The Birmingham age-herald., 1917-02-04
LETTERS TO EDITOR
Defects of Torrens System

To the Editor of The Herald. In your issue of January 2, your Mont gomery correspondent emphasizes the re-
 marks of MT. II. L. McEldery before a convention of farmers at Montgomery. With your permission, I shall reply briefly to his statements.
 In the first phase, Mir. McEldery is not informed as to the origin, the nature or the workings of the Torrens system. Space would not permit me to go into d full discussion of the subject, but I hope to point to few reasons why the Tor rens system is fallacy Mir. McEldery states that the system has proven ef- fective in many of the states I question this statement. I have studied the sub ject closely, have obtained data from nearly all of the states in which it has been adopted, and, in my judgment, he cannot point to a single state in which the system has proven. effective or de- sirable, or in general use.
 Cook county, Illinois, in which Chicago is situated, is usually pointed to by Torrens advocates as an example of it's workings and success. I had occasion to visit Chicago few months ago and to investigate this very subject. I have not the figures before me at this writing. put my recOllecLlOn IS that the TepOll of the registrar shows that less than IS
 per cent of the transactions were covered by Torrens certificates Please bear in mind that the Torrens system has been in operation in Cook county, Illinois, for about 10 years. The law is a state law land yet only one county has availed it. self of it's provisions. The Cook county. Illinois, office shows that there are sev- cral hundred thousand dollars of claims l T J.,,- Tl,af fo to say, the sinking fund created under the law is insufficient to pay the claims.
 The farmers are generally deceived on this subject and made to believe that any loss on account of the Torrens certifi- cate will be paid out of the state treas ury. Such is not the case. No state has ever yet passed a law making it possible tc raid it's treasury in such manner. In a recent conversation the financial Representative of one of our largest life insurance companies made the state ment that his company would not make a loan where the Torrens certificate was the sole basis of title. Such men do not usually let sentiment interfere with judgment.
 Under the Torrens system fee is paid when the application Is filed and various
 fees during the course of the proceed ings, and when finally closed a percen-
 
 fund for the protection of certificate holders.
 I will admit that the Torrens system is begging for recognition.
 At picnic given in Cook county, Hi nois Torrens certificates were offered ns prizes in various contests on the athletic fields. This looks like rather a cheap methord of advertising, and as athletic prizes are not usually of such great value, it seems that the prizes offered in this instance were harly worth contesting for
 I make few observations on the sys- tenn.
 First--It is a system inaugurated for use in penal colony under a monarchy and is not adapted to constitutional government. In country of free people it has no place.
 Second-It is another but more cumber- some system of conveyancing most gen. erally inefficient and above all very ex- pensive It has been shown that the present system of examining titles by private institutions is from 40 to 50 per cent cheaper than the Torrens system.
 In order to make the system effective, the state would be compelled to install expensive machinery for it's administra- ton. There would be expensive abstract plants to construct in every county in the state, various books, records and blanks, which I admit would be boon to stationery dealers, and various officials t., be appointed and supervised.
 Third-The adoption of the Torrens system would mean another iniqutous fee system. Under this system, fees are called for from the filing of the applica tion to the end of time, or as long as there is a legal owner of the property.
 Fourth-The Torrens system would rob the owner of real estate, of his freedom of action in transferring his property. He could not pass title to a successive owner without paying a fee and getting the consent of the official He would be required to deposit not only his own deed, but all of his miniments of title with the Torrens official and could not withdraw them for use or for the pur- pose of offering in evidence in case of lit- igation.
 As to mortgages, it would be almost impossible to do business with foreign investors for the reason that in each case in which there was a transfer of ownership of the securities the originals must be produced to che official for qer- mission and indorsement.
 Fifth-The Torrens system would prove fruitful field for litigation. Before title can be registered it would be neces- sary to litigate it, and, as is well known, flaws can almost always be found in proceedings had in the courts even be- fore Torrens official
 Sixth--It opens the door for fraud. The real owner is often defrauded of his ir- heritance by scheming Hand sharks