Grand Forks herald., 1922-06-20

stands is a part Of quarter section,
the remainder of which is covered by
the mortgage, and the title to the
whole quarter being in the packing
company the quarter has been asses
sed and sold together with the plant
by the county authorities without any
apportionment of the taxes.
"The result Of this situation is that
to protect its mortgage the bank must
dollars due on the tax sale of this
tract of land. The bank would have
no way of reimbursing itself for this
payment except by adding it to the
mortgage which is already fifteen
thousand dollars more than the value
of the property mortgaged. The pay
ment thus made would be added to
the states loss, and the property not
covered by the mortgage cleared Of
taxes for the benefit of the other
mortgages and judgment holders.
Reason For Action. 81
ITO protect the mortgage and avoid
this loss it may bei'necessary to fore
soloeea thS Enk's mortgage by IAN ac=
| ton in court in which the county and
the holders Of the tax certificates are
lmade deENndants, >and in that saction
obtain afs3udgment. ..that will Give Fto
the banksssthe lien for the taxes now
jsheld by the certificate holders. These
tax; claims are bearing twelve per cent
interest so that it is plain that by the
| time a foreclosure can be perfected
ithe claim of the bank against the
company will be more than forty
| thousand dollars .,..
eve are cndeavoring to get in
touch with tha tax certificate holders
in tho hope that their claims can be
acquired byyassignment If this can
! be accom- plished-and the bank. can be
made reasonably safe in its claim the
necessities for foreclosure may pass,
but as things now stand it is absolute
fly necessary Unless the state is to
suffer u large loss in addition to what
was put'into the company by the Fra
zicr administration. -.
Many New Judgments. .
THE resources of the company are
being jeopardized to the prejudice Of
the bank by the fact that the COM
pany has recently given additional
! mortgages on this part of it's property
not covered by the mortgage of the
tered number of judgments against
it, ranging from q few hundred dol
|! lars, to. five thousand dollars, all OF
which are liens on the property not
| covered by the mortgage. that will be
| superior to any claim of the bank un-
der any judgment it may eventually
get for the difference between it's
i claim and the amount the mortgAged
property will sell for att foreclosure.
This deficiency must surely be fifteen
thousand dollars and the additional
amount that must be paid to protect
F.! the property from the tax. claims,
= AL, nh ioht mt he
! to complete q foreclosure and obtain
title to the property or get possession
| Of it, common business prudence and
! common sense required that the no
;tice Of intention to foreclose be CIV
1 en-, as it was. at the earliest possible
moment SO that the foreclosure can
be started properly il it becomes nec-
essary. If in the meantime the Estate
can be made safe from the present
danger of loss of the land through the
tax sales, and any fair prospect can
be shown that the bank can eventual
i b. get its money without resorting to
| foreclosure, it and ourselves will be
! very much gratified.
There is no purpose on the part OF
any one to oppress the company. The
only purpose is to protect the taxpay-
i ers money. II it was desired to har-
/ rass the company the notice of fore
! closure could as well have been de-
4 layed until the election was past. hut
II as :itSwa6 necessary to move with the
EutmoSt expedition and neither our
fselveS os Mr.. Green gave any heed
whatever 70 the political interestssot
anyone.
4 Warns Stockholders to Look Out
"As this interview will probably
come before the eyes of some Of the
stockholders of the packing company
Ii take occasion to suggest now that
4 It would be well for them to look we'll
Thoroughly and carefully into, the
4 condition into which this valuable
property Is being allowed to become
involved in overlapping and !. success
sive liens for taxes Judgments and
mortgages, that must inevitably lead
TO its entire. loss. .s55 I. i
stand that the same things that make
kota unsafe spell out this ultimate
loss o1 the entire stock investment
4 and that the ultimate interests OF the
stock holders are the same a. the In
terest1 0fs the hank 20 the holder Of
tlfia mortgage, and when the bank
4 loses a part Of sits claim the stock
4 holders Win have lost all OF their IN.
i yestn5ent, When q little more llaa
a been allowed to pile up Against sthll
4 property representing the toll and
money Of many hundred citizens OF
i the state, the amount involved viii
have become 70 great that no one. cal j,
ttake the property Eu6jeet TO it except
nsh 4 sgncsEg ~ y rsae