The sun. [volume] (New York [N.Y.]) 1833-1916, 1910-10-09
The REAL ESTATE MARKET
HCsTVESS PREWTSES arr ~
DEMAND ONCE MORE.
a score sf sales and leases 60 Nerran.
tile Hsgs~s Last weeA Indicate =
Chaage 81 SrntiaasaS Ia the nnstness
IO@mmsiiS- Tb~ SioTtsSSC situation

market last W~eh tn, pnublsd pro.p~Ct
h thu building industry main -purer ut
apprehension, Was cleared up ny tho set
uement II tho tr.cklay"r- StrIN". IN"
nlmbsr # private sales inrr"a-si notably
compared with the ~ snt weekly a.vrlE"
and IN" huying WAS fT- n" most r0rt ~
Asul-~tautliI order. Ifrs ting chiefly hnli-
hgs uf cnn-idsTdbi. Nllgr Many I.uE
term l"ls.-~. especially lca~es Il business
prem sos were 81 .ss.'i .u thr u.'it .wu AMI
downtown ,.'rtruu,. finally eund .i~i
oT NOR gage lpanS, ihCluiinE uo' . few
buldlng lnlu,. Nrr" reported
Perhaps N" mast siguihr.u' i"y "lop-
mant of ia" Ye"k was q lively demand Tor
business sizes This was refe' ted m
q remarkable SERIES IT trtnsao tIons par
ohas~s as we'll as l"ls-.s. which must le
Gegarded as evidences II a change In the
general business situation. There can
hardly be room for doubt that the mer-
chant community - once more inter
preting the trade outlook optimistically
when in single week dcals are put
through for sccrc ~ business premises
distributed throughout a variety Of dts
tricts from the Battery To- Thrty-siXth
street.
Some N pcr cent II tho transactions in
question were purchases and involved a
large investment u capital. The fact II
tkeir being made in such numbers - ample
proof that tho mortgage Loan situation Is
mvorahl 10 investors. II il not suTpris-
ing. therefore 20 learn from ths mort gage
Statistics ot too Registers office that
more money was loaned on Manhattan
fsal estate last week than IN tho CORE
spending week a year ago.
= ty, D..
loan market are peculiar, inasmuch az
that market - drawing To itself a larger
ahare Of the country = idl. capital through
The sale % various forms ~ mortgage
securities. The chief problem encouu-
tered just now wv tho institutions which
Ia indie this capital Is no, how ~ ~, funds
but how u IRyest what they have, Until
last simmer Applications for building
loans were preferred for the sake 81 the
high rate Of interest winch these carry.
but for several months speculative enter
prises have been discouraged Efforts
have meanwhile been made 70 induce
invest hnetr bny Tix. and from the hroker-
ase reports Of last week IL would seem as
II these efforts are beginning to meet with
q fair measure a sacCess.
Reference has frequently been made in 7
this column to the large sales throughout
the country q New York mort gage bonds
and mortgage certificates and 70 the
eject which these sales are having on the .
supply OF capital available for Use here /,
in the real estate market. A. the s.curi- /
ties are comparatively new. having
achieved a position of importance on'v .
since the panic Of 1917. a description oi .
them from authoritative sources would .
appear 10 be OF interest. The brief ac- .
counts which follow have been furnished .
by George A. Hurd az the Mortgage Bond (
Company and Randall Salisbury IT IN. .
Title Guarantee and Trust Company
OF mortgage bonds MIR. Hurd writes /
Within a year the View York Stock EV- .
change has for the hr~t time listed the ,
mortgage bonds Of a company engaged IN
business after the manner Of the great
European MORTGAGE bond companies The .
long continues and successful operation
Of MORTGAGE bond COMPANIES IN Europe ha-
made this class Of security familiar 10 Euru-
peAn investors In Amer'a whore mort
gage bonds are Not 80 well known. % NAV
be nece-sary 10 define these bonds ~ dI--
tnguished from municipal. railroad indus
trial or publ, service lpuls Mha. t.
meant by mortg.-" bonds - a s"rIr- ~
bonds in 'onyen iea' denominations -. g-..d
by the deposit with 90 trustee ~ bonds and
mort CAGES on real estate. the mort gage .
bonds being b. cd by a ,oinpauy formed
for that prrpo-" ami itseif directly uYII-
gated ON them
such bonds % viii 10 seen. have The
security. fr.'. ~ the capital and surplus
OF the issuiRg COMPANY and -, ont. tho
sp~~thc SA~nrify ar-iu- from N" deposit
with the trus'e" NJ bonds and mortgage "u
real estate to an amount errIsl 20 th" mort
gage bonds outstanding They are thus
differentiated on the ono hand from uri.-
nAry unguAran'e"i NOR gag" transact ions
.nd IN Ia tf hand rfa
bonds vhi"n though OBLIGATIONS at tho
issuing COMPANY. have no srecih' seCIrt'.
deposited with q trustee ~ protect them
further element OF safety. as GONNA -.i
vith separate NOR gage loans even when .
the latter are guaranteed hv guarantee
mort gage Companv. ~ the fact that O. ..rie.
OF mortgage bonds are equally occurred tv
the deposit nj large number ~! MORTGAGE
by which element 81 INSURANCE j. intro
duced liar % that which results from tho
distribution of risks "f FIRE Insurance
company
In consierins mortgage hOnds a. an
Investment security = - essential 90 ev-
anime them from the standpoint 81 the
fundamental e.uIslte~ Of an cool invest
ments. thai = from safety. interest return =
and convert ihility The principal AL an
tAse which real estate hA- over other forms
Of security - the "sr'an'v Or stahltr, 81 0
its productive power vi value tu real
In the ease 81 city real estate The natural
causes which lead 20 the growth - CITIES
in certain locations create permanent
dem and IN thoss locations for areas on which
20 live or transact busiuesz Surn Ad,an- /
tAges IN location are paid Tor In rho form
OF rent. and rem estate values are founded
upon this income
A further advantage which real estate p
has over other forms - security 10 10 80
diversity ~ ~ usage 10 Al anrayes
which railroads enloy over industrial. Do
the lower ra'e ~ 'apita.ilat on 81 thor
i largely ~" 30 'fD fast fEa' p
while any one industry - subject To- - do
fluctuations m ~ products a railroad
With depends ordinarily "n .,er- .r,Si
ind sEtrtes. l. Affected ONLY IN q small d"gr.a a
by the failure Of a iew 81 'hs ludu.'rla. ulur :
which - depends Real s~t1r. OF 'In Ln--
Acter suitable for MORTGAGE ~..ur.... enc .-
this Advants<@ &" ~" H.mo-. elmo. .f.
value docs not depend .."u the -..rr-.
% Any one tenant ~ form 81 ..slue-.. and Ir D
has he further elern"n' ~ stability as GONE .
pared with railroad and publ, -"r, r." NJ