Audubon Republican. [volume] (Audubon, Iowa) 1894-1925, 1914-05-07
FARM CREDIT PLAN
VALUABLE TESTIMONY TAKEN BY
COMMITTEE IN CHARGE
OF THE MEASURE.
UNDER FEDERAL CONTROL
VIII Provide That Each State Must
Enact Laws Simplifying Foreclosure
Proceedings and Land Titles to OBJ
tain Full Benefit Of Innovation.

tain Full Benefit Of Innovation.
Des Moines.-Former Representa-
tive ID. p. Hogan OF Cass county in
Des Molres expressed his satisfaction
with the way the bill for establishing
farm mortgage banks now before con.
gress is making progress. The bill
was prepared by members of the COM
mission that studied the subject in
Europe last summer, of which Mr.
Hogan was a member. 1t was intro
duced in the senate and in the house
Jan %, by Cenator Fletcher and Con-
gresham Moss who were both men,
bers of the commission. Since II was
introduced a joint committee of the
senate and the house has been having
hearings at which farmers, financiers
and students of the subject from every
part of the United States have given
their views on legislation for the es-
tablishing Of a long term mortgage
banking system. discussing the Moss
Fletcher bill In particular.
This Joint committee. in this way,
has collected some very valuable tes-
timony which can be obtained by ask
ing one of the Iowa congressman for
the report OF the hearings on the
Moss-Fletcher BILL" said Mr.. Hogan
Il have followed those hearings very
closely and find that while there are
very many different opinions as to
the details In the operation OF the
system, a great number OF those APP
pearing before the committee are
agreed that the fundamental features
Of successful system are included In
the Moss-Fletcher bill
"The bill provides for the establish
ment Of farm mortgage banks under
the supervision and control OF the
United States government which shall
loan money on farms only in the
states in which they are organized.
Loans may be made for one-half the
value Of the land. Bonds are issued
against the collective mortgages, but
such issues is limited to fifteen times
the paid up capital OF the bank;
bank shall not charge mortgagors
more than / per cent above the rate
it pays on it's bonds. The mortgages
and records OF the bank must be UNI
der the close supervision Of fiduciary
officer The banks are also frequent
ly examined by another government
officer.
st win be seen by this method
there is behind every bond issued by
the mortgage bank mortgage for the
same amount on farm at least dou-
BILE the value Of the mortgage also the
capital OF the bank and in addition a
double liability OF the stockholders of
the bank The bank must have the
mortgage before II issues the bonds
so there is no element of speculation
In the business.
ain a state like Iowa where farm
lands are SO uniformly good and the
climate so reliable, there is practical
ly no chance Of a loss in such bust
ness, when loans are confined to one
half the value OF the land The long
time loans must also have mortiza-
tion feature: that is, the principal
must be reduced annually by a pay.
not more than thirty-hve years. The
bonds are tax free as II can easily be
seen that any tax on the bonds must
be added to the interest rate on the
mortgage. The bill provides that
bonds shall be a legal investment for
United States trust and court funds
and postal savings bank funds. 1t
al a hat cfotA
enact laws simplifying foreclosure
proceedings and land titles in order
to obtain the full benefit of the law.
1t can readily be seen that bonds IS
sued under such strict government
supervision on Iowa farms. would COM
mand low interest rate"
keokuk Dam Company In ouandary.
I The Mississippi Power company.
operating the power dam at Keokuk.
has declined to report to A. l.. Urick,
state labor commissioner, until II is
decided whether the concern is IN
Iowa or Illinois J. c. Davis, attorney
for the company, explained TO the com
missioner that the company is In an
embarrassing position OF not knowing
what state II Is in: therefore II can
not report to either Iowa or Illinois
until the point is cleared up
In the matter of taxation the ques
tion of what state shall assess the
property also comes up.
The Illinois supreme court has rul-
ed that the Jurisdiction OF Illinois ex-
tends to the center OF the navigable
channel of the Mississippi river. The
Iowa supreme court holds that Iowa
has control to the middle of the river
The position the power house OF the
Keokuk dam occupies permits It to
be claimed by the two states.
Stopover Tickets for Iowa.
Privileges of stopovers in any part
OF Iowa during the continuance Of the
Panama exposition at San Francisco
are being sought of railroads by the
Greater Iowa committee. Roads have
SO far granted stopovers at Des
Moines. but the committee is seeking
continuation OF this privilege for
every main line town OF the state.
w. w. Marsh of Waterloo, president
of the committee, appointed Col. G.
s. Bows Of Cedar Rapids; C. d. Cass
of Waterloo and Ralph Bolton of Des
Moines, special subcommittee.
Crazy Over Automobiles.
Iowa is going automobile crazy, or
Whereabouts, according to reports from
the state automobile department. 1t is
estimated that Iowans will own and
register $4,000 more automobiles this
year than in 1913.
In the first four months Of this year
more automobiles have been register
ed than were registered In the entire
year Of 1918. The 1918 mark was pass
ed last week. The total registration
at the close OF the weeks business
was 70,O24. In 1918 the total regis
tration was 7o,o6s.