The Memphis appeal. [volume] (Memphis, Tenn.) 1886-1890, 1889-04-14
FOR THE CITY'S GOOD.
THE PURPOSES OF THE SOUTHERN
TRUST COMPANY.
How 1t Is Proposed to Make Loans on
Realty-The Enhancement of Prop
erty Valuations a Certain Conse-
quence.

Knowing that every loyal Memphian is
interested in tho success of the financial
concerns which have recently organized
in this city, representative OF THE APP
peal called on John l. Dunn, secretary
and general manager OF the Southern Trust
Company, rooms q and % Cotton Ex-
change, in order to get some information
as to how the business is conducted. Mr..
Dunn said that the Southern Trust Com
pany was organized Gin Memphis and for
Memphis" and that the stockholders and
directors Of the company are Messrs. NJ.
j. Trezevant @. w. Schultz, w. A. Col
lier, T. B. Trezevant, James l.. Lombard
and John |. Dunn.
II will be noticed that all the directors,
with one exception, are business men well
known in Memphis, the management of
the company being in the hands OF Mr..
Dunn, and Mr.. NJ. b. Irrelevant being the
general counsel
The method followed is for the applicant
wishing money to fill out blank applica-
ton, appointing the Southern Trust Com
pany his agent for the purpose OF procur-
ing loan upon his property, and agreeing
TO pay the company fee for its services
acting in the capacity Of agent for the
borrower.
Applications are mostly easily placed
when the money is desired for a period
OF five years, and the property offered us
security should be worth about three
Times the amount Of the loan applied for.
Then, too, the property should be inn
proved, Tor the basis OF value is figured
according TO what the property will pay
as an investment.
The amount OF the brokerage fee charged
by the company varies on different classes
oil securities. Where the property placed
as collateral for the loan is gilt edged
business or residence property, II is much
easier TO place the security. IL is, how
ever, matter OF considerable expense to
place these loans, for, the legal rate being
only per cent, the company must incur
great expense in hunting up capitalists
and investors who wish TO invest their
money in such low rate securities.
Upon being asked his opinion in regard
20 the influence this business will have
upon realty. the Secretary stated that it
would undoubtedly stimulate property aud
enhance its value.
Il is conceded that Chicago and Kansas
City, and, in fact, all the Western towns,
were built up by money from the New
England States, and IL is something Won
dcriul that Memphis has grown TO be such
ilourishing city, when she was so entirely
dependant upon her own capitalists Tor
ZEAL estate loans.
All business ~ necessarily conducted
upon credit basis, and it has heretofore
been a disadvantage TO real estate owners
IL hat.
property Us collateral for loans This fact,
Indeed, has had the effect OF preventing
Investments IN this class OF properly
which is now happily removed.
As TO the security offered in Memphis
Mr.. Dunn says that his short experience
in this city has shown him that IL is mos
excellent, and property Is exceedingly
cheap In comparison with values in cities
Of The Northwest half the size OF Memphis
The only difficulty in conducting a mort
gagc brokerage business In this city IS th,
low rate OF interest that the lender mus
receive, for IL takes great trouble 70 con
vince Philadelphia or Baltimore capital
10 that d per cent. real estate mortgage
III Memphis Is m excellent investment
however this might bc known with ciici
better known 10 investors; Tor Memphis
unlike towns OF the West and Northwest
has not been advertised over the East, an,
IL has hitherto been hard TO puHuad
Eastern capitalists that she is such a Hour
ishing and progressive city.
"iiut," sad Mr.. Dunn, this will no
much longer be in tbs way, for the nlrin
sic merits Of Memphis rs strong com
mercial center have pushed the city upol
the attention Of capitalists, and from hay
ing listened 10 the representations OF lac
friends they have become interested, an
now investigate. and conviction follow
upon any visit 10 Memphis. Seeing is the
believing"