Omaha daily bee., 1896-04-05
nRSrRrcrlNn roREcLoSrREs.

OBSTRtCTiNG FORECL CLOSERES
The general liquidation through which
I this country has been passing for the
past three years ny reason OF financial
distress has caused great hardship not
only 10 debtors but also to creditors.
The money lender, the banker, the
, mortgage broker the investor have
each shared in the losses entuiled by
the general destruction Of credits and
the universal shrinkagc In prices. In
| many RESPECTS the insolvency of mer-
chants and manufacturers while de-
plorable in the extreme. has not been at
tended with as disastrous results to the
country as has tile winding up of as-
tatcs burtlcncd with mortgage indebted
ness. The owners of merchandise have
at the very worst been closed out by
the sheriff and forced to the best set
tlcmcnt with their creditors they could
make under existing shrinkagp of mar
kct values. The owners of improved
and unimprovcd lands. lots. or farms
have in many eases found themselves
at once ovcrtakcn with the loss Of their
property and hopclcssly involved for all
judgments.
And yet 1t Is u serious question
whether the delay of mortgage fore
closures by the interposition of legal
technicalties through the aid of lenient
courts beyond the ordinary period is of
Df III ta ,rn 10 h,, 1,1, ,1, 10,
the communities in which the property
Is located. With very rare exceptions
the obstructive tactics of the lawyers
simply prolong the agony and pile up
court costs and attorneys fees without
saving tho client.
In the state of Nebraska the shortest
period within which a mortgage can be
forcclosed without a waiver of the de-
fendnnts rights is two years. In many
instances where the attorneys take adj
vantage of every possible quibble and
invoke the power of the supreme court
at every turn the process of foreclosure
can be prolonged over four and five
years. Meantime interest and taxes ac-
cumuate and in the end the creditor is
often Il heavier loser than the borrower
If such dilatory litigation simply af-
fected the parties Immediately involved
the tendency of the courts to tip the
scales in favor of the debtor as long as
possible would be comparatively harm
less. AS a matter of fact, the public
has an interest in these cases which
courts are too liable to ignore. High
interest rates are another name for poor
security. High credits represent not
only ample security but also assurance
of prompt repayment. The more I'M
certain the collection of mortgage debts,
however sure the mortgagee is to get
his money in the long run, the higher
the rate of interest and the more diff
cult to procure loans.
There is an abundance of loanable
money awaiting investment in the
financial centers, but its owners
will not send it to us until con-
fidence is fully restored and recovery of
loans by court process is made certain
within reasonable time. 1t goes without
saying that permanent resumption of
cannot be looked for until
the process of liquidation shall have
been completed and the creditors who
are forced to take realty in satisfaction
of their loans shall be in position to
make improvements that will make it
productive. While the foreclosure liti-
cation is pending neither party will
make any betterment or contribute any
thing to the upbuilding of town. city or
state. In the end, eXpediting the fore
closure process, where foreclosure is
will speed the day of busi
ness revival. The forced sale of prop !
erty must eventually compel the new
owners to identify themselves with the
fortunes of the city and state. For this
reason it is to be hoped that the end of |
will be fastened.