Fair play., 1893-04-29
MORTGAGES BILL VETOED.
Gov. Stone Returns the Mortgage Btit
fa>~sd by ti:e Thirty-ScNcnth General
As-c.nbit Tie Relieves II Would In ure
the Credit "f tiie stsit--W ould Not Help
the Debtor Class. but Would Tend to

assc4nbit-tie Relieves IL Would lniGre
the Credit Of tife stst.--W ould Not Help
the Debtor Class. I5s.t Would Tend TO
Make Future Loans More Burdensh'r".
JEFFERSON CITY April @2-liov. Stone ca3
retlrnet the mortgage bill' passed by the
Ih!rty-seyerth genera! assembly. This vas a
measure in which widespread interest was felt.
and the veto message Of the governors will be
OF general interest. GOV stone. after quoting
Sections 71.9 au3 7,''I uf the Hevisai Statutes
which 'ue bill uirEtei to auieul says
! Under the provisions OF the existing law IN
al cases Nhcr. -ra! estate - sold .v the ,-;ss-
and = i.'i1i-. in NJ 'ha sal, ly the cc,tG. ,tgc
trust OF his asSl-rec. tc CuT person tOr Kim. u
; i subject 10 redemption hy in- E:..-'r=. fi5
executors. administrators or assigns AZ 6ny
! time within one year from the date OF the sale
! - NE paymen! a! the dc!t and interest secured
hy the IL - NJ rust an,i all charges incident 10
/ making the SAFE
The hin Under consideration propv-, '''st
! when real estate i sold " the trustee without
| foreclosure in Co@rl It shall rr subject = re
! compton y the lraLtors or h!> executors. ad
inlr1~t't4turs or assigns, 1T any time within one
ygaC ite ii. re iat? ~ sac; upon III" payment
! q III" det' interest, Costs. 'GXcs Hn.i expenses
Incurred in preserving ti!c property ap - tbs
time "f redemption drdUrting therefore auv
net income .et"iT'a during the wear from n"
60 tar he p-eStsions ot section 7o.@ ::c.i-e'
STATUES. c"d the provisions II tie III! are
SUI Ntantia!!y the ~a.,.r. iur 'te hill cyIta-ns
These further provisions. 81 Tot there SHAH
nc 10 riGht " redemption in any case W."
n" mcriEaEur or owner OF the equity wrong
fully w.thho.ds possession from the pur haser
FOR thirty days after demand in writin.,. and
- Whenever real estate Is sold v the trustee
"Ilh"U' foreclosure IA cpur. the 'ale shall ups
crate as an absolute dier;arsc - 'i,e del. 81
cured. Tie first rf THESE DrouD-r.i chauCeS ig
IN favor OF the creditor in that the ri.iit q 20
de'nitinn i destroyed If possession Of the
properly = rithh"ll V the dcbtcr for thirty
day. AFT r sale and tlemllt,t '"r possession: tho
second Of tn proposed changes i Al. ..t"rr Pt
the debt tor. IN that il provides that whore the
ri - IA l.v rlN,ar
closure IL court i; shall operate complete
satISfaotI uf t!.S ,t"if
II this lIll should lccOrnr Ia !a~ ~ nnlid not
| hntct or Operate upon existing deeds 81 s:'fs'
1hr remedy suhSiNtinE when contract is
/ made Is part OF its obligation. and il can not
| lie so impaired as 10 lessen the value q, the
| contract. The deeds of trust already out
! standing as rule authorize the sale OF the
property covered hy them uu breach Of the con-
Hitlcas uf Tho deeds. Under the laS ar ~ now
stands. a creditor III ease at sale u REQUIRED 10
HTcdlt his debt ty tn" net amount OF the lNif
| chase money received from the sale. think s
Statute passed sul eeurit ~ - III" % la ct
an existing deed. providing thai ia c..He " S.iie
t made under the terms of the contra ! aud ny
virtue OF its powers, it shall operate to satisfy
and cxtin-!rish The drlt, without regard
| to the amount actually M ~ received ne the
| proceeds of the sale would hc violatINc !. 'Hr
constitution If ii was sought to apply its pro"i-
! slnns To such existing deeds. Hence. IL this
| hill should lie approved and placed upon the
! statute books I, would apply nrlv 10 deeds OF
! trust an4 CONTRACTS eN"cHted after 1t sent into
! ment OF future cCHtraCtSf Two ways are pro.
vidcd in thu hill FOR forcloSing deeds "f trust,
| 81 10y foreclosure in court; - hy Il sale mIdc
| by the trustee under the powers conferred upon
| him hy the deed. In case OF foreclosure in
| court no right OF redemption is given. and in
! such cases the sale does not operate to satisfy
| the delt. hut the crc,litor will lie required only
| 10 credit his claim 10y the amount actually re-
! ccivei from the saI' The resul; 'hcn
/ would h. thai substantially all deeds ~ tri.st
| would hr fsreclosed in court What good WOULD
/ that do Ia IL" dr!,urs7 II vnuld operate de-
! lay the sale until the foreclosure pttj,r@ti;naa
! Gould he brought to n conclusion Ordinarily IL
| Nauid require from eight to twelve nio:ths TO
| secure Il judgment, r. foreclosure and ale ur,
! der execution. by foreclosure. incar5.or" /.
| would require from eight to twelve month";
longer time to effect sale of the property than
would I've required II the sale should be- made by
u,e ,rns,9r. :" far ~ san see this delay con
stltutSs the oniy h,I.ch' nat COULD lcrrra to
| the dehtor under the provisions ut .i-S h'I'.
Hut. on the other hand. he would lose all right
| OF redemption whatever and all the largely in
creased costs q! the foreclosure proceedings
would fail upon him. II this hill should be-
come law, future deeds of trust would no
! DOUBT Invariably contain provision 20 the
ehect that IN case Of foreclosure at.orGeys
fees should lie thXct as costs in the case and
CHARGED asainst the debtor and made = lien
on ms property. Any possible gu1i .ha.
| might come TO the dc' tor is therefore OF
| Set. II not more than Offset. 10y the hardships
n'at ""u'. accrue Ia him as the result OF fore,
closure Ehery irUrry is Iusupi md secured
ly mortgage on real estate the incuili hi aicr
can only he released ty the payment Of the
!!rit If the market value of the property
in"rtgaEci Is in excess of the debt secured
there will rarely te anv occasion for foreclos-
urc. since. when the urht .ra,u-ea uey |
loans can, generally speaking. be reaa..S |
negotiated. Under the present law where |
sales are made hy trustees and the property is |
purchased by the Cestuiiue trust. or on his |
account, the m"rfEasor has year within |
which 10 redeem. provided he cSrCutcE = !
"Hd To lie approved hy the circuit court or !
clerk. that he will pay the debt and costs /
within that period. Now IL any rropcrty sold |
..,lTTu N nr ",
amount secured, there IS no reason why the /
c"ttor can not execute such II bond or negotiate |
new loan to meet his expiring one. TAKEN all |
III all II seems 10 me that the provisions o. the
till would not SUI stantially better the CON |
rltion or mortgage debtors. On the other |
Eand. II would tend in many instances un.
necessarily. to harr:ss and annoy creditors. 1 |
assume that IN cases where the mort-aged .
property iii value largely exceeds the dct.
cured and the debtor fails 10 renew or repiHcs |
the loan the creditor might direct the property |
TO be sold ty the trustees. In such cases the |
creditor becoming the purchaser would lie en-
titled 20 possession within thirty DAYS and IL
possession should not be given acco-dinrlv the
debtor would lose ali right TO redeem Bu, there
are many instances where the mOrtgaged u;5j-
erty Is not sufficient TO cover the deFt Sc |
cured ana often N such cases other personal
or collateral security is taken. Now. In cases
OF tins character. the creditor would be com
leicd 10 forec!ose in court. thereby being de-
l2yed and sometimes endangered in the coIlec-
tlon OF his Debt and the Debtor and his seCuri-
Ties oe hurdeaed with attorney fees and other
considerations OF this character however I |
seriously doubt whether laws OF this descrfr-
tlol O" nut ultimate II more harm than good.
/ Unfortunately our western people are borrow
er>. The mortgage inle; t,tiu, IS OF the western
states - very larIe though il is less in Missouri
than in most Of the surrounding stat-a II
Is also true that W. are compelled in 4 rsry
large measure 10 OataIa money owned ~ pso-
PIE resluin, outside OF the state chiefly Ia The
northeastern states. This strikes me a. al alb
normal condition Of things: but 80 il is what
ever the cause may tie. and as TO that it j. not
proper mere TO inquire. These mortgages that /
We owe are maturing now month after month
enG DAY after day. Many Of them are ICING
PAID OF. but very many OF them II is necessary |
10 renew. Interest rates in Missouri are con- |
SANITY decreasing. not rapidly. but th,. ten
cency = certainly downward. The enactment
OF measures such the one U--
Ger consideration must tend iaevita- |
bly, to increase the interest rate and the diff
cu.ty a making loans. Instead Of making the
path easier 70 the debtor class / fear such !
measures would tend to muI;iplv their Gie!- |
cu!tIes. ArG a. to those who ar. /. dr.t al |
feia!y l see no reason fox increasing their lur- |
Gems or IessenirC their opportunities O. bor- |
ToWlA- money whenever the" need 70 do so. In
producers and dealers, tEose who feed and
snip i've stock. and others who have constant
o'tasl'n 10 make loans on comparatively !
short time would md real estate less Gc-lra-
tie security to crter 70 n. banks and those who !
wished to Orruw outside capital on longer time
borrowing capacity OF their property de reased |
anu the Interest rate Of their money increased. |
Missouri! has retained high rank amon- the
ccnTouwcalths Of the Union
! believe the best interests OF the state viii
te 81 Ssrvei y withholding my approval Of
tbs bill Respectfully.
WV. J STONE Governor