The herald., 1897-04-16
OFFICE OF THE HERALD
Los Angeles. April 15, 189

The law enacted by the late legisla-
ture, extending the time for the redemp-
ton of property sold under foreclosure
of mortgage, by which the judgment
debtor gets twelve months time to re-
deem, instead Of six months under the
oiH law. has been the subject of much
discussion. The law, although passed
in the interest of the debtor, will undobt-
edly have the effect of reducing the
amount that he would otherwise be able
TO borrow on a given piece of property
and will tend to shorten up the period
of grace he might otherwise obtain be-
fore foreclosure proceedings were
brought The argument has been
clearly stated by prominent San Fran
cisco real estate man, who shows good
reasons for doubling the wisdom of the
legislature in taking this action. He
says:
Money lenders of California at the
present day, whether corporate or indi-
yidual, with perhaps a few exceptions
among the latter, do not desire to ac-
ouire real estate in payment OF loans;
what they wish Is safety of principal and
regular payment of interest, and loans
are always made only with such ends
IN view. Hence all laws that make the
remedies of creditor less speedy and
less certain, must have for their effect
the exacting of harder terms and con-
ditions in the mortgage contract, and
greater severity in their enforcement.
The money lender looks at results;
methods and processes are Indifferent
to him. Laws may be changed-to him
1t signifies nothing-he adapts himselr
to the new conditions, protects himself.
and if things do not go on as before. the
change hurts not the creditor, but the
debtor. Meanwhile, the legislator thinks
that he is entitled to a pension. or at
least to a vote of thanks for having done
something for an oppressed debtor.
Redemptions of mortgaged premises
sold under decree of foreclosure in Cali
fornia are as infrequent as SHOWS In
San Francisco, and the only effect of
extending the period. therefore, is to
give the debtor without charge the use
of the real estate. the title to which Is
passing from him. for an extra six
months; this is an attempted steal from
the creditor, and the fact that 1t is so was
scarcely disguised in the arguments
used to promote the passage of the bill
which became the law in question. The
debtor who cannot protect his mort
gagged real estate from forced sale, can
not in one year after such sale hope to
redeem the same by paying the original
debt, with cost and penalties added;
hence few or no redemptions are made.
Mortgage creditors sometimes make
money out of real estate they acquire by
NJ ir
. the means to and do carry it until at
later day purchasers come into the field,
something that cannot be done by an
barrassed mortgagor.
At the recent session of the legislature
an attempt was made to attach re-
demptions period to deeds of trusts:
fortunately it failed,-fortunately not
for the creditor alone, but for the debtor.
Under the present conditions remedies
are sure and speedy, liberal loans are
made; and in case of misfortune extern
sions are granted of time for payment of
interest as we'll as principal In fact.
any borrower can secure in his papers
insertion of the provision, that no sale
Of his encumbered property shall be ad-
vertised except at time when some stip-
ulated payment of principal or interest
shall be six months or more In default.
This. in effect, gives the debtor his re-
demption period in advance, before any
costs are made or penalties are incurred.
Attach a redemption period by law after
sale. and the prior one will not be con-
ceded, and sums of interest and principal
will be collected with severity as they
become due. In other words, the lender
will adapt himself to the new conditions
and there will be no change in circum-
stances that will benefit the borrower.
Legislation may prevent or make it diff
ficult to procure loans on California real
estate and the capitalist may be forced
to employ his funds elsewhere. but no
methods have been devised, nor are there
any likely to be, that will compel money
lender to make loans except he is satis
fed with terms and conditions attaching
and surrounding the same, including
operations of the law.
The work done during the recent ses-
sion of the legislature has laid the foun-
datlon for a good set of mining laws Tor
California. So thinks the Mining and
Scientific Press. which says that with all
the scandals connected with the last ses-
sion of the legislature, there was no sign
of anything Of the sort connected with
the mining industry. The members all
appreciated the importance of the re-
vival of mining and seemed willing to
do whatever they could to help 1t. No ap-
propriations were asked. Miners are
self-reliant. All that they ask is per-
mission to use the machinery of the state
government only when absolutely neces-
sary. or the bills passed, 1t may be said
Of some Of them that they are expert
mental and may need revision at the
hands of the next or some future ses-
sion; but in the main they all tend in
the right direction, and enough good
has been done to enable the Miners As
ISOLATION with very little work to pro-
cure amendments or additional laws
from the next session. OF those passed.
that prescribing the manner of locating
claims is probably of the most import
ance to the miner.
AT the recent annual meeting of the
stockholders of the Nevada County mar
row gauge railroad 1t was shown that the
company's affairs were in a healthy con-
dition. The old board of directors was
reelected, including John +. Kidder,
president and manager. The Nevada
County narrow-gauge is considered one
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