, 1875-03-22

IL III quite possible that tho members oi
the House OF Representatives at Springfield
fail to appreciate the importance of this bill.
We refer to tho bill known "a II. d. 407, and
tho amendments reported from the Judicinry
Committee on Friday morning. This bill
has now been twiee before that Committee,
and received their careful consideration, and
has been twice reported back with tho recont-
nendation that 1t be passed. The amend
ments reported by the Committee on Friday
morning propose to take out Of the bill tho
words ''lerenfter executed" which were nut
In some days ago under nlisapprehcnsion
on the part Of the gentleman who moved
them; aud provide, in language freed from
ambiguity, the rights which these companies
shall havo to hold real estate. and reserve to
the State by ample provisions tho right to
enforce by order Of tho Circuit Court snlo
Of any realty owned BY any such company in
i've years after tho title TO it is acquircl.
It is well known that under tho provisions
of this general Inv on lfo inguranco the life
insurance. companies Of this and other States
furnish all tile capital which can bo borrowed
in this State at moderate rntos of interest, or
for less than the e1trcnlest rites allowed by
the law. This law, as it has stood since many
years, specifies the securities upon which
these companies doing business in this state
shall invest their funds, and among other, d.
rects this Investment in mortgages Upon
tho faith Of this law these Investments laye
been 1nade to An enormous extent. It is tho
money obtained upon those mortgages, upon
long time, Which has chiefly contributed to
Lift Chicago from its ashes and reconstruct
tho city. Without these Investments it could
not have beon doue.
It now appcars that question hes been
made under lata decision of the Supreme
Cofrt in tho case Of CAnnoL1 u East st.
Louis, which rnises doubt rs to the right of
these mortgages to purchase In the
mortgagod property at foreclosure sale,
where thoro are no higher bidders, and 80
protect their securities. Tho Court held that
no corporation, home or foreign, can take
title to realty in this Stats without oRl,yaatire
Legislative permission. There cau bo little
doubt that the direction to tako the mortgage
carries the rest with it; but in every CON-
munlty are dishonest persons md Bhyster
lawyera ready to avail themselves Of sucl,
questions to cmbarrass and delay their credit
ors. and bring the credit Of tho community
and of tho State into tisrepute; ind this in
q lreatly threatened. If tho question were
now itigated in tho courts, a determination
by tho Supreme Court could not DO Ind bo-
fore next January. In tho meantime, tho
uncertainty il n formidable obstacle to
further Investment in tins way, and wc
the principal pereous who
control these investments refuse to con.
TIME them or mnao any further loans
until tho State shall have removed any doubt |
w to tl,oir security. Tho Legislature should
remove this uncertainty, and do it promptly.
There is disposition on tho part of Ger
Eain mombers Of tl.s Legislature to insist
upon retaining in tho Inv the words "hcre-
inter executed" which would prevent tho
operation Of the bill upon existing mort
sagcs, aud, indeed, carry prohibition with
t. It is impossible that this disposition can
1ave any foundation but absolute dishonesty,
Tho Investments already uade hnvo boon
nada In reliance upon tho existing law,
vhicl, when passed mover contemplated but
hat the companies acting under it tooh their
mortgages with MI the rights OF other mort
;agcos. Legislation directly tending to i'm
'air tho valuo Of these securities, or to en-
'blo individuals to repudiate their obliga-
ions, would DO disgrace to the State md q
'tig1na upon It's crodit which it would be
ong before 1t could shake oil. Tho bill
hould bo passed as quickly ia possible rs 1t
'as come from tho hands Of the judiciary