New-York tribune., 1908-07-13


SSapifat -.------ eS'SoOO'OVVV.Vo
surplus -----..:.---.-.....-- -,OOO.O0o-0o
Undivided profits ....-.--. 2o,S91.1S
Mortgages sold. not deliv-
eEsd .s-.....-.....-...-- 5O4.953-Ss
5000, ,s45.64
Since the increase IN the Company's
capital in March, 1903, dividends have
been paid to Stockholders amounting
to $1,025,000, in addition to which
S592, S92 has been added to Surplus
or Undivided Profits, making total net
earnings of S1,6I7,S92. In addition
to these earnings, the net increase in
Unearned Premiums from January
lst, 1908, to July 1st. 1905. amounts to
S666,419.
The Assets and Liabilities of the
Company were verified and it's ae-
counts were examined as of June
30th, 1908, by The Audit Company
of New York, the latter eertifing to
the correctness of the statement of
Assets and Liabilities and to the
Earnings, Expenses and Dividends of
the first six months of the year
1908, as reported herein
The Company continues to rigidly ad-
here to the limitations which it has i'm
posed to safeguard its business
These restrictions-enforced only by the
Lawyers Mortgage Company-are as fol-
.ows:
First: THE TOTAL OUTSTANDING
GUARANTEED MORTGAGES ARE LIN
TIED TO TWENTY TINES THE CAPT
TAI AND SURPLUS OF THE CON-
PANY. To render this limitation practi-
cally irrevocable. the following amend
nent to Bylaw VIII, providing as
above, has been passed: This Article
shall not be amended or repealed except
with the written consent, duly acknoWl-
edged, of the holders OF all the policies
OF mortgage Insurance. then outstanding
issued by the Company" (This Is tbs
accented European standard. whose safe
ty has been demonstrated by 40 years
Of successful mortgage experienced
Second: THE PROFITS OF THE COM
PANY ON GUARANTEED MORTGAGES
ARE LIMITED TO ONE-HALF PER
CENT. PER ANNUM. "a similar lirita-
ton is required by law OF European
Mortgage Companies and removes ths
temptation to accept doubtful loans for
the sake OF larger prodts-)
Third. THE LOANS OF THE COM
PANY ARE LIMITED TO THE BOR-
OUGHS OF MANHATTAN, BROOKLYN
AND THE BRONX. (No loans made N
adjoining suburban territory)
Fourth: THE LOANS OF THE COW
PANY ARE LIMITED TO SELECTED
AND WELL-BUILT-UP DISTRICTS IN
THESE BOROUGHS. (No loans made n
undevsloped districts or near nuisancss-D
PANY ARE LIMITED TO INCOME
PRODUCING BUSINESS OR RESI-
DENCE PROPERTY. (No loans nads
on vacant land, churches, factories, the
atres, or on any special ut1llzatlon)~
The effectiveness or these linltatloas
IN safeguarding the Company's mortgass
investments is clearly evidenced by tbs
continuance ot the Companys clean rec
ord in the matter Of delinquent interest
and foreclosures During the past SIX
months the Company has foreclosed but
mortgages. AS one property was sold At
a considerable advance. the Company
owns but one ptece OF real estate cost
ing S12, ,3S6. The interest delinquent moro
II is believed that the Compa1ys record
as to delinquent interest and foreclosures
will bear comparison with the records OF
the Savings Banks or any other most
conservative class Of investors
The recent financial panic has oFougat
into clear relief the fact that as 70
stocks and bonds there are three sources
OF loss as against one source OF loss
as 70 mortgages
The first source Of loss IN stocks and
bonds is that derived from a drop n the
market value OF the principal due 70 q
general rise in interest levels II IS en-
tireIy possible to lose large fortunes on
the safest and highest grade long TINS
bonds as for example. on New YORK
City bonds. These sold ten years ago on
a 2 80 basis, aad as the same bonds row
sell on about Is basis. owners have
lost about one-third Of the market valus
OF their bonds IN the case OF real es-
tate mortgages the opportunity fer lssf
due to price fluctuations IS eliminated
by the short time they run, and oy tns
absence Of daily public quotations
The second source OF loss IN stocks
and bonds is from the prevalent belief
that both railroads and public services
corporations are heavily oyereapitaIized
and that rates maintained at high figures
70 earn dividends or wateret stock
should be reduced. The effect OF lower
rates or railroads and public service cor
porations would obviously be unfaVor-
abls 70 their earnings anu 70 tie Az
vaIua o. their securities No such dan
ger confronts the holders ot real es-
tate mortgages
The third source OF loss. which IS one
that may occur n any form OF invest
ment. is that from shr.nkags OF the se-
curirv hack OF the investment. Whici
normally would follow a diminutioo OF
| earning power. In the long run the valus
I ~ -aaI estate, as OF securities. consists
So4s1v OF the capitalization OF the net
ioroma In Judging the intrinsic seeur-
~ bahfnd real estate mortgages, the sta
hiIitv ~ rents and the correct rates OF
csni+alization, experiences. knowledge.
ar1 care are necessary. and adherenes
- .o,1nd limitations. such as those which
| bave Iong been adopted by this Com
| pany, is vital
TIE stability % well-seleeted New
yor< Guaranteed Mortgages Is based on
tbs Fact that the great mass or the IN
Sabitants OF New York must be housed
ana must have places in which 70 trans
srr their business. so that well located
0ropa-ty devoted 20 these purposes can
not cease 70 have value.
| The real test Of an investment comes n
,tn,es OF panic and dspress. on. and tbs
securities which show no losses TO invss-
tors may fairly claim nrst place for
safety. -.
President