Show Building Shortage Is h Very Verr Acute Construction Work Held sack Back BackI I Mortgage ge loan Plan Is h Urged N COMMENTING on the building situation S. S W. W Straus of IN I S. S W. W Straus Co of New York says Labor disturbances unstable prices prices' and monetary are the three elements that are holding back Dack the building industry at the present time In the meantime the building bunding shortage becomes more acute throughout the country with wih a steady Increase in rentals The Th most hopeful and significant sig- sig feature lIes les in the widespread movement now In progress for the amortization of realty realy mortgages The general adoption of this plan of negotiating loans will wi greatly Improve real estate conditions and place the building build build- Ing industry on a stronger foundation than ever before The tightness of the present situation siua- siua situa- situa tion ton is sufficient proof if others were lacking of the Imperfections of the system which has been In general use uso At the present time so it I on trustworthy is tied up in real estate mortgage loans carried by the life Insurance companies compa- compa nies trust companies and savings banks of the United States The Insurance insurance in- in companies find themselves confronted with wih abnormal demands for policy obligations as the result of the high death rate rte caused by influenza The banks are carrying heavy amounts of Liberty loans and other government I obligations Owing to the fact that the greater part of their realty loans I I have been made for a period of years ears without any stipulation for l reduction re- re ducton they are not able at present to find relief through the liquidation of these loans Hence reform is necos- necos sary and is being brought about as I rapidly as possible Those who have hae investigated the re- re suIts of amortization have found the following among Its is chief points of advantage It assures payment or of the loan when due it i makes the first business business busi- busi ness of the borrower to pay his debt it provides safeguards against depre- depre caton elation j it i discourages improper ac- ac iu in real estate prohibits shoestring shoestring shoe string projects and encourages legitimate legit legit- mate building operations It also minimizes minimizes mini mini- foreclosure possibilities However in applying the principles of amortization it should be borne bore in I mind that a lean ican cannot be amortized unless the property Itself produces sufficient suf- suf income Thus It Is extremely I Important that the mortgage contain I a provision compelling th borrower to apply this income as fast as collected I to the payment of the delt For Instance instance In- In stance If the amortization charge on a aloan aloan loan Is a year and the rents from the property are collected monthly month month- ly the borrower should be required to deduct 1000 each month from his rents and deposit with wih the lender assures assures as- as the prompt pa ment of the amortization amor- amor charge and prevents the diversion diver diver- sion of the rentals to other uses which II Is one of the chief causes of the nonpayment nonpayment non non- payment of interest and principal when I due If I amortization Is to be generally I adopted lenders will wi have to scrutinize the Income from the property just as I carefully as they do the security itself because the property must produce and this Income must I Inot not be diverted to other uses uses if lenders I expect to have their loans paid in cash when due I Through the device of bond issues secured by amortized realty realy mortgages the situation as it stands today toda to- to I da day may be greatly greaty helped because by I this plan of a tremendous tremendous dous reservoir of private Investments Is made available immediately for con con- construction purposes and will wi give the general public an opportunity to participate par par- I In this source of new wealth The movement which now seems to tobe tobe be In full ful swing toward the general adoption b by large financial Interests of the amortized real est estate te mortgage will wi do much to bring about the great building activities so badly needed in inthis this country The labor situation and unstable I price conditions are only temporary hindrances There are everywhere In- In that the pronounced activities ties tes so long expected and so badly needed are beginning to develop elop as the spring season advances and new buildIng build build- Ing projects Involving huge expenditures expenditures expendi- expendi tures are being announced with wih Increasing log ing frequency I DOSTON STOCKS E. E I F. F Hutton Huton Co 25 East I South Temple street furnish the followIng followIng follow follow- Ing over theIr wires Wire c I I hid Bid I Asked Adventure i 75 25 35 Allouez 1 42 Ariz 0 11 Calumet Ariz Arb 57 OS 1 Calumet Hecla 57 Copper flange 05 0 40 10 Daly West Vest f 9 2 3 Fast Butte t 2 Franklin kR I 5 Isle fn Royale g al 24 2 25 Island Creek 46 do preferred 80 82 Indiana 50 60 Keweenaw 95 Lake Copper 3 H Michigan 3 2 2 3 Mohawk 51 52 Mason Valley Valey 2 2 New 1 1 n North Butte 2 1 10 Old lot loto DominIon o I n 97 3 34 Pond Creek 13 13 Quincy 5 5 56 I Sup Boston Boston 2 Superior Copper 2 4 5 South Lake I 1 1 11 South Utah 13 1 Swift Co Tuolumne Tuolumne 82 82 88 U Shoe Mach ach 41 4 48 Utah Apex 2 2 I Utah Metals 1 1 Utah Con 2 1 8 8 8 I Wolverine I 8 15 17 Wyandotte r 60 50 I |