The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-07-21
S4,o7o,ss2.so

The Ssrplus and Undivided Profits OF
81, SO $50 may be compared with the Sur
plus and Undivided Profits Of March lst
1908 latter tho increase Of tho Company's
Capital), Of 81 49,, 900, showing a gain Of
31s7.ss2. In addition to which, since Jan
uary LIST. 1908, dividends amounting to
500 800 have been paid, showing net earn
ings In two and one-half years Of s4se, 1882.
The rapid growth Of the Company's busi-
ness has not tempted 1t to depart in any
way from tho high standard Of Mortgage
security required Rigid adherence Is
maintained to the limitations imposed TO
safeguard the Company's business. which
limitations have been adopted only by
the Lawyers Mortgage Company. and
which arc - follows:
First: THE PROFIT OF THE COMPANY
ON GUARANTEED MORTGAGES is LIN
TIED TO ONE-HALF PER CENT. PER
ANNUM. IA similar limitation is required
by, law Of European Mortgage Companies.
and removes the temptation to accept
doubtful loans for the sake Of larger profts.)
Second: THE TOTAL OUTSTANDING
GUARANTEED MORTGAGES ARE LIN
TIED TO TWENTY. TIMES THE CAPITAL
AND SURPLUS OF THE COMPANY.
This IL the accepted European standard,
whose safety has been demonstrated by
i35 years OF successful experienoe)
Third: THE LOANS OF THE COMPANY
ARE LIMITED TO THE BOROUGHS OF
MANHATTAN, BROOKLYN. AND THE
BRONX.
Fourth: THE LOANS OF THE COMPANY
ARE LIMITED TO SELECTED AND WELL
BUILT UP DISTRICTS IN THESE BOR-
OUGHS.
Fifth: THE LOANS OF THE COMPANY
ARE LIMITED TO REPRODUCING
BUSINESS OR RESIDENCE PROPERTY.
mo loans are made on churches. factories.
theatres, vacant land, or any special utiliza-
tom
During the year there have been but two
foreclosures; a small one In Brooklyn, paid
OF at the sale, and that of No. al Broad
way, which property the Company is hav-
ing repaired and rented with a view to
prompt sale.
There are at present but three delinquents
in interest, the total amounting to $40, and
one small mortgage in foreclosure.
In order to obtain permanent accom-
mediation in desirable location in Brook
Ign, the Company has recently purchased,
In conjunction with the Mortgage Bond
Company Of New York, the property No.
1se Montague Street, Brooklyn. A half
l.. a H1ot UvSt Ia
story ofice building has cost the Company
Sss 900, and will yisld, in addition to Office
accommodation. nearly az on the invest
mont. The property adjoins the new build
ing Of the Lawyers Title Insurance and
Trust Company.
Tho passage Of the Mortgage Tax Law,
Chapter TO, in effect after July lst. 1905,
introduces . now element into the condi-
tions governing the market for Guaranteed
Mortgages. While 1t ia difficult to antici-
pate its effects. 1t appears probable that
interest rates will advance 7S1s, In which
case tho Lawyers Mortgage Company can
offer to clients tax-exempt guaranteed
mortgages at the old rates Of y. and 411oess.
Should great influx Of money result from
Estates and other investors, hitherto pre-
vented from buying mortgages by the fear
OF being taxed ~ to 10, interest rates
might drop to the old basis, or in other
words the tax might shift from borrower
to lender. This result time alone can de-
termine, but, meanwhile. the complicated
provisions Of the Bill. and It's severe penal.
ties for nonoonformity amounting in some
cases to entire forfeiture Of the mortgage,
should lead cautious investors to prefer
mortgages which are guaranteed as to
payment Of principal and interest, and
also against all risk from the operation
Of tho new Mortgage Tax Law. Such a
guarantee policy Is now being issued by
the Lawyers Mortgage Company, and
constitutes an advance step In the direc-
ton Of relieving mortgage investors from
oil care and risk,
To sum up: Guaranteed Mortgages are
more and more In demand with all cautious
investors, and the Lawyers Mortgage Com
pany by It's sound and conservative methods
is steadily strengthening it's hold on in
vestors and obtaining an increased share
OF this business.
Respectfully yours,
RICHARD M. HURD