The Norfolk weekly news-journal., 1906-12-28
FARM LOAN COMPANIES.

Among the industries which are add
ing to the prestige of Norfolk as a f.
nancial center and which are tending
to induce immigration into the new
northwest, are the farm loan compa-
) mics of this city. The Durand Trust
company and w. ]. Cow & Bro have
been building up this line of business
for years and much good, not only to
Norfolk but to this whole section as
far up as the end of the Rosebud res
ervation, has resulted.
The farm loan companies act as
mediums between the farmers and the
eastern capitalists in getting money
from, the east upon farms in northern
Nebraska and southern South Dakota
as securities.
Through the agency of these con-
Germs the farmers of the northwest are
enabled to get money at the lowest
possible rate Of interest-at even a
lower rate than is secured for the
farmers of northern Iowa and south
ern Minnesota. The loan companies
in Norfolk have succeeded in proving
to the east that the farm lands of this
section are the highest type of secur
ity, next to government bonds them
selves, since no loss or foreclosure has
been recorded. And on the other hand
by making 1t possible to secure loans
at low rates, the companies have in
duced outsiders to invest their money
in farm lands around here, where they
can borrow money so reasonably, and
thus immigration has been greatly aid
ed. Farm improvements that would
not otherwise have been made, have
resulted through the fact that money
could be borrowed inexpensively with
which to make these improvements.
1t has been demonstrated that, while
railroad stocks fluctuate and while
city properties often rise and fall ac-
cording to various conditions, good
farm securities remain as stable as
the very gold itself, and for this rea-
son, while call money in New York is
drawing skyward rates of interest, the
conservative capitalists are more will
ing to put their money on good sub
stantial farm lands in the fertile west.
AS much of the money as is possible
to fill the demand for loans is secured
right around this portion of the coun-
try, as these chances afford good in
vestments to local money. And while
Wall street stocks and bonds some
times find money clamoring to get
into the game, the Norfolk loan COM
panies say that they never have any
| An toll he,
. ity-offers. One of the local companies
announces that it has just secured
, from one of the large eastern insur-
ance companies practically an unlim-
J tied amount of very low rate money
} to be placed on the farms of this whole
| territory.
The loan applications are focused
, into Norfolk by means of agents who
are located out through the district,
there being perhaps seventy agents in
various towns representing the Nor
folk companies. The territory covered
. extends clear up into the newly set
tied portion of the Rosebud reserva-
ton, upon whose quarter sections it
: is said loans as high as $500 are be-
ing secured
A stream of people keeps coming
into Norfolk the year round from all
this territory in order to look after
loans, regardless of the fact that there
are local agents. There is almost ev-
cry day In the year a farmer from
some place or other, who has come in,
perhaps with his family, to look per-
> sonally after his loan This is a help
: to Norfolk.
The result of this concentration of
farm loan business in Norfolk is added
prestige to the city as a financial cen
' ter. The power of this magnet is felt
: all around this point, clear out to the
y west edge of Nebraska on the main
line of the Northwestern, into another
state on the north and for many miles
y in all directions. 1t keeps the interest
of substantial people centered on Nor
folk constantly.
One of the local companies negoti-
ated more than half million of dol
lars in business during the past year
> alone. One has negotiated more than
a million and a half since its twenty.
, six years of operation. At times the
deposits in Norfolk banks, due to these
companies, is said to be a very con
siderable portion of the total deposits.
The loans of from $500 to 81 900, run
ming for five years at 3 and 5la percent
interest are desired by many who have
70 small amounts that they wish to place
on long time investments with safe Sc
curities.
y All in all the farm loan companies,
besides maintaining offices, renting
buildings and giving employment to
many here in the city, are construc,
tive factors in Norfolk's upbuiding. in
the very broadcast sense of the term
And several hundred farms constantly
? feel the benefit to them.
Wh0r could be nicer for "a Itr'
''r.ef-a. ri'' th'n 100 engraved