New-York tribune., 1921-03-08
Standard Oil
Loses $37l,00O
In Rent Case
Unique Suit Demanding
Payment in Advance for
Ii Broadway Decided for
Owner, E. E. Smathers
Held ON 99-Year Lease
Winner i'm Court Reputed
to Have Made Millions
Recently in Oil and Land

The Standard Oil Company, according
to unique case just decided by Su
preme Court Justice Guy, must pay
rent lin advance" for the property at
IL broadway, recently acquired under
99-year lease from Elmer e. Smathcrs
and thereby will part with 1871 900 more
than if the corporation had been upheld
IN its contention that the rent should
be paid at the end Of each quarter in
stead of at the beginning.
Mr.. Smathers. who is we'll known
OIL investor and former horseman.
bought the property few years ago
from Philadelphia estate. 1t was not
profitable property and is understood
70 nave been purchased at q low figure.
The Standard Oil Company, at 26 Broad
way, wishing to build to the corner,
bought the other property intervening,
with the exception of Mr.. Smathers'
holdings, which the company leased for
q term Of ninety-ninc years. The lease
is one OF the largest ever executed in
New York The document, dated March
/, 1920, according to the court decision,
calls Tor a payment of a net annual
rental of $250,000, payable during the
99-year term in quarterly payments Of
S62, 800 ION the first day of the months
OF April, July, October and January in
every year during the said term" and
provides that the lessee pay a propor-
tionate amount for the period during
which it should occupy the premises up
to April /, 1920.
"In Advance" Stricken Out
Mr.. Smathers's attorney, L. Briyht
Wilson, OF 149 Broadway, drew up the
lease, which was changed in several
particulars. MIR. Wilson said that.
among the changes, the words "in ad
vance" were stricken out. BY striking
out the words sin advance" according
to Mr.. Wilson, it evidently had been
assumed that the company would not
have to pay its rent until the and Of
the quarter, but suit was brought TO
compel payment in advance.
"The amount involved was the in
terest on the first quarterly payment
of s62,500," said Mr.. Wilson yesterday
"This interest, carried through the life
Of the lease, or ninety-nine years.
would amount to 1911 900. The only
point of difference was whether the
rent should be paid in advance or at
the end of each quarter. Although
the words in advance were stricken
out, the terms OF the lease said that
the rent should be paid on the first
of April, July, October and January
in every year during the term, conae-
quently our contention was that the
first quarters rent was due US on
April !, 1920. the others to follow in
order"
Justice Guy upheld the contention of
the plaintiff, holding that the intent
Of the parties would not alter the
plain language Of the instrument.
Percy j. King argued the case for
the defendant corporation. Martin
Carey is general counsel for the Stand
ard Oil Company.
Case Is Unique
1t is said this is the first time such
case has been decided in the courts.
The case attracted attention on account
of its unique features, the prominence
of the parties involved and the amount
Of money at stake. Ordinarily, in the
case cf a small lease, the interest on
one quarters rent would not result
in litigation. Nor would the average
person stop to figure that such IN
terest, carried through the term Of q
lease of any considerable extent,
would amount to large sum.