Evening star., 1924-07-20
BY I, A. FLEMING.


Washington is pre- eminently city
of "trusts"-numerous firsts, many
seconds and not a few thirds.
Other cities refer to mortgages
when they have "plasters" on their
stores, apartment buildings and
homes.
There may have been a time long,
long ago when the majority of the
residence property of Washington
was clear and free from trusts, but
none of the present generation of
bankers or citizens has any memory of
that distant date.
Today bit of free property is a
rarity. Indeed, an expert mortgage
money man is authority for the
statement that not more than 10 per
cent of the property in the District
Of Columbia is unincumbered.
Even the people owning their own
homes seem anxious to have as large
trust on its as possible--frequently
on the theory that they can sell to
much better advantage than with
some lncumbrance; in. other words,
the smaller the cash payment re-
qulred the easier and the quicker the
sale may be made
Mortgage money interests-that is,
the lenders of money on first trusts
refer TO a second mortgage on the
same property that they trust covers
as my feather bed
With fair-sized second trust on
the property, the holder of the first
trust rests easy, for If the property
owner does not care for his obIiga-
ton on maturity the second trust
owner viii be forced to do SO in pro-
tectfng his second trust
Recent deyelOprn M
some property was under trusts for
larger sums than actually expended
put 1t is predicted that the advances
IN value here will more than permit
oi d hquioatlon at maturity at par.
Best Field for Loans.
Today the real estate trust field is
the one best place offered for the in
vestment of money. AS frequently
stated, merchants have been going
from hand to mouth" in their stock
purchases since the era of great de-
nation and enormous losses sustained
thereby.
National banks have ample re-
sources to care for their demands.
while the trust companies and larger
savings banks, finding collateral
loans restricted, have broadened their
operations in the realty field very
materially.
In the matter of large loans on
apartments, they have supplanted
philadelphia. which at one time
Iurnlshsd I1anay I'd much Ct the big mortgage
lively recent law forbids the en-
ployment Of estate money outside Of
the state on mortgage trusts.
That the District is an excellent
neid Tor the employment of funds is
esioenced by the fact that the great
NE insurance companies-the Metro
politan Life. Massac chusetts Mutual
fruoentlal and other companies-are
the largest mortgage money lenders.
iocal trust companies come second
third. - ''ie .
Money Market Strong.
comparatively recently the mort
gage money market was very strong
with the demand exceeding the SIN
ply. This was responsible for tbe "a
vance of the rate to {, ~ and 6
per cent for high rate The nonev
market for loans on realty has
steadicd down until the general rI1-
ing rate is now Is per cent, the ad-
ditional II of / per cent being
considered necessary by the investor
IN trusts to pay the intangible tax
imposed on the District of Column
bta a few years ago by Congress.
rms tax Is more or less uncertain
conscience of the taxpayer. If it is
elastic, then the collection is partial
at best 1t is guesswork largely and
is passed up entirely by manv who
sleep well despite the euuiyocation.
Money is drawn out of the bank
and redeposted after July /, the date
on which the assessment is based
that is, on Intangible and personal
property as held at that date
A new ruling has just been made
by the assessors that is making trou-
BILE for the good merchants of Wash
ington. Heretofore the intangible tax
was based on personal property, in
ventory. etc. as of July l..
Now the assessors demand of the
merchant inventories as follows: At
high and low inventories for the year
and average inventories for the year
ending June 80 and the gross sales of
the year.
Practically 95 per cent of taxpayers
hold their returns to the last day or
two permitted without penalty, and
this includes merchants as we'll as in
dividuals.
Dodge Fine Residence Property.
Returning to mortgag loan con-
siderations- it is much more difficult
to obtain loans on high priced resi-
dences than it is on other property,
for the reason that they are not as
readily salable; sometimes lenders are
at their limit on apartment houses
and these loans are difficult to nego-
tiate
1t is also difficult for the small in
veStor to obtain first trusts to the