Worcester daily spy. [volume] (Worcester [Mass.]) 1850-1888, 1859-06-20
FARM MORTGAGE BONDS.


Among the swindling contrivauces used in
behalf of the villainous financiering of some of
the managers of Western railroads, none were
exhibited to the public with such an air of
sanity honesty the issue of those bonds
known as Farm Mortgage Bonds" To in
vest money on "the best security in the
world and get ten per cent interest was an
irresistible attraction to many persons, and the
bonds were readily sold in Pennsylvania, New
York, and New England, until great many
of them had been disposed Of The security
in each consisted of the railroad company's
bond backed by some farmers note of hand,
given to the company in payment for stock
and secured by mortgage on his farm. "If
the company fails, the mortgage will be sure"
said the seller; and SO thought the buyers
! Among those WHO invested their means in
these securities s.-'.-. -5is -
ford to lose the money and they fOlt-ov-.4i
dent that they should not lose it.
But, it turns out that the farmers who gave
these mortgages were cheated with lies, and
in effect, swindled atrociously by the financier-
ing railroad directors This plan of mortgag-
ing their farms was to do nothing but make
them rich by giving them an opportunity to
secure railroad stock without paying for it
But when the companies turned out to be
worthless and failed 10 pay the interest they
began to understand their real meaning and
probable consequences of the operation. Most
of them declare that they will not pay and
also that whoever comes among them to force
a foreclosure Of those mortgages, would do
well to get his life insured beforehand They
have formed a "Home League :" and as they
live together along the line of the road, their
war of self-defence is likely to be efficient
Meanwhile the question of the validity of the
mortgages has been carried to the courts. We
take the following ON this subject from the
Madison (Wis.) Argus:
"a day or two since we made a business
trip to the lake shore, and in the cars met
gentleman from Central New YORK who had
purchased some years ago fifty OF sixty mort
cages ON property situated on the line OF the
La Crosse Road He had been paying visit
to most of them, and calloused as were his
feelings by the love Of gold, some OF the scenes
he witnessed he described as most narrowing.
He gave us an account OF one that particularly
AiupItosGu HsSu ulJOu our Il4EI- he LL4s
gave it to us He called to see a man IN the
town Of Polk, Washington County. against
whom he held bond for $1,000 with three
years interest unpaid The bond was second
ed by mortgage on forty acres Of land. He
found the maker Of the bond in the possession
of the mortgaged land. He was an industri-
Gus laboring German who had been hod car
rier i'll the Summers and wood sawyer in
Winters, for some years, in Milwaukee, and
HAD Lon -.
pied, TO purchase the land mortgaged and sup
port his family. Five years ago he moved OH
TO it and built small log house, and now has
cleared and fenced about twenty acres, and Sc
cured small amount of neat stock The can
italist found this son of toll with his wife and
eldest child, about eleven years old, planting
corn. When he made known to them the OBJ
ject OF his visit they invited him to their
home. He there found eight children the cid.
dest of which was the one working in the field
with the parents, and the bed ridden mother of
the host. When the German-who spoke En-
glish passaby well-came to narrate the cir
cumstances under which the mortgage was
given, it brought tears to the eyes of his wife
and then to those of the children and bed-rid-
den grandmother. The honest fellow offered
to give up his land to the capitalist if he would
let him keep his small supply of neat stock
and give him money enough to 20 beyond the
forty acres Of the United States
The poor fellows story was the usual one
Of the farm mortgagors. In an evil day he
was called on by Spectator for whom he
had once worked in Milwaukee, and promi-
nent politician in Washington county. His
wife and he were made to believe that if they
would mortgage their little home for railroad
stock, in ten years they would have the stock
clear, and the Company INF the meantime would
protect them from paying interest on the mort
gage. The Spectator who msled this igno-
rant and honest man boasts of having made
one hundred aud fifty thousand dollars within
the past six hours by being director in rail
road without any ostensible compensation
puts large presents on the plate of his parson
and is prominent officer in n Christian
church.
Reader which think you the laws of the
State ought to protect The keen, over-rich,
fraudulent Spectator, or the poor, worthy,
German farmer, who by honest toll is endeav.
oring 10 hew for himself and wife and little
ones home out Of the rugged woods Of Wash
ington county The hardy laborer is beyond
doubt Of more service to the commonwealth
than a regiment of the pecuniary cut-throats
who besought HIM in the quiet Of his home
and involved him 10 trouble"