BANKING: The Money Finder

While most businessmen are worried about tight money there is one New York businessman who has never been happier. His name: Ivor B. Clark. His business, which can only be enhanced by a tight-money situation: finding lenders to put up money on propositions that they might ordinarily turn down. Clark, 69, is so good at his job that in half a century he figures he has found close to $1 billion for borrowers. And last week Money Finder Clark was dickering on the biggest deal of his career: arranging the financing for two 90,000-ton. super-economy transatlantic ocean liners. If the German government will give a guarantee for 70% of the costs of the ships, a plan that German Economics Minister Ludwig Erhard intends to discuss in New York this month with Promoter H. B. Cantor and other principals, Clark figures that he can raise $112 million out of the estimated $160 million cost “in 30 days.” With the “floating hotels,” Cantor plans to carry transatlantic passengers for as little as $50 one way.

Clark is a top money finder because he knows which insurance companies, savings banks, pension funds, or other sources have funds to loan, how much interest they want, and how to tailor each loan application to appeal to the loan-fund manager’s personal preferences in collateral. For his services in introducing lender and borrower, Clark collects 1% of the gross proceeds of each loan. Sometimes, when an extraordinarily difficult piece of work is involved, he may raise his fee to 2% or more (the maximum: 5% of the amount of the loan). As a money finder he has done wonderfully well at finding money for himself. Worth more than $35 million, he has five cars, including a chauffered Rolls-Royce equipped with radiotelephone, a penthouse in Manhattan, a 13-acre country house at Amagansett, N.Y., his own game preserve and a $200,000 yacht.

Morgan’s Bark. Clark, born on Staten Island, got into money finding at 16, when he persuaded a Brooklyn builder to give him an exclusive contract to obtain 5% mortgaging on 200 houses. With his $25,000 fee, he opened an office to hunt up more business. Learning that J. P. Morgan was paying 6% on some mortgaged loft buildings in lower Manhattan, Clark, 17, wrote Morgan that he could save him money by refinancing, was invited to Morgan’s office. When he arrived, Morgan barked: “What s.o.b. sent for you?” Replied Clark: “You’re the s.o.b. who sent for me.” Morgan laughed, said, “Good for you, young man”—and let him refinance the mortgages.

On the strength of the Morgan contact, Clark branched out. made his first million in the ’20s. In 1929 he founded his present firm, Ivor B. Clark Inc., and rode out the Depression comfortably by finding money for needy Wall Street investors to whom banks refused to lend a dime. Among his financial sources: Eccentric Millionheiress Hetty Green, who collected as much as 10% interest.

Clark’s clients often get a lot more than just financing. Four years ago, when Big Builder Norman Tishman (TIME, July 21, 1958), who uses Clark exclusively, was planning a 39-story Fifth Avenue office building, Clark was able to negotiate a 99-year lease on the air rights over the adjoining New York Public Library branch. The rights permitted Tishman to add the floor space equivalent to four extra stories without violating New York’s tight setback law, added $500,000 a year to the building’s income, more than enough to pay Clark’s fee. Over the years, Clark has arranged financing for scores of office buildings, apartment houses, shopping centers, hotels and factories across the nation.

Union Bite. Where Clark gets his money is a question that he has no hesitation about answering. Says he: “I use reputable sources only: insurance companies, savings banks and pension funds.” His chief asset is his personal reputation with lenders for bringing in only sound loans. Many leading banks and insurance companies regard a Clark recommendation as nearly all that is needed to okay a loan.

Because of tight money, there is a lot of cash available to borrowers who do not ask too many questions about the sources —or the high costs. Seeking financing for a hotel, Clark was recently offered $4,000,000 by a lawyer who represented himself as speaking for a big labor union. There was a small consideration: to grease the way, Clark’s client would have to agree to a total of 17% in discounts. This meant that for each $1,000,000 that was borrowed, union officials would divvy up $170,000. Clark asked for a listing of the union officials and, on being refused, withdrew. Says he: “I do not need that kind of money—and I have no intention of winding up before a congressional committee.”