Realising, however, that a large class of his readers might be
interested in the exact particulars, he herewith gives a sketch of
the transactions.
It will be remembered that at the time--1878--Orde first came in
need of money for the purpose of buying the California timber, the
firm, Newmark and Orde, owned in the northern peninsula 300,000,000
feet of pine. On this they had paid $150,000, and owed still a like
amount. They borrowed $75,000 on it, giving a note secured by
mortgage due in 1883. Orde took this, giving in return his note
secured by the Boom Company's stock. In 1879 and 1880 they made the
two final payments on the timber; so that by the latter date they
owned the land free of encumbrance save for the mortgage of $75,000.
Since Newmark's plan had always contemplated the eventual
foreclosure of this mortgage, it now became necessary further to
encumber the property. Otherwise, since a property worth
considerably above $300,000 carried only a $75,000 mortgage, it
would be possible, when the latter came due, to borrow a further sum
on a second mortgage with which to meet the obligations of the
first. Therefore Newmark, in 1881, approached Orde with the request
that the firm raise $70,000 by means of a second mortgage on the
timber.
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