WES'
roN
EADER
NUMBER 15
VOLUME SO
WESTON. OREGON, FRIDAY, SEPTEMBER 29, 191C
L:
FEDERAL FMIil LOAIiS
CHEAP met
Low latere! sad Long Tim Ar
Feature of Rural Crtd
II SjsUs.
The Fdral farm lota act," popu
larly called th "Rural erdlt law,'
wat signed bjr tha President and
, became t law oo July IT, lle -
Tha orlroarr Durooe al Utia act t
to promote agricultural prosperty
by enabling farmers to borrow mon
, ay oa farm mortgage aacurily at a
: reasonsbl rata of Interest and lor
: ralatlvaly long period of Urn. To
: attain this object, two fsrm-morU
gag system ara provided! (1) ' A
system operating through regional
bank, and (t) . a system , oper
f. atlng through Joint-stock land
banks. ' .
To attract money to th (arm-loan
field tha act provide method
whtreby the"who hav mony to
lend can And aaf Investment la th
ferta of debenture or bonds, ol
email and larra denomination, la
sued by the bank and baaed oo the
security oi mortgage on larm inu
ThM two afatama ara to be uii-
der the general supervision of a Fed
eral farm Loan Board la tha Treae
tiry Department, composed of the
Secretary of the Treaeury, at chair
man ex officio, and four member,
appoint! by th Freeldent This
' board ha authority to appoint ep
' praissrs, amiura, and registrar,
who will be public official.
Federal LaadBaak Bytiea.
Under the Federal land-bank aye
tern th act provide for Federal
land bank whkh make loans, ioi
tha first IS month xcluvl
through local mUouJ farm-loan e
aoclatipna "composed of borrowor.
Thee atociaUont ihl le tharo
' ' holder In the bank, and In Ul
way tha member who are th bor
rower will ehar In the proflte oi
tr.i tank. Tha" money for th loan
la to coma partly from th capital oi
tha banka and partly from the aal
by tha banka of bonda secured by
first mortgagee on farm lands. Tn
act define eulcUy the purpoeea foi
and the condition ander which
loan are to bo made, and require
that the rale of Interest charged on
farm loan ahall not exceed eix pet
cent par annum.
Telt Federal Land Banka.
Tha Unltod State ahaU bo di
vided Into li farm-loan dUtrlcU,
and a Federal land bank with a tub-
ecribad caplUl etoek of not lea than
1760,000, each share to ehail be
aUMiebed In each district Each
Federal land bank may . Mtablieh
branches In It dlatrkt Within
80 daya after th capital atock la of
fered for tele It may be purchased at
par by anyone. Thereafter, the
, atock remaining unsold ahall be
bought by tha Secretory of the
. Treasury for the United States. It
.J - la orovided. however, that the Gov-
ernment thtll not receive any divl
danda on iu ttock. Ultimately, It ie
intended that all tha atock in the
banka ahaU be owned by the associ
ations of borrower, and provision
. therefor! I made la tha law for
tranafirriitf the original ttock at
par to these association!.
; Farm-Loan Association.
Th i provide for the creation
i of local national farm-loan essocla
tiona through which It It content-
plated that th Federal land banka
hall make thtlr loan. In the
event that a local loan anoclatlon
it not formed in any locality within
.., a' ye pif FHeral Form Loan
Board' may authorise federal land
bank to make loana on farm land
through approved agento. Ten or
' v mor pertont who own and cultivate
farm land qualified el eecurity for
a mortgage loan under the act, or
' who are about to own and cultivate
such land, may form aucb M
. elation,.' provided the aggregate ol
. i j.ia ti tVa mamber-
in wane ..w
- ship I no lest than 120.000. Each
T member must take stock In hi as
, toclatlon to an amount ' equivalent
to 6 per cent of the amount he wish-
et to borrow. This ttock the asso
. ,t.,in. hnlHi In trust ae eacurity for
j the member'! individual loan. The
association, in turn, when applying
for money from the bank, must sub
. V iv. fr itack In the bank to an
the turn it wants to obtain for it
member. Thla atock la held In
trust by the bank ae eacurity for the
loana It makes through tha associa
tion. If a prospective borrower haa
no money with which to pey for hie
association atock, be may borrow
tha price of that, ttock aa a part of
tha loan on hla farm land.
Under thla plan, then, every bor
row must be a etockholdar tn his
local aeoclation, and every associa
tion a stockholder In it dlatrtrt
rfatik. Lach stockholder In a
that esMwiatiou op to twice the
amount of hla atock. -
' IIow Loana Are Obtained.
A member of a national farm loan
association, before obtaining a loan,
must drat nil out an application
olank eupplied to the loan associa
tion by the Federal Farm Loan
board. Thla application blank and
other necessary paper will then be
rafarred to a loan committee of the
association which must appraise the
property offend aa eecuniy. fiucn
application at la approved by the
man committee It thea forwarded
m the federal land bank and must
bm InveatlBauifi and reoortod on by
a salaried appraiser of the bank, be
tor a loan It granted. Thlt ap
praiser it required to Investigate the
aoKeucy and character of toe pros
pective borrower aa well aa we
value of hla land. When a loan la
granted the amount la forwaraed to
the borrower through the loan as
sociation. .
Condlllona Under Which Loana May
v ps gained, ? (
The act avtctflceJly deftnea the;
purposes for which loan may bo
obtained. These are:
(a) To provide for the purchase
uf land for agricultural use.
lb) To pi wide for the purchase
of euuiutttiit. ftruliaara. tud live
stock' necessary for the proper ana
.eaaonabio operauoa &( tnf rourv
gsged firmi the term "equlpme&t
to bo denned by the Federal Farm
Loan Board, " ' . :,...,....- '"' ' i
(e) To provide boildUiet and lor
la Improvemenl oi farm Wndej the
tarm "improvement- to no wn
jy the ledoral Farm Loan Board.
(d) To liquidate Indebtouneaa w
ihe owner of the land mortgaged,
..v,utin at th time of the organisa
tion of the first national farm loan
leaociation established in or for the
county in which the land mortgage
ia aituated , or Indebtedneaa subse
quently incurred for one of the pur
poeea mentioned In thla taction.
Loana may? be made omy on nw
mortgagee on farm land.
Only those who own and cultivate
arm land Br ara about to own and
cultivate such laud are entitled ; to
borrow.,, ,:' , ' ' ;
No one can borrow aavo for the
purpoee stated tn this act, and those
ho afUr borrowing oo no use w
mnnav for the Durposee specified In
the mortgage are liable to have their
loans reduced or recalled. oe
wratarv treasurer of each associ
ation la required to report any di
vision of borrowed money irom we
purpose sUUd In th mortgagee.'
, No Individual can borrow
than $10,000 or lest than $100.
Ko loan may be made for mor
than 60 per cent of the value of the
land mortgaged and 20 per en 01
the value of the permanent insured
improvement upon It. V
Ihe loan must run tor not
than 5 and not mora than 10 years.
Every mortgage mutt provide fo'
the repayment of the I-n under
amortisation plan by meana of a
ilxed number of annual or teroian-
nual Inatallmenta tufficlent to meet
all Interest nnd pay off th loan by
the end of th term of th loan. The
inatallmenta roqiUd will be those
published, n amortisation -tablee to
be prepared by the Farm Loan
Board.
Th bank la given power to pro
tect itself In case of default by re
calling tho loan In whole or In part,
or taking other necessary action.
Mn Fadaral land bank It permit
ted to charge more than 6 per cent
per annum on It - tana mortgage
loan, and In no case shall the Int
rst charged on farm mortgage ex
ceed by more than one per cent the
rate paid on the last Issue ox oonaa.
For example, If the bank pay
only four per cent on an issu of bonds
it can not charge more than five per
cent for th next farm loan it
make.
,Out of thlt margin of not
(Continued on Second rage.)
"What Would You Hare Done?
The People Have a Right to Know
EOT wu'W'A, i -
' 1 t
rw 1
- J 'im.
EUG3S LAWYER ESEiTS rJSREPRESEI-
Wm FEATUl
Aa Argument Against the- UlliaXite
Bill to tatabliah A New Normal
School at Feadktoa, 1
(By S. D. Alien of Eugene, Ore.)
MiaaUtamanta rurardina' th Pen-
dlaton Normal Bill, made to members
of my family and my acquaintances.
oy the circuiaiora ci peruone rr pie
cing tho bill upon the ballot, led me
publicly oppose the bill. I am not
opposed to another Normal School fox
Oregon, I am not even opposed to pia
ang It at rendleton, provided the
jueation of ait ia fairly and honeatly
submitted to th voters, but I am op
posed to thla particular bill and the
methods employed to make it a law.
i am greatly Interested that wrongful
political methods In Oregon should
.mm, and thla Interest alone leada me
to make thl argument.
fh Sluatlon at th Tim the Pcndle
ton Bill Waa Framed.
At the time thla -bill waa framed
Lhara were three educational inatitu-
uona mainUined by the State of Ore
gon, tho University at Eugene, open
ad for Instruction in 1867 and In which
jistruction haa been continuoua for 4
ya&rs, th Agricultural College at
Oorvallia, maintained in continuous
uperation by the state tine 1835, and
iha State Normal at Monmouth, open
sd hi 18S2, and since, with the excep
tion of a few year when no appropri
ation waa made, In continuoua opera
tion. All these are In flourishing con
dition, hav extensive plants, and axe
liberally mipported by permanent,
continuing appropriation. These
three institutions ar named in u
Pndlton Bill and purport to be af
fectedbylt ; ' ' , 8 ; .
From a tlm prior to the establish
ment of the school there wat
clause In th ttata conttitution Mad
ing aa follow i ,
"All public instltutlone of th
atate hereafter provided for by
the leglilaUv assembly shall be
located at the eoat of govern-
AM 1
men. , ' , ,
Thla clause wat not understood at
referring to educational institution
and tha University, the Agricultural
i"..ita and four normal schools were
located away from the capital while
it waa In full force. The clause was
considered by the Stfpreme Court In
the case, ''
SUU ex rel. vs. Metschen, 82 Or. 872.
where that court referring to It says:
"In view of the practical con
struction of the Instrument by
the legislative and executive de
partments for at least if not quite
a quarter of a century, bb evi
denced by the location of educa
tional institution away from tha
teat of fovtrnmtnt U no doubt
, - t- l" ' f YhHWj.
'
r fell
in I
--Dsvton Nemra
OF PIiDlETC:i BE
; ahottld now be eanatritadaa-ae to ,
ibCiud uniy euch institutions aa
aie rtrktly govennental in thei.'
cftaracUr, An a. ylum for the in
tune luiues dearly within thw
construction." ,
. Sine the Supreme Court so tpoke
ther hav been 21 year of added
practical construction, in which the
ttate has maintained these Institu
tions away from the aeat of govern
ment If the court in 1886 could say
there waa "no doubt" regarding the
proper construction of this clause,
what man or court should question it
now, even if there haa been no addi
tional legislation affecting the situa
tion T But there has been additional
legislation of the moat decisive character,.-
.. . " "'
At tho 1908 general election, the
people of the state changed thla very
clans to at to read:
"All public institutions of the
atate, not located elaewhere prior
to January, 1907, ahall be located
in the county whera the seat of
government la." .
, For what possible purpose could
th words "not located elsewhere pri
or to January, 1007," have been intro
duced Into thia clause but to effectu
ally silence the claim, sometimes
made, that the educational Institution
ware not legally located t What at
torney would hav th hardihood now
to contend before a court of record
that thla amendment did not accom
plish th purpose so evidently intend
ed? - :- '
But th constitutional change ef
fected tn 1008, ia not all that ha been
don. At th gnral election of 1910
the people, by an initiative bill, pro
vided for the "permanent support ano
mainUnanc" of tie Monmouth Nor-;
mat, by a permanent annual tax upon
all the property uf the state. The
Pendleton bill does not go near to far.
It purports only to validate what has
been done. Thia school was in actual
successful operation, the atate from
year to year enlarging the physical
plant and having, at w have aeen,
made effectual provision for it "per
manent tupporU" Yet it ia reserved
for ambitious rendleton from it po
sition across tha mountains to disco
ver that something wat still legally
wrong with the Monmouth school.
In 1012, by a referendum vote, the
people provided for the erection of
costly permanent buildings for the
University, and they have since been
erected. In 1913, the legislature also
provided for ha support a continuing
annual tax. II ratification of its lo
cation were noedod this supplied it.
Yet it was reserved for the Pendleton
boomors, from their vantage point
tgroM the. Cateadca, to disjsvw that
ker at ' v
! somathlng waa legally wrong with the
University, and generously to proceed
to corm-t the wrong.
la lik manner the legislature of
1913, provided for the support of the
Agricultural College by a permanent
continuing tax. 1 do not recall any
act of 'popular legjdatkm ratifying
the location of the Agricultural Col
lege, but there ar facta, obvious to
any thoughtful mind, that have made
tho location of tho Agricultural Col
lege permanent at Corvalli for be
yond what could be done through pop
ular or represanUUva legislation.
Here is a great atate farm, highly de
veloped, and a costly, well piauned
agricultural school, whoa reputation
extends for beyond the limits of the
state, lb location of such an Insti
tution must neceeaarily be rural. Am
bitious citiee may not bid for it loca
tion. No salt mun can Imagine a
popular frenzy that would bring about
ihe removal and consequent oca true
uon, of thia megniheent plant. The
framer of th fandleton bill did not
anticipate any such reault. They did
not anticipate; that support would be
denied the Agricultural College be
es u of any supposed invalidity In
1U location. O, no! They were too
smart for that They brought the
Agricultural College within their bill
lor a far different purpose. -
. , XL .- .
Why Did The Framer of Th Bill To
KetabUah a New Normal At Pea
diet on Bring Within The Scope
of Their Measure Threa Ex-
. letiag Iastilutiooa Lang Es- ;
tabdahed and Permanent-
ly Provided Fort
The answer to this question it not
diflurult . of solution. The inclusion
bait I kcro. By it they
expected to win th t-nthinking aiu
uninformed friends of these existing
institutions and get votes that on the
traigbt proposition to establish a
new normal could not bo had On the
straight proposition th framer s bad
reason to expect defeat for their mea
sure. ..In J914-, initiativa nwasuret to
reestablkh normal work at the Asn
iand and Weston Normals had both
been defeated. Tiroes are now tard
er and tax burdens weigh more heav
Uy. The f ramera of the measure rea-
,ized that a straigat measure to es
tablish a new normal at Pendleton
would fail. They thought to throw a
scare into the friends of the three ex
isting institutions and so get their
votes. Tha intimation was to be made
general that these three institutions
were rot legally established, that their
maintenance waa imperiled, but that
thia new bill would give them a per
manent, legal status. I know perso
nally that thia claim waa extonsivo-
y made here in Eugen to get aigna-
and his thigh and leg mangled by the
lures to th initiative petitions, and I
know that signatures were obtained
on tho strength of it
, The quack doctor tell you how ser
iously ill you are but he has a cur for
you. Death is imminent but he holds
life In hia hand. Of course you want
itl You tie. up the horse's toot until
tha pain gets intense, and how grate
ful he ia to you when you come and
release the foot! Would any atudent
young or old be ao ungrateful aa not
to aave his alma mater when he may
do thia by ao simple an act aa voting
for thia bill T And of course those
who hav provided such an easy rem
edy deserve a new normal 1 Who
ould deny it? But I must not dwell
longer 01. this delightful phas of the
subject What a pity it waa that
Ashland and Weston, when they
thought to re-establish work in their
normals, confined their billa to a single
issue, when, possibly, by combining
with several other interest they
might hav won!
III. '
Can The Frienda of The Three Exist
ing Institutions Safely Vote
For Thia Bill?
It was an alleged educational com
bine that several years ago led to the
defeat of all appropriations for the
four normals. I do not know that
there was really such a combination
but I do know that this bill taken in
connection with some of the people
who are championing it has a very
suSfelcioua look. The experience of
the four normals in 1909, ought not
to be forgotten.
Let ua see what this bill really does,
if it becomes a law. The state has a
normal school plant at Weston, 21
miles from Pendleton. Th sit has
ten acres. Ther is a three story and
basement main school building, a
boarding hall for young women, a
men's dormitory, a gymnasium, a pre
sident's house. Owing to a lack of
aDDronriation no instruction has been
lva then liace, 1909, SUU, tb
"VESTK! FREE DAT'
SATIPAY, CCT..H
ClUrtu Vet Csulawuty t Xcpest Last
Tear! tig Sscctu-KeUB Ida1 '
tat CeauBiUaes a?paUU4.
At a meeting of citizens Monday
evening at the Opera House another
"Weston Free Day" waa decided upon
for 1'jIS. One was held bat year and
proved auch a successful and popular
innovation that it was unanimously
thought that so prxperous a harvest
aa thia year haa witnesaed should be
similarly celebrated.
Saturday, October 14, waa selected
as the data, and tha following com
mittees were appointed on motion by
the chairman, Dr. F. D. Watts, who
waa named by th maker of the mo
tion as chairman of th finance com
mittee: . ,
Refreshment E. O. DeMoss, J. IL
Price, W. S. Payne, Dr. C U. Smith,
. L. Blomgren. . .
Finance Dr. F. D. Watts, E. hL
Smith, H- Goodwin. .
Entertainment J. II. Williams, A.
W. LundeU, I. M. Price. ?
At was th case last year, every
thing will bo free to every visitor.
Ther will b fro refreshment, and
free entertainment, and hundreds of .
gifta will be distributed among th
visitors by meana of tho coupon sys
tem. The articles to be given away
will be hung op ia every business es
tablishment ia town, with coupons at
tached, iii coupons bearing similar
numbers will i , distributed among
tha people. Th -vili ensue a merry
hunt for tho prises, some of which
will be quit valuable. . .
Weston farmers were much inter
ested in last year's aifair, and many
of them contributed gifta for the oc
casion. Geese, chicken and produce
from the farm were brought in one
farmer even furnishing a pig- Simi
lar fttJfiaViM. jummmm! .ita
yeara adair. .
W ild Cat Once a "Tabby" - .
Wnen a firo warden shot a strange
animal en Mount Emily's peak near
La. Grande and didnt know what it
was but realized it resembled a large
house cat, he slew a pet tabby that
strayed from a mountain cabin in that
vicinity almost five years ago.
In its response to the call of the
wild, it had wintered ten foot of snow.
escaped coyotes aud predatory ani
mals, hunters and trapper a. 'ihe iso
lation doubled its size and made it a
wild beast ' '''-.
J. B. Bluemensttin, a mountaineer,
identified the carcass as his lost kitty.
stat haa not in any way intimated
that it will not in due time resume
normal work there." The state could
not be supposed to maintain two nor
mals within twenty mile of each oth
er. This but meana t&e removal 01
the Eastern Oregon Normal from
Weston to Pendleton. Precisely the
sam arguments ar vsed in support
of this proposition that have been us
ed for the removal of the State Uni-
vorsitv to Portland, that were in fact
used in a nublie meeting in Portland
during the summer just passed when
resolutions wer passed looking to tn
present removal of portion or th
University to Portland. Western Re
serve University had a far larger
nlant than that at Monmouth, one that
perhaps might even be compared to
that of the Oregon University, wnen
Cleveland through gifta of land and
money secured its , removal to that
city. True, wat was not a stato in
stitution, but the same golden argu
ments that win boards of trustees may
win th general public. It seems to
ma that it ia imnrudent for t&e mends
of existing institutions to line up with
amhitioua cities in establishing a pre
cedent for school removals.1 ,
And finally, a miasur for the es
tablishment of a school should be free
from all taint of wrongful political
methods. ! "Log-rolling", "pork",
'fomhinatlon of interest", these are
hateful words when applied to any
subject of legislation, but they are
ahaolutalv abhorrent when used in
connection with th establishing of
public education. Tha finger OI scorn
amnid ritrhtlv colnt to a normal se
cured by methods that could be so
characterised. If it is right to estab
lish a new normal in Pendleton by
popular vote 1st that proposition be
niKmitted on its own merits and freed
from all subjects that would tend to
secure votes that are really again
that reposition.
5, P. AUXN.
amount enulvaltnUo 5 per son of