The Oklahoma City times. [volume] (Oklahoma City, Okla.) 1908-1984, 1916-11-22

somewhat reduced. yet information
gathered by your petitioners from eVcN
county in the state OF Oklahoma within
the last sixty days shows that the pre-,
ent average farm loan rate in Oklaho
ma. including agents commissions Is
SO7-pcrcent the evidence mqucSuon-
ably indicating that both Oklahoma and
Arkansas still remain IN the high rate
class from which large degree Of re-
lief is expected through the operation
of the federal farm loan act This
average IN Oklahoma comes from the
high rate existent IN the Indian Tern
tory side Of the state and the extreme
western side In northern and central
Oklahoma loans are now made as low
as h'g perceut including commission
II is very pertinent to note further.
from bulletin iS+. page ,. table J. that
the average annual agents commission
is higher IN Oklahoma than in any other
state oi the union, such average annual
commission being & percent In addi
ton to being definite evidence OF large
farm loan need on the part OF our rural
population. this high average commits
sion rate. which is the service charge for
securing the loans and consequently
not available To the borrower as operat
ing capital, shows two things that are
important:
Local Capital Not Sufficient.
FirS,-Ihc absence OF local supply
Of Investment capital sufficient to absorb
farm loans, which results m loans be
through brokers The bulletin above
mentioned states that in Oklahoma com
missions are paid on 9lb percent OF all
farm loans that arc made
Second II shows that the character
OF Oklahoma loans is such that from
the standpoint Of security, outside IN
vcNtors are willing to accept reason
able rate OF interest The basic rat,
10 Investors IN most OF the counties oi
the state is . percent, except IN northern
Oklahoma, where it is as low as ST.
percent
All this means that the district undcr
consideration will unQucStlonably sup
ply a large amount Of hgh-claSs fir,
mortgages which are now maturnl
from year to year and which can b,
refunded under the farm loan act witt
cheaper rates of total intcrc,, and ol
longer terms OF repayment
II is automatic that, III order to in
suH the success OF the farm loan Sy,
TEN, the mortgages underlying the is
suancc OF bonds must be OF uudoubtc'
security That Oklahoma mortgage
rank high from the standpoint OF Sc
curity is evident from the fact tina
more than %j0OO0OO are now loanc
on Oklahoma farms at rcaSouahl
basic rate, and that more than $1,000
OOO Of this amount have been nvcstc,
in Oklahoma farm mortgages by life IN
surance companies, including the Irav
elcrS Insurance company OF Hartford
Conn Aetna Life Insurance Compan
OF Hartford, Conn, the National Lii
Insurance company OF Vermont, Tn
New York Life Insurance company tn
Equitable Assurance society. the Pru
dental Lie Insurance company, IN
Union Central Life Insurance Compan
OF Cincinnati. Ohio. the Pacific Mutua
Life Insurance Company OF Los An
gelcs, and at least score OF olho
smaller companies.
Further detailed facts cunccrnn
farm mortgage rates and agents com
missions in Oklahoma may be found b
your honorable board in the bullet
mentioned above and every fact $
" found will unQuestionably emphasiz
the farm loan needs OF the proposed di,
trict under discussion.
Majority Tenant Farmers.
The usual conditions surrounding III
development OF lands under Indian owr
ership in Oklahoma, together with N
large amount OF land held for Spccu
lative purposes, contribute largely to
high percentage oi tenant population
While there have been government, r,
strictionS in the sale of Indian land
there has been no restriction again
their lease 10 tenant farmers The SCI
tlement OF Oklahoma has been so rapi,
its people having largely been tho,
coming from other states while voun
and with their fortunes vet to earn, thi
they have found temporary homes O
restricted lands and in many cases al
0 merely awaiting the first available OF