The Guthrie daily leader. [volume] (Guthrie, Okla.) 1893-1996, 1908-02-15
PLAYS HAVOC WITH
FOREIGN COMPANIES
Several Attempts to De.
fraud State Loan Depart.
mcnt Detected


one Of the most yitally interesting
I4ases 81 State government in Okla
homa today IS ihe lending Of the Eve
million dollar school fund 80 The farm
crs OF the state This interest lies ln
ihc "a that The money is obtainable
iaf fye per cent and for long term
Of years, and that IL Is going direct to
The farmers Of tho state, and they
compose ,hreefourths OF the poDula-
tion Further interest attaches be
cause OF the fierce opposition to the
plan Of such disposition Of the school
funds
Trhe method Of securing sgch loan
is simple direct and eieative. Their
popularity Is attested by the fact that
while the brsiness Is hardly started.
applications are pouring in at the rate
of Fifty per day To the loan depart-
trent at Guthrie A farmer writes In
tc the supervisor of loans and asks
far q loan. He Is sent u blank appl-
caticn which he must hll Oni IN full.
and the questions asked are numercrs
aid to the point covering the loca.
tian. valuation, quality Of land des'
crlption OF improvements and other
information desirable in determining
the stability Of the applicant When
this application is dlled oct properly
Il Is returned to the supervisor OF
loans. together with an abstract TO
date made by some bonded abstract
company II must also be accompan-
led by certified check or ether nego-
table paper as a guarantee that lhe
application Is made in good ialth. me
abstract IS examined by the legal De.
uartment OF the loan division ana II
Il rs sstlsfa. tory an Inspector is sent
out TO make personal inspection. nc
trports In fun on all questions con
tanned in the application, but he more
particularly inquiries into the stand
inc and business ability of the appll'
cont for the loan. for the state IS
lending money. not buying land, and
4 is his business TO find out whether
the applicant win pay of the loan. lie
also hxes the amount OF money whlch
he thinks shoald be loaned ON the
land Il is usually a good deai less
than Tho amount applied for and ms
vehntion Of the land is also pretty
AIT 10 be below that given by the
ognar. though the valuation placeo
upcn the land must be ottesten oS
two men who are residents oil 'he
samo cGauty ,,.
NJ tho inspector malScs a favorable
renort mortgage Is made out IN ia-
vor cf the state and this Is sent ~ .he
county sent aud recorded and 'nvl ~,
Tie applicant gets bis money ~
cannot gst It Hntu the state moftsage
h recorded, as the state ~ taxing no
,hansos ON another mortgage pehiB
sl,nred in ahead OF It's security When
the loan is completed the Slb sent ~
IN The farmer Is returned 20 him WIN
tbe execution nf about S6.9o when Is
nsea 10 cover the expenses Of makins
Tho inspection aud recording me mort
gage
rho loan department has made
,,nina that 10 more than one loan
Shall be made to one person. ana INA,
nm more than $500 shall be loaueu
on one piece OF land, unless there is
] snecias session OF the land commission
! to pass upon H. and that means ue
lay. ,a4
IA IA already apparent that the state
ioan department Is playing havoc VIII
| the IHlin i0Nll ANAAtNfNAff'
Inc state. Farmers are coming IN sue
making applications for loans nh'
| trey frankly state that they want iil'
money to pay of mortgages held .,
some lean company or bank Tor whiei
they are paying a higher rate OF IN
terest than IS charged by the state
The loan department has its tronn
les Alraaay schemes of graitefs an'
sWinalers have been detected Whef'
b, the perpetrators hoped 10 DC avg
M eei loans which would have peer
worthless 10 the state aud which tnel
dia NOT intend 10 pay one on 'ase'
attempts was rum Gown ana u Wv
nscovertd that nearly hali Q'1T'
anniicaaons had been made oy en-
man and that ne had made iaiss lsp
vaccinations Ia each one oi ihem tn'
lad DE loan bsen made not a cent 9
II could ever have hefp collected
IN addition TO this the loan dep.u'
mrnt is annoyed hy representative
\ ana seuators dropping in ana leg.eal
ire that loan be inAdete' algAspss
ent of theirs who has ASKED iheN ~
sstahce ia the uatter, OsnalN u
snch cases the loan Is a doubtful one
othervtso the applicant would no