American Falls press. [volume] (American Falls, Idaho) 1907-1937, 1916-05-25

d ion.
These loans We're granted, you being
present and voting, In the amounts
applied for on the very day the ap-
plications were filed with the board
and on the following day you endorsed
warrants for four loans aggregating
$4,000.
1t was later shown by the alb
stracts that, short time before the
loans were applied for, each OF the
several parcels of property offered as
security had been decided by Fred l..
Huston and wife to the parties apply
ing for the loans, and that In order to
make these transfers, II was necessary
to redeem the land from sheriff's
sale.
Your board has a rule to the effect
that wheneer n loan Is APPLIED for
the application must be accompanied
by deposit Of l per cent of the
amount APPLIED for and rule 80 states
that:
1T viii be considered that the ap-
praisement fee has been earned II
loan Is granted and completed In the
amount applied for"
Under this rule, the loans having
been granted as aplied for, the state
was entitled to fees aggregating $3.50;
but the minutes OF your board for the
day on which the applications were
considered show that the deposit of
the fees was waived on the ground
that no expense was incurred In
making the appraisements.
1t may be remarked parenthetically
that most any borrower would be WILL
ing to appraise his own land, II per-
mitted to do so, and thus save the
appraisemont fee. This practice would
at least have the virtue of equal treat
ment to all
On the 2bth OF February. 1915, the
day after the loans had been author
ized, the registrar OF the land board
sent four warrants aggregating $19,-
600 to the Farmers and Traders bank
OF Idaho Falls accompanied by letter
stating that the warrants were to be
held In escrow until title TO the prop
erty had been cleared except for the
mortgages to be given the state. This
letter concluded as follows:
Abstracts clear OF all encum-
brances except states mortgage, in
each case must be advised OF their re-
ceipt and APPROVAL before the enclosed
warrants are released"
Notwithstanding these instructions.
the warrants issued In favor OF Luther
A. Huston, p. W. Williams and John
s. Scott must have been released at
once for the records In the state au-
ditor's office show that they were re-
deemed on February 2S, 1916, the day
before the corresponding abstracts
were received by the state and before
they had been approved.
A careful examination OF the rec
ords in these cases warrants the fol-
lowing conclusions which may be stat
ed without injustice to Mr. Huston or
any other member OF the board.
|. BY the transfers referred to, Mr..
Huston seems 20 have avoided that
rule OF the board which fixes the max
imum amount which any one person
may borrow at 5000.
2. The real borrower, or at least
the person bene6cially interested In
the loans, was allowed TO appraise his
own lands.
3. The state was made to lose s190
which II was entitled to under rule
80, and the waiver OF this fee was
: an injustice TO other borrowers.
4. Nineteen thousand dollars OF the
., states money was actually loaned Out
before the abstracts to any OF the
,, property in question had been ap-
proved by the attorney generals Of
fce and before they had even beer
presented 10 the state for examina
tion.
The Statesman, following the ac
finn nf the land hoard on Nav "a o