The representative. [volume] (St. Paul, Minn.) 1893-1901, 1898-08-24

allow the borrower to sign away every
right Of exemption he may have, and in
those boom times this right was freely
waived, because every man who borrowed
fully intended to pay the debt, and the
matter Of waving exemptions was only
formality placed in the mortgage to
sOOthe the Over-cautiOus man in the
East who owned the money. Let me re-
peat story about farmer, told to me
as the result of the questions l asked
him. This man bought farm some five
or six years ago. tho price being $1,500.
Of this he paid in cash $1,000. and the
balance he paid by giving mortgage to
a trust company for S400, secured on the
farm. This mortgage was payable in
gold in the city of Boston. and the in
terest was payable emi-annually Be-
fore the mortgage was duo the panic
came, and when it matured he was una
BILE to meet it. The trust company was
willing to renew at that time, but the
borrower did not want to give a gold
mortgage. Another firm Of brokers Of
fered to take up the loan and take a
mortgage payable in legal tender, but
they must have per cent more interest.
The man then went to the first COM
pany, the one holding the mortgage in
trust, and asked what they would give
for his equity in the land. The manager
said he would give $40. The borrower
asked why he could not offer more, in
asmuch as but One-fourth of tho pur-
chase price was due. Then the manager
explained to him that the mortgage
contained a waiver Of exemption laws Of
any and all kind; that there was no
sale for land, and if 1t went to fore
closure he would probably be tho only
bidder, and that he would not bid above
two-thirds of the amount of the mort
gage, as the law would give him the
land at that price. Then for the balance
of the debt he could seize the borrowers
live stock, machinery and any other
personal property necessary to cancel
the obligation.
Now" said the manager, will it not
be better for you to take the $40 and
keep your personal property than to let
it go to legal settlement and lose every
second company and gave the mortgage,
not for $400, the amount of the original
debt, but for an additional S125, which
was the price charged by the second
company for negotiating the loan, and
he was in debt in the sum Of S525
When the mortgage was approaching
maturity last fall. the broker warned
him that it would not be renewed, and
he began to look about for means to
pay the debt. He sold some calves to
one man and some hogs to another, and
both these men borrowed the money
with which to pay for the stock. There
was still 5000 to be raised above the
amount received for the calves and
hogs, and this was raised by putting a
chattel mortgage on 10 COWS, which is
still due and TO be met this fall. The
mortgage was Cancelled all right, but the
debt is not paid. 1t has merely been
transferred to another form of indebted
ness secured by the chattel mortgage.
There are hundreds of farms in Kan
sas for sale at the prices given above,
| because they have been lost to their
former owners through the seductions
of the money brokers and the imitation
of boom times which led to unneces-
sary borrowing, making debts which
the panic and poor crops made it i'm
possible to pay. Much of this loss is
due to defects in the laws which seem
great to Eastern eyes. The Kansas
farmer has not much money at this time
because he has lost his farm through
borrowing, or has paid his money away
to Eastern mOney-Owners, leaving him
his land, but taking the money out of
the state.