The Bismarck tribune., 1933-02-01
Foreign Representatives
SMALL SPENCER, BREWER
uncorporateO
CHICAGO NEW YORK BOSTON
Debt Adjustment Bureau

CHICAGO NEW YORK BOSTON
Debt Adjustment Bureau
Those interested In tiding over debt
settlements until price levels are re-
stored on profitable basis could
study the systems in vogue in Alberta
and Manitoba, Canada, where debt
adjustment bureaus are established
by law. In this state, the Bank of
North Dakota could easily function
as such an agency.
In Alberta, for instance, there are
two debt adjustment bureaus in ope-
ration. One at Calgary and another
at Edmonton. Any farmer can ap-
proach the Debt Adjustment Bureau
and secure from 1t advice respecting
his affairs. II the officer in charge
finds his affairs in such shape as to
require adjustment, he will arrange q
meeting with the creditors and Sc
cure. II possible, a voluntary agree
ment.
II such an agreement cannot be
secured under the provincial law, a
certificate can be issued protecting
the debtor from any court action for
debt. When the certificate has been
issued, the affairs Of the debtor are
taken in hand by the government bu-
reau. The farmer must account to
the bureau for all sales Of conmod-
tiles, with some minor exceptions,
and disposal Is made to the creditors
by the bureau Of all proceeds over
the cost Of operation, including seed,
feed. threshing bill. taxes. and living
expenses. In other words the farm
er Is kept on the farm and II there
is any income over bare necessities
1t is pro rated among the creditors.
In effect, a receivership or guardian
ship is set up to tide over the farmer.
In many instances this respite has
saved the day for Canadian farmers.
The plan has its shortcomings and
does not always work out as we'll in
practice as in theory. It has been
the experience in Alberta, that many
thousands of cases have received the
attention Of the bureau but COM
paratively small percentage have been
subject to issuance of certificate.
Conference, adjustment and concilia-
ton seem to have been more effec-
tive than placing the management of
the farms practically in the hands
Of the bureau.
In Manitoba there are two acts in
force conceived to protect unfortu-
nate debtors. One is the act Great
ing Debt Adjustment Bureau SIM
iliar In practice to the Alberta plan.
It is really a tribunal for harassed
property holders. This bureau has
the power to protect the farmer and
home owner by filing q notice in the
land title office preventing the alien
alton Of the debtors property through
foreclosure procedure. One authority
on the system writes: 1T has been
generally agreed that the Debt Ad-
justment Bureaus have been impair
tial and successful generally"
This plan is supplemented by an
other which has not been tried suf-
ficiently to test its efficacy. In fact
much criticism has been leveled at It..
It is known as the Orderly Pay
ment of Debts Act" This act pre-
vents seizures when the Judge is con-
vinced that such action would not be
warranted In view of the circum-
stances connected with the case.
In Saskatchewan, for instance,
there is another form q Debt Adjust
ment Act which is not meeting with
the favor Of the United Farmers Of
Canada, according to Frank Eliason
Of Saskatoon, secretary Of this organ
ization.
His opinion Of the plan clearly IN.
dicates that even . good plan on
paper can Be spoiled BY yeactionary
and stupid management. In . let.
ter to The Tribune. hs explains his
opposition to the act - follows.
I'VE, as representatives Of .
Saskatchewan farmer organisation.
are not satisfied with the act because
IN it, application It y working .
hardship On the farmers. FOR In
stance, II the Debt Adjustment COM
missioner is unable to arrange an
anaicabis sertlemenr - psvwsen debtor
|and creditor, he win send out Ger.
tain forms 70 the debtor 70 b filled
|out, which = m assignment whereby
- debtor agrees to turn over the
management Of his farm to the Debt
ekdjustment Conamissioner. II he
|6ngns that ASSIGNMENT Il means that
- must give IN account Of every
|1ning which he sells and the Debt