Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1910-08-08
A MODERN MORTGAGE.

Drawing up a big mortgage, especial
~ whom II IL to he the basis for an
issue of bonds II is desired 10 dispose
Of in the open market, Is a task far
greater than most people have any
idea Of. Sometimes months Of con
tinuous labor elapse between the be
ginning Of the first draft and the final
approval Of the last revised copy by
those most directly concerned. The
primary object Of such a formidable
legal instrument Is. OF course, TO define
clearly and exactly what the mortgager
viii do. The individual or company
In whose favor the mortgage is drawn,
however. through his attorney seeks
10 protect himself from every possible
contingency Some Of these posslbil-
titles that are sought 10 be guarded
against appear to be absurd TO the lay
mind.
Some years ago n boat line whose
vessels piled on a certain river de-
sired to mortgage its property and is
sue bonds. one OF the provisions Of
the legal instrument provided what
should be done in the event OF the
river drying up or becoming impossi-
BILE TO navigate. As the stream was
a mighty food OF water az all seasons.
the possibility OF this contingency aris-
ing seemed out Of all reason; but the
attorneys for the mortgagee insisted
pencd t. the river as yet
The commonest weakness Of a mort
gage. and one that may escape the on
binary eye, Is not the use of the wrong
word 10 express the desired meaning.
but the use OF not exactly the right
one After the mortgage has been
worked into shape 50 that its prONi-
sions are satisfactory 10 both sides. the
lawyers vino draw the mortgage in the
IA lIaf a. 3,
about whose meaning they fear there
may be some dispute and turn this list
over To tho expert ctymologlst who Is
in charge of the library in every big
Office This man prepares report
which shows not only the dictionary
definition of each one Of these words,
but also furnishes a list of all legal
decisions that have been made relative
to its exact significance. This expert,
being advised of the particular shade
of meaning II is desired to convey also
furnishes an opinion as t. what is the
right word, supporting his statement
by a list Of such legal decisions as may
apply. All these reports are care
fully bound together and become a
part Of the mass Of papers. sometimes
Weighing many pounds, that accumu-
lates while the mortgage is being
drawn. They are flied away when Il
After the mortgagcr's counsel have
completed drawing up the instrument
as they think IL should be, Il passes
to the attorneys on the other side who
pick a. many flaws as possible in Il,
They. too, pay special attention to tho
exact meaning Of words, and frequently
their experts question the definitions
of those on the other aide. After IN,
two firms OF attorneys have settled all
their differences. the mortgage is gen
orally submitted 90 another set Of eN-
pert legal advisers, who criticize Il
from every possible point Of view. All
this takes great deal OF time and
costs great deal OF money.
Tho total legal expense OF drawing w
a big corporation mortgage frequently
runs into more than a hundred thuu-
sand dollars IL Is not uncommon for
q single firm OF experts 20 receive as
high az $4,000 FOR crticizing and cor
documents. when IL has been tested
I'm every possible way and Is finally
i,as-ed upon and approved. il Is printed
II may cover between one and two hun
dred pages and contain from 10000 "a
10000 words. The latter IL about the
number in a novel Of the ordinary size
" the interests affected have property
In more than one county or state. the
mortgage has 10 be recorded In each
| Of these.
1t H. not until all this work has been
done that the bonds secured by the
mortgage are placed on the market
! Record Herald.