New-York tribune., 1908-01-13

Brooklyn lss-l49' <fA@sso@o
Bronx -...-....-...... 2s721oo 5.sos.'oo
uo-tvaz~ r.-ttrcates sTLs25 sss 500
ss.s7s.7c5 s5s.os4 500
The company continues TO rigidly adhere 70
the limitations which it has imposed 70 sats-
guard its business.
These Hmitatiors-enforced enly hy hs
Lawyers Mortgage cou1pany-srs as follows
First: The TOTAL OUTSTANDING
GUARANTEED MORTGAGES ARB LIN
TIED TO TWENTY TINES THE CAPITAL
AND SURPLUS OF THE CoSfPANT- TO
render this limitation practically irrevocsei.
the following amendment 70 Bylaw VII pro
vidine as above. has been passed: This
Article shall not be amended or repealed sz-
cept with the written consent. duly ac-
Enowlsdssd. Of the holders Of all the POLL
cies OF mortgage insurance then Outstanding
issued bv the COMPANY" CThis is ths ae-
-sn--d European standard. whose safety has
he.n demonstrated by 40 years Of sueoess-
full mortgage sxperienos)
second. THE PROFITS OF The CON-
PANY ON GUARANTEED MORTGAGES
ARE LIMITED TO ONE-HALF PER
rEVT PER ANNIN "a similar ii-nits-
tion is required by law OF European Mort
cage Companies and removes the tenPtatton
to accept doubtful loans fer the sake Of larger
prohts1
Third. THE LOANS OF THE COMPANY
ARE LIMITED TO THE BoRoUGHs OF
MANHATTAN. BROOKLYN. AND THE
BRONX. CSo loans made in adjoining sub
urban territory)
Fourth: THE LOANS OF THE con-
p,xv ARE LIMITED TO SELECTED
AND wEIL-BUILFUP DISTRICTS IN
THESE BoRoUGHs- CSo loans made in IN
developed districts or near nuisances'
Fifth. THE LOANS OF THE COMPANY
ARE LIMITED TO INCoME-PRoDUCING
Rr-sTVEss OR RESIDENCE PROPERTY q
NO loans made on vacant land. churches.
factories. theatres. or on any special utfiiza-
tion -
The effectiveness OF these limitations in safe
-,,ar5inr the Company-s investments Is
clearly evidenced by the remarkably clean
record maintained by the Company as 70 de-
,;-,rsnt interest and foreclosures. During
-, year ore mortgage has been forsclosed
amount $. .Ooo). the property securing ~h1cn
sold for sf1.O5o. and the Company has now
one mortgage under foreclosure tamount
SIS OaOl which il in process OF s1jussrnent-
IT,, r,-,,- Guns no forsclosed real e.
tate and has interest more than enc month
delinquent Of 81. s2+-
rrr-i1r The ID year the Company has pur-
chased from The Mortsage-Bend company OF
New York the remaining halr-tntersst IN tns
---,arrv rsS Montague Street. Brooklyn IN
view Of the growing business or the Corn-
many IN Brooklyn II was deemed wise 70 ac-
oufre this property in order 70 insure tns
psrrnauency OF the present locatlo1 OF tns
Company-s Brooklyn office
Tbe recent financial panic has brought into
clear relief the fact that as 70 stocks
and bonds there are -hrse sources or loss as
.-.i-s+ onA source OF loss as 70 mort
CAGES
-rba first source OF loss IN stocks and eonds
* that derived from a drrp IN the r1arSsS
value OF the principal due TO a general rise
in interest levels II is entirely POSI-
nIs N Ios- large fortunes the safest
and highest grade longtime oons. as
for example. on New York CITY oonos.
which sold ten years ago on a 80 oass.
and since the same conds now sell on 40
basis owners have lost about ons-<aAra q
+bs narxst value u their bonds In tss 80
OF real estate mortgages the opportunity tor
loss due TO price fluctuations Is eliminated oy
the short tine they run
ne second source OF loss in stocks ans
bonds Is from the prevalent belief thst both
-ailrosds an4 public service corporations ar-
heavily overcapitaIzed and thzS rates main
tztped at high figures 20 earn dtvid-r6s On
vatered stock should Be reduced Ihs eject
OF lower rates on railroads and rucilo
ssryice corporations would obviously %
urfavorabIs to their earnings and 70 rns
market value OF their securities No surn
danger coufronts the holders OF real estate
mortgages
The third source ot loss, which Is ons
that NAV occur IN any form Of investment.
Is that from shrinksge of the security BACK
- the investment which normally would fol
low a dsrnfuutiOn Of earning power In
t1- long run the value Of real estate. as cf
securities consists solely Of the capitalization
=. ere ret income In Judging the intrinsic
s-ct1ritv behind real estate MORTGAGES. the
stability of rents and the correct rstes
os Capitalization experience. kEcwledge. ana
car. ara necessary. as in other forms
a, finance and adherence 20 sound hEn-
itstious such as those wntch have lcns
been adopted BY this Company. is vital
The stability % weII-selected New YORK
guaranteed mortgages is based on the fact
that the great mass Of the inlaoitants
q, New York must be housed and must have
,tscss In which 20 transact their bust
,..ss 50 that centrally located property d.
voted 10 these purposes cannot cease TO have
value
The real test OF an investment comes IN
times % panic and depression. and the securi-
ties which show NO losses % investors may
fairly claim nrst place fer safety
RICHARD NJ HURD.