The Bismarck tribune., 1933-02-17
CHATTEL MORTGAGE
RESTRICTION BILL
PASSED BY SENATE
Debate on Measure Hinges on
Question II Il Would Bar
Barnyard Loans
A measure making invalid chattel

uIedSuTc making lnVald CnaCCel
mortgages on future acquired prop
erty and property not particularly de-
cribed in such mortgage passed the
senate by close margin Thursday
after considerable debate as to
whether it would keep farmers from
getting "barnyard" loans.
The bill. approved 26 to 81, now
moves into the house.
Senatorial disapproval was ex-
pressed on only one proposal on the
calendar. one which provided that
associations. corporations. or individ-
uals be compelled to comply with
laws governing operation of licensed
hotels and cafes and with the work.
mems compensation and minimum
wage law. It was defeated "a to %
with three senator's absent. A
"clincher" motion was attached.
Author of the "chattel mortgage"
proposal, Senator E. E. Greene of
Stutsman county, explained the meas
ure was first introduced in the house
but was killed after numerous amend
mentS had been made.
Greene urged favorable action, say
ing the bill would stop the bad rrac-
tice" of mortgaging everything for
all time to come" He said the wealth
to be taken out of the soil in future
years was being mortgaged until a
great part of the farmers wouldn't
dare eat any of their own products. /"
Opposition came from Senator w.
D. Lynch of LaMoure who said he
had never given a chattel mortgage
in his life before. but that he now
was trying to get one. He said the
bill would deprive the farmers from
getting "barnyard" loans.
"They want to get these barnyard
loans and 1t is one of the best ways"
he said. If the bill were to pass ne
feared ut would knock out the barn.
yard loans"
Would 'Shackle' Farmer
Sen. A. w. Fowler Cass, also op-
posed the bill saying North Dakota
passed law prohibiting crop mort
cages and later it was necessary to
amend that law so farmers would
have an opportunity to use funds
available from the federal govern
ment. He said the proposal to make
invalid chattel mortgages on future
acquired property was a similar thing
and that 1T may shackle and bind
farmers so they would not be able to
take advantage Of the federal help"
Greene said he believed the bill
would not affect barnyard loans or
anything coming from the Robinson
bill In congress.
Consideration and final action on
proposed revision of the state hail
insurance law was made special or
der Of business for 3 p. m. Saturday
after it received its third reading
Thursday.
The measure makes the hail tax a
prior lien: pays no indemnity for the
first 10 per cent of hail loss: reduces
indemnity to $8 and IS; and allows
one year unpaid hail taxes.
Clarifying the law initiated in 1882
which prohibited corporation farm
ing. bill proposed by Senators Fow-
Ter Of Cass and Matthaei of Wells
passed the senate.
Senator Fowler explained the bill
clarifies the initiated law and brings
out the original intent Of the initi-
ated measure. He said it makes 1t
clear that the measure shall apply to
rural farm lands only and not to city
real property.
Exempts City Property
The intent of the initiated meas
ure was to have the initiated meas
ure apply solely to corporation farm
ing and not city real estate. Fowler
said. It provides that corporations
acquiring rural lands must dispose Of
them within 10 years. BY its term
it was not restricted to rural real es-
tate but was broad enough to include
city real estate and this bill seeks to
restrict it to rural" real estate.
Any transfers made or title &C.
quired since the initiated measure
was adopted that might have been
held illegal under the initiated meas
ure are held subject to provisions Of
the amendment and must be disposed
Of within 10 years. Fowler said It
also makes circumvention impossible:
that Merchandising Of the land
from corporation to corporation would
be covered.
The senate passed $500 appro-
priation for the inspection and erad-
ication OF bee diseases under the de-
partment OF agriculture and labor.
introduced by Senator N. p. Simon
son, the bill now goes to the house.
The senate unanimously approved
and sent to the house q measure ap-
propriating 81 ,59l95 to the state cap
ital maintenance fund to pay ex-
penses Of housing the present legis-
lature.