Newspapers / The Roanoke Beacon and … / Aug. 11, 1916, edition 1 / Page 2
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The Federal Farm Loan Act Synopsis of Its Salient Features Prepared by H. M. Hanson, Secretary-Treasurer Farm Mortgage Bankers' Association of America EDERAL FARM LOAN ACT fassed by the House of Representa tives and the United States Sen ate June 27 and 28, 1918, Respectively. Igned by the President July 17, 1916. 8. Provides for a federal land bank stem in the continental United States xcluslve of Alaska), dividing the untry Into twelve land bank districts mposed of whole states. 8. The system is operated as a bu- f?au or the United states treasury de partment and supervised by the fed eral farm loan board. The secretary t the treasury is ex-officlo chairman f the board with four other members ppointed by the president for eight lears at an annual salary of $10,000. ne member is designated farm loan pmmlssloner and is the active execu- ve officer. 3 Appointees of Board: (a) Farm pan registrar for each land bank dls- ict and (b) Ono or more land appraisers for ach land bank district. Salaries paid y federal land bank or Joint stock md bank for which they act (c) Land bank examiners; salaries aid by the United States. (d) Attorneys, experts, assistants (tid other employees to be paid by the nlted States. -17. Powers of the Board: (a) To . m . . S rgamze ana cnaner ieaerai iruu anks, joint stock land banks and na- on&i farm loan associations. (b) To review and alter the rate of Merest to be charged by federal land jankg for loans. (c) Td approve or reject any or all ans for bond issue and to grant or fuse any specific issue of farm loan jonds of federal land banks and joint ock land banks. (d) To regulate charges for ap- jralsal, examining titles and recording- (e) To appraise land securing mort- pges for bond issue. (f) To exercise general supervisory tithority over the federal land banks, rm loan associations and joint stock nd banks. 80. The' farm loan commissioner pall examine the laws of every state lid If on examination the laws of any ate are shown to afford insufficient pall be declared Ineligible under this Jet during the continuance of the laws a question. 82. The secretary of the treasury is futhortzed to deposit United States finds in federal land banks at current jovernrnent rates of interest, the ag jregatti of such funds not to exceed B.OOO.COO at any one time. EDERAL FARM LOAN BANKS ORGANIZATION. Section 4. One in each land bank Istrict. Branches permitted within s district. Officers: President, vice president, secretary and treasurer; di jsctors; six representatives of farm an associations and three represent- hg the public interest. Attorneys, as- ?tnnts. experts and other employees. II salaries fixed by farm loan board kid paid by bank. Subject to semian nual examination by land bank exam- jer. CAPITAL STOCK. Sec. 5. $7110,000. May be owned by idividuaii, firms, corporations and the ntted States and state governments. Sec ft. Shares, $5 each. Sec. 5. AJ! stock remaining unsub :ribed 30 days after subscription fooks are opened shall be subscribed the United States and thereafter hly the United States government and prrowers may acquire snares or stock. Sec, 5. United States government lot to participate in dividends. All Her stockholders share dividends bually. Sec 5. The original capital stock mil be gradually retired ufter the ;ock held by farm loan associations lall amount to $750,000. Sec. 5. Not less than 5 per cent ' capital shall be Invested in United tates government bonds. POWERS. Sec. 13. To buy first farm mort- ages within Its district and to issue d sell farm loan bonds. Sec. 13. To receive from farm loan soclatlons Interest and amortization liyments on mortgages and farm loan mds. Sec. 13. To acquire and dispose of a.l and personal property necessary t the convenient transaction of busl- fcss; and land taken In satisfaction of bts or purchased under Judgments, crees or mortgages held by It. Shall lit hold title exceeding five years. Sec. 13. To accept deposits of se lrities or current funds from member soclatlons but pay no interest there u Sec. 13. To borrow money on sec urity and pay interest thereon. j Sec 13. To buy and sell United Sates bonds. j Sec 13. To appraise lands for bond 'sue and to charge applicants and bor owers the cost of land appraisal, ex 'nining titles, recording and other le--il fees, said fees to be paid In cash or be made part of loan and paid In amortization payments. Sec. 14. To accept mortgages only from farm loan associations and ap proved agents. Sec. 14. To accept deposits of cur rent funds only from Its stockholders. Sec. 6. To become financial agents of United States government and de pository of public money. Public de posits cannot be Invested In mort gages or farm loan bonds. Sec. 13. To deposit Its securities and current funds subject to check with any member bank of the federal reserve system and to receive Interest thereon. BONDS. Sec. 20. Issued in series of $50,000 or more, in denominations of $25, $50, $100, $500 and $1,000. Sec. 20. May bear a maximum rate of 5 per cent Interest per annum. Sec. 19. Mortgages and United States government bonds equal in amount to the farm loan bonds issued are retained as collateral security by the land bank registrar. Sec. 14. The outstanding farm loan bonds shall not exceed 20 times the capital and surplus. Sec. 21. Shall be guaranteed by bank of issue and all other federal land banks. Sec. 17. No issue Is authorized without the approval of the farm loan board. Sec. 22. Substitution of mortgages and United States government bonds held as collateral to farm loan bonds Is permitted. TAXATION. Sec. 26. The capital stock, sur plus, mortgages and farm loan bonds and all income derived therefrom are exempt from federal, state, municipal and local taxation. Sec. 26. Real property taken and held under the provisions of sections 11 and 13 is not tax exempt. AGENTS. Sec 15. Incorporated banks, trust companies, mortgage companies or chartered savings institutions may act as agents for federal land banks if no farm loan association has been formed in a given locality after one year. Sec. ' 15. Borrowers securing loans through agents are required to sub scribe 5 per cent of the loan to the capital of the federal land bank. S,ec. 15. Agents are entitled to a commission of one-half of 1 per cent per annum on unpaid principal of each loan they negotiate and the bank shall pay agent for actual expenses for ap praising land, examining titles, exe cuting and recording the mortgage pa pers which shall be added to the face of the loan. Sec. 15. Agent9 shall Indorse and become liable for the payment of the loans they negotiate and the aggre gate unpaid principal of such loans shall not exceed ten times the agent's capital and surplus. Sec. 15. Agents . are required to make good any default within 30 days after notice. Sec 15. All collections made shall be remitted without charge. SPECIAL PROVISIONS. Sec. 22. Amortization and other payments constitute a trust fund to be Invested as follows: (a) To pay off maturing farm loan bond Issues. (b) To purchase farm loan bonds. (c) To lend on first farm mortgages within the district. (d) To buy United States govern ment bonds. Sec 23. Reserve and dividends : No limit Is placed on dividend distributions after a reserve account has been built up from earnings equal to 20 per cent of the capital stock and after 5 per cent of the net earnings annually thereafter are added to the reserve ac count. Sec 23. Reserve funds to be Invest ed as prescribed by the federal farm loan board. Sec 27. Farm loan bonds are lawful Investments for fiduciary and trust funds and security for all public de posits. Sec 27. Federal reserve bank may buy and sell farm loan bonds. Sec 29. Provision Is made for dis solution and the appointment of a re ceiver. Sec 14. No commission or charge not specifically authorized In this act shall be demanded or received. NATIONAL FARM LOAN ASSOCI ATIONS ORGANIZATION. Section 7. Ten farm owners desir ing loans aggregating $20,000 or more may form such an association. Sec. 7. Its affairs are administered by five directors, including president, vice president and a loan committee of three serving without compensation, and by ;i secretary treasurer with sal ary fixed by the farm loan board and paid by the association. CAPITAL STOCK. Sec 8. Shares. $5 each; (9) carry ing double liability; (S) may be owned only by borrowers who are required to subscribe 5 per cent of their loan In the capital stock of the association which In , turn subscribes an equal amount of stock In the federal land bank. Sec 8. Shares are paid for In cash or (9) the amount may be added to the face of the loan and retired In amorti zation payments at par. In such case the face of the loan shall not exceed the 50 per cent and 20 per cent lim itation. , Sec. T. Assessment on shares may be levied for operating expenses If funds are not otherwise available. POWERS. Sec. 10. To appraise land for mort gage through its loan committee of three. Sec. 11. To Indorse and become liable for the mortgages of Its share holders. Sec. 11. To receive and deliver the proceeds of loans to borrowers. Sec. 11. To acquire and dispose of property necessary for the convenient transaction of its business. Sec 11. To Issue certificates of de posit for not longer than one year and to pay 4 per cent interest thereon, convertible Into farm loan bonds at the federal land bank of Its district. Sec. 7. To receive? and transmit to the federal land bank payments of In terest and principal and amortization payments. LOANS. Sec. 12. Loans shall be secured by first mortgages on land within its land bank district. Section 12. To run from 5 to 40 years with amortization and with ad ditional optional prepayments after five years. Sec 12. Interest on loans shall no exceed 6 ner cent per annum on th unpaid principal. Sec 12. Borrowers shall pay 8 per cent simple Interest on defaulted payments. Sec 12. Loans may be made for the following purposes and for no other under penulty : (a) To purchase land for agricul tural purposes. (b) To purchase equipment, fertil izer and live stock for the operation of the mortgaged farm. (c) To provide buildings and for the Improvement of farm lands. (d) To pay debts existing at time of organization of the first national farm loan association within the county. Sec 12. Maximum loan $10,000; minimum loan $100. Sec. 12. No loan shall exceed 50 per cent of the value of the land mortgaged and 20 per cent of the permanent In sured improvements. Sec. 12. No loans shall be made to any person who is not at the time or shortly to become engaged In the culti vation of the farm mortgaged. Note. All applications for loans originate with the national farm loan associations or agents and all loans are made and closed by the federal land banks. This does not apply to joint stock land banks. TAXATION Sec. 26. Game as applies to federal land banks. SPECIAL PROVISIONS. Sec. 9. Associations may retain as commission one-eighth of 1 per cent semiannually from Interest payments on the unpaid principal of loans. Sec. 9. Associations may borrow from federal land banks at 6 per cent annual Interest up to one-fourth of its total stockholdings In said bank. Sec 24. Reserves and dividends: No limit Is placed on dividend distri butions after the reserve account, built up from net earnings equals 20 per cent of the capital stock and after 2 per cent of the net earnings annually thereafter are added to the reserve ac count. Sec. 25. Defaults must be made good within 30 days after notice. Sec 29. Provision is made for dis solution and the appointment of a receiver. JOINT STOCK LAND BANKS ORGANIZATION. Section 16. A private corporation subject to the requirements under this act which may be formed by ten or more persons with a board of directors of five or more. Sec. 16. May operate within the state in which its principal office is lo cated and vvithin some one contlngu ous state. Sec 28. Subject to semiannual ex aminations by the federal land bank examiner. CAPITAL STOCK. Sec 16. $250,000 minimum. Sec. 16. Double liability of share holders. Sec. 16. The United States govern ment shall own none of the shares of stock. Sec 16. No farm loan bonds can be Issued .until the capital stock is fully paid, although the bank may begin business when one-half of the capital Is subscribed and paid In cash. POWERS. Sec. 16. To lend money on , farm mortgage security. Sec. 10. To Issue and sell farm loan bonds. Sec. 16. To Issue farm loan bonds up te 15 times the amount of Its capi tal and surplus. Sec. 16. Except as otherwise pro vided it has the powers of and Is sub ject to the restrictions Imposed ou federal land banks. PRIVILEGES. Sec 16. May lend more than $10,000 to any one borrower, but not beyond 50 per cent of the value of the land and 20 per cent of the permanent In sured improvements. Sec. 16. Loans are not restricted to the purposes prescribed for rational farm loan associations. Sec 16. Loans may be made to farm owners regardless of whether en gaged In cultivation of the land mort gaged or not. Sec 16. Interest on loans shall not exceed more than 1 per cent, the in terest rate established for its last series of bonds, nor more than 6 per cent In any case. Sec 16. Commissions or other charges not specifically authorized by this act shall not be demanded or re ceived. BONDS. Sec 20. Issued In series of $50,000 or more, in denominations Of $25, $50, $100, $500 and $1,000. Sec. 20. May bear maximum rate of 5 per cent Interest per annum. Sec. 16. Bonds shall be so engraved as to be readily distinguishable from federal land bank bonds. Sec. 19.' Mortgages and United States government bonds equal in amount to the farm loan bonds Issued are retained as collateral security by the land bank registrar. ' Sec 17. No issue Is authorized with out the approval of the farm loan board. Sec 27. Federal reserve banks are authorized to buy and sell the bonds of joint stock land banks. Sec. 22. Substitution of mortgages and United States government bonds held as collateral to farm loan bonds Is permitted. Sec. 27. Its bonds are lawful Invest ments for fiduciary and trust funds and security for all public deposits. TAXATION. Sec 26. The capital stock, surplus and earnings are subject to the taxing powers of the state. Sec 26. Its mortgages executed un der this act and its farm loan bonds and all Income derived therefrom are exempt from federal, state and munic ipal and local taxation. Sec. 26. Real property taken and held under the provisions of sections 11 and 13 is not tax exempt SPECIAL PROVISIONS. Sec 6. Joint stock land banks are made public depositories and financial agents of the United States govern ment Sec. 6. Public deposits cannot be in vested in farm mortgages or In farm loan bonds. Sec. 16. Rates of interest for loans ' under 6 per cent are not subject to review or alteration by the farm loan board. Sec. 13. Shall receive no deposits except public deposits. Sec 22. Amortization and other payments constitute a trust fund to be invested as follows: (a) To pay off its maturing farm loan bonds. (b) To purchase farm loan bonds. (c) To lend on first mortgages with in its prescribed field. (d) To purchase United States gov ernment bonds. Sec 23. Reserve, and dividends pro vided for as in the case of federal land banks. Sec. 29. Provision is made for dis solution and the appointment of a receiver. THIS DEALER HAD REAL TAC1 Stout and Thin Customers Use Special Mirrors in Wearing Apparel Establishment A dealer in wearing apparel, noticing that his stout customers and his very thin customers ofte.i were sensitive as to their figures, Installed two full length mirrors of special design, says Popular Mechanics magazine. One was slightly concave and the other slightly convex. When a stout customer tried on a suit she was led to the concave mirror for self-Inspection, and was able to see her figure as it would appear with Its measurements reduced. When a thin person came in to try on clothes she was taken to the convex mirror, where the opposite effect was pro duced. Only Moistened His Lips. Omer Scudder, a Columbus real es tate and Insurance agent told some of the other business men who have of fioes In the Bassett building that he was hot They agreed that they were just as hot as he was. "I can eat all the Ice cream you fellows are willing to buy," Scudder declared. The others made up 60 cents and sent out for a half gallon of cream. They had a notion that Scudder would eat about a quart after which they would divide the remaining quart among themselves. Scudder surround ed the entire half gallon of Ice cream, smacked his lips and asked them whether they were not going to get him enough Ice cream for a real taste. The business men looked at each oth er, smiled sickly and returned to their places of business. Indianapolis News. The Three Philosophers. For the first time In their lives three genuine, simon-pure philos ophers went out riding In a motor car. After they had ridden about twenty miles out In the country the car broke down. Said the first philosopher: "I have long wanted to study certain as pects of nature, and this affords me the particular prospect I most ad mire." Said the second philosopher: "I observe there is a farmhouse over there where food can doubtless be ob tained In sufficient quantities." Said the third philosopher: "I have long wanted to be in a situation where, without moving, sustenance would be" brought to me by one friend, while the other discoursed on the beauties of uature." Life. SECY BAKER WIRES PLANS Movement For Relief of Deutltut Carolinians. Advises Co-operation With Government. Raleigh. Governor Craig received a telegram from Secretary Baker of the United States War Department advising him of a movement he has launched for hte inspection and relief of the flood-swept sections tof Western Carolina and suggesting that the Gov ernor and the local relief committees In the flood sections get in touch at once for inspection work. The telegram follows: "Instructions have been iasued to the United States engineers at Char leston, Montgomery and .VTpbile to proceed at once with relief work in aid of destitute persons in the fioodod distrlsts. I suggest that you Invite local officials and committees on re lief to get in touch with the Charles ton office with a view to securing tno most effective results by co-operation in your state in the Catawba River district. Nashville, Tenn., engineers office is Investigating the French Broad district." Governor Craig said that he is anx ious for the local committees through out the flooded regions to follow the suggestions of the Secretary of War and get in touch immediately with the engineers looking after relief in their respective sections. Contributions for the relief of the flood sufferers continue to come in and the money accumulated is be ing held, now, that urgent immediate relief needs have been met, awaiting a meeting of the General Relief Committee August 11th, when it is likely that a very substantial sum will be set aside for restoration of highways with the understanding that the money is to be paid out in good wages to really needy men In the sections. Delegates Are Named. Raleigh. Governor Craig has an nounced appointment of delegated to the Atlantic Deeper Waterways Asso ciation, Philadelphia. September 12 15 ; Tenth Annual Conference of the National Tax Association, Indianapo lis, August 28-31; and the Association of Governmental Labor Officials at Buffalo, N. Y., July 17. Also there were issued commissions to 30 of the most prominent negro educators to attend the Negro National Education al Conference at Washington August 23-26. For the Governmental Labor Offi cials Conference Commissioner of La bor and Printing M. L. Shipman; Commissioner of Insurance James R. Young, Dr. W. S. Rankin and Com missioner of Agriculture W. A. Gra ham, of Raleigh, and J. Hayden Ram sey, of Ashevllle, are commissioned. Delegates to the National . Tax As sociation are Vance Brown and Rob ert C. Allen, of Asheville, and Stuart Daniel of Wanchese. Farmers Buying Property. Monroe. An address by Maj. W. A. Graham, commissioner of agriculture, was the principal feature of the Community Service School at Indian Trail in this county. Major Graham told the 400 farmers gathered to at tend the school that North Carolina Is becoming a home owning state de spite arguments to the contrary, ac cording to statistics gathered from 61 counties, showing the 2.987 renters had bought homes during a period closing recently, in which period only 102 home owners became" renters. Major Graham says he is going to complete the canvass of the state and get the exact data of each section and the state as a whole. Gaston County Fair. Gastonla. Secretary J. M. Holland of the Gaston Fair Association is mailing premium lists for Gaston county's 1916 Fair, which promises to be one of the largest county fairs to be held in the state. New buildings are being erected and new features added to the fair ground. Several thousand dollars in premiums are to be awarded. Votes $50,000 For Bridges. Newton. Fifty thousand and more. If necessary was ordered borrowed by the- Catawba county commissioners In special session for the purpose of putting back four Catawba river bridges washed away and one new bridge at Lookout, together with minor bridges in the county. NORTH CAROLINA BRIEFS. "Not a charity, but work for those made destitute by the flood," is the substance of a message sent from Asheville to the North Carolina mem bers of Congress regarding the Fed eral appropriations made for the flood stricken states of the south. Caldwell county was even harder hit than Catawba, because railroad communication has ceased altogether and it will be at least three weeks before trains move into Lenoir, it is said. Johhn Savage, the Washington County negro, paid the extreme pen alty in the electric chair at the state's prison for the murder of an aged white man in Washington county. Caldwell county will borrow fifty thousand dollars at once for the pur pose of repairing and rebuilding the bidges and highways which were recently destroyed and damaged by the floods. Wilmington now has a company of enineers officially designated as Company A Engineers, North Caro Una National Guard. I TO BE SPECTACULAR EVENT WRIGHTSVILLE, AUG.17-18 Wrlghtsvllle Beach, N. C, Aug. 9. Glomo and Despair will be chased into their cave in the side of a Wrlghtsvllle Beach sand dune and the door forever sealed in the presence of a snorting, fiery-eyed, hundred foot dragon, ten beautiful queens from Carolina and other Southern cities, and 10,000 per sons who will gather to take part in the spectacular Feast of Lanterns on Wrlghtsvllle Beach, August 17th and 18th. Thousands upon thousands of lan terns of brilliant colors will flash and reflect upon the waters and Illuminate the blight hues of the decorations which will comprise a part of the riot of color which is to be a characteris tic of the Feast of Lantern. The Feast of the Lanterns is an an nual event on Wrlghtsvllle Beach, the only difference between the one this year and those of previous times is that this year's will be of such propor tions as to attract people here from all parts of this state and from even as far away as Alabama, Georgia and other Southern States. Railroad rates so low as to be attractive to ou sands have been granted by all il.ies leading to Wrlghtsvllle Beach. Some of the features of the two day celebration will include, the parade which will have its basis in the allego rical, in which the gleaming dragon will chase to his cave and seal Gloom and Despair this parade will be near ly two miles long a pyrotechnic dis play of magnificent proportions; a pa rade of illuminated boats; thepresencd of the queens of the Feast and the announcement of the order of excel lence of their equipage; the children's parade and dance; the banquet to Car olina mayors; the exhibitions of Jap anese tumblers and a half-hundred other features. 8EVERAL COMMODITIES SHOW LOSS IN EXPORTS) Washington. Exports of foodstuffs, cotton and oils from the United States during the fiscal year just ended did. not equal those of the previous year. Statistics announced by the depart ment of commerce show shipments of those commodities totaled $1,289,735, 326 a decrease of $58,400,000 from 1915. Breadstuff's showed the greatest loss with $142,700,000, the largest falling off being in wheat exports which de creased $118,000,000. Oats exports were $9,600,000 less than last year, corn $8,800,000 less; and flour $8,000, 000 less. Meat and dairy products exports in creased ' $54,800,000 over 1915. Bacon gained $41,000,000; ham and shoulders $11,800,000; pickled pork $8,000,000 and fresh beef $7,000,000. DIRT NOT CAUSE OF INFANTILE PARALYSIS New York. There is no relation be-' tween lack of cleanly surroundings and infantile paralysis, according to a statement issued by Health Commis sioner Emerson, who said that investi gations made up to the present had not established that rubbish and refuse were carriers of the disease. Conditions on Barren Island, where the city's garbage disposal plant Is situated, were cited by the commis sioner, who said hundreds of children who live there have thus far escaped the disease. He told also of incidents in which the disease had invaded dis tricts which were 'immaculately' clean, whereas neighboring communi ties not so well kept were free of the malady. "People can not be too sareful, however, In personal and neighbor hood cleanliness," he said. Four Steamers Sunk. London. Lloyd's annuonces t.hav Binklng of the following vessels: The Greek steamer Trlcoupis. 2.387 tons of Cephalonia. The British steamer Tottenham, for merly the Harewood. 3.106 cross ton. of London. - ' The British steamer Eavonian. for merly the Alnwick, 3,094 eross tons of Newcastle. The Italian steamer, Siena. 4.553 tons of Geona. The Tootenham and Favonian wer nuarmed. . AUGUST 7 & 18 17RIGHTSMLE BEACH The Resort of North Carolina Stupendous Fireworks, Brass Bands, Boat Racing, Souvenir Dancing, Collosal Parade, Ani mated Dragon. Low Railroad Rates on all rall- rc.ids, and a good time promised to all; with all attractions free. FEAS OF LANTERNS THE FEAST 0F1AHTERHS
The Roanoke Beacon and Washington County News (Plymouth, N.C.)
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Aug. 11, 1916, edition 1
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