New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1919-01-12
Protection of Land Buyers
Theme of Proposed Lars
ALI lnstalment Concerns May Be Placed Under SUI
pervision Of State Banking Depariment-Bus:
ness of Land Sharks To Be Curbed

When soldier of France, so badly
wounded az to be no longer fit for
service, walked into the Mayors Office
one day early last summer to complain
that he had been deprived unjustly OF
certain property in Queens, he little
suspected that his action would be the
beginning of series of incidents that
would mark the passing of the Gland
shark' and the practical revolution of
the business Of selling suburban land.
That soldiers property, valued at
1920, had been sold back in 1908
without his knowledge, for non-pay-
ment of tax bill of $3.50, and the
shark" who bought it asked S640 for
its return. The soldier mad fulfilled
the terms of his contract-paid MS in
stalments regularly from 1908, when
ne purchased the land, until 1914, when
he was called to defend his country
only to find upon his return that he
had been the victim of miserable
swindle. Even while he was paying
for the land the dealers from whom
he purchased had permitted the prop
crty to be sold for non-payment of
taxes
Investigation of that complaint led to
the revealing of conditions in Queens,
Nassau and Suffolk counties that
startled even real estate men who
thought that certain land dealers were
doing business on pretty question:
had been practised on thousands of
suburban lot buyers. The further the
investigation went the deeper became
the traces Of dishonesty. Millions of
dollars worth of property to which un-
suspecting owners thought they had
good title had been sold for non~pay-
mcnt Of trif1ing amounts in taxes and
the land was being held by tax lien
purchasers for exorbitant sums.
No More Land Sharks
But nothing like that ever will hap
pen again in this part Of the country,
provided bills which the Mayors Com
mittec on Taxation has prepared for
! the Legislature ere enacted into laws.
The ability of the land dealer to
swindle will be removed and the ability
Of the land shark" to demand un-
reasonable sums to return property 70
it's rightful owners will be curbed.
Honest, high-class suburban real estate
owners and MISREPRESENTATION means
nearly all that are doing business in
this city at this time-are keen for the
proposed legislation, which means that
, it will have their support. before the
! Legislature and that it probably Will
be placed on the statute books.
Four bills have been prepared by the
Mayors committee after an investiga-
ton lasting over several months, during
which time, without legal recourse, it
was possible to restore more than $500
lots to their rightful owners upon the
payment only Of taxes due, plus mod
crate interest charges. The value Of
this property is nearly s3,500,0OO
Perhaps the most important Of all
the measures planned--so far as real
estate men are concerned-~is the last
on the committees programme, which
provides that all instaiment lot sell
ing companies shall be placed under
the jurisdiction and supervision Of tho
State Ranking Department. While they
look upon this measure eventually to
redeem the suburban real estate bust
rcss-for most of il is done the in
stallment basis-men we'll versed in
realty affairs believe that it will have
the effect, temporarily at least, of re-
ducing business to minimum.
Payments Safeguarded
It is planned, according to this meas
ure, to compel developer who sells
land to deposit in some safe place a
certain proportion of his receipts on
property, the sum to be held for pay
ment of any mortgage or other obliga-
tions with which the land may be en-
numbered. Now, it is no uncommon
practice for land companies TO take the
proceeds of some early sales to pay
for physical improvements In theii
properties, relying on later sales and
on profits to be made to meet the NOR
gage or tax obligations when they