Evening star., 1935-05-28
FRAZIER GLOOMY,
SEESL|TTLE HOPE
Co.Author of Moratorium
Law Is Fearful of
Foreclosures.
BY the Associated Press.

By the Associated Press.
Senator Frazier, Republican. Of
North Dakota, co-author OF the farm
mortgage moratorium law wiped out
by the Supreme Court yesterday, ex-
pressed little hope today that new
legislation meeting the courts objec-
tions could be passed.
Gloomily, he predicted that mort
gage-holders who had been Influenced
by the law to reduce their claims now
would go back to foreclosing."
He said 1t was the duty Of the debt
burdened farmers to organize TO save
their homes.
Why shouldn't they protect their
homes?" he demanded. 1T isn't their
fault that the prices they receive for
their products are not sufficient TO pay
their debts. I put home rights and
family life above property rights ev-
cry time. I can't get the viewpoint
of the court deciding that property
rights come first"
Emergency's End Feared.
He expressed fear also that. If farm
ers have a good crop this year, the
emergency under which they have OBJ
tained relief under State moratorium
laws might be declared at an end and
more foreclosures ordered.
Actually, one crop won't be nearly
enough TO enable them TO pay out
he explained. Tin afraid it's going
TO be a pretty serious situation"
The Frazier-Lemke act, which the
Supreme Court ruled out UNANIMOUSLY,
allowed farmers to retain their lands
for five years at a rental despite ef-
forts OF mortgage holders to fore
close. At the end of five years 1t
gave the farmer an opportunity 10
satisfy the mortgage by paying the
newly appraised value Of his prop
erty.
Door May Pc Left Open.
Associate justice Brandeis. who
wrote the opinion, emphasized that
the fifth amendment commands that
however great the Nations need
private property shall not oe thus
taken even for wholly public use
without just compensation"
Some observers saw in one Dor
ton Of the decision a possible open
ing for new legislation to accomplish
the purpose of the act by another
route. 1t read:
If the public interest requires and
permits the taking of property of in
dividual mortgages in order to relieve
the necessities Of individual mort
gagorS. resort must be had TO pro-
ceedings by eminent DOMAIN; 90 that
through taxation the burden Of re-
lief afforded in the public interest
may be borne by the public"
Senator Frazier said 1t might be
possible, under this opinion, to draft
valid bill authorizing the Govern
ment to take over deeply
farms and lease them TO their former
owners, but that this would be even
more radical than his own measure
and that he doubted it could be en-
acted.
Privileges Little Used.
Reports from the Farm Credit Ad-
ministration and from courts in diff
ferent parts of the country indicated
comparatively small number of
farmers actually had used the privi-
legeS granted by the FraZier-Lemke
act. 1t was said those cases in the
courts probably would be dismissed
promptly.
Officials of the Farm Credit Admin
istration had been arranging reduc-
tions in their mortgages through the
1890 county debt adjustment COM
mittees which have been established
in "A States. Friends of the Frazer
Lemke bill contended that its existence
had been powerful lever aiding these
adjustment committees.
Belief was expressed in authoritative
quarters that all contracts and adjust
ments made under the moratorium
act would be void Immediately and
that the situation between farm
debtors who used the law and their
creditors would revert to that prior TO
such adjustment.