Askov American. [volume] (Askov, Pine County, Minn.) 1914-current, 1933-08-03
MUST APPLY
WITHIN YEAR
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ty court, the case coming up on March
4th. Attorneys for banks closed by
law or executive order, that they
might be saved from large withdraw
ais or runs on the banks, argued that
mortgage foreclosure sales could not
be postponed as it would tear down
the pillars of government.
Following the executive order of
Governor Olson and the subsequent
legislative act to stop all sales till
May 1, 1888, the Legislature passed
the mortgage moratorium act which
grants the mortgagor the privilege
to apply to the courts for relief with
in the time of redemption-before the
year is up. That extends the time
the mortgagor may remain on the
land or in the home until May 1, 1885.
The court arranges a fair settlement
between mortgagor and mortgage as
to rent, share of crops, etc. The main
object of the act, said Mr.. Erwin, was
to extend the time so that in the
meantime real estate values might
direct effect in that many mortgages
have not foreclosed and more reason
able settlements have been made.
The Cruel Deficiency Judgment.
Another wholesome feature of the
moratorium act is the stopping of de-
ficiency judgments, for that was a
vicious practice in these times of
low real estate values. In some cases
the foreclosed property was bid in
| for less than the mortgage and the
mortgagor was held for the difference
in a deficiency judgment.
Mr.. Erwin admonished his listeners
to be sure and apply to the court for
relief before the regular years time
of redemption is up on a foreclosure
proceeding, for after the year is past
the court cannot act. Upon applica-
ton by the mortgagor within time
limit, the court may extend the time
of redemption another year, making
provision for rentals or crop shares
to the mortgage.
| Governor Olson did the human act,
said Mr.. Erwin, when he stopped fore
closures and saved the homes for the
people when they were in despera-
ton. The cry went up from the
money lenders that it was a nullifica-
tion of contract and violated property
rights, but, added the speaker, to have
permitted the continuation of fore
closures would have been violation of
fundamental rights.
The State Supreme Court granted
the attorney generals office the privi-
lege of presenting briefs and argu-
ments on the case together with other
attorneys. On July 7th the court
handed down their decision, main
tanning that the law did not violate
but sustained the constitution. 1t was
the first time in the history of the
United States that State Supreme
Court gave such decision.
Attorney General Peterson Speaks.
Enumerating some of the progress
sive legislation passed by the last
session of the Minnesota lawmaking
body Attorney General Peterson said
the progressive legislation came about
because the people are progressive.
Some of it was emergency legislation
but all enacted with an eye toward
the recovery of business. He cited
the proposed national act-the Nc
Nary-Haugen bill-which had two
presidential vetoes. The big papers
were against it but later for it. St.
Paul formerly had wholesale bust
ness amounting to $2OO,OOO,OOO an
nually. This had dropped to $65,OOO,-
600 because of farm conditions. If the
process was continued it would spell
destruction and ruin, said the general
Bank closings came on March 4th
With large eastern financial institu-
tions closed Minnesota banks could
not have remained open or they would
have been ruined through eastern
Withdrawals. With the assistance Of