Evening star., 1925-05-03
BY CHAS. p. SHAEFFER.

The irreproachable intrusion of for
efgn (out-of-toWn) financial institu-
tions in the field of local construc-
ton financing is furnishing food for
serious thought to not a few Wash
ington concerns who specialize in
first mortgage loans.
So serious has been this instrusion
of foreign capitalists that it is now
estimated at least 80 per cent of the
s40O 900, 900 outstanding here in first
mortgage loans are in the hands OF
out-of-toWn interests.
First mortgage loans on District
real estate by firms having character
and experience, conservative apprais
ais, substantial equity in each indi-
Vidual property, careful supervision
and provision for continuous reduc-
ton of the loan, have no superior in
the investment field
There is a tangible guarantee be
hind real estate securities as de-
scribed in the previous paragra ph
There are no reorganization groups
involving cooperation with other
groups, nor the various complica
tions relative to the usual foreclos
ures or reorganization transa ctions
Assuming good title originally, the
lending corporation can always in
spect specific. tangible parcel OF
property and find comfort in the
thought that the worst that can be-
fall him will be the acquisition of
that particular property in fulfill
ment of his debt. Property acquired
under foreclosure by the conservative
lender can usually be sold later at
a profit.
Beauty Helps Property Values.
To this general recommendation
local first mortgages on real estate
have the added enhancement created
by the city's unparalleled beauty max.
ing it a choice residential district; its
prestige as the Capital of the great
est and richest Nation on earth
Property values, always rising, have
failed TO depreciate as so long pre-
dicted; conversely, they continue to
mount.
The local banking fraternity. as
well, would welcome a curtailment of
the influx of out-of-to capital
especially at present. 1t would pro-
vide them with a ready and profita-
bic outlet for the superf1uity of un-
employed funds which in many cases
is resulting in a direct loss to the
institution carrying same.
Conservative first mortgages are
attractive for the simple reason they
are conservative. Statistics lust made
public by the Mortgage Bond and
Guaranty Corporation, which deals
exclusively in this class of security.
show loans made amounting to only
49.9 per cent of the appraised prop
erty value. There have been no fore
closures. These figures cover the
functions of the company since in
ception, up to and including the. close
of business, April 80.
Allies Boosts Convention.
1T is highly desirable that as many
of the officers and directors of the
Washington banks attend the forth.
coming annual convention of the
District of Columbia Bankers Asso-
citation, as can be conveniently spared
from their respective institutions, -
said Milton z. Allies, president OF
Riggs National Bank. yesterday in
discussing the benefits which the
banking fraternity here derives from
these annual gatherings
Before the first annual convention
or the Washington bankers was held y
continued Mr.. Allies. there NAV have
been some reason for doubt as TO the
justification for devoting the time and
undergoing the expense involved but
today, in the light of the actual re.
suits accomplished at the first con.
Vention, which was held at Deer Park
some six years ago, and subsequent
gatherings, there can be no doubt as
to the real benefits which accrue.
The programs for the business ses-
sions are carefully prepared so as to
cover the most vital problems that
confront the banks. and with the
great business expansion in the Ma
tional Capital during recent years,
these problems have been multiplied