The New York herald., 1921-12-10
SURETY COMPANIES
REALTY LOANS GROW
Philadelphia Executive Finds
Tendency to Invest in
City Real Estate.
RAIL BONDS EXCEEDED
Marked Increase Seen in
Loans Taken by Policy
holders.
RAIL BONDS EXCEEDED

Asa S. Wing, president of the Prov
ident Life and Trust Company of Phila-
deiphia, addressing the fifteenth annual
convention of the Association OF Life
Insurance Presidents at the Hotel Astor
yesterday, dealt with a phase of the in
surance business that has a direct bear
ing upon one of New York's most vital
problems-the investments of Insurance
companies In real estate mortgage loans
on city property. 1t is to seek means
by which such loans may be increa ased
so that building may be stimulated and
the housing crisis relieved that the
Lockwood legislative committee will
make certain recommendations govern
ing the investments of insurance COM
panies to the next session of the Legis-
lature.
Before Mr. Wing had outlined the
situation and shown the recent trend
toward greater investment in city realty
by the insurance companies. Gov. J. A.
o. Preus of Minnesota made an urgent
plea to the insurance men to revive
their loaning operations on the farm
lands OF North Dakota, suspended be-
cause of the Socialist tendencies of
Townleyism as reflected in the activities
of the Non-Partisan League.
Il ask you." Gov. Preus said, 'to
resume your relations and activities in
North Dakota in order that the misled
but honesi the mistrusting but indus
trious tiller of the soil there may again
enjoy the blessings to which we are all
entitled
Mortgage Loans Leading.
That real estate mortgage loans have
in the last decade far exceeded rail-
road securities as the leading invest
ment of life insurance companies, and
that in response to countrywide de-
mand for more shelter and consequent
decrease in living costs. the amount in
vested in city properties has increased
materially. although still exceeded III
volume by the farm loans. were among
the outstanding features of Mr.. Wings
address.
Investments in railroad securities were
81, 1888, 100000 at the end of 1911, IS
against s1,793. 100000 at the end of 1920,
he said. Real estate mortgage loans
now, however, form more than 32 per
cent. of the total assets of the COM
panies, while railroad securities, which
ten years ago formed more than 35 per
cent, have dropped to 26 per cent. The
real estate mortgage loans have in
creased from $1,22S.000.000 ten years
ago to S2,46S. 100000 on October 81.
Referring to this great increase In
realty investments and of the more re"
Gently pronounced increase in mortgage
loans on city properties Mr.. Wing pre-
sented an analysis of the mortgage loan
investments of forty-seven companies
holding more than SO per cent. of the
assets of American companies as of
October 81. He said:
IT find that S261,900,000 has been
added In the ten months from December
81, 1920, to October 81. 1921. making a
total of S2.46S,60O.00o real estate mort
gage loans on October 81 of this year.
OF this total S1.247, 100000 is on farm
property and S1.221, 100000 on city prop
erty."
Loans on Insurance.
Henry 8. Nollen OF Des Moines, presi-
dent of the Equitable Life Insurance
Company of Iowa, presented figures to
show a marked increase in the volume
OF insurance policies mortgaged for
loans, in other words, of policy loans
made by the companies, during the last
eighteen months.
Dean Andrew F. West OF Princeton.
speaking on 'Insuring Our Nation"
reflected in principle the views of Sec
retary of War John w. Weeks, who
told the insurance men on Thursday
that work and then more work was the
only panacea for the country's economic
troubles.
Other speakers yesterday were Thomas
3. Donaldson. president of the National
Convention OF Insurance Commission
ers and Insurance Commissioner of
Pennsylvania. and Walton L. Crocker,
president of the John Hancock Mutual
Life Insurance Company OF Boston.