The Birmingham age-herald., 1906-02-24
LARGE MORTGAGE
 IS NOW CANCELLED
Birmingham Realty Co. Wipes
 Out Bonded Indebtedness
AMOUNT WAS S1,1OO,OOO
The Result Was Attained In a Little More Than Five Years-The Com pany Is Now Free From
 All Encumhrances.

and dry and matter-of-fact, but it is occasionally felictous. For instance, there was filed for record in the probate court yesterday afternoon what is known as satisfaction piece"
 Stripped of verbiage, it declares that the Union Trust company of New York has cancelled a mortgage executed by the Birmingham Realty company to secure an issue of S110o,000 of bonds.
 The mortgage Is date January 19, 1900, and it's cancellation five years, one month and a few days thereafter Is pointed out as a remarkable event, Illustrating the growth and prosperity of Birmingham and the ability with which the affairs of the Birmingham Realty company have been administered by it's president and board of directors.
 The issue of these bonds was part of plan of reorganization whereby the Bir mngham Realty company was called into being as the successor of the Elyton and Elyton Land companies, and purchased their holdings and assumed their liabli- ties. This plan, formulated by a commit tee whereof MT. William Halls, Jr., was chairman, also provided for the issue of $1, ,3OO.OOO common stock and $7OO,O0O non- cumulative preferred stock by the new company.
 Classes of Bonds.
 There were two kinds of bonds. The first (s55O, ,OOO). were prior lien bonds,
 t..I. made due on the 1st of July, 1919; of these $50O,O 600 were sold. The others were mortgage bonds ($550.000), and were in- tended to replace Elyton company's bonds and interest," and the amount actually issued was $529,2S0. They were made pay able on the 1st of July 1890. Bonds of both classes drew 5 per cent interest. These bonds, as well as the mortgage, contained sinking fund provisions, au- thosizing their retirement by sales of real estate, and the mortgage required that 55 per cent of the cash receipts from each sale should be sent to the Union Trust company for that purpose By this pro- cedure the bonds were steadily retired, and sixty days prior to the 1st of Jan uary the Union Trust company called In the remainder of the issues outstanding. So, as a matter of fact, the Birmingham Realty company wiped out it's bonded in- debtedness in four years and ten months, with a little more than half the money which 1t had received from the sales of property during that period
 But this is not all of a wonderful achievement. The mortgage authorized the Birmingham Realty company to accept its preferred stock to the amount of 20 per cent of any purchase made, the stock to be cancelled when so received. By this means the preferred stock has been reduced nearly quarter of a mill lion dollars.
 As showing how realization has out stripped anticipation, this extract from the report of the committee on reor- ganizatons dated October 1, 1898, is in- forming:
 While 1t is recognized that the reor- ganized land company will be in the na- ture of things, a liquidating concern, it is nevertheless believed by the commit tee that in working out the liquidation it will be possible to take advantage of the improving condition of affairs in Bir mingham and of the facilities it will pos sess as a new and solvent company to accomplish much in the direction of the construction of houses and selling them, with the lots, at profit, as part of the future operations of the company's business"
 The committee is said to have felt that they were taking an optimistic view of the future but all the same it was pro vided in the prior lien bonds that In case the Birmingham Realty company was not in a position to retire them at ma turity, it should have the privilege of extending them until the first of July, 199O.
 Mir. London Talks.
 Speaking of the cancellation of the mortgage. A T. London, general coun- sel for the Birmingham Realty company, said yesterday afternoon:
 It clears the property of the Birming ham Realty cor pany of all liens, and in future deeds W be executed in the offices of the company In this city, no releases by the Union Trust company being nee essary hereafter. This will greatly facili- tate the transaction of business and en- able the company to carry out it's scheme of development and improvement on much larger scale than heretofore We are naturally gratifed by the record which we have made in clearing away our indebtedness. There are few other cities in the United States where such a record Uould be possible"
 Business men and flnanciers of Bir- mingham have been anticipating the an- nouncement of the cancellation of the mortgage with much interest, and now that 1t is a fact they are congratulating President A l.. Fufenwider and his as- sociates warmly. The achievement, a prominent citizen says. adds prestige to Birmingham.