American Falls press. [volume] (American Falls, Idaho) 1907-1937, 1917-08-24
STATE TREASURER EAGLESON
FLAYS STATE LAND BOARD
DIVORCE POLITICS FROM FARM
LOANS HE ADVISES.
Says Present Methods Are UncOuth,
, UnsOphistlcated, Unbusinesslike and
Out OF Date, and Would Ruin Any
Banking Institution.

Some of the reasons why Idaho is
unable to loan $750,0O0 of state school
funds to farmers at six per cent while
private loan companies and banks are
putting out vast sums at eight per
~>cent, are strikingly set forth by State
Treasurer Eagleson in recent letter
to Governor Alexander.
The letter was written at the re-
quest of the states chief executive.
August 3 the governor called the state
treasurer before the land board to de-
mand what action could be taken that
would result in increased loans being
made from the school funds.
Eagleson told the governor what he
believed to be wrong with the present
system. The governor demanded that
the suggestions be put in writing.
Eagleson asserted when before the
land board that the whimsical go per
cent habit of cutting down loans, re-
gardless of the appraised value, is re-
sponsible in a great majority of cases
for the loans not being taken" The
same assertion is contained in the
letter.
Farmers Reject 234 Loans.
Evidence is presented by the
state treasurer in his letter show
ing that "294 loans. totalling
s440,69O, have not been taken by
farmers over the state after they
have been allowed by the board;
that only As per cent of the loans
allowed by the board are ac-
cepted by the farmers, and that
over so per cent of the loans al
lowed have been reduced from
$50 to fifty per cent of the
amount of the loan asked for, and
all regardless of the security Of
fered or the report of the ap-
praiser. That from January l to
July 1, 1917, the board allowed
loans aggregating s347 900, and
of this amount there have been
warrants drawn to date for only
$159 900"
THE foundation of the trouble" the
state treasurer says. "is deeply seated
in the whimsical conditions of politi-
cal partisanship and the personal
equation is only incidental. The sug-
gestions are therefore offered in the
spirit of the request, solely for the
purpose of bettering the conditions
now existing, and to help get this vast
sum of money to earn the maximum
amount OF interest pOSSlDle.
What the Records Show.
I'm order to present the actual con-
ditions as they are, I have had to
take considerable time to examine the
records. The data there disclosed
shows beyond question the reason for
loss of interest, amounting to over
$4,000 during the last six months.
It clearly illustrates the old adage that
a farmer can lead horse to water but
cannot make him drink
$50 it is with the land board lend
ing money to the farmer. He has pre-
sented him to the states financial
watering trough, but he refuses to
take the unheard-of proportion of 55
per cent of the farm loans as finally
allowed and offered to him.
Land Board Is "Queered."
THE records show conclusively why
this is and what has queered the board
and the states money in the eyes of
the farmer, and while the state is los
ing an enormous amount of interest,
the farmer who has rejected this
cheap, idle state money is voluntarily
paying an even greater sum in COM
missions and excess interest just to
avoid being enmeshed in what the rec
ords show to be the whimsical, un-
business-like methods of the land
board.
This is a condition supremely
astounding, and has never been
paralleled in any bank or business
institution anywhere or at any
time.
Complicated Red Tape.
"Under the present methods of pro-
cedure the farmer to get loan must
run the gauntlet as follows: He must
first write to the register of the land
board to get information. and an ap-
plication blank is then sent to him.
"This he must fill out and mail
back to the register, together with l
per cent of the amount of the loan
desired as an appraisement fee. The
register then refers the application to
the land commissioner and he in turn
refers it to an appraiser.
IF il happens to be during the sum
mer. the appraiser goes as soon as he
can and makes the appraisement, but
if application is made in the winter,
the farmer must wait until the next
summer to get it appraised.
Back to the Register.
After the appraisement has been
made, the application and appraise-
ment are then returned to the register
and he takes it before the land board,
where it is either allowed. cut down
or rejected.
IF the loan is allowed, the register
then writes for the abstract and as
-aoy, ac IL Is sent in he sends II m
the attorney general for his opinion.
The abstract and opinion are then re-
turned to the register and he returns
the abstract, together with note and
mortgage, for the signature of the
applicant, who places the papers of
record, has his abstract brought down
showing mortgage recorded, and then
returns the abstract and papers to the