Real  Estate   Record





AND BUILDERS' GUIDE.





Vol. XXI.





NEW YORK, SATURDAY, FEBRUARY 23, 1878.





No.  519.





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Published Weekly by

TER3IS.
ONE YEA.R, in advance....SIO.OO.
Communications should be addressed to

C.  W.  SWEET,

Nos. 345 AND ;i47 Broadway.





REVIEW OF MORTGAGE LOANS FOR 1877.

We now lay before our readers the first in.stal-
meut of our criticisms upon mortgage loans made
bj- institutions. It is our purpose in futureto pre¬
sent periodical reviews of those loans with a view
of deterniiniu.c: the metisure of conservatism
which enters into the iiianagemeut of respec¬
tive corporations. Wo claim no especial credit
for undertaking to discharge this gratuitous and
self-imposed ta.sk, and we certainlj- have no apol-
ogj- to offer to these institutions for thus intruding
oui-selves, pertinently, as w-e think, into their
alTaii-s. It has become lyell known to the public
tluit the greatest abuses .which have characterized
our fiduciary institutions in the past, have been in
connection with the investment of funds, partic-
uhirlj- investments in mortgages. Gross and cul¬
pable frauds have been committed in this line
of investment, which would have been quicklj'
broiight to light if, at their inception, such loans
had been subjected to a searching and critical
cut-rent review. These evil practices have al¬
readj- cultuitiated in a series of disastrous failures
of the institutions which indulged in them; and a
sti-oiig reaction has set in iu tho .management o£
sui-vivuig institutions, which promises to render
their futuro line of policy severely cautious aud
circumspect.

As we claim to possess special and technical
knowledge on the subject and to enjoy peculiar
advantages for gaining information with refer¬
ence to mortgage loans, and being in a position in
which their careful review becomes a matter of
habit as well as of duty, we pt-oposo voluntarily
to as.sume the ofilce of censor in respect to the
mortgage loans hereafter to be mado by savings
banks and life insurance companies. We are
careful to specify ^tliese two classes of institutions
as the objects of our critical regard, for reasons
which we will explain. For the most part, if not
entirely, the funds of these two pai-ticular classes
of institutions are voluntary deposits, made by-
the people at largo for the benefit of dependent
beneficiaries, such as surviving widows and or¬
phans. Neither the creators of these trusts nor
the beneficiaries of them are in positions to have
any voice in their management or any hand in
the direction of their investments. In tho great
majority of cases they have neither the aptitude
nor the ability to watch or criticise the financial
mauagomeut of the institutions which they so
implicitly trust

In the most sacred and impressive sense, the
assets of these institutions are distinctively trust
funds, whose management calls for the most scru¬
pulous and painstaking fidelity and watchfulness.
In the past it has been customary, for the typicfd
corporate manager to regard these accumulated
assets as his individual estate, -with which he was
at liberty to speculate and operate, making such di¬





vision of the resulting profit, if anj- might accrue,
as seemed to him or to his confederate board of
directors to be fair and eipiitable. It is needless
to say that this assumed prerogative was indulged
to a criminal extent, and with such results as
valmost invariably attend continuous invoking
of speculative chances—results which any p»-u-
dent and experienced manager might easilj"- have
foreseen from the beginning and studiously
guarded against. This line of corporate manage¬
ment, we are happj- to believe, belongs wholly to
past history. Existing institutions are probably
beingmauaged with more skill, care and scratiny
on the part of ollicersthan were ever before exer¬
cised by them. The results of this new depai-t-
ure must show- itself in future in the improved
financial condition and unquestionable soundness
of these various concerns.

We propose to lend our a.ssistance in furthering
this excellent practical reform. Tho reviews of
loans, which we shall offer from time to time
will be more in the nature of a comparison of
opinions and judgments with respect to these
corporate investments. If any cases shall arise,
which may .seem to evince the symptoms of vicious
policies, w-e shall not hesitate to characterize
and stigmatize them in becoming language.

After a careful examination of all loans made
bj- institutions during the past year, wo cheer¬
fully bear our testimonj^ to the fact that, as a
rule, their managers are exercising commendable
tact and assiduitj- in the selection of mortgage
investments. Among the loans that we have
selected for criticism, there is hardly one which
may beset down as risky or at all likely to occa¬
sion trouble. The majority of them exceed what
is universally regarded as tho limit of absolute
securitj- in loans of this description. Yet the
evidences of extreme caution are so palpable
throughout the whole body of these loans that w-o
anticipate, in futuro, that our office of critic and
commentator may resolve itself into that of tho
mere eulogist.

With re.spect to loans made by individuals or
by corporations wherein tho stockholders are
supposed to exercise a supervision over affairs,
we have no occasion to intrude our oflices. But
where the helples.s, the uninformed, or we might
say the misinformed, are concerned, we claim
the liberty of championing their rights, and
extending over their interests the a^gis of our
watchful inspection.

MUTUAL LIFE LOANS.

40th st, s s, .319.0 w .5th av, lS.xaS.9.........$20 000

.5th av, e s, 25 n 45th st, '2-2x51..............4.5* (K)0

45th st, s s, :i50 e Sth av, 75x100.5...........25 000

5th av, s w cor 3Ist st, 30.1x75; Slst st, s s, 75 w

.5th av, 2.5.X74.I...........................(i.5,o00

44tli  st (No. 1 East), n s, 100 e 5th av, 4()x

„ 1,00,5.....................................50,000

3-2d st, s s, 275,6 w Sth av, 24,15x98,9.........18 000

32dst, ns, 372,(5 %v.5thav. 2'3,9x9S.9.........22]000

Cth av, s e cor .57th st, runs east 95 x soutii 100
X west 45,7 x north 5,4 x ,southwest 49,8 to Oth
av, X north 100.11 to beginning...........-40,000

The Mutual Life can well afford to stand criti¬
cism, since its proffer of free legal services in
examining titles for loans ensures it a pick and
choice of current applications.

These loans are based on well selected proper¬
ties in remarkably choice locations, but we doubt
whether any one could be rated as worth double
the amoimt loaned, except in the owner's estima¬





tion. With one exception, we should pronounce
them all thoroughly safe loans, probably stifer
than fifty per cent, loans in poor locations.

EyUlTABLE LIKE.

56th   .st,  s s,  4.50  w 5th  av, 2.")x200.10 to 5.5th

^street....................................^145,(100

Broadway (Nos. (149, 0.~d and (555), e s.....200,000

[In connection with this the following mort¬
gages to The Mutual Life Ins. Co. were paid
and satisfied of record.

On No. (5.55 Broadwaj-...................j^p;.-, oflO

On No. i:> West .57th st..................' 5()',000

„    Total.................................S-21,5,000

Broadway, n w cor 49th st, runs nortii 125,7 x
west 81,4 X south 25 X west 25 x south 75 x
ea-st 2;^   X   .south   25.5   to  49th   st,   x   cas't

/'''''■ 1......................................50,000

155>th st, n e cor Hudson River Railroarl, runs
etust 2(50 X nortii 200 to s s 150th st, x north
to n s 159th st, at point '.iOO east Hudson
River Railroiul, x north 2(IS to s s l(50th st at
point oDO east Hudson River Rtiilro.ad x
north 21.7 to s w s Public drive, x 1-1.4 x
northwest 30 x nortii 30 to n s UiOth st .x
west 2(58 to e s Hudson River Railroad,' x
south .530 to beginning, hs & Is............50 000

The Equitable does every thing on a grand
scale, even to making its mortgage lotins. It is
difficult to rate these properties, tliej^ being w-hat
is termed fancy or gilt edged. Of No. 1 it may bo
said that a full front house and lot with extension
on this street w-as recentlj- sold for $42,.500, and a
stable on Fifty-fifth .street for .§20,000, according
to which data this loan must be reckoned of three-
quarter standard.

No, 2 is undoubtedlj' good, though a largo in¬
vestment.

No. 3 represents a fancy spot, hard to quote
just now, but of great intrinsic value.

No. -1 is a class of investnienc diflicult to criticise
in the present times.

NEW YORK LIFE.

4th av, n e cor 121st st, runs north to 12-2d st x
east 90 x south 100.11 x etist 50 x north lOii'Tl
to s s P22d .st, X east 215.5 to Lexington av x
south 100.11 X west 140 x south 100.11 to I2"lst

st, X w-est 2(55........................   s.^jo oOO

119th st, ns, a5e (1th av, .52.Sxl00.ll; also i"2oih
st, ss, 85e(5tbav, 100x100.11; also 12-'d .st n
s, 100 e 2d av, 20 0x100.11; I2.-{d.stss, io() e

Oth av, 100x100.1 i.....................40 OOO

77th st,  n s, 200 e JLidison av, 7.5x102 2     (4

morts., each -?10,oii().).......    ......     ' '.jo ooo

2d av, w s, 74.1 n 3-2d st, 24..8x100.. .*.".".'.'''' i:j'-,o()

70th st, n s, IOO e 4th av, '25x100..5.......       l.VooO

l-2-2dst, ss, 140o4thav, (JC.8xI(J0.1L    (-1 inort

each §4,000.)..........................      i,;Vioo

122d st, s s, l()(5.8o 4th av, (1(5.8x100 11            ' 4'(k)0

l'2'2d st, s s, •2'23.4 e 4th av, (ili.Sx 100.11. (4"liiorts

each |;4,0(M).).................,....._\        „V -,^1^,

.58lh st, n s, a55 e Oth av, 2-2x100.5               ' -m'ooo

,58th st, n s, -230 e (5tli av, 20xI0()..5..    .......'^I'ooo

.58th .st, 11 .s, 270 e (5th ax, 20xl()0..5.....'.""' *>!'ooo

.5Sth st, n s, 2.50 e Oth av, 20xlO(),.5,,           "" ~>U){H}

58th st, n s, 311 e Oth av, 22xl00..5___.'......•'4'ooo

.58th st, n s, 190 e Oth av, 2()xl00..5.. ''I'dOO
.5.8th st, n s, 170 e (ith av, '20xl00..5...    -'I'ooo

.5Sth st, n s, 333 e Gth av, 2-2xI0()..5___.....'~'4'ii00

.58th st, n s, 210 e (5th av, 20x100.5            "^rooo

.5Sth st n s, 290 e Oth av, 21x100 5 *" •''>'ooO
131st st s .s 110 e Sth av, 200.x99.11. ' Yll niorrs..

each$<,000.)......................___   77 (m

58th st, ss, 175 e Madison av, 25xIo6..5......'2'2'.500

SSth st, s s, 1.50 e Madison av, 2.5xIO0.i>..... '2*2'500

.5Sth st, s s, 200 e Madison av, 25x100 .5       ^>'500
43d   st,    n   s,   400  e  Sth  av,   75x98.9"*~'(4
^o'^-)..................................64,000

These are all liberal loans, too liberal to indicate
conservative management.
No. 8 is fully two-thii-ds.value.
No. 5 is three-fifths.