The producers news. [volume] (Plentywood, Mont.) 1918-1937, 1935-07-05
New Lemke Bankruptcy Bill
Just Another Fake Measure
r,srs Must be on Their Guard and not be Fooled by
Fake Measures Which VIII Rob
Them of Their Homes

value of the property securing any
such lien at the time that the ex-
tension and Or composition is
accepted"
Mr.. Lemke feels however, deep
in his heart, that the farmer will
get nothing by this route. So he
provides his patented bankruptcy
cure.
The farmer petitions the court
to be adjudged a bankrupt. The
court then proceeds with "consti-
tutiOnal" deliberations and sane
ton to strangle him.
The court, through referee, ap-
praise all of the property of the
debtor, wherever located, at it's
then fair and reasonable market
value"
The court then takes supreme
charge of his property.
''The filing of petition :. :. -.
shall Immediately subject the
farmer and all his property, wher-
ever located, to the exclusive
jurisdiction of the court, including
all real or personal property, or
any equity or right in any such
property 1890"
The farmer retains possession
for the time being-but all "exist-
ing mortgages, liens, pledges, OF
encumberances shall remain in full
force and effect and the property
covered by such mortgages, liens,
pledges or encumberances shall be
subject to the payment of the
claims of the secured creditors, as
their interests may appear, up t.
the actual value of such property
as fixed by the appraisals provided
for in this section"
In order not to lose one chance
! of making his law constitutional
in the eyes of the Supreme Court
Mr.. Lemke has gone out of his
way, it would seem, to re-empha
size the sacred rights of the mort
gage holders and loan sharks.
Then the farmer gets three
year "moratorium"-of course, +;
constitutional" moratorium.
There are only a few catche,
here.
He has to pay a REASONABLY
rental semiannualy." "The amour
and kind of such rental to be tn,
usual customary rental in the com
munity where the property is 10
Gated based upon the rental value
net income, and earning capacit,
of the property"
This rental is fixed by the cOur
and is "tO be used, first, for pay
ment of taxes and upkeep of tn
property land the remainder to b
distributd among the secured an
unsecured creditors, as their inter
CStS may dpHOoAs
The reasonable rental" that tn
farmer has to pay is exactly th
, same as the rental that he has M
: been able to pay up to this time.
!, The farmer is taking the banl
rUptcy cure because he cOuldn
: meet the demands of the creditor
D Mr.. LemI0e's only solution is ths
: he pay what he can't pay. A fin
}, answer from a farmers friend!
But even so there might b
q somewhere, somehow, tinge {
$ "unconstitutionality" thought M
: Lemke. So he provided yet al
p other weapon in the hands of I'll
mortgage holders.
''The court, in its discretion,
{ it deems it necessary to prote
the creditors from loss by Il
;, estate, and Ior to conserve the s
curity, may order sold and une.
! empt perishable property of Il
debtor, or any unexempt proper
: not reasonably necessary for Il
: farming operations of the debtc
h such sale to be had at private
} public sale, not inconsistent wi
Z the protection of the rights of t
p creditors and the financial rehabi
tation of the debtor"
= In other words, says Mr.. Lemi
q the lion may eat the lamb if it
x ''not inconsistent with the right
u of the lion-or the lamb.
j In order to protect the credito
= the court may sell the farme
: crops, his seed, his hay, perha
:. his milk, livestock, hogs and so {
y The court may also sell, gu
- "constitutionally," any other pre-
= erty of the farmer which it fir
I he does not need. With the deg
dation of the farmers down
- subsistence existence the court {
er reasonably find that he does !
Is. need anything when it is GU
-As-4~-s..~. Az .,.oIs4rva-