Evening star., 1934-10-22

LAW IS ASSA|LED
BEFORE BANKERS
Counsel for Montana Group
Brands Act "Vicious Class
Legislation"
SHARP PRACTICES USED
IN PASSAGE, HE ASSERTS
North Carolinian Resents Impli-
cation in Roosevelt's Septem-
Der Radio Speech.

A Dltter attacK on tne fTaZleT-
Lemke farm mortgage act, which was
described by John G. Brown, counsel
of the Montana Bankers Association,
as vicious class legislation" and de-
structive of the inviolability of private
contract. today marked the opening of
the sixtieth annual convention of the
American Bankers Association.
Addressing the State bank division
one Of the several groups which met
at the Willard Hotel-Brown charged
the measure, important provisions of
which were recently declared uncon-
stttutional by Federal Judge Chestnut
in Baltimore, had been put through by
legislative maneuvering and sharp
practice.
Quoting President Roosevelt as hav-
ing said that the mere threat of the
use of this machinery will speed vol
untary conciliation of debts and the
refinancing program of the Farm
Credit Administration" Brown COM
mented that "a partisan might ques-
ton the craftsmanship of enacting
laws to be used as threat for the
purpose of carrying out new, untried
political theory
Ugly Whip Cracked.
Recalling that Senator Robinson of
Arkansas, a Democratic leader. and
Senator Harrison, Democrat, of Mis-
sissippi, originally opponents of the
bill, had voted for its passage, the
speaker wondered whether from some
place an ugly whip had cracked and
a lash had been laid across the back. !"
The militant note sounded in
Browns speech was re-echoed in an
address by Robert M. Hanes, president
of the Wachovia Bank & Trust Co.
of Winston-Salem, N. C.. Hanes
touched on criticism leveled at bank
ers both from governmental sources
and the public press and declared mo
distinction had been made between
good and bad banks"
Referring to President Roosevelt's
radio address in September, which he
interpreted as drawing a comparison
between British and American bank
ers, to the detriment of the latter.
Hanes said he thought this was TO
tally uncalled for and unfair
early SpCCC1lCS vi IAlC bdA1hCAos lAAOAO
than 2,400 Of whom were here today
from all parts of the Nation, indicated
their determination to defend their
stewardship of the country'S money.
While today was given over to q
series of group meetings, the conven-
ton formally will be called to order at
the National Theater at 10 o'clock to-
morrow morning by Francis Marion
Law of Houston, Tex, the president.
Interest appeared to center vitally
on the address by President Roosevelt
Wednesday night at Constitution Hall.
In his castigation of the Frazier
Lemke act Brown said that he does
not know whether any one does know
"the real Interpretation of it."
DESTROYS Private Contract.
st am free to say that if you are
here expecting me or any other lawyer
to tell you Just what this act means
you will be disappointed. 1t was said
on the aoor of the United States SEN
ate I do not think any lawyer can
tell you just what it means and that
is absolutely true From my studies Of
II, however, anu So ldI dS Ild'e UccIl
able to understand it, I gather first,
that it destroys into to the principle of
the inviolability OF private contract. 1t
reduces the amount and impairs the
lien of a secured creditors claim. 1t
reduces the amount and it impairs the
lien Of the private engagement entered
into by the borrower and the lender
Further, it chooses what was intended
to be constitutional guaranty for
equality and personal rights as vehi-
Gle for VICIOUS class legislation.
Brown insisted that the measure
which seeks to tighten farm mortgage
payments will have a very vital effect
on insurance policyholders inasmuch
as the companies are investors in
mortgages. Pointing out that the pres
ent farm-Secured Indebtedness of the
United States is more than billion
dollars and the total farm intebted-
ness which might be included in the
bill is more than 1914 billion dollars,
Brown recalled that Senator Walsh,
Democrat, of Massachusetts,, had
quoted the head OF one insurance COM
pany alone as saying that his corpora
ton had hundred million dollars of
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