The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1880-12-30
WESTERN MORTGAGES.
The Curse Of the Western Farmers Life Wv
idly Described Particular Reference to
Bleeding Kansas hut Common 10 Other Sec

IDLY observation-disclosures Reference 10
Bleeding Kansas hut Common to Other See.
lions.
letter from Frank Wlkeson IN New York Sun.
The greater portion of the cultivated lands
west of Ohio is pledged to Eastern money
lenders. The securities obtained for the
money lent are known as Western farm
mortgages. OF the real value of these
mortgages, of the methods employed to OBJ
tain them, and to invest the Eastern money
securely, little il known by the people who
ceaselessy search for bonds bearing high
interest. The extent to which Western
farming lands are incumbered il family
comprehended by the buyers of these Sc
curties. There il widespread belief
among investors of small sums who live in
the Eastern States that real estate affords
much better security than personal property.
This belief does not extend beyond the
Mississippi river. West OF that stream u
chattel: mortgage is the security preferred.
Suppose the case OF man who has
s., 900 to invest. and who is not satisfied
with or per cent. interest. He wants 10
per cent. Having seen the flaming adver-
tisements issued by firms Offering Western
farm mortgages for sale, he decides to invest
in one or two, or il may be in three, of these
securities. They are supplied in any de-
nomination desired. Some of the greatloan
and trust companies. and many of the So
called banking companies of the Eastern
States, keep these securities for sale. The
investor applies to one Of these companies
for 81 900 mortgage, bearing 10 per cent.
interest. If the mortgage is not III stock,
the company gives n receipt for the money,
and the next mail carries the cash to its
agents in the far West These agents are
generally corpomtions chartered by the State
in which they operate, and are called loan
and trust companies. They negotiate all the
loans made by their Eastern houses in the
States where they have n charter.
| The Western Loan and Trust companies
are the head centers of the farm mortgage
system. Their working staff consists Of II
| President, a Secretary and Treasurer, an
Examiner of Lands, and law firm to at
tend TO the foreclosing Of mortgages in the
United States Courts. These companies
have sub-agents in all the country towns.
| Their lines of watchful men stretch from
| the Missouri river far out into the arid belt
of and bordering on the ninety ninth OF
the one hundredth meridian. They are al
ways alert to take advantage of the neces-
sites Of the struggling farmers who are cul-
tivating sun baked, wind-swept soil, and
always active to induce them to borrow
money.
The 81, 900 to be invested arrives at the
Office of loan and trust company, say at
Topeka, Kan. At once word is sent to one
of the cOmpanys sub-agents that they have
81, 900 to loan. The sub-agent knows all
the needy farmers of the county One of
these farmers is informed that 81 900 is to
be lent The farmer goes to town. great
sheet of paper, partially filled with printed
questions, il brought out, and the owner of
Western land formally applies for the loan.
The applicant il asked many questions con-
corning his age, his wife's age, the number
of his children, the amount Of live stock he
owns, his health, and what he intends to do
with the money if he succeeds in getting 1t;
his moral character is dwelt upon, and the
blank spaces on the great sheet of paper are
filed with written answers OF the printed
questions. The only item of interest 20
the Eastern investor, that of the actual
worth of the land is sighted. The certif-
cate to the moral worth and true goodness
of the applicant would, if true, be II pass
port to heaven.
The application for the loan is forward
cd to the company at Topeka. These in
corpomted investors of other peoples mon
ey on commission, being experts in esti-
mating true goodness, approve OF the NOR
al character of the needy applicant, and
send either callow youth inclined to con-
sumption and Theology, ora gray-bearded
philanthropist to go through the farce Of
examining the land. well, God made it,
and il must be good, is the pious conclusion
reached by the examiner, and he certifies
that the land is ample security for the loan
applied for. The only point to have been
considered, that of the value OF the land,
has been trusted not to the agent of the in
weston, but to the agent Of the Loan and
Trust Company.
The farmer and his wife sign trust
deed and lot of gilt edged coupon mort
gage notes. These are sent off to the head
center ut Topeka. The Loan and Trust
Company keep 10 per cent. of the 81 900
to repay them for their trouble, sending
5000 TO the sub abent, who again charges
his commission of from to ~ per cent,
not on the 5000, but on the 81 900, the
farmer receiving $3.50 for his notes for
81, 900, secured by mortgage on his lands.
have known % per cent. commission paid
for money obtained from loan agents. At
the present time it can be had at from 5 to
10 per cent. commission, and mortgages
can be renewed or extended without COM
mission being paid. The money that was
lent before 1879 was generally shaved about
Is per cent, the mortager receiving 80 per
cent. Of the face of his mortgage and pay
ing 10 per cent. interest on the par value.
II the mortgage has five years to run, the
interest the mortgager pays il not 10 per
cent, but n trife over Is per cent.
In one county in Kansas there are $50
one quarter sections of land. / know the
county well, having shot prairie chickens
and rode after hounds over the most Of it.
There are at least COO ne-quarter sections
of worthless land in the county, land that
has not been settled on, and that will never
be cultivated. This leaves $3.50 farms of
100 acres each that are occupied. OF these,
900 are mortgaged to the total amount OF
| 81, 500, 900. The farmers of this county are
paying $3.50, 900 per year interest money on
land mortgages alone. The amount OF in
terest paid on chattel mortgages, machine
notes. store bills, and on delinquent taxes
in this county is at least equal to the amount
paid on the land mortgages. In the same
county taxes are from to 5 per cent. on an
assessment made by the township trustees,
who are required by law to phcea full valu-
alton ON oil property.
Merry Tid.Blts.