Evening star., 1934-08-18
Fuel Budgets Illustrated.

Fuel Budgets Illustrated.
How can budget" be established
for fuel, to show the normal amount
needed in a given ONCE or apartment
building on day Of any given tenn
perature?
II through failure to repair build
ing a tenant is injured what differ
ence in landlords responsibility arise,
as between (a) case where unre-
paired portion of the building was
for common use. as roof, hall and
the like; (b) case where 1t was with
In tenants own quarters?
The laws of several jurisdictions
place a definite and often very short
limit upon the length of time a life
insurance company may own real
estate. Such laws are an example
Of social lag, Alexander Gutenberg,
Chicago, points out in an article de-
failing audit methods by which life
companies, and other large inStitu-
tional owners of real estate whose
holdings are scattered in many To-
calities, may keep accurate check of
income and outgo for their properties
and appraise its local management.
Mr.. Gutenberg is chief of staff of
David Himmelblau a. Co, consulting
accountants, concentrating on real
estate accounting systems and real
estate organizations. He is North
western University lecturer on ac-
counting.
Depreciation Important.
Depreciation allowances have an
important relation to property ac-
counts. particularly of life companies,
Mr.. Gutenberg points out. Dealing
with the question of just at what
point in transfer of ownership to a
mortgage accounting begins for in
come and expense on that property
for the mortgage, he states that
under Federal income-tax regulations
this is at whatever point the mort
gagee gets effective control Of the
property. This may arise through
an assignment of rents during the
period of which the mortgage. who
is ultimately to become the owner Of
the fee, does not actually own the
property. 1t has even been permitted
to such an assignee of rents to de-
Duct depreciation from his capital in
vestment in the property, as repre-
sented by the original mortgage loan
plus additional expenditures on de-
linquent taxes, etc"
George F. Anderson, teacher Of
real estate law, John Marshall Law
School. and editor of a legal ques-
ton box published monthly in the
National Real Estate Journal, writ
ing under the title, Security Devices
in Leases" tells landlords what part
of the f1ne-print details Of their
leases will stick, in law. and what
part will not. He advises procedure
possible within the law when there
is a breach of the lease Some COM
mon lease-clauses treated: The cove
nant against assigning and sub-let-
ting, the unlawful purpose" clause,
landlords right to enter, the five
day notice clause, the Judgment
clause (giving right to confess judg-
ment for rent not paid.
Security Device Opened.
As new security device opened
by recent court decision Mr.. Ander-
son cited the clause upon which
turned the case of Outfitters' Oper-
ating Realty Co., Inc, decided by
Circuit Court Of Appeals Of New
York February 13, 1884. The lease
provided that in the event of bank
ruptcy of the tenant, the lessor was
entitled to recover damages in an
amount equal to the amount Of rent
reserved in this lease for the residue
of the term, less the fair rental value
Of the premises for the residue of
said term"
The court regarded this formula
as one which liquidated the damages
"upon q footing familiar and fair"