The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1895-02-22
$6,s76,212 10
INTEREST.

We received for interest and dividends $685.
965 So for rents, $685. 42 49, On real estate
loans of $37,4S4,S 4S 1S, the overdue interest at
the end of the year was S9S,947 SO or 26-IOO of l
per Nearly all of this small percentage is on
loans on city property. On farm loans of $l2, 1885,
527 04 in the "corn belt" only there was only Sl2
Oa7 10 overdue interest Our experience has stead
lily shown that the ability of good FARMS in good
hands, in the right localities, to pay interest
promptly a proper, that is, relatively small
loan is less affected by hard times than is the case
with city property of good character and of the
average variety; and yet loan only in cities
which the great centers of commerce. All
our loans are very conservatively distributed and
placed.
On bonds costing $I2, 256, $50 20 there were two
items of overdue interest, amounting to $47OO
One of these is bonds of the city OF Austin Tex
and the other first mortgage bonds Of the
Detroit, Lansing and Northern Railroad In
neither do apprehend loss.
LOANS ON REAL ESTATE.
We loaned on real estate during the year $780,
OO7 "a; loans were paid amounting to $7,Oe4-
654 80.
FORECLOSURES AND SALES OF REAL ES-
TATE.
1t is not to be supposed that over IL 900 loans,
aggregating over $37,50O,OOO, could go through
times of protracted and financial stringency
and depression without some defaults of payment
and necessity OF enforcing security in such
cases. During the year we have taken in under
foreclosure property costing us at decree $4s7,.
COS IA, and have sold properties costing $780,
331 33, leaving net increase of real estate held at
cost of $257, 272 A. OF these sales $1S6O56 "a
represented the cost of properties which were en-
tirely closed out at $2O3 e5, gain over cost of
17,409 81. The remainder represented sales of
parts Of properties.
While we always regret the necessity of realizing
on our security, and do not wish to hold property
any longer than necessary in order 10 sell it to vour
best advantage we governed by the fact that
these are the times press real estate to sale
except at sacrifice, which we do not need to make.
We are strong holders and can well await a normal
market.
bit of history will illustrate. In the disastrous
decade $1,000 we took in properties costing
SIS, 4S2, 163 40 and valued by the then Insurance
Commissioner at only $l1 1923, $3.50 %, out OF which
properties costing $7,313,01O So and valued at
only $6,234,007 "a have been sold for Ss,72l.-
ZIG 81, gain over cost of $1,4OS, 2O5 So and
So 4S7, 2OS 81 over the Commissioners valuation.
And these properties came from loans made upon
valuations representing the great currency Initiation
prevailing during and after the Civil War and suffer
ing corresponding shrnkage as the country ap-
preached sound basis That element of disturb
ance and danger is fortunately absent from the
present situation.
We can therefore contemplate such foreclosures
as have been and likely TO be made during this
depression without serious anxiety, while the
higher rate of interest realized from real estate
loans makes them especially desirable for earning
dividends.
BONDS.
No purchases of importance have been made dur
ing the year Bonds have been maid or tn tho