The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1895-01-16

political views made any difference with the
money-loaner in the matter of his considera-
ton 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 viii
contract new debt: he already has the debt
hanging over him. and his greatest need is
more time in which to meet it at lower rate
Of interest.
1t is hardly necessary 60 discuss here the
question Of whether the mortgage Indebtedness
of the state has been benefit or injury. 1t ex-
lists. and the great mass of our people desire TO
honestly pay their debts at the earliest posi-
bic moment. It 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
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 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 it 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 ana NeDraSk2
than it can in Kansas.
ff1of
are taken into account by every prudent, care
full investor. The first is the complete protec-
! ton 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 1t 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-
bic 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; ana 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
the borrower can, without paying interest or
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
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 a lender who will not be lenent with
borrower who is making an earnest, honest,
cheerful effort to meet his obligations.
The proceedings in foreclosure should be
made as simple and inexpensive as it is posi-
/ ,,,aIya +1 +a r7,1a To he
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 satisfact tory to the bor-
ROVER and lender. 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 Departments.
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-
partment, and most of the laws since passed
providing for the creation of insurance COM
panies in this state, and their government, con-
tain provisions which ought TO be separated.
Ali provisions relating to the Incorporation OF
insurance companies ought to be in a distinct
act from the provisions of laws relating to the
insurance department. The insurance depart
ment was created for the purpose OF regulating
insurance companies, both foreign and domes-
tic, doing business in this state and for pro-
tecting the people from fraudulent or irreSpon-
Bible companies.
Insurance to be of any value to the insured
ought to insure, and it is worse than robbery
Cor any company to take money for insurance
and then fail to make good any losses that may
occur, for it not only takes the money of the in
sured without rendering an equivalent, but it
prevents the party from seeking and obtaining
valid insurance.
The law providing for the organization of in
surance comprehensive, fire, and casualty
not only need careful revision, but provisions
might with propriety be added to authorize
the incorporation of accident societies
or associations. Such associations organ
lied under the laws of other states for
the purpose of eneeting insurance upon
the lives and persons of certain classes of men
against injury or loss resulting from external
and accidental means, have been doing bust
ness in this state for several years past. and do
not seem TO be within the control of the insur-
ance department. This ought not to be permit
ted. Insurance companies of the class men
toned. whether organized under the laws Of
this state, under the laws Of any other state,
ought to be made subject to the jurisdiction
and control of the insurance department. And
certainly our laws ought not to permit any class
of foreign insurance companies to transact BUSH
ness in this state, and yet deny to our own cit
liens the right to organize like companies.
Some of the companies referred to as accident |
associations. organized under the laws of other
states, and doing business in this state, are
said to be secret associations, having ordinary |
rituals, signs and passwords, like other secret |
societies. I doubt whether such organizations, |
or societies, should be permitted TO transact |
business of insurance in this state; but if they
are permitted to do so, they should be brought |
under the jurisdiction and be made subject to |
the control of the insurance department It |
might be well for the legislature to consider (
the whole question Of fraternal insurance, SO |
called as well as accidental insurance, and |
make suitable provisions respecting the terms |
end conditions upon which such associa tons |
may transact their legitimate business in this |
state.
Irrigation.
The subject of irrigation is one OF vast i'm
portance to the people of this state. In nearly |
one-half OF the state the scant supply Of the
rainfall makes general farming uncertain and
precarious business, and renders compare
lively valueless, except for grazing purposes,
millions OF acres of the choicest lands in the
state. With an ample supply OF water at the !
proper season at least twenty millions of acres
VI AA1t1 uph AON aO4hA oA GA fSASEC A4eSAC
dollars per acre, could be
given a value OF twenty-five dollars per acre,
adding at least four hundred millions Of dollars
to the wealth OF the state and making that Sec
ton the garden spot of the state. Numerous
theories for the prevention OF drought hare been
advocated and tested. but they have proven
failures, and the people are now turning 10 the
subject OF Irrigation. There are some din
rultieS that confront them The amount OF the
water supply and Its availability for irrigation
purposes are the chief problems 10 be settled.
The western settlers. in their struggles 70 de- |
relop that part of our state deserve the hearty
Sunport Of every citizen more brave honest