The Providence news. (Providence [R.I.]) 1891-1906, 1906-05-10
PLAN TO FINANCE
REBUILDING Of
SAN FRANCISCO

New York. May 10-Leslie NJ. Shaw,
secretary of the treasury, was in this city
yesterday and conferred with f. II. Har-
rman and James speyer OF speyer &
Co.. on the financial situation In San
Francisco.
Three hundred million dollars will be
needed TO rebuild the business district
of San Francisco" said Il. s. Black, presi-
dent OF the United States Realty and Inn
proyement company yesterday. "and
the company which we are organizing 10
finance building operations will be OF
sufficient financial strength 10 supply
from quarter 10 half OF that amount.
THE company will be similar I'm a gem
eral way 10 an underwriting syndicate.
II will not have in itself n large capital,
but it's directors will include prominent
financiers OF this city and San Francisco.
and 1t will guarantee bonds based on San
Franc'7co mortgages"
The company. Mr.. Black went on 10
explain. will be a bond and mortgage cor
poration. organized under a federal char
ter or a broad state charter. comforting
power 10 guarantee the principal and in
terest OF bonds secured by mortgages. 1t
will have capital probably Of about $l0.
100000, will make loans on business prop
erty In San Francisco and will sell bonds
i'm series OF every loan. with the guaran-
tee of the company and the security OF
the mortgage.
For example, II an applicant for loan
has a piece OF land valued at 81 100000 and
wishes 10 construct a building 10 cost
100000. the bond and mortgage corpora
tion will lend him 81. 100000 or half the
| amount of the combined value. and issue
bonds TO the amount Of 81. 10000. No at
| tempt will be made To float more than
SO,ooo,0 600 In such bonds in the near fu-
| ture.
The company proposes 10 make the
| mortgage loans at 5is 20 per cent. and
sell the bonds to the public at 4 per cent.
less. The life OF the mortgages will be
limited to 10 years. and a sinking fund
| Will be created 10 retire the bonds at the
| expiration OF that period. IL is assumed
that the mortgagors will be able after
! 10 years TO get new loans.
The company will make no loans on
residential property and in the case OF
| business property will confine it's loans
| To modern steel buildings exclusively.
| Mortgage loans are underwritten in
some such manner i'm Europe" said Mr..
Black. 'by the mortgage banks and other
| concerns. / discussed the plan on Mon
1 day with Vice President Vanderip OF the
| National City Bank, with Senator New
! lands OF Nevada and with Thomas A.
| Magee and Franklin Lane OF San Fran
cisco All of them approve II, and IL has
also met the approval OF the presidents
OF many trust companies 20 whom have
/ submitted IT,"
Mr.. Black has a letter from John y.
Parrish. an expert engineer, who has been
through three San Francisco earthquakes,
! including the last one. and who estimates
the loss by the earthquake itself at but
! 81. .OO0, 900
Mr. Hartman. In the course OF an In
terview this afternoon, did not discuss
| the plan formulated by Mr.. Black. on
the general proposition OF rebuilding, how
| ever. he had this 10 say:
II have a great many thoughts on
financing the rebuilding OF the city, but
do not care TO discuss them in detail
now ] think the general idea OF the
Burnham plan is good. but usually those
| theoretic developments OF the city are too
| expensive The first thing. Of course, Is
TO get the people OF the city doing some
| thing and the labor fully employed. We
won't have any difficulty In raising the
| requisite money when we get at II, for
IL is the duty OF everybody 10 help build
UP that great city again."