Omaha daily bee., 1916-09-23
OMAHA PRESENTS
CLAIMS FOR BANK
len Representing All Lines Of
Business Appear Before
v Federal Board.
MUCH TESTIMONY TAKEN


OF farmers and implement dealers cali
annually at the company's Omaha Of
flee than at any one of the other
branch houses.
Peter Jansen, Beatrice, asserted
that while he does not live in Omaha,
and has no property interests here,
he sees reasons why Omaha is at the
logical place for locating the bank.
E. Stoddard, we'll acquainted with
the farm tenant class, asserted the
land bank would put the renting class
into the position OF farm owners. He
added that there are $4,000 young
men in this state who want to get
on farms, but are afraid to try to buy
under the present loan conditions and
facilities.
Thomas Millett, Gregory, S. D.,
said the necessary local associations
TO negotiate the loans could be
formed in his locality within thirty
days after the banks are established,
and that the operation Of these banks
will be a great help in the develop
ment OF that newer region Of country.
Interest Rates Now.
]. B. Grinnell, Papillion, secretary
Of the Nebraska Farm congress, gave
the results OF his Investigations as
to rates OF interest paid now in Ne
braska on farm loans. He found one
place not fifty miles from Omaha
where 10 per cent interest was being
paid on farm loan. He gave his
own experience Of asking to have a
loan renewed. being promised a re-
newal at per cent and then being
charged g. per cent on the day when
he had to have the money. ! am
told they do this right along" he
said, when they get a fellow in a
pinch"
c. L. Durham, Norfolk, asserted
that under the farm loan system OF
cheap money and long term loans,
the Rosebud country would be de-
veloped very much faster than it is
at present. Although he is banker
he said he was in favor OF this
cheaper rate Of interest on farm loans,
because 1t would make more general
farm prosperity, and would immedi-
ately be reflected in increased de-
posts.
Wiley Tells Of Wyoming.
S. S. Wiley, Omaha, and Wiley,
Wyo., farmer colonizer, and hydraulic
engineer, testified that all the Big
Horn Basin in Wyoming is tributary
to Omaha, tapped by great trunk
lines, that II per cent to Is per cent
is the. prevailing rate OF interest there,
and that young men are kept from de-
veiopipg that country more because
OF the high rate of interest, which
they cannot afford to pay.
n. c. Filley, head Of the Univer-
sity Farm Extension Work, presented
a concise brief in which he showed
average rates OF interest charged and
showed that west of an arbitrary
zone-linc, extending from Holt to
Phelps counties, the eastern COM
panics, will not loan money, claim
ing that the rainfall is too uncertain.
He asserted the 800 cooperative ele-
yators in the state, together with the
great number OF other farmers or
0anization would Immediately form
4 basis for the organization of the
necessary local associations to get the
loans.
Among others who testified were
Colonel Jack Moore, Buffalo, Wyo.;
L. B. Fenner, Burwell, Neb.; p. J.
Brennan, Mobiles county, Minnesota;
Arson Hiersche, SCOTS Bluff; Q. F,
Dornblazcr, Dallas, Tex; A. I. Nam
mem, McClelland, Ia; w. 5. Della
tour, Garden county, Nebraska, and q
number Of other Omaha men.
The hearing continued until
o'clock, after which the members Of
the board hurried to the private car
and started for Des Moines.
Position Of Loan Agents.
Four loan men have rushed to
Hyannis, Neb., to make loans now tc
the Kinkaid homesteaders, since the
federal farm loan bank law was
passed. although before this bill be
came law, scarcely loan could be
had there by a Kinl;aider.
This came out In the testimony Of
John A. Hoban, Kinkaid homestead
.r from that section.
Hoban testified that before this bill
became law the loan men would moi
loan money to a Kink; der, as the
loan companies and the banks there
we're largely controlled by cattlemen
who wanted to Gust the Kinkaid farm
ers from the settlement in order tc
get the range back for their cattle.
Commission in Advance.
Hoban testified that he borrowed
$1,000 the fore part OF the present
month, and that he il to pay 3 pei
cent commission annually for five
years, and 5 per cen, interest on tn,
loan besides. He testified that tn,
\ 3 per cent per annum commission
making Is per cent for the five-yeal
period, was all taken out in advance
and that he thus gives the company
Is per cent besides the 5 per cent PEI
annum interest.
This was the testimony adducet
when the board questioned Hoban al
4 to how the federal farm loan banl
ioaning money al OF per cen
would benefit the Finkaid home
steader.
He testified that up to the presen
month he had been able to get onl,
small loans, and these from farmers
or ranchers in the neighborhood in
Z stead Of at the banks. He paid s PEE
cent on these.
Law Helps Already.
do you believe the TACT that tn,
farm loan bank law is soon to SO int,
effect had anything TO do with you
ability to borrow this $1,000 nowf'
asked Secretary OF Treasury McAdoo
Il do" he said. Il believe that j
just why ] got it. The loan compan