The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1916-07-28
BOARD TO DIRECT
LAND BANKS NAMED
BY THE PRESIDENT
Hearings to Designate Dis
tricts and Locate Institu-
tons in September
FARM CENTER CITIES
STRONGLY FAVORED
Organization of New System Will
Take Several Months, and McAdoo
Says 1t May Be Spring Before
Operations Will Commence


Washington, July 27.-Division of the
country into y federal land bank districts
law will be undertaken soon by the fed
and location of federal land banks in
each of them under the new rural credits
eral farm loan board four of whose mem
bers were nominated today by President
Wilson. Secretary McAdoo, who as an
ex officio member completed the board,
said tonight, however, that he believed
it would be impossible to conclude or
ganization of the system in less than six
months, and that it might not be in actual
operation before spring.
The four men nominated today as mem
bers of the board are Charles E. Lobdeil
of Kansas, George w. Norris of Pennsyl-
vania. W. S. A. Smith of Iowa and Her
bert Quick of West Virginia. The Presi-
dent is expected to designate either Mr..
Norris or Mr. Quick of the democratic
members of the board, to act as farm loan
commissioner and executive head of the
farm loan system.
Until the Senate acts on the nominations
no date for meeting can be set, but it
seemed probable tonight that the mem
bers would get together within two weeks.
Hearings on the designation of districts
and the location of banks probably will
begin sometime in September. The first
of these is expected to be held here, and
most of the state capitals probably will
be visited before they are concluded. Tha t
will require several months and other
technical steps provided in the act pre-
liminary to actual organization of the
banks, probably will prevent operation OF
the system before February or March.
SELECTION OF LOCATIONS
Although in making his selections the
President named lawyer, a banker, a
farmer and an economist it was pointed
out tonight that the board would have
little to go on in framing its decisions.
About the only directory provision in the
new law is that the u federal land bank
districts shall be apportoned with due
regard to the farm loan needs of the coun-
try and that state lines shall not be
broken in defining districts.
1t was said tonight, however, that the
board is locating the banks would consider
first cities which are near farming cen
tiers, regardless of size or other banking
facilities, and that cities which were can
didates for federal reserve banks but
failed to get them probably would be
strongly considered for federal land
banks.
Requests for loans on farm lands I'M
der the law already have been filed in
large numbers in the treasury department
but no action can be taken on them until
after the board Is organized. The board
will have offices in the treasury depart
ment here, as has the federal reserve
board.
Each federal land bank must have
subscribed capital of $750,000 be-
fore beginning business.
Individuals, corporations, state gov
ernments and the United States may
hold stock under the law, but dividends
acruing may not be paid the United
States as to other stockholders. The
banks will not come in direct contact
with farmer borrowers, but will oper-
ate through national farm loan asso-
Citations, corporations chartered by the
farm loan board under authority OF
Congress and operating in the farmin 8
communities where loans are sought.
HOW LOANS MADE
All loans to be made under the sys-
tenn must be secured by first mort
cages providing for amortization over
a period of years and at interest not
coed so per cent of the value of the
land mortgaged and 20 per cent of the
value of permanent improvements nor
be greater than $4,000, nor less than
500. Mortgages may run from five to
forty years.
Mr. Lobdell is a student of farmers
problems and has had extensive ex-
perience in loans on farm lands. He
was farmer before studying law,
L 1arr ;e,1a Far
10 years and was speaker of the Kan
sas house in 1895. In 1902 he was
elected judge and served on the
bench for nine years, resigning to be-
come president of a bank at Great
Bend He also is president OF loan
associa ton and is connected with sew
eral banks. He is a past president OF
the Kansas Bar association.
Mr.. Norris, a graduate of the Univer-
sity of Pennsylvania, has been success
lively a newspaper man, lawyer and
banker. In 1894 he took charge OF
the bond and investment business Of
private banking concern in Philadel-
phia and served as a member of the
firm until 1911, when he retired IRON
business to study social and economic
questions. He is director and deputy
chairman of the federal reserve bank
of Philadelphia.
Mr.. Smith. a farmer by occupation
for the past year has been an expert
in farm practice in the department 81
agriculture here. and has had extern
sive experience in farming problems
AS a young man he went to sea and
became a ship master. For several
years he served on the loan commit
tee of a national bank in Sioux City
Mr.. Quick, until a few months ago
was editor of Farm and Fireside, and
for many years has devoted himself
to study of rural credits and other
farm problems. Early in his career
he taught school and practiced law and
later was general manager of a tele-
phone company in Nebraska and Iowa
He was mayor of Sioux City from 1895
to 1900. He was nominated for SUI
preme court Judge in Iowa in 1902.