LA GRANDE EVENING OBSERVER
PAGE NDTU
1
SATURDAY, JULY 22, 1916.
RURAL LOAN
PLAN CLEAR
'
' . ., , .
bince President Wilson on Monday
ui nils ween signeu me iturai reaits
bill, formation of National Farm Loan
associations in the Grande Ronde and
Oregon in general may soon bo pro
mulgated. There are to be 12 federal
lank districts into which the conti
nental United States is to be divided
by the Federal Farm board, and in
each community where loans are de
sired, fanners band into associations
and proceed with the detail of the
loan.
Observer readers are no doubt in
terested in knowing how the plans
work. The bill President Wilson signed
this week calls for a federal land
bank with $750,000.00 paid up cash
capital in each of 12 districts. The
Farm Loan board which will do this
is to be appointed by the President.
National Farm Loan Association
Ten or more natural persons who
are the owners of farm land qualified
as securjty for a mortgage loan un
der section 12 of this act, may unite
to form a national farm loan associa
tion. Only borrowing farmers may
joint it. Each farmer must pay in $5
for one of its shares for each $100 he
wishes to borrow. He has one vote
per share, 'but not to exceed 10 votes
in all. At least $20,000 of loans must
be applied for in order to incorporate
Ruch.an association under the new act.
It invests that money in shares at par
of the federal land bank for its dis
trict. ,
'The farmer applies for his loan to
the national farm loan association of
which he is a member. If its com
mittee approves the loan, and the loan
iy ratified by vote of the directors, the
association indorses the farmer's note
(secured by first mortgage on his
farm) and sends the papers to the
land bank of which the association is
a member. The land bank sends the
full amount of the mortgage note to
the association, and it pays the money
over to the borrowing farmer.
Once the system gets going, it will
be easy for any farmer to get a loan
provided he is entitled to it. No loan
may ne ior .es v..u..
!VXrdZXt
he for less than Siuu nor ior
loan may exceed 50 or 60 per cent of
the value of the farm upon which a
first mortgage is given to secure the
loan. It is illegal under severe pen
alties for any officer, committeeman
or member to accept any commission,
fee, or perquisite of any kind for
granting any loan. The national farm
loan associations will be small neigh
borhood affairs, operating at almost
! no cost, as its secretary-treasurer is
the only one who may be paid.
The borrower agrees to pay the in
terest on his note each six months,
and also to pay a small installment
upon the principal semiannually. "If
the interest is at the rate of 5 per
cent per annum, a payment of some
$35 every six months on each $1000
will, besides paying the interest leave
enough to apply on the principal so
that in about 33 years the debt will
be discharged. This is possible be
cause all saving in interest and the
accretions from compound interest go
to the benefit of the borrower,
ftreat Savings
One may pay off the debt faster if
they wish, or the whole of it. When
the debt is paid in full, the money
the borrower invested in shares of the
national farm loan association of
which he is a member is returned to
him in full. He also will have re
ceived interest on it meanwhile.
Money can be borrowed by this sys
tem in order to pay. for agricultural
land, for equipment, fertilizer, live
stock, buildings and improvement, or
to discharge a prior mortgage.
Federal Farm Loan Bonds
Each of these 12 land banks must
be incorporated under the federal law
by the federal farm loan board, which
is to have general charge of the sys
tem. Its $5 shares may be offered at
par to associations, individuals, cor
porations or states. Any balance not
subscribed for within 90 days from
date of offering shall be paid up in
cash by the federal government.
As the number of "national farm
loan associations in each district in
creases, their purchases of the bank's
shares will reimburse the govern
ment for its advances. Only shares
owned by member associations and by
the government can vote. In due time,
therefore, the bank's shares will be
owned mostly by member associations
composed solely of borrowing farmers.
Hence the entire net profits, less the
expense of administration, will accrue
to borrowers benefit. The only ex
ception to this will be dividends upon
such non-voting shares of the land
bank as are held by others than the
government and national farm loan
associations within the district.
The Federal Land Bank
Against the security of the mortg
ages it holds, the land bank may sell
an equal amo-nt of its federal farm
land bonds. The bank buys in and
retires bonds with the installments of
principal receded from borrowers. It
may sell bonds not to exceed 20 times
tho nmnunt if its paid-up capital.
Federal farm loan bonds, also shares
in the federal land banks tint in the
national farm loan associations, are
free of all trxat!on because the land
bears the tas?s. This, together with
the fact that each borrower is con
stantly reducing his debt, makes the
bonds one of the safo?t anil most at
tractive investments for any sum
from $25 u:. Theiefore, federl
farm loan bonds should in time sell
at par, even if they bear only the same "Unless this is done, the joint stock
rate of interest as state or govern- j land banks, which the new law also
ment bonds, say 3 or 4 per cent. I authorizes, may get in ahead of the
The land bank may charge the bor-1 farmers' co-operative mortgage socie
rowing farmer only 1 per cent more i ties and exact high rates."
than the rate it gets on its bonds.
This murgin of one point to cover ex
penses and profits. The law also pro
vides that in no case may the interest
charged borrowers exceed 0 per cent.
When the time comes that these tax
free bonds, bearing 3 per cent sell at
par, the farmer whose mortgage note
secures the same may be required to
pay not over 4 per cent interest. As
the borrowers own the shares in their
associations, which own most if not
all of the shares in the land bunks,
any profits of the system will accrue
t hnrrmw Knr.,r;f
Locations Discussed Early .
A few days prior to the time the
bill became a law, Orange Judd Farm
er, came out with an appeal to have
farmers of the Northwest work for
location at Aberdeen, S. D., of the
most northwestern central bank. The
periodical, devoted to farm topics goes
on to say:
St. Paul Also Advocated
"Minnesota and Wisconsin should
form one federal lar.d bank district,
the two Dakotas, Wyoming and Mon
tant should form another district.
Under the present federal . reserve
law, all of this large area, except
southern Wisconsin, constitutes one
federal reserve district. But that is
no reason why this vast territory
should be limited to one of the pro
posed federal land banks. Orange
Judd Northwest Farmstead suggests
that the whole counttry be districted.
"This would locate at St. Paul the
federal land bank, with $754,000 paid
up cash capital, which is to cash the
farm mortgages offered to it by the
many national farm loan associations
that may be formed throughout Min
nesota and Wisconsin.' There were
about 111,000 mortgaged farms in
these two states, according to the fed
eral census of 1910, the debt on which
amounted to $225,000,000.
"The thriving city of Aberdeen, S.
D,, is the natural appropriate center
at which should be located the $750,
000 federal land bank for the district
consisting of the two Dakotas, Mon-
tara and Wyoming. The census show-
od about 30,000 mortgaged farms
within this territory, ipon which the
debt was 'about $97,000,000. Settle
ment since has largely increased the
total number of farms, as well as the
number mortgaged and the aggregate
debt. .- .
'"The boundaries of land bank dis
trict No. 12 closely coincides with
those of federal reserve district No.
12 This district' had 60,000 farms
mortgaged for $132,000,000, according
to the census, bacramento is sug-
Kested for the location of the land
it is more central than
San Francisco, while the latter al
ready has the ederal reserve bank.
The other reserve bank is at Minne
apolis, so the land bank should be at
St. Paul. As a matter of fact, there
is no reason .why the land bank
should be located in any large city.
"Nothing less than the subdivision
above described will satisfy this vast
region from the lakes to the Pacific.
Yet our farmers can hardly ask for
more, in view of the needs of the rest
of the country, since the number of
these farm mortgage banks is to be
limited to 12, at least for a term of
years.
"The new Federal law for reform
ing farm mortgage finance, will be
beneficial according to the extent to
which present or would-be farmers
take advantage of the opportunities it
offers them. Hence the suggestion
that farmers who wish long time
mortgage loans at a reasonable rate
of interst and upon easy terms of re
payment, start at once to form their
preliminary organization toward suchj
"By the time a number of the pre
liminary organizations are completed,
such as is here suggested, the federal
reserve board may have been appoint
ed. Soon thereafter it may be able
to forward official instructions to each
preliminary group. Then the latter
may proceed forthwith to incorporate
as a national farm loan association,
through which its farmers may obtain
loans readily, as described on this
page. The preliminary groups also
may be helpful in seeing to it that the
land bank districts are laid out and
the land bank for each district so lo
cated as best to accommodate the
farmers of the American Northwest.
"The farmer pays the taxes upon
his real estate. It cannot escape tax
ation. Usually it is assessed for tax
ation close to the figure at which it
would sell.
"Now, if the lender has to pay a tax
on the note or mortgage given by the
farmer, the rate of interest is cor
respondingly increased and the bor
rower is doubly taxed.
"But if no tax is imposed upon the
farmer's note and mortgage, or up
on the bond secured thereby, there
should be a corresponding decrease in
the rate of interest which the lender
or investor is willing to accept. Thus
double taxation is avoided, and induce
ment is offered the lender to accept
tsill lower interest rates.
Not Jointly Liable
"It should be distinctly understood
by the farmer that, when he joins the
national farm loan association in his
vicinity, his liability for its debts is
strictly limited. For each $100 you
wish to borrow through it, you invest
$5 in its shares. Should it fail or suf
fer any loss, the most vou could be
called upon to pay would be another
So on each share. Your farm itself is
liable only for the amount of the
mortgage thereon. Neither you per
sonally nor your land is bound up by
any joint and several obligation.
"Farmers should be quick to orga
nize to make the most and best use of
the new federal farm loan system.
What they have to do is simple, prac
tical, businesslike. Farmers should
not delay to organize their own little
local farm loan associations. Such
may be incorporated under the new
aw jn t)ue time.
LUNA VEIL CRAZE RUNS AMUCK
. :
FALL HAT JbM.viiiri DAY! ''" ,
J!
I S -v
At JA 7
A lingrie frock never looks so del Tate and ' ool as when crowned bv a
stunning black velvet hat. The sauciest thin-r about this Turn is 'the
trimming a white quill and strips of white taffeta sot itregularly in the
blaok velvet.
CANE GONE!
i
If you have a cane don't carry it!
Hang it in the closet beside last year's
frock it's just as much out of date.
No proper lady in London or New
York carVies a cane any more. She
twirls a stick however, but it is a
parasol stick, a saucy thing of jet,
(BY MARGARET MASON)
Lovely moonfaced maiden
In your Luna veil
The moon of you is jealous
And turns with envy pale.
New York, July 21. If John Arm-i favorite hat the fnce veil is of a ne
strong Chalmer should ask "Who's ' cessity put on first, next to the head
Luney now?" we should all have to ! and under the chapoau.
answer, "We all are simply luney j Alas, it is oft too true that most of
over the new Luna veils." I us have nothing much else under our
They go to greater lengths in the, hats but our veils.
uuginm veu lines man anytning wei
have been offered for manv months.
Of two and a half yard lengths of
hemstitched chiffon, the Luna veil has
an inset of exquisite lace veiling,
either white or black, round as the
iuu moon ana aoout halt i- y:ird in
diameter. This is for your face to
peep seductively through while the
rest of the chiffon folds swathe your
head and throat in gracious and
diaphanous manner.
Not in a blue moon have vou seen i
anything so lovely as a Luna veil of 1
azure chiffon inset with black lace
A white one with a black inset is
striking and one yellow as Luna her
self has a black lace opening also,
while a wonderful rose shade has
either black or white to choose from.
lnese veils are worn not only for i """" y ir i a muiier tnai is re
motoring but unusually i re adrpted living expert attention now. Aero
for moonlight night wear or even on I P,!'nes ,nre ,be'"ff usc ,thnt can carry
those nights when Diana hides her a hVe hundre1 P?""'1, bomb a?1' they
face in pouting jealous of earth's fair1?1 .steJdy and "fc that when the
daughters I "nT"" 1R dropped the pilot does not
They really are intended for nny "V liRhUninir of th load. To
dress occasion when on- goes unhat Me l? transPt Iwht cannon in
t,l ti, i ,i:i, : " ... """ this way from one part of the ine to
lit Jtf,.,3.cf.dlik.,i" Worn V.er hc another would be a tremendous ad-
!". . "' j T . Prolec" rncJ
coiffure and acts also
as
SCari j
around your throat and bare should
ers,
A new veil for mo.onng exclusively
comes m the most vivid shades of chif
Ton and is three yards long. It has ;
un eiHMit sl'whi i;i a cncie over your
motor hat and forms a puff of vail
ing over the crown while part of the
width falls over the fiort of the face
. , , , ' '"f. nunc HIT I. -HIV! C UNtl Ul
and the other in the bnck. The long j lganb?rries near West Stayton were
ends are then kno'.ted under your chin j coming into bearing. Othors in that
nnd allowed to float in the breeze 1 vicinity plowed in their loganberry
and if you choose to sit in the from I patches nnd now Mr. Biber has con
thcy may incidentally get all tangled trusted to sell all his output at Salem
up in me su-enng wneel.
Following the fad for stripes there
are also chiffon veils of white, Btrip-
IN CO.VLT, CANE-PARASOL!
long and slender. The canopy may be
scarlet or green or blue, though many
of the new sun shades are in the deli
cate pastel shades with applied trim
ming of silk in colors. Notice the
length of the sticks, and the form of
the "shades" in the cane-parasols pic
tured here.'
cd widely in cither blue, rose, green,
yellow or mauve.
On the face of things veils continue
fine, of mesh with delicate lace bord
ers or all over traceries. Because of
f the huire dimensions of this season'))
Forecasts Overseas Aeroplane Service
New York, July 21. An overseas
aeroplane service between Europe and
America and veritable aeroplane arm-
ip in frlin flmidc in Pnvnnon l.ufla
fields are expected by a French aerial
cxnert who talked about the proba
bility today to materialize within the
present year. Ha pointed to the trip
of the giant submarine from Germuny
... ..!.: ;..t:n-..t:.. j
to Baltimore as justification for what
might otherwise be termed a wild
guess. there are going to be nocks
and flocks of aeroplanes used on both
sides and aerial battles, with aero
plane armies, will become important
features of fne great war," said
ine - "How to transport guns and am
vantage and it i:; .sa.'e to prophesy
ikn i.Vi- will ha ilnno l-ntr.,- In,.-.
t.louds of aeroplanes are going to
! (., l .1.- i !,.,.. .', , .,.
2m Eonle of them will he nue nir
transports in overscan commerce. The
aeroplane has only begun to be used."
A Thrifty Pedagogue.
1has. Biber kept on his work teach-
ng school while his 10-acre tract of
'at $00 a ton.
Use our Want Ad column.
Professional Dincctony
fa f ailM f vj f fU af
FRATERNAL ORDERS
V'F. & A.M. La Grande Lodge No.
41, A. F. & A. M. holds regular
meetings first and third Saturday
at 7:30 p, m. Cordial welcome to
all Masons.
ROBERT'S. EAKIN, W. M.
A. C. WILUAMS, Sec.
B. P. O. E. ELKS, La Grande Lodge
Nn 433. Lodge meets each Thurs
day . evening at eight o'clock.
Home and club privileges cheer
fully extended to all Brother Elks.
FRANK C. B RAM WELL,
Exalted Ruler.
ADNA B. ROGERS, Secretary,
KNIGHTS OF PYTHIAS Red Cross
Lodge No. 27 meet every Monday
night in Castle hall (K. of P. hall.)
A Pythian welcome to all visitng
Knights.
DELILE GREEN, C. C.
GEO. HUNTINGTON CURREY
K. of R. & S
MODERN WOODMEN OF AMER
ICA La Grande Cam. No. 7703
meets on the first and third Thurs
day evenings of each moni'i in the
K- of P. hall. Visiting neighbors
welcome.
H. E. DIXON, V. C.
CHAS. JESTER, Clerk.
WOODMEN OF THE WORLD La
Grande Camp No. 169 meets every
first and third Friday at K. of P.
Hall. All visiting neighbors wel
corned.
O. L ' M'DOWELL, C. C.
E. W. EASTMAN, Clerk.
Li. O. 0. M. La Grande Lodg No.
850 Loyal Order Of Moose holds
regular meeting every Wednesday
' night at 8 p. m. in Eagle Hall, fifth
floor Foley building on Adams Ave
Visitors always . welcome. Dues
payable at Young's Sweets.
GEO YOUNG," Die.
HARRY SWART. Sec.
F. O. E. La Grande Aerie No. ,259
on each and every, Friday evening
at 8 o'clock on top floor of now
Foley building. Visit.ng members
cordially welcomed.
J. P. RUSK, W. P. '
L. F. BELLINGER, Sec.
0. E. S. Hope Chanter No. 13. 0. E.
S. holds stated communications the
second and fourth Wednesday of
each month. Visiting members
cordially inviteu,
EMMA L. KIDDLE, W. M.
MARY A, WARNICK, Sec.
ROYAL NEIGHBORS. Iris Camp
meets every second Friday After
noon ana iourcn friday evening,
evey montih in K. of P. Hall. All
visiting members cordially invited,
t MINNIE BUNTING, Oracle.
LILY C. KIMMEL, Recorder,
8EBEKAHS Crystal Lodge No. 5
Meets every Tuesday evening in the
i. u. v. t . mil. Ail visiting mem,
bers are invited to attend.
VESTA SHAW, N. G.
ANNA ALEXANDER, "ac.
K. & L. OF SECURITY. Mt Emily
Council No. 2646. Meets second and
fourth Thursday evening at 8
o'clock at Uagle hall. Visiting mem
bers are welcome.
C. E. STITT, Pres. -C.
W. COOK,, Fin. Sec.
VIOLA L. HOGUE, Rec. Sec.
PYTHIAN SISTERS of Rowena Teun
pie No, 9 meets every second and
fourth Friday evening at K. P. Hall.
MRS. LIZZIE HAYWORTH. M. B. 1
LOUISE LANDRl M. of R. C.
WOMEN OF WOODCRAFT CIRCLE
NO. 47 Meet second and fourth
Tuesday evenings of each month
at the Eagle hall. All visiting
neighbors welcome.
LILLIE ALLSTOTT, G. N.
LOUISE HILARY, Clerk.
PHYSICIANS AN1 SURGEONS. .
DR. R. E. L. HOLT Physician and
surg, n; corner Adam3 uvenan and
Depot street. Phonas Office Main
68; Residence Main 730. Hours 11
to 12 a. m.; 2 to 5 p.m.; 7 to 8 p. m.
DR. H. L. UNDERWOOD Physician
and surgeon. Diseases of the eye a
specialty.
DR. DORA J. UNEJRWOOD Dis.
eases of women and children. Of
fices Adams evenu. over Red
Cross Drug Store.
EYE, EAR, NOSE, THROAT SPEC
IALIST DR. H. M. BOUVY Practice limited
exclusively to diseases and surgery
of Eye, Ear, Nose and Throat and
the Fitting of Glasses. Office West
Jacobson Bldg. Offijo phone Red
3431. Residence, Main 39.
OSTEOPATHIC PHYSICIANS
DR. J. L. INGLE Osteopathic phy
sician. DR. MARGRET INGLE Diseases
of women; care and feeding of chil
dren. Office Room 37, new Foley
Bldg. Office hours 10-12 a. rn.; 2-5
p. m., and by appointment. Office
phone Red 1711; residence Red 881.
CHIROPRACTORS
DRS. DA RLAND Chiropractic par
lors 4th and Depot street. Phone
Red 1751.
DRS. ALLEN ft ALLEN Chiroprac
tors. Office hours 9:30 to 12 a. m.:
2 to 6 and 7 to 9 p m. Phone Red
f AUftF Fnmiltf RailniiMnt OAQ
Fir street, La Grande, Oregon.'
ian.
DR. J. L. RUBY Veterinary Sur
geon and Dentist. Res. Phone Blk.
1141; Res. 1306 M avenue. .
Stock Inspector for Interstate
Shipment
VETERINA" Y
DR. H. W. RILEY Graduate Veter
inarian Hospital. 1409 Madison Ave.
. State Stallion Inspector and Inspec
tor of Stock for shipment. Home In
dependent Phon Black 41. Formers
Co-operative Phone, Main 112
DENTIST
E. P. Mossmnn Dentist: rooms 6
and 7 new West Building. Phone 1
Black 1521; Office hours 8 to 12 p.
m. and 1 to 5 p. m.
ATTORNEYS
CRAWFORD & EAKIN. T. H.
Crawford and Robert ,S. Eakin, Att
orneys at law. Pracice in all the .
courts aof the state and United
Sttaes. Office, West Jacobson build
ing, rooms 9-10-17, Le Grande Ore- .
gon. . '
COCHRAN & EBERHARD Geo.T.
Cochran and" Colon R. Eberhard
Attorneys. La Grande National
Bank Bldg. La Grande, Ore.
E. ,'W. EASTMAN Lawyer Office
Rooms 1 and 3, La Grande National
Bank Building.
R. J. GREEN. Attorney at law '
Rooms 14-15, Palmer-Roesch Bldg.,
La Grande Ore. Practices in all state
and Federal courts.
ALBERT SMALL Attorney at Law.
Rooms 26, 27 La Grande National
Bank Building! Practices in all
state and federal courts. Phone
Main 11. '
UNDERTAKERS
J. C. HENRY Undertaker and Em
balming; "20 years in business". Day
phone, Main 62; night phones, Red
3131, Red 562, Black 3811.
AUCTIONEER
ED STRINGHAM, the Reliable Sales
man. Farm and Stock Sales a spec
ialty. Satisfaitio: guaranteed.
Clerk books furnished free. R. F.
D. No. 2. Phone Farm 1x6. y-
CONTRACTOR AND BUILDER
H. E. Roskamp, Contractor and build
er. La Grande pre., Phone Rer 1981.
R. Tt. NEAL Civil Engineer. Office
City Engineer over Fire Station, La
Grande, Oregon. Plans, specifica
tions and estimates. Surveys of all
natures. Office phone Main 708; Res.
phone Red 1171. . -
ARCHITECT
MILTON S. BLOCK Architect
Sketches and estimates Cheerfully
furnished. Office, Room 26, New
FoTey Building.
C. B. MILLER Architect, Room 23,
New Foley Building.
W. L. STRINGHAM Instructor of
piano. , Studio over Young's con
fectionery... Max Figman and Lolita Robertson,
as well as Mr. and Mrs. Sydney Drew
are busy making comedies ait the
iRolfeMetro studios at New York.
Bayne also are busy there on "Romeo
and Juliet."
Safe Light
SrRummaging
Self and home protection
i demand an . "
EVEREA1JY
Electric house lamp
Its safety and fireproof features
make it a necessity. Its genuine,
guaranteed, long Bcrvice Tung
sten battery and Mazda lamp
assure a flood of light. And
the trademark Enready is your
protection, rseiier
get one today.
Stop in and make
.your cno ice
from our assort
nicntof Everraiiy
portable lamps. .
17 IJ V Tl WW I7C
15. IV. tlULrtlLb,
I '
j Sporting Goods
VETERINAR
J!1
Warn
t