The Iola register. [volume] (Iola, Allen County, Kansas) 1875-1902, 1895-01-18

administered. Inere ought also 70 pc SOno
right of appeal from assessments that are
grossly and outrageously unjust Now the as
SCISSOR fixes the valuation. the commissioners
refuse to change It. and the taxpayer is obliged
to submit to what he knows Is legalized rob-
berry. am well aware that the right to appeal
would have to be restricted, but the very fact
that the right to appeal existed would make
the county commissioners more willing TO do
Justice
Collection Laws.
The legislature of 1898 enacted law to regu-
late the sale and redemption OF real estate IN
der execution. etc. 1t was doubtless the pur-
pose and desire OF the trainers OF this act 70
furnish relief TO those who had mOrtgaged their
homes and were unfortunately unable to meet
their obligations; but the law seems to have
had directly the opposite effect from what was
intended Believing that the theory upon
which the law is based Is perniciOus one.
desire to call your attention to its practical
workings.
Capital is proverbially timid: it goes only
where it is protected; it scents danger as quick
" and as keenly as a wild animal. and as
promptly seeks safety. Capital cannot be
driven by legislative enactments to make in
vestments where it Is not safe. and any attempt
Of that kind drives it quickly from the state.
This result is as sure to follow as water IS 70
run down hill.
The past two years have witnessed rapid
amount would have been much larger II itcould
have been collected. 1t is estimated that
sl5.OOOOOO have been withdrawn the past two
years by parties in the east, who had loans Sc
cured by real estate, and who have lost cOnt-
dence in Kansas investments; while nearly all
the large insurance companies and savings
banks which have been accustomed to make
loans here, positively refuse to take any new
mortgages until the laws are changed
take IL for granted that there will be no diff
ference of opinion as to the ACCESSIBILITY Of Sc
curing investments of foreign capital. The
wonderful development of our grand young
state-unparalled in the history Of the world
has been due, to a very great extent, to the free
investment of capital from the eastern part OF
the country. This has been in the main large
IL beneficial to both sections. The Lender has
received fair rate of interest and the Dor
rover has in most cases made money by his in
veStment while thousands of others have been
greatly benefited by the rapid development Of
the state and the consequent increased value
Of all property. Without these investments
there would be few miles Of railroad in opera
tiOn in our state to-day.
1t is worse than idle-it is simply idiotic-to
brand every Eastern man who has sent money
to the state to be invested as a rObber and an
enemy: and the results of this course have
been to work a serious injury to the borrower.
In fact but for the impairment Of our credit
by the legislation under discussion and the
public sentiment IL represented. there would
have been no such demand for the payment OF
mortgages. from which we have suffered so
immeasurably, but lenders would have sought
to extend their loans at a reduced rate OF in
terest. 1t is well known fact that the large
part of the money invested in mortgages Is
either the property Of people OF small means
who have retired from business and live on q
scanty income or Of savings banks and life in
surance companies who hold in trust and loan
the hard-earned savings of the poor
The lender as a rule does not ask any cOnsid-
Grafton; he can and will send his money here
when he is satisfied with our securities, and he
can withhold it when he is not. He is free to
go OF stay as he pleases, and have never yet
been able to discover that sectarian beliefs or
political views made any difference with the
money-loaner in the matter of his considera-
tion of investments. 1t is quite different with
the borrower: he is here to stay, is already in
debt, and needs in most cases an extension OF
time in order to help him pay his liabilities
1t is not question with him whether he will
contract new debt he already has the debt
hanging over him, and his greatest need is
of interest.
It is hardly necessary to discuss here the
question OF whether the mortgage indebtedness
Of the state has been benefit OF an injury It ex-
lists, and the great mass Of our people desire to
honestly pay their debts at the earliest possf-
BILE moment. 1t is a gratifying fact that can
properly be mentioned in this connection, that
the census returns show three-fOurthS OF the
mortgage Indebtedness represents either the
purchase money of the farms or permanent i'm
provements thereon. And the further fact
might be mentioned that the increased
value of the real estate in the state from
1880 to 1890. the period when most Of the
debt was created, was largely in excess Of the
total Of all mortgages, and nearly sufficient to
pay the entire indebtedness and all Of the in
terest thereon for the ten years. And this in
creased value was largely the result Of the en-
terprise and energy that prompted men to
buy farms and to place mortgages on the farms
they already owned. that they might increase
their acres or make better improvements
thereon. The present condition, with con-
fdence entirely gone on the part Of investors,
is an unfortunate one for the borrowers. While
the return OF favorable agricultural conditions
and good crops will be an important element in
restoring confidence, still IL is not the principal
one, and the strongest proof Of this statement
is found in the fact that money real estate
loans can be obtained more easily, and at less
rates OF interest, in Missouri and Nebraska
than it can in Kansas
There are two important considerations that
are taken into account by every prudent, care
full investor. The first is the complete prOtec-
tion from loss, the absolute assurance that the
loan will be paid: and the other is the prompt
ness with which the debt can be collected, in
case it is necessary to resort to forced sale OF
the security. You may enact as many laws as
you please, but you cannot disturb the immuta-
BILE law Of trade that makes the rate of interest
depend on the security and the ease with
which the loan can be converted into ready
money; and any legislative enactment that de-
preciateS the security and lessons the ability
to force the collection of debt, increases
the rate Of interest and works common hard
ship on all borrowers. Under the present law
av.er -
taxes retain control of the property pledged
for security for two or three years, and can
cause a serious depreciation in its value. This
fact would prompt every conservative investor
to commence action to foreclOse as soon as
there is any default in interest Under a
prompt foreclosure law the lender would. in
most cases exercise greater leniency. knowing
that he had the power at any time to collect his
debt when he finds that the debtor Is making
no effort to pay. 1t is rare thing In Kansas
to find lender who will not be lenient with q
borrower who is making an earnest, honests
cheerful effort to meet his obligations
The proceedings in foreclosure should be
made as simple and inexpensive as it is possi-
BILE to make them, with due regard TO the
rights Of the mortgagor. The Missouri form OF
trust deed has proven, after many years OF trial.
very satisfactory. Something Of that charac-
ter. with provision that the mortgagor should
have the privilege of redemption for twelve
months, by paying taxes, insurance and inter-
est, would doubtless be satisfactory TO the bor-
rover and lender. 1 am confident that the best
interests OF all classes would be promoted by
the enactment Of such laws as would tend to
restore confidence in our ability and willing
ness to promptly meet our obligations
Insurance Laws and Insurance Department.
The laws relating to insurance corporations
and the transaction Of insurance business in
this state ought to be carefully revised and
amended. The act creating the insurance de-
partmeut. and most of the laws since passed
providing for the creation OF insurance COM