The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1921-12-16
NJ 'MAH0N LOAN
HISTORY GIVEN
BY DEPARTMENT
Loan on Golden Valley Land
From State Bank Figured
in State Politics
APPROVALS RESCINDED
Manager Default of Farm Loan
Department Issues Order
Cancelling Approvals "
APPROVALS RESCINDED

History o! the loan made by the
farm loan department of the Bank OF
North Dakota to D. J. Mcmahon, land
dealer of St. Paul, said to be an uncle
OF former Congressman John Baer's
wife, is detailed by employees in the
farm loan department of the Bank OF
North Dakota. The loan, made on
Golden Valley land, was much dis.
cussed in the LANCER campaign.
The loan of $25,oO0 was made when
the title of the land was not held by
tMr. Mcmahon, according to employees
in the farm loan department under
Manager w. B. Default.
A quit-cla:m deed since has been oh.
tained, by Mr.. MaNahon but it can.
not be recorded because Df consid
erable amount OF unpaid taxes on the
land. No payments have been made
by Mcmahon on the loan nor taxes on
land, although records show that ef.
tllrts were made to get him to- make
payments.
The history of the loan as given by
the records in the farm loan depart
ment follows:
On January 2, 1920, Mcmahon gave
the. Bank of North Dakota four mort.
cages aggregating $25,OdO and on
Feb. %, 1920, a blanket mortgage for
$25,0O0 on 4yS57 acres pf Bad Lands
in Golden Valley county.
At the time the loan was made title
to the land was held in trust by Sam
uel 4. Van SAINT as trustee for the
Van SAINT company covering this and
other land for loan Of $4,000 on
| 5,076 acres. Bonds had been issued
against this, maturing June 5, 1920. J
There had been two foreclosures
ION the, land previous to the loan.
It was June 5, 1920, before quit
claim deed was received from Van
SAINT.
On October II, 1921, the quit claim
deed was sent to the register of deeds
Of Golden Valley county, but it could
not be recorded because taxes for 1926
amounting to $S72.49 had not been
paid. Since that time land has been
sold for 1920 taxes and taxes for 1921
have accrued. The farm loan depart
ment has written for statement Ol
the taxes at present.
The loan record shows that on the
original appraisal 1900 acres were
under cultivation and later papers
showed 800 acres broken.
p, Appraisers View
In speaking Of the portion OF thu
land on which the, first loan was made
the appraiser said that located as I
is would not consider it at over 500
Der acre as security for this loan
Figured at $500 per acre do no
consider this an attractive loan
This was on 2,840 acres of grain;
land In considering The loans ind
vidually he said that "lt appears tina
three of them have merit while IN
fourth is questionable unde: the eli
cumstances."
Manager Default has not decide
what action will be taken, but indi
Gated he would start foreclosure pro
ceedings on this tract unless pay
ments are made.
The survey of the farm loan condi
tions thus far made by Mr.. DeNau
has revealed such a condition that h
has decided to reject all loan appro'
ais and cancel all appraisafs on loan
where the mortgage papers are M
yet actually signed and to investiga'
carefully all other loans now in pr
cess of being closed. Application
and appraisals of securities are thl
set aside for the reason that in man
cases they appear to be unreliable an
excessive in valuation, according
mt. Default, and the system of doir
business will be changed from the a
pliCation blanks up and an average
much smaller loans provided for.
The state treasurer has had return
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