Omaha daily bee., 1912-05-12

INu financial journals OF this country
made the statement that real estate
mortgages now command the prefer
kIIIYyI ence Of investors AZ they have never
I{3d&4{N done before In the history OF the
0s4305JO United States. The general unrest
prevailing everywhere. coupled with the relentless
attacks OF the federal government. make for the
most active investment In real estate loans ever re-
corded
So II 10 of particular interest Just to detail
here few facts about real estate mortsage invest
meats and TO shed little light on an Omaha insti-
tuition that has recently been organised that an out
let may be provided In the west for real estate
loans and safe investments OF surplus funds at
forded.
There is no question about the wisdom Of land
Investments A young man seeking a place TO in
vest bis money 30 that II will bring safe return
10 advised by the dsinterested TO place his money
in lands." For centuries land has been the safety
vault Of fortunes" for nothing 10 30 stable, and.
in the final analysis nothing Is 30 safe. The es-
sential requirement OF an investment Is to place
money where Il will secure the principal and as
sure safe and Just return. No other field OF In
vestment does this 30 satisfactorily-so well and
90 fully-as real estate
Not Necessary TO Buy
Some are under the impression that In order to
secure all the safe and Just advantages OF real es-
tate II 10 necessary 10 buy land outright No, this
is more the case than II Is fact that In order
to investments in the United States govern
ment bonds or In the Union Pacific railroad II 10
necessary TO buy these institutions. mortgage will
furnish the necessary contact between the investor
and the real property In question. THE mortgage
on real estate 10 the Oldest form OF financial obll-
cation known to man. and the very fact that II
has survived for four or five thousand years Ia
proof OF its soundness."
quotation from recent article by Frances
H. sisson. written for Lese's Weekly, is pertinent
at this point:
Briefly stated mortgage Ia issued as col
lateral for a note or bond covering the obligation
OF the real estate owner the money lender, which
merely provides that in event Of default OF pay
ment OF the note or bond the real estate shall be-
come the property Of the creditor. While this has
long been the accepted form OF Investment for
conservative Institutions and individuals particu-
larry savings banks life insurance companies trust
companies and estates, II has been popuarzed and
put within reach OF the general investing class
within the last few years
THE popularization has been brought about
simply by splitting up the whole into small units
The underlying security is the same, but there are
issued bonds or certificates for bonds In small and
varying amounts. equaling In face value the amount
Of the mortgage or MORTGAGES AGAINST the mort
gage held In trust as collateral. Thus mortgage
for $40 900, which would be available only for
persons OF considerable means. can be divided into
fifty or even q hundred bonds based upon II and
30 placed within reach Of q large number OF small
investors.
Important Economically.
These bonds are having very important
economic effect They enable the small investor to
participate In the best OF Investments otherwise
available in large amounts and fixed sums. and
aside from the temporal benefits conferred they
bring to legitimate enterprises q new market with
an absorptve power which hardly can be estimated.
This means the dverting into sound business chan
nsls Of many millions Of dollars from fake mines
and oil wells mythical industrial concerns and all
sorts OF frauds which hold out their bait TO per-
4 pms Of small means"
Mortgages or mortgage bonds excellent
foundation stones for present peace and future hap
piness. We all familiar with instances In which
apparently large estates have shrunk to slender
proportions when the nature OF the investments
carried was made known. Many times the testator
has invested heavily In stocks and bonds which
were bought with the best possible Intentions, but
which never paid cent OF return and whose face
values were purely fictitious
Mortgages do not bring these srewsome dscov-
cries The widow and children do not require high
priced legal talent TO determine the value Of the
mortase, nor are they required TO follow the re-
ports In the daily papers to discover how much
they are wcrth Such legacy pays its interest and
natures its principal The careful investor cannot
do better for his survivors than to leave we'll
placed mortgages or the equally desirable mort
gage bonds
Mortgage Advantages.
An advantage that the mortgage possesses In
contrast to that of other forms OF investment II
that Of being simple. 50 simple that the man who
knows little about financial affairs may readily
understand Just what he is going into and jus
what he is getting. Most forms OF investment to-
day tend toward the complicated None there are
who will cay that present investments are tending
toward the simple Somehow or other vendors tr,
10 eompIcste investments. and therefore the aver
age nan Who has money TO invest is rather doubt
mi nhost where he shall place his confidence.
Ihtse tomrlexites are not restricted 10 life OF
FIRE Ae1ss Ice ecnETatts. bat are to be found IN