Ladysmith news-budget. [volume] (Ladysmith, Rusk County, Wis.) 1907-1927, 1914-01-09
STATE AIDS LOANS TO FARMERS
First Land Mortgage Association
Will Operate in Rusk County

consin will soon be a real POSSIBLE
lty. With this end in view the 1913
legislature passed Chapter 666, the
so-called land mortgage association
act. This act is designed to provide
money for the land owner for long
periods of time at reasonable rates
OF interest and with the installment
payment or amortization privilege.
Since the legislature adjourned the
state board of public affairs and the
commissioner of banking have been
working together on a constitution
and bylaws to be adopted by asso-
Citations to be formed under the act
| Bonds Secured by Mortgages
| The association and it's workings
are simple. Fifteen or more per-
sons incorporate with a capital
stock of not less than $4,000 and
adopt the by laws prepared by the
state board of public affairs and the
banking commissioner. The funds of
| the association are loaned on first
mortgage security and when these
securities are deposited with the
state treasurer, the association may
issue bonds to an amount equal to
| the securities deposited The bonds
| issued are sold and in this manner
| additional funds are provided. When
| the association sells the bond issue
it has again in it's treasury as much
money as when it started.
| The affairs of the association are
| managed by a board Of trustees con-
| sisting of seven members. In addi-
ton to this board a committee on
loans and an auditing committee are
required. The committee on loans
acts upon all applications for loans
and recommends the same only after
a thorough investigation and after
satisfying itself that the loan will
benefit the borrower The auditing
committee must audit the accounts
of the association every three months
or oftener. This committee, by unan-
lmous vote may remove any officer
or any member of any committee OF
the association.
/ The feature of the constitution
and bylaws is the blank application
for loans form included therein. This
form requires a detailed description
of the applicant, his property, as to
what money is to be used for 1t re-
quires also the signature of every
officer or person required to pass
upon any matter connected with the
making of the loan and in this way
makes sure of the person responsible
in each case.
Under State Control
The commissioner of banking I'M
der the act and constitution and by
laws has control and supervision ov-
er these associations as great or
greater than that exercised by him
over state banks.
| First in Eau Claire
| The first association to organize
in this state under this law is To-
Gated in Eau Claire. 1t will operate
mainly in Rusk county In all prob
ability this is also the first organiza-
ton of this kind organized in the
| United States. This association is
composed Of Eau Claire bankers and
business mem and is known as the
First Wisconsin Land Mortgage Asso-
citation. At recent meeting the fol
lowing officers were elected:
Trustees John Bauman, w. K
| Coffin, Frank Conrath, C. w. Dinger,
B. F. Faast, T. B. Keith, J. A. Pla-
| ter. Auditing committee-A. J. Keith,
E. J. denmark, J. D. r. Steven.
| Officers-President, B. F. Faast;
Vice-President, j. A. Playter; Secre-
tary and Treasurer, John Bauman.-
Eau Claire Leader, Dec 20.