect a building to SUI
 his particular purposes.
 Tn the case of hotels and such build ings no man or set of men would h, : foolish enough to build for tenan
 without some kind of security for tn
 rent and under the law as 1t nov
 stands the easiest and best security il
 the landlords lien on the furniture ant
 effects which go into the building.
 "ln the case of dwelling houses, 1 l this bill becomes law, If man rem
 dwelling for one year. he may keel l rid of his lease by proving his in
 solvency or going into bankruptcy thel the owner of the property has the hous
 on his hands between seasons for rent ing with the chances that he will los rent for several months before anothe
 tenant can be secured In most of Ala bama cities the rental year runs iron i October to October, and if house be comes vacant between these renta periods 1t is usually the case that l , remains vacant for sometime before an ether tenant can be secured.
 Would 1t be fair just or equitable fo 3 insolvency or bankruptcy to cancel tn lien which the land owner has upon tn t growing crop for his rent2
 Would Depreciate Values "The state of Alabama, its counties an, , cities are supported by taxes on real es , tate. Such law as this will have the of
 feet of depreciating the value of req
 estate. People who have money will seel
 other investments. A general depression
 will be inevitable. and thus the state
 counties and cities will realize less revenu
 from taxes on real property
 Speaking for Birmingham real estate T we assure you that there are sufficien burdens and more in sight in the way o
 increased taxes to depreciate values
 without any new law, which will injur
 
 P real estate.
 t ''We do not believe that the snactmen of this bill into law will benefit eithe landlord or tenant, and especially In ref : erence to business houses will say tha v heretofore the landlord has not hestate to rent his property to any reputable per 7 son without requiring security other tha r the landlords lien on the furniture an y effects which go into the building. Thi |, being the case the merchant or bushes ] man has had no trouble in securing
 building in which to conduct business . rarely ever being required to furnish othe y security than lien on the furniture an
 effects.
 We therefore think that the operatio
 of this law would be a greater burde : and hardship on the tenant than the land
 lord, but 1t would undoubtedly stay prog ress and prevent the erection of building for prospective tenants.
 ITO illustrate the unfairness of tn
 law in its operation to existing lease' } those already made and having severe years to run, we would cite the Tutwile hotel. This building was promoted an erected by home people, every dollar ir | vested being home capital. Long befor the building was completed it was lease z, to parties who do not reside in Alabam
 and the security which they offered fc . the rent for a term of 15 years was tn 7 landlords lien on furniture and effect | said to have value of something lik :, $200,0 GOO. These tenants having contractd for 15-year lease, required the owner { make additions. alterations and improve
 ments not originally contemplated. Tn
 necessitated the expenditure of a lars