New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-05-27
Cilchrist Measure
Favored by the
Advisory Council
Now illegal for Trustees to
Invest in Participations
Of Mortgages
BY the Advisory Council Of Real Estate
Interests

tutefests
Property owners and taxpayers as
sociations should write to Governor
Whitman requesting his approval OF
tie following bills: The Gilchrist bill
Senate Int. No. 1853. Print. No. 1885,
which would amend the decedent estate
law and the personal property law IN
relation TO the investment OF trust
funds. In the last session OF the Leg
islature the code of civil procedure
was amended under Chsper 5ss OF the
Laws of 1916, making it illegal for ex-
ecutors, trustees, etc, TO invest the
funds of trust estates in participations
Of mortgages.
This act had, very serious effect
upon the mortgage market The Gill
christ bill provides that IAN executor,
administrator or trustee may invest IN
shares or parts of bonds and mort
cages. provided that any share or part
of such bond and mortgage so held
shall be coordinate with all other
shares thereof, and shall not be subject
10 anv prior interest therein, and pro-
vided further. that bonds and mort
cages in parts Of which any fduciary
NAV invest trust funds together with
any guarantee of payment, insurance
policies and other instruments and evi'
dences of title relating thereto shall be
held for the benefit of such fiduciary
and of any other persons interested IN
such bonds and mortgages by sucn
tiduciary or by trust company or titie
guarantee corporation organized under
the laws of this state, and that q writ
ten certificate setting forth that such
fiduciary, trust company or title guar
anty corporation holds such instru-
ments for the benefit of such fduciary
and of any other persons who may be
intrusted in such bond and mortgage
among whom the fiduciary corporation
holding such instruments may be IN
cluded be executed and delivered by
such fduciary trust company or title
insurance corporation.
Will Help Loan Market
II this bill is approved by the Cover
nor the benefit to the mortgage market
will be very large. 1t is difficult TO-
dav for q trustee of small funds to Sc
cure a conservative investment that
affords a fair income. Real estate
mortgages Of large denomination prom
Use a better return than almost any
other form Of investment. =,
The Emerson bill Senate Int. No
1.O4O). which imposes a per cent tax
on the incomes of manufacturing and
mercantile establishments. This meas
uie. although not perfect. nevertheless
offers the first relief granted real es-
tate taxpayers by imposing tax upon
other forms of industry and invest
ment. 1t is predicted that the revenue
to be derived from it may go as hign
as $50 ,00O, 900, one-half OF which IS re-
turned to the communities from wnicn
it is collected. 1t likewise clarifies the
tax law. and il represents the results o.
the work of the joint legislative Com
mittee on Taxation. of which Senator
Mills was chairman.
There are several excellent bills in
troduced by Senator Boylan which
should be approved by the Governor
Senate Int. No. 1045). amending Sec
ton SO, labor law. by providing that
when an owner is within the jurisdic.
ton of the court charged with the trial
of violations against the labor law
service of any order or regulation
under the provisions of the labor law
or any summons from any court having
jurisdiction shall be upon him and not
upon the agent. II he is without the
jurisdiction service may be made upon
the agent.
Senate Int. No. 1907, amending Sec
ton s3-a, labor law, by providing that
in New York City the Board Of Stand
ards and Appeals, instead of the Indus,
trial Commission. shall make rules and
regulations prescribing the number
character and location Of fire alarm
signal systems.
The bill which at this time in the
opinion of the members Of the Ad-
visory Council should be opposed is the
Foley bill, passed in the last few hours
of the Legislature, amending Section
cob of the labor law SENATE Int. No.
1870.