The Birmingham age-herald., 1922-01-06
REALTY MORTGAGE
 AUTHORIZES ISSUE
 S5OO,OOO STOCK
Intended to Enable Home Purchasing - Based on Mortgages on Residence
 Property in Birmingham

The Realty Mortgage company has increased it's capital stock $5oo, ,oOo, is- sue of preferred stock to that amount having been authorized.
 This new stock will bear per cent interest, payable semi-annually, and will be offered the general public at par.
 The Realty Mortgage company was organized about a year ago by inter ests connected with the Realty Trust company with a view to engaging in the buying and selling of real estate mortgages. It began business in July, 1921, with a capital stock of s250, ,0O0.
 John H. Frye, president of the Traders National bank, is president of the Realty Mortgage company.
 The Realty Mortgage company deals in mortgages on Birmingham residence property. l. occupies a po- sition in respect to financing homes different from other methods and pro- vides for conditions that other insti- tutions do not meet
 In a statement with regard to the issue of the preferred stock, Presi- dent Frye says; Our hope is that the Realty Mortgage company will be able to render a useful service to many persons who need to buy homes, while furnishing safe inve stment to those who have funds to invest"
 Official statement with respect to the new stock issue follows:
 official stetement
 The Realty Mortgage company was organized by interests connected with the Realty Trust company, with a view to buying and selling real estate mortgage man who has built houses and sold them on time will often build others. if he is able to make a satisfactory disposition of the paper he has taken. It is therefore beneficial to the building situation that there should be an, outlet for such paper at & time when there is a need for homes, as well as for the wages which result from building them.
 The Realty Mortgage company be- gan business in July, last, with paid capital of s250.000. At a meeting just held. the charter of the company was amended so as to a-+horize an in- crease in the capital of $500, 900, con sisting of preferred stock, which will be offered to the public as the needs of the business require. The preferred shares yield a fixed dividend of per cent. payable one-half in January and one-half in July of each year, and they have preference over the com. mon as to dividends; that Is, no dis bursement can be made to holders oi the common stock until all dividends on the preferred shares have first been paid.
 There is no sort of paper which the maker has a stronger incentive to protect than that given in payment for a home or secured by 8 mortgage on one. The management of this com pany has had extensive experiene, l in the handling of real estate mort, , gages, and the preferred stock we of fer is based on such paper. We vii also sell guaranteed first mortgages in sums of from s1.000 to $5.000. A the present time these mortgages cal be sold at rate of per cent, and tn, Birmingham market affords no safel security.
 The officers of this company are John H. Frye, president; John G. Far l ley vice president, and Carl Gran tham, secretary. Due to the lesseneC cost of construction work, ther, should be from year to year a sub stantial increase in the volume O building. And our hope is that tn, Realty Mortgage company will be abls to render useful service to many persons who need to buy homes while furnishing a safe investmen to others who have funds to invest