The news-democrat. (Providence, R.I.) 1906-1909, 1907-07-17

1UICK UITTITI-
pnd mortgage for $500. which would COM
plete the 1900 transaction. He would
take the 5000 per year you paid him, pay
t1l4 interest on the first mortgage, ana
pocket the balance. The first thing ne
would do with this end In view would be
10 pay himself, the owner OF the second
mortgage. and discharge that. This pro-
ceeding would take but two years. He
might even inform you OF the transaction
After that YOU would believe that ths
monthly payments would he devoted 10
paying the FIRST mortgage interest and TO
reducing the first mortgage by $lo6 per
year In the three years you would I'M 0
me that the reduction made would be ON
l45O and that you actually owed OF the
hrst mortgage OF $2i00. something less
lhan $1,000. Bat suppose the financier hai
not reduced the mortgage by the differ
tnce between the interest and the amount
Of your annual payments?
POSSIBLE CASES HERE.
"There are such cases. have no doubt
right here in this city-cases In which
people have been paying monthly on thelr
homes for upward OF 10 years and now
have the notion that they owe only few
months payments before acquiring ute.
II the first mortgage, however. has NOT
received the difference between what was
paid as interest and what was paid on
the principal then the supposed owners
pwe the entire first mortgage.
Companies which operate on the meth
pd which has proved apparently so sue
ressful in separating people from their
cash In this vicinity cannot give clear
title 10 property unless they are solvent
"The whole system is wrong I'm princi-
ple and practice IT is designed 10 give
all the opportunity for money-making by
NIL kinds of devices TO the promoters
and affords little or no protection TO those
who are home purchasers.
"A company, which may consist OF an
andividual and any number OF dummies.
IS formed TO develop real estate ana Dnld
homes and sell them 10 poor people. IL
luys a big plat OF farm land for few
Thousand dollars. plnts IL. mortgages II,
and sells lots on IL for as much per lot
Ms II can get. II arranges with the mort
gagee 10 release each lot as IL may be paid
for, and the lot is released, but when the
purchaser desires TO build home the glib
agent steps in and promises TO build, and
does build. but gets another mortgage on
the entire property which stands until
every cent owed on the house and lot
combined has been paid. and may stand
even longer IL the agent. promoter or de-
veloper, whatever you may call him, is
not solvent at the time tfinal payment Is
made and the mortgagee Is not a party
20 the transaction.
Il believe the state should adopt law
requiring mortgages. mortgagors and
purchasers TO be parties equally TO all
such transactions for mutual protection"
"Ail that has been printed thus far
about the Home Realty and it's kindred
companies Is true. 10 the best OF my
knowledge and belief" said one gentle
man today. 'and there will be more light
shed on the joint transactions before tho
week ends.
CLAIM LOTS OF ASSETS.
This Home Realty company claims n
whole lot OF assets that are not worth
shucks. They consist OF such plots as un-
ealable lots at Oakhurst. Jefferson and
Lincoln parks. These three plots were
originally purchased In one lot BY Col
Isaac L. Goff for $4,000 From them were
sold about one-third OF the lots. and n
big mortgage $4,000 10 be exact. was
placed on the balance. or $1,000 more than
was paid for the entire three plots. These
plots are now part OF the assets OF the
Home Realty company. Where the money
went fs another question.
"The Thornton Mountain Land COM
pany at jackson. N. H., is another case
IN point Col Con- purchased land there
sold a few lots and then dumped the re-
mainder into the assets of the Home
Realty company.
Home Crest big plot Just beyond the
Brown a. Sharpe plant, Is another OF the
assets OF the Home Realty company. II
bears a $4,000 mortgage and the land has
been unstable for years
I'm the town OF Johnston near Centre
dale Is another plot which was purchased
by Col Con a few lots sold. others held
for eight or ten years without selling and
now It has gone into the Home Realty
company's assets for whatever they may
be worth.
But you will look In vain among the
assets for land that is OF real value. For
INSTANCE there are many valuable lots at
washington Park. particularly along the
river front They can still be sold. but
they are not among the Home Realty
company's assets.
Here is something that was put In,
however Col. Cons own house and lot at
Washington Park. These are In with a
$4,000 mortgage. I know personally that
that house and lot have been on the mar
ket for years and there has not been a
single individual who has looked at them
,n that period who has offered over 5000
for them. They couldn't be sold TO any
cane man for anything like the $4,000
which sum is due on the mortgage. No
wonder Col Con- consented TO the mo
equity item. II Is one OF the Home
Realty companys assets now. however.
THE GLADDING INCIDENT.
This woman. Mrs Gladding, who died
some time ago after investing her 5000
in first mortgages. did not live Ions
enough 10 say that she never bought
Home Realty company stock with her
money. Survivors OF the transaction say
something different
These bonds that have been issued
some 10000 worth. are very handsome
They cost few cents each TO print. and
they guaranteed per cent interest paya-
BILE at the Central Trust company. The
guarantee was worth just about as much
as the cost OF printing OF the bonds
Moreover, who got the money for the
bonds when they were sold. ! see IN Il
this man Durham. who was an old friend
Of Col Isaac L. Con- and interested with
him in the Columbian Life Insurance
company claims TO own $4,000 worth of
these bonds. The question Is, where did
he get them7
"In fact. where did all the money real
lied from the sale OF stock and bonds
60 anyway? Col Con- ought TO be able to
answer this question. lie was the chief
nogul In az least two of the companies
until very recently. when he resigned
their presidencies and left the business
management 20 others who knew nothing
about the business a sevidenced by the
statement OF one company's president.
who says he does not and never did know
what became OF the money for the bond