Telegram-herald., 1891-03-22
MORTGAGE INDEBTEDNESS

save ais own.-Chis~so Herald
MORTGAGE INDEBTEDNESS
rAs Property III the Psesi. wssia Sos
Seal For s0axh 20 satisfy the Debt.
Soon after the close of our great war
vast scheme Of railroad building and
settlement MAS projected for the west
ern region Immense bodies Of lands
were given 20 railroad corporations, and
these lands were sold out 10 individual
/ settlers on long time and mortgaged for
the deferred payments. Then began
the building of feeders 70 the main lines.
and these feeders were built IN large
measure By the people OF the cities,
counties and townships through which
the roads run In few years al this
western region was populated, the peo-
I pie enjoying facilities IF transportation
exceeding those Of some Of the older
states, and many of the comforts of an
oder civilization were enjoyed in these
new communities. Conts mporaueously
with this marvellous development came
a general SYSTEM Of money lending. the
money being IN the east but repre-
scented here BY loan agents. Lands
were purchased with borrowed money.
Stock and farm implements were pur-
chased with borrowed money. Houses
were built with borrowed money, and
rates Of Interest ranged in the beginning
as high as 20 TO so per cent per annum.
It appears now, In this year 1891. that
the municipalities and the people indi-
vidually are overburdened with debt
Take the state of Kansas. for example.
The last report Of our state board Of
railroad commissioners Qss9l shows
that the total capitalization of the rail-
roads within the state, with a main line
mileage of s,755 miles. Is $3.50, Tl9, 900.
of which amount s2ae, 54s, 900 rep
resents bonded debts, and sss7,iT
025 represents stock. For purposes OF
taxation the roads including all their
property of every description, arc as
sessed at s5T, s56. 232. The auditors re-
port for 1890 shows the municipal in
debtness To be nearly SIS, 900, 600. At
least two-ffths of the farms are mort
gagged, and the lowest estimate which
has been made by any person who has
investigated the subject. puts the aggre-
gate farm mortgage indebtness of the
state at about 500. 600. 900. Village and
city real estate is encountered in like
manner to an extent fully equal to $780,
600. 900. Putting them together, the fig
ures show, In round mum bers:
Railroad indebtedness. ............ .sts6 900 900
Municipal Indebtedness ............ 81. ooo. 900
Farm mortgages. 60 ooo 90
City real estate mortgs ges...-...... 5000 900
Total ................. sssa. ooo. 90,
Valuation of property for taxation:
Railroads. 8 So 900 90
Farms ..-..-.-................. l7aooo. oo1
City real property. 100000
Total. sos 600. 90
Brought together the totals show:
Indebtedness of railroads and
lands OF Kansas. 1854 900, 900
Taxable value OF railroads and
lands OF Kansas. sos. o0o 900
Difference Observation-Disclosures ss, oD0 900
It appears that our recorded indeb
edness-that for which our lands are
held-is S27s, 600. 900 more than our
lands, with all their improvements, are
worth. II it DC said our valuation for
assessment is low, it is quite as true to
say that il our landed estate were sold
at auction on notice, it would not bring
its assessed value. And the same is
true as 10 conditions in other states.
Transportation rates, like interest
rates, are exorbitantly high. keeping
the prices Of farm supplies at high fig
urcs, and all sorts of farm machinery
and equipments are sold through agen-
cies, with several added profits by the
time the purchaser is reached. A brief
but comprehensive statement of the
situation Is this: Manufacturers and
railroad companies operate in combina-
ton; railroads control transportation
rates. and capitalists who own the
mortgages on the homes of the people
individually, and the bonds of NUM-
eipalities, do also own the bonds and
stock of the railroads, so that the peo-
pie are ut the mercy of the compare
lively few men who own ard control
the money of the country. The lands
of people are always held, in the end,
as security for debts. At last the great
burden falls upon the land. The land
must pay for everything when the end
comes. So we have II now. Money Is
owned by few. the government flies
to the rescue of that few whenever a
''stringency" occurs in their money
markets" they hoard money. they i'm
poverish the people. And in these
things are found the unjust burdens
OF the farmers kansas Farmer.