New-York tribune., 1914-03-29

total net earnings from the besinrlns
have been si, $4,000 or these. the COM
pany has paid out In dividends only ~
per cent, or IS. .7O5O0o. and has saved aod
carried TO capital and surplus ~ per cent
or s6it5,cA This remarkable record de-
monstratcs the correctness OF the prin-
ciples underlying the management of the
business
The relations between the Title Guaran-
tee and Trust Company and the Bond and
MortRage Guarantee Company are grow
ING closer each year. and their mutual
helpIulness is becoming more emphasized.
The two companies have built up skilled
inspection and appraisal departments
ono Tor New York one for The Bronx,
one for Brooklyn and one for Queens.
Each mortgage guaranteed is first passed
upon by the experts OF the Title Guaran-
tee and Trust Company. approved by it's
mortgage committee, and then inspected
by the appraisers OF the Bond and Mort
gaze Guarantee Company. II is finally
passed upon by our bond and mortgage
committee, made up Of directors OF the
company. one Of whose members invest-
gates the property and recommends the
issuing OF the guarantee. We have u
trained force to care for the mortgages
properly after they are guaranteed, there
by giving the investor an absolutely Sc
cure investment. He will have no trouble
In keeping track OF fire assurances, taxes
or other details, no unpleasant personal
relations with delinquent borrowers, no
delay i'm getting his interest and no pos
sbility OF having TO own the property
through foreclosure OF mortgage.
The company not only exercises extreme
care in the beginning in the selection of
the mortgages which it guarantees; IL does
much more than this for the protection
Of the investor. Its appraisers are thor
oushly familiar with the changes In
neighborhoods and the constantly shifting
values and at the maturity Of the mort
cages the properties are again thoroughly
investigated. and on renewal the amount
of the principal is adjusted, II necessary
10 the new valuation. Since March 1.
1908. S5,S65,000 has been collected In this
way on account Of the principal of mort
cages which came due and which the com
pany was unwilling to extend for the full
amount Of the original loan.
AS further safeguard we favor strong
" a change to practice Of mortgage
lending which will provide for amor
tization or systematic reduction of
the principal of mortgage during its
term.
The situation in the mortgage market
is such that 1t is becoming more ana
more difficult to secure good mortgages
I'm Manhattan yielding satisfactory rates
of interest. The small mortgages guar
antced by this company, covering proper
ties in Brooklyn, are steadily growing
in favor with the investing public. The
experience of the company proves that IN
point Of safety they are fully on par
with MORTGAGES in Manhattan and The
Bronx. The percentages of the arrears
OF interest and taxes and the amounts
under foreclosure show that these small
borrowers are more prompt In their pay
ments than the owners of larger proper
ties in Manhattan and The Bronx. This
c'ass of lending is certainly safe II the
MORTGAGES are chosen with judgment and
cared for with attention. These loans av-
erage $500 in amount, generally do not
exceed 50 per cent Of the company's ap-
praisal. and are in many cases for
considerably less percentage OF valuation.