The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-05-08
BANKERS WHO LEND
ON FARMS ORGANIZE
:
First Association Of Its Kind in
America Is Formed
Here.
COUNTRYWIDE IN SCOPE
Effort Will Be Made to Further
Safeguard Land Mortgage
Investments.
COUNTRYWIDE IN SCOPE

The Farm Mortgage Bankers Associa- |
tion of America was formed yesterday at
the Hotel Astor by seventy five men from
all over the country, but principally from
the South and West. II Is the first Or
SANITATION of men in this business.
Ono of the principal objects Of the new
association will DO to obtain legislation
favorable to farm mortgage investments.
Lest a wrong impression get abroad, the
president elected, F.. w. Thompson. Of the
Merchants Loan and Trust Company OF
Chicago. spoke up almost rs soon as he
took the chair and said
II think this association ought to make
Il clear at the outset that we want to be
advocates OF such proper reforms as may
be proposed in our branch of the invest
ment business. take 1t that We want to
meet changing conditions, and to 60
ahead, not stand still. l believe as
body we want to work with lawmak.ng
bodies and not stand opposed to reform
measures"
There was instant and hearty applause.
II was plain that the members did not
stand committed to belief that farm
mortgages are perfect everywhere as at
present negotiated. One member said:
IL hope we will take lesson from the
recent conventions at this hotel. they
found that some of their members had
seriously hurt the whole business by an
tagonizing Legislatures and the public, re-
Susing to answer questions about their
business, and such tactics.
'1n the last few years farm mortgages
have had n greater publicity than ever
before. with the result that some men
have been drawn to the business who
won't stay in II and whose methods Will
do US. as a class. no good. Ny forming
this association we can do something TO
protect the investor and the farmer
against such men,
Savings bank Aid Expected.
The farm mortgage men were told that
there is reason to believe savings banks
In come States. such as Massachusetts,.
win Join with them to get laws passed
making farm mortgages legal Investments
for savings banks and trustees In such
States. visitor told the convention that
the best field for spreading the gospel OF
farm mortgages as sound investments was
New England.
'The New England banks are full OF
money seeking safe but fairly remunera-
tive investment" it was asserted. I'm
most New England States the taxation
Is so heavy as seriously to impair the in
terest yield. In New Hampshire. for
instance. the tax is from u to : per
cent. SO that per cent. dividends net
the investor only or ~ per cent
The men and companies concerned in
forming the new association represent
many millions invested in improved farm
land III the South and West. The loans
are made to SO per cent Of actual value
Of farm lands. as appraised by experts.
They seldom run over five years and the
credits thus extended enable the farmers
20 move their crops. improve their land
and handle live stock with profit. Inter-
est on these mortgages Is generally SEMI
annual the rate running from to 10
per cent according to the ruling interest
In different sections Of the country.
Omcers widely Representative.
King,nan Mott Robins OF the Associated
Mortgage Investors of Rochester. \. Y,
presided until the election OF Mr.. Thomp-
aon and the other officers who are: Mr.
Robins, first vice-president. y. NJ Cor.
win of the Wells and Dickey Company
Minneapolis. second vice-president; J. Il
Maxwell OF the Maxwell Investment Com
pany, Kansas City, third vice-president
A secretary and treasurer are TO b'
appointed. These were chosen as COVER
nors of the association: A. Y. Allen o.
Tennessee. p. W. Bonfoey of Oklahoma
Edwin NJ Chamberlain OF Texas. Ed
ward L. Devereaux OF the Devereau'
Mortgage Company. Portland. Oregon
Conner Malott of tho Spokane and East
ern Trust Company, Spokane; LeVerlh'
Moore OF Louisiana, George L. Ramse!
Of the Banking Corporation or Montana
Helena, Montana :. IL. warren or Ran
sae. ]. W. Wheeler OF Minnesota. Waite
y, Williamson of North Dakota. X. w
w Jackson Of Connecticut and Moultri
Sessions Of the Sessions Loan and Trus
Company, Marietta. Georgia.
Some of the others instrumental in form
ing the association and present yesterda
we're r II Lewis of the WOodrug Trus
Company, Joliet, Illinois; w. ID. Hord
acting secretary, of so Broadway. Ney
York. Robert =. Deming OF the DENIM
Investment Company, Oswego, Kansas
and Townley Culbertson OF the Commerc
Trust Company Of Kansas City, Mis-
souri,.
A legislative committee will be az
pointed and the associations work wi
proceed at once along several lines. Ther
will be an Immediate effort to counterac
a tendency to lawmaking that the mem
bers consider adverse 70 the farm nor'
gage business and there will be wor
70 iegalize farm mortgages as saving
hank Investments In those States which
like Massachusetts, do not at present a
low them, The members hope also to q
something toward eXempting farm NOR
cages In the hands Of investors froi
taxation. -,
osain at the Aston to-day and cxpe'
TO complete their organization and en-
their first convention by noon. In II
evening there will be reception at III
Astor followed by a banquet AT whic
President Thompson and T. r. Harri
chairman OF the agricultural commiss'o
Of the American b. mixers Association, WI
be among the speakers
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