OCR Text |
Show BUSINESS CORRESPONDENCE. Bingham, Utah, June 15, 1908. I have been asked to deposit money with a loan and trust company, com-pany, so much each month, and am promised 8 per cent interest on it. How can I find out if the money will be secure? p. s. Find out what amount of capital has been paid in in cash by those who are conducting the company, com-pany, and ask them for a statement showing how it is invested. If you are not familiar with such matters, show the statement to some reliable business busi-ness man of your acquaintance. Go and see the place of business of the loan and trust company. Find out if they own the property where their place of business is. You can tell by the surroundings surround-ings n good deal. Get the names of the officers and directors, and see if they are well-known, successful and honorable business men in the community. com-munity. Learn what security the money is loaned upon, bearing in mind that the rate obtained by the company must be enough more than the rate paid to you to justify carrying on the business. It would seem that 8 per cent is rather high for a loan company to pay to depositors. They would have to lend tho money for at least 10 per cent in order to do this safely, and that cannot be done by lending on good real estate mortgages, which are the only real safe form of long-time loans. In a community where money will bring 8 per cent on good mortgages, a loan and trust company cannot safely agree to pay you more than ti per cent. |