The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-11-02
INTERESTS DIFFER
ON new MORTGAGE
proposcr> Of Amortizing Loan
Think Idea Must Be Car
ricd Out Slowly.
OPPONENTS FEAR LOSS

The proposal to amortize realty mort
os,s. A plan which has the approval OF
inc leading lending companies OF the
ety. has stirred rea! estate interests
,nrc Than NY question that has been
,r,s,utcd ior some time. Brokers n
cvn,rs were not disposed to see adj
~y,n,iges in the idea. Some real estate
mon think that the plan labels Now York
,,l estate AZ IN investment field OF
tho mast. In their opinion the willing
rs, II the lending companies to have
,o-,gages reduced yearly Indicates "a
real estate is no longer q stable field OF
ir,,s,nent. II amortising mortgages
sr4 adopted. they say. II will be the
sors' thing that has happened to the
veal estate market in the history OF the
,tv They believe that the effect OF
The change will be even greater than
mat which toll wed the panic of 1907.
Amortizing mortgages have been un-
der consideration for some time. Last
FRIDAY a conference Of the representa-
dive OF various lending institutions. saw
,nss banks. life insurance companies,
mortgage companies and real estate as
soc,a,ions was held In the Chamber OF
to consider this form of mort
gage. a form OF oar which has been in
vogue in Europe and the Western and
A0uGltIH at y p'ili' INV NS "
promoted thrift 1t was tnouyht that it
would be- welcomed by borrowers IN
New York. At the conference We're l10
men. All except three of them approved
Of the change.
The purpose of the conference was to
ascertain the views of the real estate
public In the matter. As no great opposi-
ton was shown at the meeting the mat
Ter has been advanced. but IT will be n
long time before any final steps will be
taken to change the mortgage system OF
the city. Those who favor II said yes
terday thai the steps would be taken
slowly. for in II city like New York. with
% many varied conditions, no general
plan could be satisfactory.
The idea that amortizing mortgages
world .rjure real estate investment in
New York was secuted by Laurence NJ.
u. Mcclure, president of the Real Is
tate Board Of New York. lie approved
OF the change and says that he is sorry
int the idea was not taken up n year
ago. is New York would he "a better city
TODAY. He says that bowls of discon-
tent will b" heard from IN. Spectator,
tho man WA tries TO swing a $1,000. 900
operation on "a shoestring." He thinks
tAat New York city could do without
this class OF men, for instead of helping
real estate they have done II harm. He
attributes the present low ebb OF the
market 20 this class OF real estate men
and says hat such men have discour-
aged Investment purchases.
Tn" real estate manager of one OF the
leadinG Insurance companies said that
the real estate market should be re-
strained. THAT tho city was overInort-
tdgcd and overhuilt. He thought that
when anortizing mortgages were better
49,. .a-t.tl l. -
60 them. In his opinion, the only opJ,o-
eu"n hat will be leyelled at this form
~ loans will come from those who AFRO
out to milk property" II a man has "A
Proposition which he has faith in II will
,' 10 hardship to him TO pay an extra
J per cent. The amortizing mortgages,
h" bought, will steady real estate,
putting Il IL on a sound basis.
at Is about time lie said. "to end
tNc - Ictico Of taking a part Of tho
mortgage As profit. probably the only
money to be made out OF the deal.
Lending institutions In New York
have been turned against real estate
AID unless something Is done the amount
Of mortgage money available for real
estate will grow less and less zach year.
Something must be lone to restore tho
confidence of these Institutions in real
~ ei'A IL billy lraAA VII I
b the amortizing loans. This IS an
assurance that the borrower will play
honest with the murtgagor and IL going
TO see that he gets not only his interest
but part of his principle every year.
The general real estate public docs
hot 'ealize how close TO disaster il has
boz, FOR hanks and life INSURANCE.
companies we're seeking other fields IN
~hirn 10 put their money. Real estate
has been preferred because IL has been
de"'n"l u safo investment, but years OF
abuses have turned these institutions en-
TREY around on realty. So many prop
e-t's nave had to he taken over by
'hes" companies to protect investments
t1at y T. a source Of worry to get rid
of thcn, not to speak of the moun OF
trouble that foreclosures bring. Thrift.
which is the backbone of a community,
would result from these mortgages. Tn.
aTrrt'1ing loans would result In less eN-
t~avnEtuCc.'