The sun., 1919-06-01

ing seasoned mortgages long in their
portfolios, and owners Of huge build
ing properties have by this tightening
In the renewal market seen the danger
TO their own financial structures in con-
stantly recurring mortgage maturities.
with building owners thus faced with n
situation in which they must conclude
that their perfect safety lies only IN
long term mortgages, gradually amor
tized or reduced from regular annual
payments to be made from earnings,
and with insurance companies faced
with a situation in which they must well
come the opening Of some new channel
for mortgage money II the building situ-
alton IL to DO alleviated, the security
buyer is given a new and n very real
opportunity in this premier class of Sc
cured loan. The very fact that he Is
offered the opportunity at close to one
per cent. higher interest return than
has been enjoyed In the past by insur-
ance companies on similar security will
unquestionabiy prove an enticement TO
him. The higher interest rate, combined
| with the marketabiiity for the secure
| ties which is assured through tho ham
ding of such loans by strong financial
| institutions with nationwide distribut-
ing forces, should be attractive not only
|
| Insurance companies which in the past
have carried such foons directly in lui ge
but unmarketable units"
Means Entire Change OF Method.
'In my opinion this Is the most inter.
esting and significant occurrence in real
| estate matters for a long time" sayt
Walter Stabler. comptroller of the Met
ropolitan Life Insurance Company III
marks an entire change In the method.
OF financing large real estate mortgages
In the city of New York. think the
great banking institutions that have inl.
tiated this business deserve the congratu.
lations and cooperation Of al who arr
interested In the real estate business Of
our city.
There can be no question as to thu
absolute security of carefully placed
mortgages on New York city real es
tate and such Investments are not sub
ject to MANY of the difficulties whicl
attend investments in securities Of pub
lie service corporations Of all descrip
lions. Nor are such securities, in m,
opinion. likely to be subject to the fluc
tuations in price that many other invest
ments are constantly showing.
II believe there are a great man,
small investors in this city who fee
III boHucthlHG tHbt tn6y CHI
look at and examine themselves an;
form their own conclusions as to values
rather than attempt to figure yer.
elaborate and complicated statement
which can be understood only by ex
ports in various lines. Real estate 4
commodity and investment OF suo'
universal interest and knowledge that
can but believe the public will take thi
and similar offerings readily, and tina
when financial matters are in an easis
shape issues can be made at lower in
terest rates than are now possible"
81 regard the announcement that tn
United States Realty and Improvement
Company has refinanced the mortgag
on the Trinity and Realty buildings a
an important steH toward solving som
Of the problems which have confronte
owners OF New York city realty" say
: william A Day. president of the Equit
able Life Assurance Society.
1T seems to me that bonds OF thi
! character when adequately secured an
protected by reasonable sinking fun
, payments should be most attractive I
: investors, and in the course of tim
should replace to a considerable exter
e the ordinary form Of mortgage loa
= when the amount involved is large"
: Joseph p. Day. acknowledged to