The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1918-03-29
URGE EXTRA
SESSION s. TO
CORRECT ACT
Governor Frazier ImpOrtuned to
Call Back Legislature to
y Undue Bugling
COURT PROCEDURE SLOW
Question as to Whether ObnOx-
; ious Provision Is Unconstitu-
toinal in Any Event
COURT, PROCEDURE SLOW


state find themselves in serious fin
ancial straits as a result of the en-.
actment by the state legislative as.
Sembly, in its recent special session,
Of the seed grain law that carries
provision whereby seed grain liens
are made first liens on farm lands.
The situation has become so criti.
cal as a result of the fact that the
farm loan bank has found it neoes-
sary 70 abandon operations in the
state, and the further fact that
private investors are refusing to
close loans until the situation is
clarified, that North Dakota's crop
production may be materially de.
creased. 4.. -
, Immediate steps, is is generally
conceded by those who have made a
study OF the situation and are in
position to discuss it, are required if
North Dakota is to restore its credit,
and make it possible for thousa nds
Of her farmers, dependent upon max
ing loans, to proceed unhampered
with their farming operations at this
critical period in the nations food
production campaign.
special session urged.
The suggestion that special ses-
sion OF the North Dakota legisla:
ture be called by Governor Frazier as
the quickest means Of bringing about
the restoration of the states credit is
carried to the states executive to-
day in an open letter from the press.
Such action would be positive, it
is claimed, and would make it pos
sible for the farmers of the state
who are dependent upon closing loans
this spring, to proceed with their op-
erations. .......
Court proceedings were begun today
in Mountrail county, by the federal
farm loan bank Of St.. Paul, but such
proceedings, it is pointed out, must
run the gauntlet ofsthe court and
there is no certainty that the supreme
court of the state will declare the
obnoxious priority clause unconstitu-
tiOnal.
Delay Foreseen. q,
In the event that the courts hold
the priority clause constitutional,
the farm loans would be in the same
position, they are today, and a great
deal of valuable time would be lost,
according to those who are anxious
to bring about the earliest possible
settlement.
It then would be necessary for
Governor Frazier to call the legisla'
ture into> special session, and undo
the work of the special session so
far as the priority clause in ques.
ton is concerned. 81.
! This, it is pointed out, would en-.
tail the loss of a great deal of val:
liable time, and might seriously and
permanently impair North Dakota's
farm credit to such extent that not
only would the effects be felt so far
as this crop year is concerned, but it
might extend into the years to come.
Washin9ton's View.
Secretary of the Treasury William
G.. McAdoo, sees little chance for &C.
ton there that will bring about any
change in the farm land boards
position. In a telegram to Governor
Frazier he suggests that steps be
taken to change the law. His tele'
gram to the governor follows:
AS you know" said Secretary
McAdoo, in his reply to Govern.
or Frazier, ''the federal land
banks are required by act OF con
gress to lend money on first
mortgages only. t.,~ >I@
1.-THE enactment Of your seed
and feed law with the usual
provision that loans made there
under should have priority Of lien
over mortgages previously re-
corded raises serious questions,
both of law and of the security Of
loans made by the Federal Land
bank under the act of congress.
''As soon as the attorney gen.
eral of the United States renders
his opinion will communicate to
you. Will you please let the peo-
pie of North Dakota know that
the officers of the Federal Land
bank of St. Paul and my col
leagues of the farm loan board
and myself deeply sympathize
with the people of North Dakota
in the predicament in which they
find themselves because Of the
prior lien given under the seed
and feed law, and that we are
sincerely desirQus Of doing every
thing in our power to relieve
. them. A.. ......,..s. (, ............-
"It IS impossible, however, for
the farm loan board or the Farm
Loan banks or myself to do any
thing in it's connection If the at
torney general of the United
States should hold that the lien
of the seed and feed law is para
mount to that of farm mortgages
to Federal Land banks. sas+
: lHaU
t4f Taking New Tact.
Attorney General William LANCER
is in Washington, seeking to undo
there the work done by the legisla-
ture in this state.
In telegram to one OF the Non
partisan league papers in Fargo last
night, he advised that he had filed g
lengthy brief with Attorney General
Gregory, seeking to show, that It ISL
discretionary with 1.-The farm loan
board whether it operates in North
Dakota or not.
This is looked upon as the first OF
a-series Of steps that are being and
willsbe taken byst state admins ira
tionSto take. responsibility from their
own. shoulders and place it upon the
farm i1nd board. PAW
Have Made Same Ruling.
s.Ass Ssecretary=,s,, Or, the Treasury Nc
Adoo, in his telegram to Governor