The Sunday Oregonian., June 16, 1918, Section One, Page 21, Image 21

21
TS OF
TYPE OF HOUSES BEING ERECTED ON PENINSULA FOR EMPLOYES OF BIG LUMBER AND SHIP
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BUILDING PLANT.
SETTLED BY COURT
THE SUNDAY OREGONIAN. PORTLAND, JUNE 1G. 1918.
RICH
OWNER
Purchaser at Sheriff's Sale
Not Entitled to Rents if
Mortgagor Redeems.
REPAIR COSTS DEDUCTED
Chairman of Portland Realty Board
Legal Committee Explains Foint
of Much Importance Because
of Many Foreclosures.
BY tV. B. SHIVELT.
Chairman Legal Committee Portland Realty
jsora.
Can a purchaser ot real property at
a sheriffs sale, who, under the stat
ute, enters into the possession of the
property purchased and collects the
rents therefrom, retain such rents up
on a redemption of the property by the
mortgagor or other person entitled by
law to redeem?
This problem is of some importance
in view of the large number or mort
gage foreclosures which have taken
place in this county during the past
year. Possibly two-thirds of these
foreclosures have involved dwellings
of the bungalow type, for which there
has been a strong demand during re
cent months resulting in numerous
sales and consequent redemptions.
Now a purchaser at sheriff's sale is
Kiven by statute the right to the im
mediate possession of the property pur
chased and the ripht thereafter to col
lect the rents and income therefrom.
The statute further provides that cer
tain individuals, including the owner
of the property, may redeem the same
from the- sheriff's sale at any time
within one year after the sale is con
firmed or approved by the court by
paying the sale price with interest
thereon at 10 per cent per annum from
the date of the sale together with the
amount of taxes on the property paid
in the meantime by the purchaser.
Purchaser Gets Deed in Year.
If no redemption takes place within
the year the purchaser becomes en
titled to a sheriff's deed and is then
the owner of the property and may re
tain all rents collected, but prior to
the expiration of the year, the pur
chaser has merely the right to the use
and possession of the premises, which
right is subject to be defeated at any
time within the year by a redemption.
In the event a redemption takes place,
it becomes interesting to know wheth
er or not the purchaser at the sheriff's
sale, who, since the sale, has collected
the rents from the premises, is entitled
to retain the same.'
This problem is decided by the Su
preme Court of Oregon in the case of
Fields vs. Crowley, 71 Or. 141, 142 Pac
360. In this case the facts were that
the owner of property had given a
mortgage thereon to Messrs. Crowley
and Wright. - The mortgage was fore
closed and at the sheriff's sale Messrs.
Crowley and Wright purchased the
property for about ?1S00 and entered
into possession. They remained in pos
session for 10 months and during that
time collected from the property in
rents a sum slightly in excess of J1200.
Within the time permitted by law the
owners of the property redeemed' the
same from the sheriff's sale, paying the
full amount necessary therefor, where
upon Messrs. Crowley and Wright sur
rendered . possession of the property
but refused to pay over their rent col
lections. Thereupon the' owners
brought suit against Crowley and
Wright, seeking an accounting of and
settlement for all rents collected by
them from the building while they
were in possession thereof.
Court Seta Rule.
The question decided by the court
was whether or not the purchasers at
the sale. Crowley and Wright, were
obliged to account to the owners for
the rents so collected by them, or
whether they could retain such rents
in addition to receiving the full amount
paid by the owners to redeem from the
sale, which included not only the sale
price but also 10 per cent interest
thereon.
The court cites prior decisions in
this and other states to the effect that
it is well settled that where a redemp-
ion from an execution sale takes place
the effect of the sale is terminated and
the property is restored to its original
condition. The court suggests that
when the owner has paid the full
amount required to redeem, the only
way to "restore" the property to its
. "original condition" is to pay over to
the redemptioner such rents and prof
Its as he might have collected had he
been in possession: otherwise the prop
erty is not "restored." The court said:
"It is the policy of the law to enable
the purchaser to obtain from the re
demptioner the full amount paid by
' him for the land plus the highest rate
of interest thereon allowed by law
from the date of payment until the re
demption. . . The controlling
idea of the statutes regulating the
rights of judgment debtors and pur
chasers ... is that . judgment
creditors are entitled to and should re
ceive no more than their debts, with
interest and proper charges. Any de
viation from this idea must entail In
justice. ..."
The court further states that while
a different rule obtains in California,
Washington and some other states, the
better and more equitable rule is that
announced by the court, namely, that
where- a redemption takes place the
purchaser at the sheriffs sale must ac
count and settle for all the rents and
profits received by him wtiile he was
in possession of the premises.
Owner Gets Rents.
And in Cartwright vs. Savage. 5 Or.
397, it was held that when a judgment
debtor redeems he may recover from
the purchaser at sheriffs sale the value
of a crop then growing upon the land
and harvested by the purchaser while
in possession, for the reason that it is
not "the policy of the statute to give
the creditor more than his debt with
interest and proper charges."
It follows, therefore, that an owner
of real estate upon which a mortgage
has been foreclosed and which has been
sold upon execution, will be entitled
upon redeeming to a credit in the
amount of all rents and profits received
by the purchaser between the time of
the sale and the redemption. The pur-,
chaser, however, will be entitled under
the holding in Reichert vs. Sooy-Smith,
85 Or. 25. 165 Pac. 1174, 1184, to de
duct from the rents received by him
the cost of any repairs necessary to
preserve the property, accounting for
his "net profits" only.
If at the time the redemption takes
place the purchaser refuses to account
for the rents collected by him or to al
low the redemptioner credit therefor,
the course to be pursued by the re
demptioner would be to pay the full
amount required by the statute to redeem-
from the sale and then bring a
suit in equity against the purchaser to
compel him to account for the rents
and net profits received from the prem
ises. The redemptioner' s rights in this
respect are very clear under Oregon
decisions.
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The Home Question I
During the past year hundreds of columns of publicity have'been given
to subjects relating to changing conditions in various lines which have
been brought about by the war. Readers of The Oregonian and other
newspapers and periodicals have been kept thoroughly informed of the
necessity for the conservation of food, fuel, clothing and other necessities; s
for the practice of thrift; for intelligent and earnest application to the
work in nand. Most persons have learned to accept, without complaint
and as a matter of course, the general increases in costs of nearly all com- s
modities. They know that many industries have been diverted to the
production of war materials; that the demand for the necessities is very
heavy; that the cost of labor and raw materials is higher and that all of
these things must necessarily be followed by higher selling prices.
Little has been said, however, of " t he Home Question" and many heads
of families have given but slight c nsideration to the matter of home
ownership. Most renters have had the question brought forcibly to their
attention during the past year, and particularly during the past six
months, by the higher rentals asked for the properties in which they
lived, but the majority have dismissed it as something disagreeable, but
necessary, without taking any definite action to escape the burden in the
future, and without much consideration of wrhat they might expect in the
way of further increases. E
This article (and those which will follow from time to time) is pre-
sented for the purpose of putting "The Home Question," in its various e
aspects, more clearly before the readers of The Oregonian. The ideas of e
Eersons in close touch with the realty and rental situation will be set forth
riefly and plainly and the information furnished should be of consider-
able value to the thousands of families who are living in rented quarters.
THESE HANDSOME, MODERN DWELLINGS WERE RECENTLY BUILT ON WILLAMETTE BOULEVARD BV THE PEN
INSULA LUMBER COMPANY FOR THE CONVENIENCE Or ITS EMPLOl ES.
HOUSING PLAN ISlflDE
JOINT C'OM.T AtEE GIVES OUTLINE
OF METHOD OF PROCEDURE.
Popular Subarrlptlon o Community
Project for Building on lirw
' ' - frnle Is Advocated.
The joint committee on housing from
the Portland Realty Board and the
Portland Chamber of Commerce has
outlined plans to meet the housing
emergency in Portland by forming a
housing company, to be composed of
Portland business men, which will con
struct 500 to 600 houses as a first unit
to meet immediate needs.
The plan outlined is ror construction
to be on a permanent basis, with
wholesale buying and landscaping, the
houses to be sold to ship and indus
trial workers on easy terms at the
wholesale price with necessary expense
added.
The committee advocates a housing
plan to be carried out through popular
subscription in a patriotic drive as the
best means of taking care of the housr
ing needs of shipbuilders and other
industrial workers and of ending prof
iteering by landlords.
The plan has been put before the
Shipping Board by the committee,
which is composed of Herbert Gordon,
chairman: Paul C. Murphy, president
of the Portland Realty Board: A. C
Callan. E. B. McNaughton, Fred W. Ger
man, Coe A. McKenna, Frank L. Mc
Guire, Fred H. Strong, Milton Frieden
rich, H. C. Plummer, E. D. Tlmms and
n i '- i-r, id-),. '
Well-planned meals are a fuel saver,
as more than one thing can be cooked
over the same fire.
BUSINESS INSURANCE VALUABLE
CREDIT ASSOCIATION ADJUNCT
New York Organization Will Give Weight to Fact That Man Asking Credit
Has Ample Insurance Policy Protecting Business.
ACCORDING to a bulletin of thei
New Tork Credit lien's Associa
tion, the work of the committee In
charge of the establishment of a credit
interchange bureau. Justifies the an
nouncement that within a reasonable
time the proposed bureau will be an
accomplished fact. It is said that all
details of its operation have been per
fected and the work of obtaining sig
natures to applications for member
ship is being carried on vigorously.
In order to proceed along conser
vative linen, it has been decided to
limit the initial scope of the work to
an organization of three or four lines,
on the theory that a successfully oper
ated bureau composed of a few groups
will result In interesting other groups
from time to time until the highest
level of efficiency has been reached.
If the establishment of a credit inter
change bureau In New York City
proves a success, as Its sponsors be
lieve it will be, the plan will probably
be adopted In other cities, and It is
said on good authority, business life
Insurance will play an important part
in the ratines and investigations.
Business life Insurance Is dally re
ceiving more and more attention from
credit men. Life insurance men refer
to a policy for $1000. which was Issued
early in the sixties. This policy Is
now an Interesting exhibit, for it is
covered with assignments, the first one
being an assignment to one of the Edgar-Thompson
multi-millionaire steel
men. On the basis of this policy was
laid the foundation of one of the larg
est corporations In this country. In
other words, over 50 years ago, this
RETIRING PRESIDENT OF PORTLAND ASSOCIATION OF CREDIT
MEN AND HIS SUCCESSOR.
$1000 policy gave the start to a man
who has built up one of the largest
corporations In the world.
Forty years ago, James Park. Jr.,
attempted to Introduce the manufac
ture of crucible steel in America. He
needed $50,000 and had exhausted every
bit of credit to obtain this amount.
At last he succeeded In borrowing the
$50,000 on the strength of a $50,000
life insurance policy from William
Thaw, of Pittsburg. This loan con
stituted the foundation of the Crucible
Steel Company of America.
President Charles M. Clark, of the
Bradstreet Mercantile Agency, recent
ly said, "It is practically beyond a
doubt that corporation Insurance
strengthens the credit of firms adopt-
lnar it. The Increased confidence
which it establishes Is recognized In
the mercantile community and thus re
flects through our reports.
A high official in Dun's Mercantile
Agency stated. "A business not man
aged and officered by men whose lives
are of value to that business Is not a
good credit, and If their lives be of
value the burden of proof Is certainly
on that firm or company to show cause
why the risk or that loss should not
be distributed on the broad shoulders
of life insurance companies rather
than carried by the creditors.
Shrewd credit men point out the fact
that Dun's weekly letter quotes the
death of officers of corporations and
members of firms for the simple rea
son that these deaths affect credit.
Likewise. It a well-known fact that
the Bradstreet Agency issues a special
report on the death of an officer of a
corporation or member of a firm to
those who make inquiry.
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The Portland Association of Credit Men has just completed a most success
ful year under the leadership of E. G. Leihy, retiring president, and It starts
on another year with its new president, P. L. Bishop. At the recent election
the following directors were elected: P. L. Bishop, Lang & Co.; E. C Leihy.
Blumauer Frank Drug Co.; H. J. Parr. Union Meat Co.; S. L. Eddy. Ladd &
Tilton Bank: J. F. Vanike. W. P. Fuller & Co.; A. C. Longshore, Northwest
National Bank; W. J. Henderson, Closset & Devers; Edward Drake, J. K. Gill
Company: Bert M. Denison, Albers Bros. Milling Company. S. L. Eddy Is vice
president: H. J. Parr, secretary and treasurer, and J. F. Vanike, auditor.
The association aims to establish closer co-operation among credit men and
to promote their higher education. It tries to assist honest merchants who are
financially embarrassed and is founded on the principle that credit Is not to
destroy, but to build up trade and co-operation, and must not be confined to
members, but must be extended to customers as well. Undesirable customers
are capable of being turned into good ones who will be an asset to the
dealer.
P. L. Bishop, William B. Layton. E. W. Johnson and L. A. Jamieson were
elected delegates to the National convention of Credit men at Chicago, June
1 to 23.
Supply and Demand
Property and rental values, like the values of every other commodity,
are largely governed by the law of supply and demand. If the demand e
for homes is slack choice homes may usually be rented or purchased at
a very low figure. An increased demand is always quickly reflected,
first in increased rentals, next in larger cash payments and monthly E
installments asked by owners in the sale of their properties and soon in E
increased selling prices. Let the demand become greater than the avail-
able supply and prices soar. It is simply the inexorable working of the E
law of supply and demand. E
The truth of this rule is demonstrated in the local situation. A year
or two ago a fine home could be rented at a figure which did not repay
the owner for his taxes and upkeep and many homes could be bought E
for much less than actual cost and on ridiculously easy terms. The E
demand at that time was slack. With the coming of thousands of new e
Eeople for work in the shipyards and other war industries the demand for
omes increased by leaps and bounds and rentals have naturally reflected
the increased demand. Next, owners were able to ask and get larger cash E
ayments in the sale of their properties. Increased selling prices will f ol- E
ow just as surely. .
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acre wheat ranch in Benton County.
Wash, to W. R. Amon. of Richland.
Wash., for $4S.4!0. Mr. Moore re
ceived as payment certain properties In
and around th towns 01 jvennewicK
and Richland. Wash, to the extent of
about $30,000. The remainder was
made up in securities. All the proper
ties are showing a very substantial In
come at this time.
BRICK YARD TO OPEN SOON
Beavcrton's Already Big Payroll to
Be Increased.
BEAVERTOX. Or.. June 15. (Spe
cial.) The big brickyard and tile plant
of the Oregon Brick and Tile company
at this place will be In operation with
in 10 days. The management ts sign
ing up men and expects a good run
this Summer, as there Is a big demand
foi tile and brick.
At present the Southern Fsclflr car
shops and the Pacific Potato Starch
Company's plant are running full blast.
With the addition of the tile and brick
industry, Beaverton will boom, and
the monthly payroll will run Into the
thousands.
mer rains continue, the outlook for the
Central Oregon ranchers and stockmea
Is good.
CROP OUTLOOK IS BRIGHT
Central Oregon Ranchers Respond
to Call for Larger Acreage.
LA PrXE. Or, June 15. (Special.)
Ranchers In the Fllver Lake region who
suffered temporarily this Spring from
Silver and Thorne lakes drying up have
set out to regain their losses by farm
ing the dry lake beds. Thousands of
acres of these rich lake beds have been
seeded to crops and. with the warm
rains now general through Central Ore
gon, promise an abundant harvest.
Cattle, which are suffering for want
of water, have been removed to other
runt's and are doT- well. If th Rnm-
Aberdeen Plans Big Parade.
ABERDEEN. Wash.. June IB. (Spe
cial.) Upwards of 630 Loyal Legion,
loggers have signed up to participate
as a unit in the July Fourth parade
here. Many others are expected to Join
In this unit, which will form one f
the big marching sections. About 1501
soldier loggers also are expected to
participate.
firays Harbor County to Elect.
ABERDEEN. Wash, June IS. (Spe
clal.) Thirty delegates to the state Re
publican convention will be elected
here Saturday at the biennial county
convention, which Is to be held here at
that time. The precinct primaries are
to be held on Thursday In all of the
precincts of the county.
Pead The Oreaontan classified ada
HEIGHTS HOME SOLD FOR $8000
Theodore Brown Buys Residence
From Helen McChesner.
The Portland Heights home of Helen
N. McChesney at 625 Gerald avenue was
sold last week to Theodore Brown, who
will move in Immediately. The trans
action Included, In addition to the resi
dence, nearly two full lots. The pur
chase price was In the neighborhood of
$8000. The sale was made through Mrs.
John Brooke, dealer In Portland Heights
properties.
PORTLAND MAX SELLS RAXCH
1614-Acre Property Xear Richland,
Wash., Brings $4 8,000.
- L. K. Moore last week sold his 1614-
Directoryj of Prominent
Life Insurance Agencies
Members of Life Underwriters'
Association of Oregon.
Wm. Ooldman. General Manacar
NATIONAL LIFE OP VERMONT.
Oreitonl&n Bids.
H. O. Colton. Manacar.
MASSACHUSETTS MUTUAL, LIFE.
Chamber of Commerce Bldg.
Harmon Cummins. General Agents.
PENN MUTUAL, LIFE.
Northwestern Bank Bldg-.
Horace Mecklem. Manager.
NEW ENGLAND MUTUAL LIFE
Northweatera Bank Bid g.
M. M. Johnson.
NEW WORLD LIFE INSURANCE CO
JO Stevens B;dg.
H. R. Albee. General Agent.
NORTHWESTERN MUTUAL LIFE INS. CO.
Northwestern Bank Bldg.
T. H. McAllla. State Mar,
UNION MUTUAL LIFE INS. CO,
Board of Trade Bldg.
Fdaar W. Smith. Manager.
EQt'ITABLK LIFE ASSURANCE SOCIETT.
eOft Orcgoniau Sldg.
It's all for $2 a Month Deposit $5
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