The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1918-03-30
BIG TOLL WILL
Be TAKEN FROM.
FARMERS UNDER.
BONDING PLAN
Quamme Declares Clause
Elimination Only Real
L Solution
QUARTER MILLION
FOR BONDS YEARLY
Land Bank Will Continue
Suit to Have the Prior
Lien Knocked Out

e. G. Quamme. president Of the
federal farm loan bank of ST. Paul.
interviewed by The Forum today by
long distance telephone, said that he
still was without definite advices as
to the exact developments at Wash
ington with respect to the farm loan
situation developed by the enactment
of the priority seed lien law in North
Dakota.
awe will 90 right ahead with
our action IN the courts in an ct
fort 60 have the law knocked out.
That is the only real solution OF
this question. The priority lien
must be done away with.
1tThe proposed indemnity bond
plan means new complications,
and will require time in which to
work IL out. no immediate rs-
sumption Of loans is possible
even with the indemnity bond
plan, as Il will require consider.
able time 20 draw a new bond
and nav form of contract to covs
er the proposed feature.
PsnaIizsd Quarter Million Dollars.
There are pending in the st. Paul
land bank at the present time appli-
cations for Approximately SlO,00Os0O0
IN loans from y 5rth y ia
Atty. Cen William hanger, who is
in Washington, adyised one Of the
league papers by wire Friday night
that he had made arrangements for
an indemnity bond to be filed by the
farmer taking a mortgage, such in
demnitv bond being fixed at the rate
of $3.50 per 81, 600 a year.
If the applications for $1,000
600 in loans now on file in the
federal lard bank In st. Paul are
All approved and loans made
with the indemnity bond pr6vi-
sion, thse farmers would be re-
auired TO pay a premium OF $3.50
for each $1,000 loaned, for each
year.
penaIized $780, 700 year on the
basis or the $f0y000,000 worth Of
applications now on file.
Records show that there are ap-
proximately 5000 900 900 in mortgag-
81 in the state, and IL the indemnity
bond feature should be extended TO
every loan, it would mean an addi-
tional burden on the interest payers
OF $5,000,000 a year, because Of the
priority lien clause.
f~FtNAE4 AWNG&kNE3 Ff@R@h@ F-leUa
Fargo handlers Of farm mortgages
have been studying the farm credit
question for some time in the hope
that they would be able to find sat
isfactory method Of dealing with the
question.
one mortgage handler has pre-
pared q clause by which a mortgage |
would be made due and payable inn |
mediately the MORTGAGE obtained
seed or feed from a county, and thus
gave a first lien on his land to the
county, impairing the original secur-
ity.
Final Solution Necessary.
Fargo farm mortgage handlers de-
clare that the credit problem will not
be settled right until the objection
able clause is removed, either by the
courts or by the legislature,
While it remains. farmers must 1
furnish an indemnity bond when the /
federal bank in st. Paul resumes the
making of loans in accordance with 1
the plan outlined at Washington, and 4
which was carried in a special disc
patch TO The Forum Friday after
noon. This means the paying Of a /
gigantic sum for the bonds.
Fargo handlers OF mortgages do /
not expect any immediate clearing i
up Of the situation by virtue OF the
farm loan boards new plan Of ac-
tion, though hopeful that the situa-
ti0n will be disentangled as early as
possible that business may be resum-
ed, and the farmers supplied with i
funds they require to carry on their
operations.
The Priority Clause.
The priority clause that has caus
ed ali the trouble is included i'm the
las
passed at the special session recent
III. held, and is as follows:
"(Contract making first lien). I'M
der the filing of the contracts prQvid-
ed for i'm section 3481 the county shall
acquire a just and valid lien upon
the crops and feed raised each year
by the person receiving seed grain
and feed to the amount OF the sum
then due to the county upon said
contract, which shall, as to the crops
covered thereby, have priority over
ali other liens and membranes
thereon. excepting threshing and la
Dor liens.
HThe county shall in addition have
3 lien, If the owner Of the real estate
has signed the application and note,
upon ain real estate described i'm the
application upon which said grain is
to be soWn, which shall have priority
over all eneumbrances except those
existing at the time this act goes in
20 effect And the fling and record
ing of said contract shall be held
and considered to be full and sufi-
cieut notice to an parties of the eX-
istence and extent of said lien up0nl
sata crops pf grain and feed raised,
and upon said land which shall con-
tinae in force until fhe amount cover
ed by said contract shall Be fully
nata u