Iron County register. [volume] (Ironton, Iron County, Mo.) 1867-1965, 1893-04-27
MORTGAGE BILL VETOED.

Gcr. Stone Returns the Mortgage Ril!
Assembly-Hc Believes It Would Iniure
| the Credit of the State-Would Not Help
Make Fnsnre I las. p NIore Rurdensome.
| JEFFERSON CITY, April 22.-Gov. Stone has
returned the mortgage bill' passed by the
| Thirty-seventh general assembly. This was 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 7079 and 1850 OF the Revised Statutes.
which the bill intended to amend, says:
| Under the provisions of the existing law In
all cases where real estate is sold by the trus-
tees under powers conferred by deeds OF Trust
ana Is bought in at the sale by the ceStuf que
trust or his assignee. or any person for him It
| Is SUBJECT to redemption by the graEtor, his
executors. administrators or assigns at any
| time within one year from the date OF the sale
on the payment of the debt and interest secured
oy the deed OF trust, and all charges incident to
| making the sale.
| when real estate is sold by the trustee without
foreclosure in court it shall be subject to re-
| compton by the grantors or his executors, ad-
illustrators or assigns. at any time within one
| year from the date of sale. upon the payment
OF the dett. interest, costs, taxes and expenses
time of redemption. deductfng therefrom any
net income received during the year from the
property by the purchaser.
So far the provisions OF section 7o79, Revised
substantially the same. But the bill contains
l
be no right of redemption in any case where
the mortgaRor or owner Of the equity wrong
| FULLY w1thholdS possession from the purchaser
| for thirty days after demand in writing; and
~ whenever real estate is sold by the trustee
without VII foreclosure In court the sale shall OPP
cured The first Of these proposed changes il
in favor Of the creditor in that the right Of re-
property is withheld BY the Debtor for thirty
| days after sale and demand for possession: the
the debtor. in that it provides that where the
property is sold by the trustee without fore
II this bill should become . law It would not
AFFECT or operate upon existing deeds of trust.
made is part of its obligation. and 1t can not
be SO impaired as to lessen the value OF the
| standing as rule authorize the sale Of the
property covered by them on breach of the con-
ditions Of the deeds Under the law as it now
STANDS creditor In case OF sale is required to
credit his debt by the net amount OF the pur-
chase money received from the sale. I think .
statute now passed subsequent to the sale Of
an existing deed, providing that in case a sale
be made under the terms OF the contract and by
virtue OF its powers 1t shall operate to satisfy
to the amount actually bid or received as the
proceeds Of the sale, would be violative Of the
sions to such existing deeds. H Hence ' ii this
bill should be approved and placed upon the
trust and contracts executed after it went into
eject. What would be its effect on the enforce
IL biz are
g) by foreclosure in court: (2 by sale made
by the trustee under the powers conferred upon
him by 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
credit b 1 6e w be only
would be that substantially ali deeds Of trust
that do to the debtors? It would operate to de-
lay the sale until the foreclosure proceedings
would require from eight to twelve months to
secure judgment OF foreclosure and sale un-
ger execution BY foreclosure therefore it
longer time to effect a sale of the property than
would be required if the sale should be made nv
st-tutes the only benefit that could accrue to
the debtor under the provisions of the bill
But, On the other hand, he would lose all right
of redemption whatever, and all the largely in
creased costs OF the foreclosure proceedings
would fai H. upon ,, him this bill should be-
DOUBT Invariably contain provision to the
effect that in case of foreclosure attorneys
charged against the debtor and made a lien
on his property. Any possible good that
set, if not more than Offset, by the hardships
tEat would accrue to him as the result OF fore
closure Where money is loaned and secured
by a mortgage on real estate the incumbrance
debt. II the market value of the property
there win rarely be any occasion for forecios-
ure. since, when the debt natures. new
negotiated. Under the present present law r Whers
sales are made by trustees and the property is
purchased by the cestuique trust. or on mis-
which to redeem. provided he executes a
bond, to be approved BY the circuit court or
within that period Now if any aa se1d
has market value equal to or in excess OF the
amount secured, there is no reason why the
debtor can not execute such bond or negotiate
a new loan to meet his expiring one. Taken all
in all. it seems to me that the provisions of the
dition of mortgage debtors. On the other
hand, it would tend in Tany instances, un-
assume that in cases Where the mortgaged
property in value largely exceeds the debt Sc
the loan. the creditor might direct the propertv
to be sold by the trustees. In such cases the
creditor, becoming the purchaser, would be en-
possession should not be given accordingly the
debtor would lose all right to redeem. But there
erty is not sufficient to cover the debt Sc
cured and often in such cases other personal
Of OF ,p security is taken Nov
peeled to foreolose in court, thereby being de-
layed and sometimes endangered in the collec-
ton OF his debt, and the debtor and his securi-
ties be burdened with attorney fees and other
costs incident to foreclosure. Aside from all
considerations OF this character. however,
seriously doubt whether laws of this descrip-
ton do not ultimate in more harm than good.
Unfortunately our western people are borrow
states is very large, though it is less in Missouri
than in most of the surrounding states. It
is also true that we are compelled in a very
large measure to obtain money owned by peo-
pie residing outside OF the state. chiefly In the
northeastern states. This strikes me as an alb
normal condition of things; but so it is what
ever the cause may be. and as to that it is not
proper here to inquire. These mortgages that
and day after day. Many of them are being
paid OF. but very many Of them it is necessary
to renew. Interest rates in Missouri are con-
stantly decreasing. not rapidly, but the ten
dency is certainly downward. The enactment
der consideration must tend ineyita-
bly, to increase the interest rate and the diff
Guilty of making loans. Instead of making the
path easier to the debtor class, fear such
measures would tend to multiply their difa-
culties. And as to those who are in debt al
ready see no reason for increasing their bur
denS or lessening their opportunities Of bor-
rowing money whenever they need to do So In
the conduct OF their business merchants grain
producers and dealers, those who feed and
ship live stock, and others who have constant
occasion to make loans on comparatively
short time, would find real estate q less desira-
bic security to offer to the banks and those who
would meet with the same difficulty finding the
borrowing capacity OF their property decreased
and the interest rate Of their money increased.
Missouri has retained high rank among the
believe the best interests of the state will
be SuEServed by withholding nv approval Of
this bill. Respectfully.
Court of Appeals Reports.
Attorney-General Walker has exam
ined and approved the forty-ninth vol
ume of the Court of Appeals Reports.
This volume comprises the opinions rem.