Fulton County tribune. (Wauseon, Ohio) 1883-1925, 1916-10-20
Dear Cousin Ned:-

Dear Cousin Ned:-
| was not surprised at what you
wrote me of Tom Edgely's success in
borrowing money from the Life Insur-
ance Company, through Squire Brown.
/ was not surprised either that Tom
got a higher appraisal on his farm
than the Federal Land appraiser al
lowed. You see the "Carpetbagger"
had to play safe; he had no personal
interest at stake in making a large
loan-he is paid a fixed salary. If
he allowed too high appraisal he
might involve the bank in future loss,
and so he would lose his own job, on
the charge of incompetence or bribery,
or something. He was undoubtedly
instructed by the officers of the Fed
eral Land Bank to be very conserva-
tive in bis appraisal; they too, are
on salary, and have no interest In
making profitable loans. They get
their appointments through Farm
Loan Board at Washington, and their
chief concern is to be conservative
and get all the security they can pick
on all loans.
On the other hand, Squire Brown is
interested in putting over as big a
loan for Tom as possible, for he gets
a commission, so he serves Tom on
his own appraisal of the farm, know
ing that the loan is safe, because he
knows local values and knows Tom s
farm, he also knows that Tom is a
good farmer and making a profit, so
that the loan is a desirable one and
he can we'll be liberal in making it,
both for the sake of his own commits
sion and to accommodate his friend Tom
Edgley.
As a matter of fact, there is not
much risk in that, for even if Tom
does add $1,000 to the cash value of
the farm, the loan is only half of the
appraised value, and we all know that
the price of land is going up each
year, as the country is settled.
But who pays Squire Browns com
mission? Tom gives a first mortgage
at 6 per cent. to the Insurance Com
pany, and a second mortgage at 2
per cent. to the Squire, that second
mortgage is the Squire's commission.
SO Tom pays the commission, and as
the loan is going to cost him 6 per
cent. with a commission of 2 per
cent a year for five years, it makes
a nice little profit of 10 per cent. on
the loan for the Squire; besides that
he pays the Squire probably $25 for
examining the title and fixing up the
abstract.
You tell me that there was some
little cloud on Toms abstract. The
wife Of a previous owner signed her
name to deed to the farm different
from the name she had previously
- - - fho 10 nd
but the notary had certified to her
signature, and the Squire said that
while it was possibly a slight cloud,
he knew the woman and Knew it was
the same person in both cases-the
same wife of the owner-so he was
able to satisfy the title examiner of
the Insurance Company that it was
safe to go ahead with the loan, and
he promised to take the case into
court afterwards and quiet the title
for the cloud is only a technical one
The examiner used his discretion, as
he has known old Squire Brown foI
years and knows that he is a reliable
lawyer. SO the loan was not held up
as was the case with the cloud on San
Sticks title, who tried to get his loar
through the Federal Land Bank.
OJAlAp LndJ CAbId q pei SShO' SViiiiAAio
sion which Tom had to pay to Squire
Brown amounts to considerable; thai
would all be saved if you could dc
business through Cooperative Rura
System. and it is too bad that thC
system is so limited as to make i
impracticable.
You say Tom borrowed $4,000; ther
in FIVE years the commission amounts
to $500, and that is quite an item fol
a Woodworking farmer like Tom. /
would pay all the expenses of sending
Tom, Jr., to the Agricultural Colleg,
for three years. If that same per
centage e per cent.) were applied t
the $4,000, 100000 total of the farm
mortgages it would amount to $50,
100000 a year, which is equal to th'
entire wheat crop of your State.
Besides, it is under a five years
term, and if he wants an extension ol
his mortgage he will have to con
time to nav that 2 per cent. a year
and probably a bonus also, for i