Evening star., 1934-07-01
FARM ANDPENS|ON
BILLS BECOME LAW
President Explains Long
Delay and Points Out
Loose Wording.
BY G. GOULD LINCOLN.

of the session OF Congress recently
closed late yesterday, when he an
nounced that he had signed the Fraz-
ier-Lemke farm mortgage bill and
the railroad labor retirement and
pension bill. These measures thus
became law.
The President issued statements tc
accompany both measures, briefly CIV
ing his reasons for approving them
Both had been under attack. but par
ticularly strong was the attack against
the Frazier-Lemke farm mortgage bill
This measure was characterized by
its opponents as measure to permit
the farmers to repudiate their debts
In effect, it extends to farmers a
five-year moratorium on mortgages
with minimum payment of interest
in the interim.
The Chief Executive, however, in
sisted in his statement approving the
farm mortgage bill that the reasons
for its passage far exceeded in i'm
portance the reasons advanced fol
disapproval.
Cites Lack of Understanding"
There has been a serious lack OF
understanding of its provisions" said
the President. 1T has been alleged
that insurance companies and other
mortgages will suffer severely through
the use of this law by farmers who
evade the payments of debts that are
within their capacity to meet.
Il do not subscribe to these fears
Il have sufficient faith in the hon.
esty of the overwhelming majority OF
farmers to believe that they will not
evade the payment of just debts
The farm mortgage bill, which had
been abandoned by the leaders in
their drive to wind up the session OF
Congress on Saturday night, June 16
was revived at the eleventh hour
when a small group threatened tc
filibuster and prevent adjournmen,
for many days. Senator Huey P
Long of Louisiana leaped into the
fray in defense of the farm mortgage
bill. Despite the warnings of Sena-
tors Walsh of Massachusetts, Loner-
gan of Connecticut, Fess of Ohio and
Others, the bill finally was put through
the Senate by an overwhelming vote
Not a Wholesale Privilege.
The President said further in his
statement on the farm mortgage bill
Contrary to the belief of many
informed persons, this is not a gen.
eral or wholesale moratorium privi-
lege. The provisions for appointment
OF apprsisals under the bankruptcy
act and Tor the judicial review of their
appraisals furnish adequate checks
against the possibility of unfair ap-
praisals. The actual repugnance with
which farmers. like other right mind
ed people, regard bankruptcy will
prevent them from availing them
selves of the provisions of this mea-
sure except under the force of neces-
sity. The bill is intended to protect
not only the farmers but their cred
itors. also.
In the actual operations OF the
law, I do not believe that losses OF
capital will greatly exceed. if they ex-
ceed at all the losses that would be
sustained if this measure we're not
signed
"On the other side Of the picture
it is worth remembering that this act
will stop foreclosures and prevent
occasional instances of injustice to
worthy borrowers The mere threat
Of the use of this machinery will
speed voluntary conciliation of debts
and the ref1nancing program of the
Farm Credit Administration. 1t will
prevent deficiency Judgments form
of liability which in the opinion OF
many thinking business men ought to
be abolished entirely.
Notes Loose Wording.
THE bill is in some respects loosely
worded and will require amendment
at the next session of Congress
Nevertheless, the reasons for signing
it far outweight the argument on the
other side"
There had been reports that the
President would veto the farm mort
gage bill. Many demands from the
Western States, and particularly from
members of Congress from those
States. were made that the measure
be enacted into law The arguments
in favor of the bill finally outweighed
those against it by men who insist
that it really amounts to debt
reputation.
Supporters of the railroad retire
ment and pension bill were at loss
to understand why the President de-
layed giving his approval to that
measure. They had sought to in
fluence the President in every pos
sible way to sign the bill during the
last few days.
In his statement on the bill the
President said:
Decision on this bill has been
difficult.
The principal argument against
the measure includes:
"(a) The Federal co-ordinator OF
transportation, at much public ex-
pense, now is engaged in thorough
survey of the whole subject of en-
ployment security on railroads. He
requested many months ago that leg
islation be deferred until the compile
ton of these studies and the flllng
of his report.
"(b) The bill. although much i'm
proved in its final form, still is crude
ly drawn and will require many
changes and amendments at the next
session of Congress.
"(c) Although the bill does not
create very large additional financial
obligations on the part of the rail-
roads during the next four years, the
financial expense will increase pro-
gressively after that date and the
bill makes no sound provisions for this
increase.
Burden Under Estimates.
"The arguments in favor of the bill
are as follows:
"(a) The actual burden on the
railroads caused by enforced con-
tributionS will be far less than their
figures would indicate.
"(b) Superannuated employees will
retire under the new pension plan
and, though a considerable number OF
these older men will not be replaced,
many others will be replaced by other
employees. The net result will be to
improve the morale of the entire
force.
"(c) The bill is in line with sound