American Falls press. [volume] (American Falls, Idaho) 1907-1937, 1917-08-21


= Policies Than Half Loans
Granted Are Accepted.
THE people Of this county who have
applied for loans to the state board
are disgusted They have been in
suited by the treatment received at
the boards hands"
This is an extract taken from ont
of the many letters on file in the state
layd board office says the Boise
statesman. It was written by D. c.
Smutz OF Challis, president Of the
First National bank.
Scores of farmers, business men and
bankers flay the board for its incOn-
sistent policy, and refuse to accept the
terms arbitrarily laid down, accord
ing to the letters in the land boards
files.
Farmers Reject Loans.
The board loaned s347, 900 from
January l to July l. Of this amount
1884, 900 has been taken and $685.
600 rejected by the farmers because
the board reduced the amounts asked
for
This action made it necessary for
the land owners to secure their money
from private concerns. According TO
the written statements of the farmers,
these loans were secured without any
effort, but larger interest rates were
paid.
While the board is rejecting loans
and cutting down the amounts asked
for. State Treasurer John W. Eagle
son points out that the state has
$780, lying idle. This money is
drawing 3 per cent interest in the
banks, and, he says, should be loaned
to the farmers Immediately on basis
Of 6 per cent.
so Per Cent OF Loans Are Reduced
The record of the state land board
shows that so per cent of all loans
that come before the board are cut
These reductions range as nigh as 81
per, cent and in practically every case
Shs reductions are made in the race
of the state land appraisers repor
recommending that the full loan 0'
granted.
with the money coming in from
the big land sales that are now beini
held throughout the state, the tota
surplus on hand will reach $1,000,
600 shortly after January /, unles
drastic measures are taken, de
clared the state treasurer
1t is noticeable that during the hrs
two land board meetings in Jul
when the governor was absent, tn
entire amounts of the loans wer
granted as per the recommendation
of the appraisers in every case.
In practically every case of rejeC
ton, the governor prefaces his me
ton with: This man already has
loan from the state and we shoul
prevent him from borrowing an
more money"
The Case of President Smutz.
D. c. Smutz of Challis, president
the First National bank of that tow
applied on April IS, 1917, for a sl0l
loan. The record of the state lar
board shows the land appraiser, Jof
Walker, said in full
This land is fenced with thr'
ANbarbed wires, has one small bal
which is worth about 500. l consid
the land worth $4,000. Improved LAM
of no better quality have sold as hi!
as $40 per acre. and l consider IN
it would be entirely within good bus
ness and safety to grant loan
$1,000, and I respectfully recommel
the same"
The appraisers recommendatio
were ignored, and the board grant
$500.
Mr.. Smutz rejected the loan, a
wrote to the board as follows;
so far as l can see, your maxi
of loans seems to be a farce as me
of the applicants from this secti
have rejected the loans you off
Your board does not seem 10 put a
faith in your own examiners repo
as you cut his recommendations
each and every case that l hs
heard Of.
I know Mr.. Klug got $4,000 fir
private parties on an application fu
complying with the law on value
arbitrarily reduced by your board.
people Are Disguised"
The people of this county y
have applied for loans TO the st
NSoard are disgusted. They have b.
insulted by the treatment received
the boards hands
Another example of the boal
arbitrary methods is we'll illustra
in the case of J. NJ Brown of Ha
son. Mr.. Brown applied for a |
in July. A. f. Parker. state land
praiser. reported it was "spleI
property, anu sdlu leNouiuAe II
loan for S3375," The board reje'
the entire loan.
on April 4. 1917. Norris Hottl
of Rathdrum wrote to the board;
have changed my mind in regar'
my state land loan. have lost q
months Of time and probably VI
lose three more before l could
my money"
Board ReVerSeS Itself.
In the case of Thomas Barnar
Rockland. the board held up the
for many months on a technicality,
finally when Mr.. Barnard withC
his application the board did VIII
previously stated was Impossible
Mr. Barnard had two sect
pledged as security for a $4,000
He fled an application for new