Morris tribune., 1880-12-30

As knelt there at her feet,
''rhey must be little bit naughty,
Or theynever would be SO sweet"
MARIETTA TIMES.
WESTERN MORTGAGES.
The Curse of the Western Farmers Life Wv
idly Observation-Disclosures Reference to
Bleeding Kansas but Common to Other Sec
tiOns.
Letter from Frank Wilkeson in New York Sum-
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
1them, and to invest the Eastern money
securely little is known by the people who
ceaselessly search for bonds bearing high
interest. The extent to which Western
farming lands are incumbered is family
comprehended by the buyers of these Sc
curlties. There is 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
chattel. mortgage is the security preferred.
Suppose the case of a man who has
81 900 to invest. and who is not satisfied
with 6 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 it may be in three, of these
securities. They are supplied in any de-
nomination desired. Some of the great loan
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 in stock,
the company gives receipt for the money,
and the next mail carries the cash to it's
agents in the far West. These agents are
generally corporations 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 charter.
The Western Loan and Trust companies
are the head centers of the farm mortgage
system. Their working staff consists of a
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 81 200 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 company's 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 goo is t.
be lent The farmer goes to town. A great
sheet of paper, partially filled with printed
questions, is brought out, and the owner OF
Western land formally applies for the loan.
The applicant is 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 dc
with the money if he succeeds in getting it
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 to
the Eastern investor, that Of the actua
worth of the land is sighted. The certif
cate to the moral worth and true goodness
of the applicant would, if true, be Il pass.
port to heaven.
The application for the loan is forward
ed to the company at Topeka. These in
corporated investors of other peoples mon
ey on commission, being experts in est,
mating true goodness, approve of the NOR.
al character of the needy applicant, ant
send either callow youth inclined to con-
sumption and Theology, ora gray bearded
philanthropist to 60 through the farce Of
examining the land. well, God made it
and it must be good, is the pious conclusion
reached by the examiner, and he certifes
that the land is ample security for the loa1
applied for. The only point to have beer
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 an6
Trust Company.
The farmer and his wife sign trus
deed and a lot of gilt coupon mort
gage notes. These are sent off to the heat
center at Topeka. The Loan and Trus
Company keep 10 per cent, of the ST. ,OO(
to repay them for their trouble, sending
5000 to the sub-abent, who again charges
his commission of from 5 to IL per cent
not on the 5000, but on the $1,000. tn
farmer receiving $3.50 for his notes TO-
81 ,O00 secured by mortgage on his lands
l have known % per cent. commission pait
for money obtained from loan agents. A
the present time it can be had at from tt
10 per cent. commission, and mortgages
can be renewed OF extended without com
mission being paid. The money that wal
lent before 1879 was generally shaved abou
Is per cent, the mortager receiving s5 pc
cent of the face of his mortgage and pay
ing 10 per cent. interest on the par value
If the mortgage has five years to run, thu
interest the mortgager pays is not 10 pc,
cent, but trife over Is per cent.
In one county in Kansas there are 2,SS(
one-quarter sections of land. I know tn
county well, having shot prairie chickens
and rode after hounds over the most Of it
There are at least 900 one-quarter sections
Of worthless land in the county, land tina
has not been settled on, and that will neve
be cultivated. This leaves 2,2B0 farms o
100 acres each that are occupied. Of these
l 800 are mortgaged to the total amount o
81 800, 900. The farmers of this county ar
paying $3.50, 900 per year interest money OF
land mortgages alone. The amount of in
terest paid on chattel mortgages, machin
notes, store bills, and ON delinquent take
in this county is at least equal to the amonn
paid on the land mortgages. In the sam
county taxes are from to per cent on al
assessment made by the township trustees
who are required by law to place full valu
alton on all property.
Confirmation by the Senate.
The United States senate in exeeutiv
session confirmed the following nomina
tons:
Eugene SCHUYLER, New York, consul gen