The News-Herald. [volume] (Hillsboro, Highland Co., Ohio) 1886-1973, 1911-02-02

pert on Definitions Is Employsd-Bg
Expense and Big Fees Involved.
Drawing up a big mortgage, espe-
rially when II Is to be the basis for an
issue Of bonds II is desired to dispose
Of in the open market. is task far
greater than most people have any
idea OF. Sometimes months of con
linuous labor elapSe between the he
ginning of the first draft and the final
approval of the last revised copy by
those most directly concerned. The
primary object of such formidable
legal instrument is. of course, to define
clearly and exactly what the mortga.
gor will do The individual or com
pany in whose favor the mortgage is
drawn. however, through his attorney
seeks TO protect himself from every
possible contingency. Some of these
possibilities that are sought to be
guarded against appear to he absurd
10 the lay mind
Some years ago boat line whose
7esSels piled on a certain river desir
ed to mortgage its property and issue
bonds. One of the provisions of the
)egal instrument provided what should
be- done in the event of the river dry
sng up or becoming impossible to navi.
gate. AS the stream was mighty
aood of water AT all seasons. the pos.
libility of this contingency arising
seemed out of all reason. but the attor.
aeys for the mortgage insisted upon
ITS insertion. Nothing has happened
10 the river as yet
The commonesi weakness of n mort.
gage and one that may escape the
ordinary eye is not the use Of the
wrong word to express the desired
meaning. but the use of not exactly
the right one. After the mortgage has
been worked into shape so that its
provisions are satisfactory to both
sides the lawyers who draw the mort
gage in the first instance prepare
list Of words about whose meaning
ihey fear there may be some dispute
and turn this list over to the expert
etymoiogist who Is I'm charge of the
library in every big Office. This man
ygepares 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 signif
canoe. This expert, being advised of
the particular shade of meaning IL Is
desired TO convey, also furnishes an
opinion as TO what Is the right word.
supporting his statement by n list OF
such legal decisions as may apply. All
these reports are carefully bound to
gether and become a part OF the mass
Of papers, sometimes weighing many
pounds. that accumulates while the
mortgage is being drawn. They are
sled away when 1t is finished
After the mortgagor's counsel have
completed drawing up the instrument
as they think it should be it passes TO
che attorneys on the other side, who
pick as many flaws as possible in 1t.
They, too, pay special attention TO the
exact meaning Of words, and frequent.
ly their experts question the defni.
lions Of those on the other side. After
the two firms of attorneys have settled
all their differences the mortgage is
generally submitted to another set OF
expert legal advisers, who criticise il
from every possible point of view. All
this takes great deal or time and
costs a great deal of money.
The total legal expense of drawing
up a big corporation mortgage frc
quently runs into more than a hundred
thousand dollars. II is not uncommon
Cor single firm of experts to receive
AS high as $4,000 for criticising and
correcting one Of these important legal
documents When il has been tested
iD every possible way and is finally
passed upon and approved it is print
I'd. IL may cover between 100 and 200
pages and contain from 10000 to $4,000
VOrds The latter is about the num-
Der in novel OF the ordinary size. IL
che interests affected have property
m more than one county or state tue
mortgage has to be recorded in each
af these.
Ii Is not until all this work has been
dome that the bonds secured by the
mortgage are placed on the market
7. 5. Dayton In New York Tribune.
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