The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1910-10-02
FINE LEGAL WORK
DONE BY EXPERTS
Drawing Up Of a Big Mortgage
js q Very Serious lie.
gal Matter.
WHGAg THE DOCUMENT 70 TO %
USED A. A DAolo ron An issue
o. OoNos AND EXPERT 70 Al
WAYS EMPLOYED.

e1olly when u n To BE- the b,iSis FOR q.
issue Of bonds II n dexircd To dlsls,>,
q n the open market. In n task o.
greater than most IsVpie have an
dee Of. Eomstimex months Of cun
tinuous labor claI~e between the br
ginning OF the first draft and the INN
approval OF the last revised copy b,
those most directly concerned. The
primary object Of such formidable
legal instrument II. Ut course. to ds'tin'
clearly and exactly what the mor,Ea
cor will do. The individual or COZ,
pany In whose favor the mortgage I.
ORA n. however. through his attorney
seeks TO protect himself from ever,
possible contingency. Some Of these
possibilities that nre sought to BIZ
guarded against appear to be absurd
20 the lny mind.
Some years ngo b boat line whose
vessels piled on certain river dcsir
"a 20 mortgage its property and ISSUE
bonds One OF the provisions Of the
legal instrument provided what should
b done IN the event OF the river dry
ing up or becoming impossible to uavi
gate. Az the stream was q mighty
0ood Of water at all seasons. the pos.
sibility Of this contingency arising
seemed out OF all reason. but the uttor
1eys for the mort gngec insisted upon
lts insertion. Nothing has happened
- the river M yet.
The comm0nest weakness OF q mort
gage and one that mny escape the
ordinary eye In not the use Of tl,,
wrong word To express the desired
meaning. bur the use Of not exactl.
the right one. After the mortgage has
besn worked Into shape 10 that It's
provisions are satisfactory to both
oidee the lawyers who draw the mort
gage In the urxt instance prepare a
list Of words about whOxe meaning
they fear there may be some dispute
and turn this list over Ia the exper,
otym0l0gist who IL In churge OF the
Nbrnry In every big Office. This man
prepares y report which shows NOT
only the dictionary definition OF each
one Of there words. hut also furnish. :
Q list Of oil legal decisions that hav.
been made relative to its exact signifi-
canoe. This expert. being advised Of
the particular shade Of meaning Il L.
desired 10 convey. also furnishes mn
opinion ~ TO what II the right word
supporting his statement 10y list of
such legal decisions NJ may apply. All
these reports are carefully bound to
gcihcr nnd btSOu," n lmrt Ut the lnass
Of pajMrrx. sometimes weighing many
pounds. that a,vumulates while rhe
mortgage n being drawn. They are
died AWAY when II h finished.
After the inortgagOr's counsel have
completed drawing NJ the instrument
% they think Il should be II passes to
the attorneys on the other side. who
pick ~ many flaws M possible 10 Il.
They. ton. pay special attention to the
exact meaning VI words. and frequent
Iy their experts quexti0n the dedni.
siOuS ut these Ou the other aide. After
the I'VE nrms Of attorneys have settled
all their differences the mortgage II
generally submitted 10 another act Of
expert leRui advisers. who criticise Il
from every IMs~~i,,ir point OF view. All
this lskss great deaf Of time and
Gusts great dea, of money.
The tOtnl legal expense Of dra wing
M . biv corporation mortgage fire.
Queutiy runs Into more than hundred
thOusaud doilars. u n not uncommon
for single tirM Ut experts to receive
~ high ns &iO.OOO for criticixiug aud
cotrectlug one Ut these important legal
docum~uta When Il hax been tested
In every posssibie way and 10 uually
passed upon snd approved Il 10 print
ID. ls may cover between 100 and 2O0
pages and contain from 10000 to $4,000
worda The latter - about the mum.
oer In novel Of the ordinary size. II
The interests affected have property
n more than one county or state th>
mortgage has to b recorded In each
Of these.
u n not until oil this work has been
done that the bonds occurred By the
mortgage are placed ON the market
7. . Dayton In New York Tribune.