Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-01-07
SYNDICATE loans
SHOW EXPANSION
Company Formed by Tappen
in 1894 Has Enjoyed
Steady Growth.
BY JOHN F. SINCLAIR.
Special Dispatch to The Star

Happen, young Minneapolis lawyer, con-
ceived the idea in the hard times of
1894 that money could be loaned to
home owners, paid back on the INSTALL
ment plan, and certificates loaned
against the mortgages on the basis of
$110 of motrage for every 500 certif-
icate issued. Just an idea, but Tappen
couldn't get rid of it. So he organized
THE Investors Syndicate" to try it out.
During the first Is years he drew no
salary-for the first 10 years he even
paid the rent. of the tiny Office of the
company personally.
Then it caught on. He expanded and
developed it until 1927, when John R.
Ridgeway, then an executive of the
Western Bond & Mortgage Co. of Port
land, Greg, became president of the
Investors Syndicate. That year $780,
100000 of the syndicate's So per cent
certificates were sold, while $104,000,000
were sold in 1929.
These certificates are purchased by
investors for three distinct purposes
q, to provide children's college funds;
CD old age retirement; CD business re-
serve funds.
Our program for 1880 calls for a
sale of $l50,000000 of these certificates.
No, the stock market did not hurt our
sales. In fact, the week of the stock
market break was the best week we ever
had in our business" said Mr.. Ridge
way.
"Just how do you make your loans?"
asked this quiet-talking Westerner.
who was born in Columbia, Mo, A
years ago.
I'VE have loan Offices in 20 cities of
the United States. The men who
originate our loans are on a salary basis.
Our 1000 agents, who sell the certifl-
Gates, are all on commission basis. A
man will protect his home above every
thing else. That's why in spite of the
fact that we require monthly payments
on all our loans, we have less than 3
per cent delinquent"
I was interested particularly in the
thousands of people who have bought
these certificates, timing them to ma
ture when their children enter college.
I asked Mr.. Ridgeway what per cent of
the certificates we're educational"
about 80 per cent" he replied. I'VE
estimate that of our 165, 900 investors
with which to send children through
college. Today more than 10000
young people are in universities on
funds provided by our certificates start
ed 10 or more years ago"
The Investors Syndicate is now the
largest of its kind in the United States.
When Sir Henry Thornton accepted
the job of hammering into smooth
railroad unity the six railroad prop
critics that went into what was called
the Canadian National railways he said,
almost from the beginning, that the
properties were overloaded with capt.
tai and that some day the painful
process of squeezing out the water
would be necessary.
Word has just come from Ottawa
that this pressing squeezing matter"
in all probability will be taken up ac
the next session of Parliament. 1t
means the writing off of about $780,
600 900 and reducing the obligations To
around 60O,000,000
Since Sir Henry took charge, in 1924,
the mileage has been shortened and the
net earnings have risen from S3,00O,OO
to more than S60,000,000 annually.
The present capitalization of the
Canadian National Railroad Gin mile
age, the worlds largesD is $2,555 ,O00,-
600. But the huge debt to the Domln-
ion, now standing at $4,000, 600,
would isappear as an item upon which
interest payments would have to De
made. OF this $830,000 900 would be
written off completely. and the balance
turned into income bonds, bearing 4
per cent, when the income was avail
able.
Based on the 1928 earnings, the
company would have been able to pay
the interest on such bonded debt to
the government.
In other words, the Canadian gov
ernment--the people-are the losers
real cash losers. No such fantastic
amount has ever been written off be-
fore for such purpose in any country.
But the Canadian National structure is
financially topheavy and Canada VIII
have to face the issue sooner or later.
Ontario towns, villages and cities
608 of them-are being supplied with
electricity by the Hydro-Electrlc Power
Commission of Ontario. Partner mu-
inequalities" as chairman Magrath calls
them. in this public ownership develop
ment claims total investment OF $3l5,-
900 900, and a reserve fund OF about
S88 100000.
The average kilowatt hour cost to
domestic consumers has been reduced
Excessively from cents per killowatt
in 1914 to cents in 1928, to 1.80 cents
in 1927, and to Ill cents in 1928. In
1914, an average of 81 kilowatt hours
were being used monthly for domestic
consumption. In 1928, it reached lis
kilowatt.
During 1929, reductions in the rates
for power service have bsen put into
effect in no less than $50 municipah-
ties said Chairman Magrath.
Private utility companies are rapidly
expanding, too D. c. Durland, presi-
dent of the Canadian General Electric
c.. says that the electric power gen.
Grated in Canada has doubled every
seven years. At the beginning of the
past year. 5,350,000 horsepower had been
developed and 1000 additional during
the year, bringing the total to. $780,
900 horsepower little over one-half
horsepower per person.
But Canada according to Mr.. Dur