The sun. [volume] (New York [N.Y.]) 1833-1916, 1910-10-09

real s.'a's bv s.llnE rsrtincais. secured
b. MORTGAGES become % suficisnt IN
portAncs Ia ths Mvsstmsn' Fed - aitrAat
the ait-nttUn % fnAnciAi writer's. L.
houd plan - nnahr ins railroads . the
a. o. VI IAs4gfa iAvestEasnt. although
railroads them ,siy-- are nArily q Hensra-
'irn od 90 ,plr.- TN. l. only another
.lss % nsrrss,ty heinz she mother % nven-
'io1. The requirements % real estate having
been pretty aisguAt-lv met by the system
~ mt, siIal mort xag-s. whereas IN order
% s"f enough money for railroad develop
u.euf promoters acre compelled Ia dev -
mos, elastic plan Real estate develog-
mru' IN NcN York city reached = point
,uu,' time since however where the oril-
narv rnprtyase plan became Inadequate
Ia fI" Nc-' the MORTGAGE bond idea IN
ruunr. '.pE win real estate WAS employed
SOME time before ~ Vas r~~orted to In this
.H. Np,' Of these bonds however. were
simply 'harse- AGAINST th" ASSETS OF the
mortgage company instead ug hetns a par
'utf.fIva iu some Particular group 81
riHr. thsrs In 'h" use ut a." mort sase
.rr'i'. t'"- "rtrtpaf"a hN the lul" Guar
.u.'r aIi IrIst COMPANY the ~Cort was
mad" q" E~i aNAN 80 tar ~ po>>ihl" from the
i.p-u'Ir- idea and ?" make each o"rtii. at.
.u ., d"n,s 80 actual ownership ia mort
gage. lhts protected the holder at the
trrtl"Cat" from beng involved IA any way
IA case the mortgage company should ial
tie would simply With the other holders.
JOIN In the appointment of a new agent TO
administer the mort cages which actually
belonged to him and with which any re-
celver OF the mortRage company would
have nothing TO do. The security behind
the mortgage certificates consists of sroups
Of moderate sired MORTGAGES. the idea being
20 gain thereby the ADVANTAGE OF q dis
trihuted risk and greater elasticity and
facility IN refunding
This company began oferins mortgase
certificates IN 1877 and met with an i'm
mediate response on the part Of all classes
81 investors. those with small savings par
tcuary. The certificates can be issued
m any size and large estates have taken
them IN denuminAt ions OF tuo 90. one
estat" has taAcn single certificate Of the
Of $500 on We find that
great many Of the purchasers invest from
time to time As they happen 10 he in funds
Nor = the market for the securities CON
hnct - those heretofore unaccustomed
- mortgage investment Many confirmed
mortSagc lenders have begun to invest
In this new, form ~ mortgaSe security.
one curious fact IN connection with the
sale ~ our mortgage certificates u that
OUTSIDE Of New York their greatest market
has been In the West. particularly al the .
ra,ifr slope. whore naturally they are 2
brought INTO competition with securities .
,-crtng higher rate of interest MANY 3
" the certificates have found their Nay .
10 the Philippines and a number have been
-old IN Mevi'o South America and Europr 4
D fs inc reasing market for this form ~
security has ~ course brought them into
ON petition with other kinds 81 securities.
and there has 1een much discussion oi
late involving comparisons between them
and other Investments Among the points
In favor Of mortgage certificates are these
They do not fiu''uats they can he bought
v nh loss expert know led ze a. their value
j. easily determnahle they are absolutely
secure. and ~" rat" thev pay J. gen
orally higher than that paid hy fr,t class
railroad or muniDIpal bonds